JK Lakshmi Cements To Raise Rs 600cr
JK Lakshmi Cement Ltd plans to raise Rs 600cr through a combination of ECBs and rupee term loans in the next quarter to part finance its Rs 1,550cr Greenfield projects in the northern and eastern parts of the country.
The company has already raised Rs 200cr debt recently from a consortium of banks- IDBI, SBI, Axis, PNB, as part of the fund raising for financing the new plants.
J K Lakshmi Cement was established in 1982 under the JK Group of companies. Currently, the company makes 4.8 MT of cement a year, and has a target to raise the capacity to 8 MT in 5 years.
JK Lakshmi Cement has cash reserves of Rs 450cr, and is expected to use these funds to part finance the building of a 2.7-MT cement plant in Chhattisgarh, which will be commissioned by 2013. The company is increasing its clinker capacity in Rajasthan to 39.6 lakh tonne, from 36.3 lakh tonne and also plans to raise the grinding capacity in Haryana to 47.5 lakh tonne, from 42 lakh tonne.
JK Lakshmi Cement sells cement in the western (65%) and northern (35%) states It has a network of over 2,000 dealers in Rajasthan, Gujarat, Delhi, Haryana, UP, Uttarakhand, Punjab, Jammu & Kashmir, Himachal Pradesh and Mumbai. Bulk of the consumption last fiscal was in Haryana, Punjab and Rajasthan, accounting for 21%, 18% and 31%, respectively.
According to IBEF, Indian cement companies added nearly 11 MT capacity during April-September 2009, taking the total installed capacity to around 231 MT by September 2009. Cement despatches have maintained a 10% growth rate. Total despatches grew to 170 MT during 2007–08 as against 155 MT in 2006–07.
The cement industry recorded a new high in despatches in January due to increase in demand. It sold 18.19 MT in January, as compared to 18.1 MT in March 2009. Major players in this space are Dalmia Cements (Bharat) Ltd, Grasim Industries Ltd, Ultratech Ltd, India Cements Ltd and Holcia Ltd.
Earlier this month, Reuters had reported Dalmia Cements' plan to raise $100mn by March via stake sale in its subsidiary Dalmia Cement Ventures Ltd.
Transaction Referece: ET
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KVEZAR VIEW
| Date | Type | Buyer | Target | Size ($mn) | State |
|---|---|---|---|---|---|
| 06/02/12 | M&A | Looking For | VRL Cement Limited | - | Planned |
| 03/02/12 | Private Equity | Emerging Markets Management LLC | Sintex Industries Limited | 2.97 | Completed |
| 02/02/12 | M&A | Binani Industries Limited | 3B - The Fibreglass Company | 362.00 | Completed |
| 16/01/12 | M&A | Dalmia Bharat Sugar and Industries Limited (Dalmia Cement Bharat Ltd) | Calcom Cement India Limited | 46.03 | Announced |
Company |
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| Name | Promoters | Office | Competitor | Website |
|---|---|---|---|---|
| JK Lakshmi Cement Limited | HS Singhania Group | Jayakyapuram Basantgarh Distt Sirohi, Rajasthan 307019 |
Dalmia Bharat Sugar and Industries Limited (Dalmia Cement Bharat Ltd) Grasim Industries Limited Ultratech Cement Limited Holcia Limited The India Cements Limited Penna Cement Industries Limited |
www.jklakshmicement. com |
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