CEE Jan-Mar 2012

tonnes. Apart from this organic expansion, the company plans to add another 2 million tonnes capacity through the inorganic route and is looking for acquisition target for the same, added Singhania. While commenting on JK Lakshmi cement's intention to make an overseas acquisition, Shailendra Chouksey, Whole– time Director, said, "Two main criteria for the acquisition overseas would be - the region's growth potential and the industrial climate, besides the cost of the target company. We are not of the target company. We are not averse to the market, if the location is conducive for exports to other countries, including India." J K Lakshmi is already in the process of expanding its clinker capacity at Sirohi in Rajasthan and the same is expected to be complete within the ongoing fiscal. The company is also working on a similar expansion across its Haryana plan for around 0.55 million tonnes and the same is expected to be completed during the next financial year. The two expansions would take the company's total capacity to 5.3 million tonnes. In addition to the expansion process the company is working on setting up an all new plant at Durg in Chhattisgarh with a capacity of 2.7 million tonnes. All these initiatives are part of the company's plan to expand its total domestic capacity to over 8 million tonnes by December 2012. The company also plans to set up facilities to make ready mix concrete. While elaborating on the financials for the expansion, Chouksey pointed out that JK Lakshmi has a very comfortable debt equity position with a ratio of 0.9:1 in addition to a cash surplus of over Rs 700 crore. Hyderabad based Ramky Infrastructure Ltd. the flagship company of Ramky Group, has recently bagged projects worth Rs. 1,051.83 crore across various sectors including roads, industrial, water, waste water treatment, power, irrigation and building construction. Ramky Infra has bagged orders for Delhi State Industrial and Infrastructure Development Corporation Ltd , Karnataka State Highways Improvement Project, PWD Amritsar and MP Paschim Kshetra Vidyut Vitaran Co. Ltd from Maharashtra. Ramky has total construction order book value of Rs 14,318 crore across India and West Africa. Courtesy: Construction Industry Review, Jan. 23, 2012. P11. MADRAS CEMENT TO INAUGURATE POWER PROJECTS Madras Cement is expected to have a good year in 2012. The Indian cement sector did well last year and its good performance is expected to continue this year. Demand for cement in the country has increased last year with the sectors overcapacity set to go down increasing capacity utilization rates. Cement prices are also expected to remain stable this year allowing cement makers to achieve better realizations. The company is also expected to do well in its traditional southern strongholds which are expected to see increased cement demand. The company earlier stated that it is forgoing capacity expansion in favour of maximizing profits. The company intends to inaugurate several power projects to reduce its energy costs while reducing its debt burden. The company however is expected to suffer from the short term volatility of the coal markets which may increase its production costs. Courtesy: Construction Industry Review, February 06, 2012, P1 2. MURLIINDUSTRIES TO DOUBLE CAPACITY UTILISATION Murli Industries plans to double capacity utilization of its plant to 80 per cent. The company which recently forayed into the cement sector has built a 3 million tonne a year plant at Chandrapur in 2010, which is now being run at 40 per cent capacity. It has also set up a 50 MW power plant. The plant at Chandrapur has been set up with an investment of Rs 1,000 crore of which 70 per cent is debt. Courtesy: Konstruction Review, Jan. 09, 2012, P12. SHREECEMENTEARMARKS FUNDS FOR KILN IN RAJASTHAN India-based Shree Cement has placed equipment order of nearly Rs 700 crore for kiln to be installed at its Rajasthan unit. The company has also an order with Cologne-based KHD Humboldt Wedag for a 4,500 tonnes per day or 1.5 Mtpa plant kiln unit. "We have placed order of close to Rs 700 crore for our 1.5 million tonnes per annum plant 4