New Delhi: Leading cement manufacturer JK Cement is embarking on a Rs 250 crore expansion plan, for which it is coming up with an IPO to raise funds to the tune of Rs 300 crore.
"Plans are afoot to increase the production capacities of our grey cement facility at Nimbahera and white cement plant at Gotan along with the setting up of captive thermal powerplants and heat recovery systems, which will require a total investment of Rs 250 crore," JK Cement Chief Financial Officer and President Corporate Affairs A K Saraogi said.
He said that the company was coming up with an initial public offer, which is expected to hit the market in January, to fund the expansions.
"Overall, we may look at raising about Rs 300 crore through the initial public offer. We have already filed the red herring prospectus with the Securities and Security Board of India for the issue, which will be through book building process," he added.
"The company had hired DSP Merill Lynch as the merchant banker for the initial public offer," he said.
The company's expansion plans at Nimbahera include hiking the capacity of the plant to 4 million tonnes per annum from the current 3.5 million tonnes, construction of up a 20 Mw captive power plant and setting up of 13.2 Mw waste heat recovery system.
"This will require about Rs 200 crore of investment," Saraogi said.
For the white cement facility at Gotan, the company plans to raise the production to 4 lakh tonnes per annum from the current 3 lakh tonnes per annum.
"Emphasis is being given on increasing the market share of our white cement and we are also looking at other value-added products like white cement wash to be prodcued from this facility," JK White Cement Works President (Works) B K Arora said.
A 6 Mw captive power plant was also being planned to be set up at the Gotan facility, he added.
The overall investment requirement for the expansion of the Gotan facility would be around Rs 40 crore, he added.
Arora said the company was seriously looking at entering other segments like flooring solutions and tule bonding solutions market.
"Currently our marketing team is conducting studies and we are hopeful of a positive outcome," he said, adding the company?s white cement wash would be launched in the next fiscal.
Saraogi said the comany's overall expansion would be completed in 22 months' time.
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