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JK Cement Ltd., one of the leading building materials company and one of
India's leading manufacturer of grey cement, as well one of the largest
producers of white cement globally, announced that it has entered into a joint
venture agreement with Saifco Cements Pvt. Ltd., one of the leading cement
brands in the Kashmir valley and having an enterprise valuation of INR 290
Crores. JK Cement will acquire 60% stake in Saifco Cements at a value of INR
174 Crore. This acquisition marks a
strategic step in expanding JK Cement’s presence in one of the fastest growing
regions of the country and furthering its footprint in Northern India.
Saifco Cements brings strong manufacturing capabilities and an
impressive presence in Jammu & Kashmir market, which will scale up to meet
the business plan objectives for JK Cement over the next few years. This move
aligns with the government’s focus on boosting infrastructural growth in Jammu
and Kashmir region, accelerating the development journey.
Expressing his delight, Dr. Raghavpat Singhania, Managing
Director, JK Cement Ltd. says, “Known for its rich
culture and resilience, Jammu & Kashmir brings a special meaning to us,
this acquisition is a significant step forward in accelerating JK Cement’s
growth journey. We are committed to ensuring a seamless and successful
integration of our businesses, bringing together our combined expertise and
experience. The state of J&K not only holds strategic importance but also
has immense potential for infrastructural development and partnering with Saifco
Cements is a step towards solid cementing goal to manufacture the best for our
customers and nation.”
Saifco’s integrated manufacturing unit at Khunmoh in Srinagar is
spread across 54 acres of land and has a clinker capacity of 0.26MTPA and
grinding capacity of 0.42MTPA. It has captive limestone reserves spread on an
area of 144.25 hectares with a total minable reserve of 129MnT.
Sharing his views on the acquisition, Mr.
Madhavkrishna Singhania, Joint MD and CEO, JK Cement Ltd. adds, “With
this acquisition, we are strategically positioned to build a robust presence in
Jammu and Kashmir. The location and rich limestone reserves of Saifco offer a
unique opportunity to significantly increase our overall capacity. Currently,
per capita cement consumption in Kashmir stands at approximately 168 kilograms,
nearly 55% 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. This acquisition opens up limitless
possibilities to drive growth and foster progress in the region.”
The government is committed to Jammu and Kashmir's progress and
has undertaken multiple projects and initiatives for the states’ growth and
infrastructural development. The acquisition will involve both the companies
working together to increase the capacity of the cement production by
leveraging the expanse of the limestone reserves in the next 5 years.
Mr. Manzoor Ahmad Guna, Chairman, Saifco Cements Pvt. Ltd. further says, “We are very happy to join hands with JK Cement who are deeply committed towards nation’s growth, people, and communities. 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. At Saifco, we take pride in our endeavour towards bringing the country’s leading business houses to the valley and contribute to its growth and development through such strategic alliances. We are confident that this partnership will empower us with the expertise and resources needed to drive continued success.”
