NEW DELHI: JK Lakshmi Cement is targeting a capacity expansion from 18 million tonnes to 30 million tonnes by 2030, backed by ₹2,500–3,000 crore investment in the first phase and additional developments across Rajasthan, Gujarat, the East, and the North East.
In an exclusive interaction with ET Realty, Arun Shukla, president and director of the company, talked about his plans to scale adjacent businesses like AAC Blocks and RMC, aiming to double their revenue contribution to ₹1,000 crore within a year. He also discussed the ongoing subsidiary merger, expected to conclude by July–August 2025, and reaffirmed the company’s goal of achieving carbon net-zero status by 2047 through renewable energy, digitalisation, and waste reuse strategies. Edited excerpts:
What are your expansion plans?
Currently, we are at 18 million tonnes capacity. We want to reach 30 million tonnes of capacity by 2030. We have already announced some of the expansion projects. About 4.6 million tonne capacity will be added in the East by FY27-FY28. Apart from that, we have acquired mining lease rights in Nagore, Rajasthan and Kutch, Gujarat where we will add three million tonne capacity each.
We do have plans to set up our integrated grinding unit in the North East with about 2.5 million tonne capacity.
We also have plans to add a third line in the Udaipur Cement Works (UCWL) plant by FY29-FY30.
How much are you going to invest for this expansion?
As of now, we plan to invest about ₹2,500-3,000 crore to add 4.6 million tonne capacity. All other projects will be developed in phases.
What is your capacity utilization?
Cement industry’s average capacity utilization is around 65-69 per cent while we have always been over 75 per cent. One thing we need to understand is the cyclicity of this industry. During monsoon season demand goes down atleast by 30-35 per cent and during peak period, which is January to March, demand goes to maybe about 110-120 per cent. How are you going to manage that? If you do not have the capacity to meet the demand at its peak, you will lose business hence you have to have additional capacity.
Also, it takes about 4-5 years to establish a plant, hence we have to plan the capacity for the future. So I don’t think that you will find cement capacity utilization at 80-85 per cent and it’s always going to be about 70-75 per cent at max.
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