JK Cement, a leading name in the building materials industry and one of Indiaโs top manufacturers of grey and white cement, has announced a significant milestone in its expansion journey. The company has entered into a joint venture agreement with Saifco Cements, one of the premier cement brands in the Kashmir Valley. As part of the deal, JK Cement will acquire a 60% stake in Saifco Cements for โน174 Crore, valuing the enterprise at โน290 Crores.
This strategic partnership underscores JK Cementโs commitment to strengthening its foothold in Northern India and tapping into the immense growth potential of Jammu & Kashmir.
Saifco Cementsโ integrated manufacturing facility in Khunmoh, Srinagar, spans 54 acres and boasts a clinker production capacity of 0.26 MTPA and a grinding capacity of 0.42 MTPA. The unit is supported by substantial captive limestone reserves covering 144.25 hectares, with a total minable reserve of 129 MnT. These resources present an unparalleled opportunity to scale operations and meet increasing market demands.
Dr Raghavpat Singhania, Managing Director of JK Cement, expressed his enthusiasm for the venture, stating, โKnown for its rich culture and resilience, Jammu & Kashmir holds a special significance for us. This acquisition is a key step in accelerating JK Cementโs growth journey. By integrating our businesses, we aim to bring together expertise and resources to produce the finest cement for our customers and contribute to the nationโs development.โ
Currently, the per capita cement consumption in Kashmir is approximately 168 kilograms, significantly below the national average of 307 kilograms. Madhavkrishna Singhania, Joint MD and CEO of JK Cement, highlighted this disparity as a massive growth opportunity, saying, โCement demand typically leads economic expansion by a factor of 1.2X in regions with significant infrastructural development potential. Kashmir is undoubtedly one such region. This acquisition positions us strategically to build a robust presence in Jammu & Kashmir and capitalize on its untapped potential.โ
The governmentโs initiatives to boost infrastructure in Jammu & Kashmir make this acquisition particularly timely. Both companies plan to leverage Saifcoโs limestone reserves and expand cement production capacity over the next five years, aligning with the governmentโs vision for the regionโs development.
Commenting on the joint venture, Manzoor Ahmad Guna, Chairman of Saifco Cements, said, โWe are thrilled to join hands with JK Cement, a company deeply committed to the nationโs growth and the welfare of its communities. This partnership provides us with the expertise and resources to scale our operations and become the leading cement players in the Kashmir Valley. Together, we aim to drive growth and foster development in the region.โ
This acquisition marks a significant step forward for JK Cement as it cements its position as a key player in Indiaโs cement industry. By joining forces with Saifco Cements, JK Cement is well-positioned to harness the opportunities in Jammu & Kashmir and contribute to the regionโs infrastructural and economic progress.