1 week Ago
Srinagar, Jan 26: JK Cement has dramatically expanded its strategic footprint, signing a landmark deal to acquire a majority stake in Saifco Cements, a calculated move to penetrate the Jammu and Kashmir regional market. JK Cement Limited has announced the acquisition of a 60% equity stake in Saifco Cement Private Limited. This acquisition, valued at approximately Rs 174 Crore, was approved during the board meeting held on January 25.
Strategically located in Khunmoh, Srinagar, Saifco brings an integrated manufacturing unit with clinker and grinding capacities that perfectly complement JK Cement’s expansion strategy. With a recent annual turnover hovering around Rs 86 crore, the acquisition represents more than a financial transaction – it’s a territorial chess move in India’s competitive cement landscape. The deal, expected to close soon pending regulatory approvals, signals JK Cement’s aggressive growth ambitions.
By targeting a regional player with an established infrastructure, the company circumvents the traditionally challenging process of greenfield expansion. 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 anum and a 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.
Industry observers are already noting this as a potential blueprint for regional consolidation, watching closely how JK Cement will leverage its newest asset in the strategically complex Jammu and Kashmir market. The deal includes the acquisition of both existing shares and a new issuance of shares from Saifco, which will transition into a wholly owned subsidiary of J.K.
Cement upon completion. This acquisition comes at a time when the Indian cement industry is gearing up for a robust growth phase, buoyed by government infrastructure projects and increasing urbanisation. JK Cement’s Managing Director in a statement emphasised the strategic importance of this acquisition, stating, “With Saifco Cement joining our portfolio, we are well-positioned to not only expand our operational footprint but also enhance our production capacity and offerings in the growing cement market in Jammu and Kashmir.
” “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. Saifco Cement, known for its quality products and strong regional presence, is expected to benefit significantly from the operational synergies that come with JK Cement’s extensive expertise and distribution capabilities.
The acquisition allows JK Cement to leverage Saifco’s established supply chain while introducing improvements in production efficiency and cost management. JK Cement’s well-established brand and market reach are expected to provide Saifco with the resources needed to scale up operations and improve product offerings, ultimately benefiting regional customers. Moreover, the acquisition is likely to have a positive ripple effect on the local economy, potentially leading to job creation and greater opportunities for local suppliers.
As JK Cement integrates Saifco into its operations, the company is expected to enhance training and development initiatives, fostering local talent and expertise, according to press release..
