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J K Lakshmi to set up fourth RMC plant in Gujarat

BS Reporter  |  Mumbai/ Ahmedabad 

To come up near A’bad at an investment of Rs 10 crore.

J K Lakshmi Cement, that already has three ready-mix concrete (RMC) plants in Surat, Ahmedabad and Vadodara, is going to set up another plant near Ahmedabad this year to bank on the growing demand in the RMC segment.

Shailendra Chouksey, whole time director and chief executive officer of JK Lakshmi Cement Ltd told Business Standard that "We plan to put up one plant near Ahmedabad and more could also come up in the nearby regions. The investment per plant is likely to be around Rs 10-12 crore".

This is a part of the company's overall plans to set up around eight to 10 RMC plants in Gujarat, Maharashtra and the northern region. "Another plant is planned near Mumbai", Chouksey said. The RMC plants are expected to bear a capacity of 60 cubic metres per hour each, he added.

Studies conducted by JK Lakshmi indicate that by using RMC, one can achieve almost 15.5 per cent savings in construction costs in terms of factors such as quality and wastage-avoidance. RMC is a mixture of the portland cement, water and aggregates comprising sand and gravel.

J K Lakshmi already has a grinding unit at Kalol and its net installed capacity in Gujarat is around 5 lakh tonnes per annum(tpa). The company's plan to put up another 5 lakh tpa plant near Kalol ,however, is yet to take off. Chouksey said, "We have not progressed much in that area".

J K Lakshmi reported a 14 per cent increase in sales at 3.64 lakh tonnes for May against 3.19 lakh tonnes in the same month last year.

The production of the company grew by five per cent to 3.55 lakh tonnes during the month compared to 3.37 lakh tonnes in May, 2009. The company has an installed capacity of 3.65 million tonnes per annum in the country.

First Published: Thu, June 17 2010. 00:26 IST