JK Lakshmi clarifies on expansion plans

With reference to the news item appearing in a leading financial daily titled, "Lakshmi Cem Plans Rs 400 cr expansion", JK Lakshmi Cement Ltd has clarified that the Company is pursuing the RMC business aggressively. It is already operating 5 RMC plants and hopes to add at least 5 to 6 plants during the coming financial year. Further, the Company has already started the work on the projects for further expanding its capacity from the existing 3.4 million MT to 5 million MT.

The aforesaid capacity enhancement is expected to be completed by October 2008. This will entail additional power requirement of about 18 MW and necessary modifications, etc. in the Plant. For additional power, the Company will have to enhance the capacity of the captive thermal power project by equivalent quantity or outsource it if the power is made available at the same or cheaper cost than the cost of captive generation. The estimated investments for the aforesaid projects would be about Rs 400 Crore.

The stock was trading at Rs.106, up by Rs.2.40 or 2.32%. The stock hit an intraday high of Rs.106.10 and low of Rs.103. The total traded quantity was 12948 compared to 2 week average of 50717.

Source : Equity Bulls

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