JK Cement is seeking nearly to double its grey cement capacity to 18 million tons in four years with Greenfield and Brownfield expansions. JK Cement is one of the largest producers of the building material in limestone-deficient northern India.
The company is commencing on a brownfield expansion of 3.5 million tons at its Mangrol facility in Rajasthan.
According to Rajnish Kapur, head of grey cement business, this will involve capital expenditure of about Rs 1,500 crore. Mangrol work is expected to begin by end of this fiscal and commissioning is expected by end of 2019.
“In Panna, we already have a mining lease,” Kapur said. JK is also working on the evolution of an of 3.5-million greenfield project at Panna in Madhya Pradesh the cost is estimated between 1,750 and Rs 2,000 crore.
JK cement could consider raising cash through equity sales. Most of the funding will be brought in through a mix of internal accruals and debt. The company is most likely to raise funds from the market, but previous attempts did not meet with immediate success, cement analyst said who did not wish to be named.