JK Cement has said it will acquire a 60 per cent stake of Saifco Cements in a deal through which it will enter into the Jammu & Kashmir market.
The JK Group firm will acquire a 60 per cent stake in Saifco Cements, which has an integrated manufacturing unit at Khunmoh in Srinagar, at a valuation of Rs 174 crore, according to a joint statement.
Saifco’s integrated manufacturing unit in Srinagar is spread across 54 acres of land and has a clinker capacity of 0.26 MTPA and grinding capacity of 0.42 MTPA.
Besides, it has captive limestone reserves spread over 144.25 hectares with a total minable reserve of 129 million tonnes.
JK Cement has a manufacturing capacity of 24.2 MTPA (million tonnes per annum) having a strong presence in markets such as Rajasthan, Uttar Pradesh, and Madhya Pradesh. Its turnover for FY24 was at Rs 86.30 crore.
“Currently, per capita cement consumption in Kashmir stands at approximately 168 kilograms, nearly 55 per cent of the national average, presenting a vast growth potential. 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,” he said.
For the financial year ended March 2024, JK Cement’s consolidated revenue was Rs 11,701.06 crore.
