J K Lakshmi Cement in acquisition mood

The Indian-based J K Lakshmi Cement has said that it is looking to make an acquisition either in India or overseas in a move to double its installed capacity to 12 million tpa within two years.

The company is currently expanding its clinker capacity at Sirohi in Rajasthan, and has started work on a 2.7 million tpa new plant at Durg in Chattisgarth scheduled to come onstream at the end of 2012. At that stage the company’s capacity will be over 8 million t. Company Director Shailendra Chouksey has said that there are two main criteria for a proposed acquisition – a region’s growth potential and the industrial climate, in addition to the cost of the target company.

When asked about possibilities in the Middle East, Chouksey said, “I feel the Middle East has reached an economic stagnancy in its growth. The region is very shortly going to face a serious surplus situation due to new capacities being created in Saudi Arabia and in the UAE. We are not averse to the market, if the location is conducive for exports to other countries, including India”.

 When looking at the funding of the proposed expansion and acquisition, the Director confirmed that the company has over Rs 700 crore cash surplus.

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