JK Cement
Major cement producer JK Cement will buy 60 percent stake in Safco Cements. Through this it will enter the market of Jammu and Kashmir. JK Cement gave this information on Saturday. According to a joint statement, the JK group company will acquire 60 per cent stake in Safco Cements, which has an integrated manufacturing unit in Khunmoh, Srinagar, for Rs 174 crore. SAFCO’s integrated manufacturing unit in Srinagar is spread over 54 acres of land and has a clinker capacity of 2.6 lakh tonnes per annum and grind capacity of 4.2 lakh tonnes per annum. In addition, it has private limestone reserves spread over 144.25 hectares, with total mineable reserves of 129 million tonnes.
Company’s position will be strengthened in these states
“This acquisition will help the company expand its presence in the Jammu and Kashmir region,” the company said. JK Cement has a manufacturing capacity of 24.2 million tonnes per annum and has a strong presence in markets such as Rajasthan, Uttar Pradesh and Madhya Pradesh. Its turnover in the last financial year (2023-24) was Rs 86.30 crore. Raghavpat Singhania, Managing Director, JK Cement, said that this acquisition is an important step towards accelerating the growth journey of JK Cement. Madhavkrishna Singhania, Joint Managing Director and Chief Executive Officer, JK Cement, said that SAIFCO’s location and rich limestone reserves provide a unique opportunity to significantly increase our overall capacity.
The manufacturing plant is spread over 54 acres.
SAFCO’s integrated manufacturing unit at Khunmoh, Srinagar is spread over 54 acres of land and has a clinker capacity of 0.26MTPA and grinding capacity of 0.42MTPA. It has captive limestone reserves spread over an area of 144.25 hectares, with total mineable reserves of 129MnT. Madhavkrishna Singhania, Joint MD and CEO, JK Cement, said, “With this acquisition, we are strategically positioned to build a stronger presence in Jammu and Kashmir. SAFCO’s location and rich limestone reserves provide a unique opportunity to significantly increase our overall capacity. At present, the per capita cement consumption in Kashmir is about 168 kg, which is about 55% of the national average, which presents a huge development potential. Cement demand generally leads economic expansion by a factor of 1.2 times in areas with significant infrastructure development opportunities, and Kashmir is undoubtedly one of these areas.
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