JK Cement enters joint venture with Kashmir’s Saifco Cement

Industry:    4 weeks ago

JK Cement has entered a joint venture with J&K’s Saifco Cement through which it will expand its offerings in the region where infrastructure development is a priority, as per a press release from the company.

JK Cement will acquire 60% stake in Saifco Cements at a value of Rs. 174 crore.

This will deepen its present in northern India where it is a very strong player in states of Uttar Pradesh, Madhya Pradesh and Rajasthan.

JK Cement ranks amongst the country’s top 10 cement manufacturers and has a capacity of 24.2 million tonnes per annum. It also forayed into the paints business with JK Maxx in 2023.

“J&K holds not only holds strategic importance but also has immense potential for infrastructural development,” said Raghavpat Singhania, JK Cement’s managing director.

Saifco’s integrated manufacturing unit at Khunmoh in Srinagar is spread across 54 acres of land and has a clinker capacity of 0.26 million tonnes per annum and grinding capacity of 0.42 million tonnes per annum. It has captive limestone reserves spread on an area of 144.25 hectares with a total mineable reserve of 129 million tonnes.

“Cement demand typically leads economic expansion by a factor of 1.2X in regions with significant infrastructural development opportunities, and Kashmir is undoubtedly one of these regions.” said Madhav Singhania, JK Cement’s joint managing director and chief executive officer.

The government is committed to Jammu and Kashmir’s progress and has undertaken multiple projects and initiatives for the state’s growth and infrastructural development. The acquisition will involve both companies working together to increase the capacity of the cement production by leveraging the expanse of the limestone reserves in the next 5 years, said the release.

“We are excited about the opportunity to work together to scale our operations and establish ourselves as the leading cement players in the Kashmir Valley.”, said Manzoor Ahmad Guna, chairman, Saifco Cements.

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