Saturday, September 01, 2012

Sunny Gaur, Managing Director, Jaiprakash Associates Limited

You have a captive power capacity of 227MW. How important and beneficial this has been for you? Any plans to expand it further in near future?
The existing captive thermal power plants have reduced our power cost from `406 PMT in 2001-02 to `293 PMT in 2008-09. We are now planning to expand it further to 702 MW by FY12.

So far coal has been one of the key raw material and low coal linkages can impact your production units. Keeping that in mind, some players have started switching over to alternate fuels. Do you have any plans on this front?
We feel use of alternate fuel in India is still at a nascent stage. In our Group, we already have provisions to use lignite in our Gujarat plant and are evaluating usage of tyre. However, in the Indian context, usage of tyre is an area, which still needs of lot policy change.

Jaypee Cement, at present, is quite aggressive on capacity expansion. Would you like to share your expansion plans with us?

The increase in capacity will come from the group’s Greenfield projects in Gujarat, Andhra Pradesh, Chhattisgarh, Jharkhand and Uttar Pradesh.

Would you also consider inorganic route for expansion?
We are open to evaluate any such opportunity that may come our way. As on date Jaiprakash Associates Limited is the only company in India, which has taken over a plant declared as a sick industrial unit and successfully scripted a turn around story by restructuring the entire plant. We are open to such options.

You are looking at an investment of around `100 billion for capacity enhancement. How are you planning to fund it?
The investment to be done over the next 3 years aims at increasing our production capacity to 50 MTPA. The proposed investment will be funded through an optimum mix of debt and equity.

What is your prime target at present?
Achieving 34 MTPA installed capacity is our first target now. To achieve it we are now working on our new cement plants across the country.

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Source : IIPM Editorial, 2012.

An Initiative of IIPMMalay Chaudhuri
and Arindam Chaudhuri (Renowned Management Guru and Economist).

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