As part of its growth plans, JK Lakshmi Cement has decided to add up five more ready-mix concrete (RMC) units.

The company, which presently owns 10 RMCs, said that the addition of another five will be finished by the end of existing fiscal.

The RMC units will be set up with a total investment of Rs 1 billion.

The company’s new units will come up around Delhi and the NCR region, including Noida and Greater Noida.

Its ongoing capex is likely to be completed by December 2008 that will take its clinker and grinding capabilities to 4.75 million tonnes per annum (mtpa) and 3.63 mtpa, up from 3.65 mtpa and 2.97 mtpa, respectively.

The company will increase its cement capacity at the existing location at Sirohi (South Rajasthan) whereas a new facility has come up at Kalol (East Gujarat) having a capacity of 0.55 mtpa. Clinker capacity expansion would be undertaken at Sirohi. Out of the total capex of Rs 220 crore, Rs 7 crore was incurred during FY08 and the remaining would be expended in FY09.

Moreover, the company plans a 2.7-mtpa greenfield plant at Chhattisgarh with a capex of Rs 400-500 crore. The plant would commence operation by 2011.

Shailendra Chouksey, whole-time director, JK Lakshmi Cement, stated, “RMC is the business where the company will concentrate in the next few years as huge opportunity remains untapped.”

The new Chhattisgarh plant funding would be done through internal accruals, Mr. Chouksey added.

The company sold cement mainly in the western (65%) and northern (35%) states with a major presence in Rajasthan and Gujarat. It has recently made entry into the Mumbai market.

J K Lakshmi Cement announced a steady growth in standalone net profit for the quarter ended March 2008. During the quarter, the profit of the company rose 11.18% to Rs 676.30 million from Rs 608.30 million in the same quarter last year.

Net sales for the quarter rose 10.68% to Rs 2,913.50 million, while total income for the quarter rose 10.83% to Rs 2,929.70 million, when compared with the prior year period.

At 12:05 pm, shares of the company declined 3.7%, to trade at Rs 92.30 on the Bombay Stock Exchange (BSE).