The Hindu : Business : J.K. Cement's public offer

Online edition of India's National Newspaper
Saturday, Feb 18, 2006

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Business

J.K. Cement's public offer

Corporate Reporter

Power projects to reduce cost

CHENNAI: J. K. Cement is entering the capital market on February 21 with a public issue of 20 million equity shares of Rs. 10 each through 100 per cent book building basis. The price band will be announced a day prior to the issue opening date. The offer closes on February 24.

Addressing presspersons on Friday, in connection with the public offer, A. K. Saraogi, Chief Financial Officer, said that to increase competitiveness and rationalise power cost, the company plans to put up a 13.2 MW waste heat recovery power plant and install a 20 MW petcoke based captive power plant. It will also be replacing the existing turbine with a new one of 10 MW capacity. Besides, the company will be increasing the grinding and production capacity of the grey cement plant to 4 million tonnes from the existing 3.50 million tonnes and enhancing the production capacity of white cement to four lakh tonnes from three lakh tonnes.

The total cost has been estimated at Rs. 237 crores, Mr. Saraogi said.

The company's cement division, since its inception in 1974, operated as a division of JK Synthetics, a company that manufactured man-made fibres. Pursuant to the scheme of rehabilitation, the JKSL cement division was acquired by the J.K. Cement as a going concernthrough a slump sale with effect from November 4, 2004.

The company has allotted 74.27 million equity shares of Rs.10 each aggregating Rs. 742.70 lakhs to shareholders of J. K. Synthetics on March 10, 2005.

The power projects, when completed, are expected to provide access to an additional 43 MW of power and will provide power equivalent to 86 per cent of requirements and reduce costs by 19.5 per cent.

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