The Hindu Business Line : JK Cement plans integrated greenfield plant in Karnataka

MR Yadhupati Singhania, promoter of the Kanpur-based JK Cement Ltd, is planning to set up an integrated greenfield cement plant of three million tonnes per annum capacity in Karnataka.

A senior official of JK Cement said that, if needed, a joint venture partner may be roped in for implementing the project. The Karnataka Government has already given the mining lease, which is being held by Jaykaycem Ltd, a special purpose vehicle (SPV). The proposed cement plant is likely to have a grinding unit and a power plant too.

Mr A.K. Saraogi, President (Corporate Affairs & Chief Finance Officer) of JK Cement, said the SPV was floated three-four years ago. However, it got the lease only recently.

According to him, the approximate cost of setting up this plant would be Rs 750 crore. A formal proposal would be placed before the board of directors of JK Cement within 3-4 months.

The company has appointed global cement consultancy major Holtec Engineering to prepare the techno-economic feasibility report. "Once we get that report it will be forwarded to the board of directors of JK Cement," Mr Saraogi told Business Line.

However, the company has not decided on the funding mechanism of the project. Meanwhile, JK Cement, which is known for its white cement, is hoping to raise Rs 250-300 crore, early next year from a public issue. The funds would be used to raise capacities and set up captive power plants.

Two million shares would be offered through the book-building route. The formal application was filed with SEBI (Securities and Exchanges Board of India) on December 5. DSP Merill Lynch has been appointed the lead manager.