Aiming to augment its capacities, cement manufacturer JK Lakshmi is embarking on an expansion plan to set up five ready-mix concrete (RMC) plants, which could entail an investment of up to Rs 1,000 crore by the end of this fiscal.
"By March 2009, we will set up 4-5 RMC plants in four different locations to add value to our RMC business. With the growing demand of cement in the realty space in the country, we see a good future for RMC plants," Lakshmi Cement Managing Director Vinita Singhania told PTI.
She, however, declined to comment on the production capacities and the possible locations of the plant.
"We are targeting to set up 6-7 RMC plants per year as our existing facilities are undergoing optimum capacity utilisation," Singhania added.
On the size of the investment, she said the cost of setting up one RMC plant is between Rs 140 crore and Rs 200 crore.
"The company will fund the cost of expansion through internal accruals," she added.
The construction work of two plants is on and the company would launch the other projects very soon, Singhania said.
In the last financial year, J K Lakshmi set up five RMC plants each with a capacity of 60 cubic mt per annum at Ahmedabad, Baroda, Jaipur, Mohali and Surat taking the total number of RMC units to 10.
Besides, the national capital-based cement manufacturer is also enhancing its captive power generation by adding new plants.
