Srinagar: JK Cement, a leading cement producer in the country, has announced plans to acquire a 60% stake in Saifco Cements, marking its entry into the Jammu & Kashmir’s cement market. The acquisition, valued at Rs 174 crore, includes Saifco’s integrated manufacturing unit in Khunmoh, Srinagar.
Spread across 54 acres, Saifco’s facility boasts a clinker production capacity of 0.26 million tonnes per annum (MTPA) and a grinding capacity of 0.42 MTPA. Additionally, the company holds captive limestone reserves covering 144.25 hectares, with total minable reserves estimated at 129 million tonnes.
According to JK Cement, this acquisition will expand its footprint into the strategically important Jammu & Kashmir region, which holds significant potential for infrastructural growth. JK Cement currently has a manufacturing capacity of 24.2 MTPA, with a strong presence in Rajasthan, Uttar Pradesh, and Madhya Pradesh. For FY24, the company recorded a turnover of Rs 86.30 crore.
Raghavpat Singhania, Managing Director of JK Cement, highlighted the strategic importance of the deal, stating, “This acquisition is a significant step forward in accelerating JK Cement’s growth journey. We are committed to ensuring seamless integration, leveraging our combined expertise to serve our customers and the nation better.”
Madhavkrishna Singhania, Joint MD and CEO of JK Cement, emphasized the opportunity for growth in Kashmir. “Per capita cement consumption in Kashmir is approximately 168 kilograms, about 55% of the national average, indicating significant growth potential. With Saifco’s prime location and rich limestone reserves, we aim to significantly enhance our overall capacity,” he said.
Manzoor Ahmad Guna, Chairman of Saifco Cements, expressed optimism about the partnership. “We are excited to work with JK Cement to scale our operations and solidify our position as leading cement players in the Kashmir Valley. This alliance will empower us with the expertise and resources needed for continued success and growth in the region,” he said.
The acquisition is subject to regulatory approvals and conditions. JK Cement reported consolidated revenue of Rs 11,701.06 crore for the financial year ending March 2024.
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