JK Cement to invest Rs 750 cr on Greenfield cement plant in K'taka

Mumbai, Aug 3 (UNI) The Kanpur-based JK Cement will invest over Rs 750 crore to set up a Greenfield project of three million-tonne cement plant at Mudgal in Karnataka.

Speaking to UNI, its President (Corporate Affairs)&CFO A K Saraogi said, with this project, JK Cement will enter the grey cement market of the Southern region. In this context, he pointed out that the company has already acquired a 100 per cent equity of Group company, JayKay Cem Ltd, for a consideration of Rs 5.25 crore.

Replying to a question, Mr Saraogi said the acquisition of JayKay Cem - which is having a mining lease of 82 million tonnes of limestone - was made at the rate of Rs 150 per share.

It has two grey cement plants and a white cement plant in Rajasthan.

The company hopes to leverage its existing white cement distribution network in southern India to start selling grey cement from the new plant.

The Greenfield project is expected to be commissioned by September 2008.

UNI SN MJ AW1930