JK Cement Ltd. acquires a 60 percent ownership in Saifco Cements for ₹174 crore, expanding its foothold in Jammu & Kashmir and driving infrastructural growth in the region.

JK Cement Ltd., a leading building materials company and one of India’s leading manufacturers of grey cement, as well as one of the world’s largest producers of white cement, announced a joint venture agreement with Saifco Cements Pvt. Ltd., one of the leading cement brands in the Kashmir valley, with an enterprise value of INR 290 crores. JK Cement will acquire a 60 percent share of Saifco Cements for INR 174 crore.

This acquisition is a strategic step towards extending JK Cement’s position in one of the country’s fastest-growing regions and deepening its footprint in Northern India.

Saifco Cements has excellent production capabilities and an impressive presence in the Jammu and Kashmir region, which will help JK Cement accomplish its business plan targets over the next few years. This action is consistent with the government’s goal of speeding development in the Jammu and Kashmir area through increased infrastructural growth.

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 complex at Khunmoh, Srinagar, is spread over 54 acres of land and has a clinker capacity of 0.26MTPA and a grinding capacity of 0.42MTPA. It possesses captive limestone reserves covering an area of 144.25 hectares, with a total minable resource of 129 million tonnes.

Sharing his views on the acquisition, Madhavkrishna Singhania, Joint MD and CEO of JK Cement Ltd., says, “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 administration is devoted to Jammu and Kashmir’s advancement and has launched a number of projects and initiatives to boost the state’s economic and infrastructure development. The deal will include both companies working together to boost cement manufacturing capacity by leveraging the extent of limestone reserves over the following five years.

Manzoor Ahmad Guna, Chairman of Saifco Cements Pvt. Ltd. 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.” 

The acquisition is subject to regulatory approvals and conditions.

For more information, visit: https://www.jkcement.com/