JK Cement Ltd is planning capacity expansion at its grey cement facility at Nimbahera and white cement plant at Gotan (both in Rajasthan) along with the setting up of captive thermal power plants and heat recovery systems.

The project will entail an investment of Rs.250 crore for which the company is coming up with an initial public offer to raise funds to the tune of Rs.300 crore.

JK Cement has already filed the red herring prospectus with SEBI for the issue, which will be through book building process. The company had hired DSP Merill Lynch as the merchant banker for the initial public offer. 

The company's expansion plans at Nimbahera include capacity expansion from the existing 3.5 million tpa to 4 million tpa, construction of up a 20 MW captive power plant and setting up of 13.2 MW waste heat recovery system. This expansion plan will require about Rs.200 crore of investment.

For the white cement facility at Gotan, the company plans to raise the production to 4 lakh tpa from the current 3 lakh tpa. Emphasis is being given on increasing the market share of our white cement and are also looking at other value-added products like white cement wash to be produced from this facility. 

A 6 MW captive power plant was also being planned to be set up at the Gotan facility. The overall investment requirement for the expansion of the Gotan facility would be around Rs.40 crore.

The company's overall expansion is scheduled for completion by end-2007.

Also See:

JK Cement plans plant in Karnataka (02-Apr-05)