JK Cement will buy 60 percent stake in this cement company, deal done for so many hundred crores
Leading 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 percent stake in Safco Cements for Rs 174 crore, which has an integrated manufacturing unit at Khunmoh in Srinagar. 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 grinding capacity of 4.2 lakh tonnes per annum. Apart from this, it has private limestone reserves spread over 144.25 hectares, with a total mineable reserve of 12.9 crore tonnes.
The company’s position will be strengthened in these states
The company said, “This acquisition will help the company to expand its presence in the Jammu and Kashmir region.” JK Cement has a manufacturing capacity of 24.2 million tonnes per annum and has a strong presence in markets like 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 in 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 deposits spread over an area of 144.25 hectares, with total mineable reserves of 129MnT. Madhav Krishna Singhania, Joint MD & CEO, JK Cement said, “With this acquisition, we are strategically positioned to build a strong presence in Jammu and Kashmir. SAFCO’s location and rich limestone reserves provide a unique opportunity to significantly enhance our overall capacity. Currently, per capita cement consumption in Kashmir is around 168 kg, which is around 55% of the national average, presenting a huge growth potential. Cement demand typically leads economic expansion by a factor of 1.2 times in regions with significant infrastructure development opportunities, and Kashmir is undoubtedly one of these regions.
