Jaypee Group aims to hike cement capacity to 50 MT in five years

Byyyp

Updated Wed, 18 Apr 2012 00:00:00 GMT

Jaypee Group is targetting to ramp up its cement-making capacity to around 50 million tonnes per annum (mtpa) over the next five years from 33.5 mtpa now, a top company official said.

"Our current capacity is 33.5 mtpa. By the end of this year, it will reach to 36 mtpa. We are evaluating various locations and are targetting to touch 50 mpta cement capacity over next five years" Jaiprakash Associates Ltd's Executive Vice President Shiva Dixit told reporters.

Though he did not divulge the investment that the company would require to hike its capacity, an industry source said, it could be over Rs 10,000 crore.

Jaiprakash Associates is the flagship company of the diversified Jaypee Group, which has interests in areas like real estate, cement and hospitality among others. Jaypee Group is at present the third largest cement maker in the country.

While it has presence in 11 states in the country, Jaypee Group plans to add capacity in states where it does not have presence like Karnataka in South and Assam or Manipur in North-East.

Dixit said plans are afoot to set up a three mtpa plant in Karnataka, but it is yet to finalise the location for a plant of around the same capacity in the North-East. The rest of the planned capacity would come up mostly in existing facilities.

"We plan to expand mostly in the current locations. We are working in 11 states. We have plans for states where we do not have presence, like Karnataka and North East. We do have plans for the East, but they are yet to be crystallised," he said.

Dixit said that the entire funding for the investments would be made through a 2:1 debt-equity ratio.

Jaypee Group sells cement across all regions, barring the South. Majority of its products go in the Central region where it had clocked 17 million tonnes sales last fiscal. It sold around five five million tonnes each in the North, West and East regions.