Concrete

Kesoram to boost cement capacity to 15 MT in next 3-4 years

Published

3 years ago

June 30, 2022

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The firm’s overall outlay would be between Rs 350 and Rs 500 crore

Kesoram Industries Ltd, a B K Birla Group subsidiary, announced that it plans to increase its cement production capacity to 15 million tonnes (MT) from 11 MT.

Kesoram, which has demerged its tyres and rayon businesses, is on course to make a profit in the current fiscal year (FY).P Radhakrishnan, whole-time director & CEO, told the media that they have chosen to increase cement capacity to 15 MT in phases over the next 3-4 years, up from 10-11 MT.

The overall outlay would be between Rs 350 and Rs 500 crore.He said that the company’s financials would improve in the next quarters as debt reduce and low-cost funds refinance. He added that in 2022, they will turn profitable on a net basis.

Radhakrishnan said they are always attempting to reduce their interest cost to enhance the financial situation. This year, they want to discharge the debt of Rs 500-600 crore and refinance a portion of the total existing debt (Rs 300-400 crore) with low-cost funds to reduce interest costs.With high-cost Optionally Convertible Debentures (OCDs) and Non-Convertible Debentures (NCDs), the business has an outstanding debt of Rs 1650 crore, down from over Rs 2000 crore a year earlier.

The B K Birla group firm also stated that it is shifting its product mix to include more value-added cement, which would increase its EBITA by another Rs 150 crore in the next two years, bringing it to over Rs 950 crore yearly.

An offcial stated that they’re always adding mixed cement to their inventory and plan to increase this to 80% in two years from currently 50%.Kesoram planned to increase capacity by one million tonnes by de-bottlenecking and then add a kiln to the existing facility to decrease capital expenditures.

After weighing all possibilities, the firm will shortly begin accepting fixed deposits, which would help the company get closer to its target of Rs 200 crore.

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Also read: Ramco Cements plans for at least Rs 1,200 cr capex in two years

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Concrete

GMDC Inks Long-Term Limestone Supply Deal With JK Cement

The agreement has been signed for supply of 250 million tonne.

Published

2 hours ago

February 3, 2025

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State-owned GMDC said it has entered into a long-term pact with JK Cement Ltd for the supply of limestone from its upcoming mine in Gujarat.

The agreement has been signed for supply of 250 million tonnes of limestone over a period of 40 years from its upcoming Lakhpat Punrajpur Mine in Lakhpat Taluka of Kutch district in Gujarat.

This agreement will help JK Cement Ltd in setting up an integrated mega-capacity cement plant, fostering industrial growth in the region.Kutch’s coastal proximity, improved access to domestic and international markets, and cost-efficient logistics position it as an ideal hub for cement production.

The state-owned company has five operational lignite mines in Kutch, South Gujarat, and Bhavnagar region.

Concrete

GMDC, J K Cement Ltd. Tie-up for Limestone from Lakhpat Punrajpur Mine

This agreement underscores GMDC Ltd.’s commitment to fostering industrial growt

Published

10 hours ago

February 3, 2025

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Gujarat Mineral Development Corporation Ltd. (GMDC) has signed a Long-Term Supply Agreement (LSA) with JK Cement Ltd. for the supply of 250 million tonnes of limestone over a period of 40 years from its upcoming Lakhpat Punrajpur Mine in Lakhpat Taluka of Kutch District in Gujarat. The signing event was chaired by the Chairman of GMDC Ltd. Dr. Hasmukh Adhia, IAS (Retd.) on January 29, 2025 and the agreement was officially formalised by Roopwant Singh, IAS, Managing Director of GMDC Ltd., and Anuj Khandelwal, Business Head – Grey Cement of JK Cement Ltd., representing their respective organisations.

This agreement marks a strategic partnership towards monetising the large limestone asset of GMDC Ltd. and benefiting both the partners. It will support J K Cement Ltd. in setting up a greenfield integrated mega-capacity cement plant, fostering industrial growth in the region. The collaboration will stimulate investment, enhance industrial development, and generate thousands of direct and indirect employment opportunities in Kutch, contributing significantly to the socio-economic progress of Gujarat. Kutch’s coastal proximity, improved access to domestic and international markets, and cost-efficient logistics position it as an ideal hub for cement production. Furthermore, this initiative will contribute substantially to the State Exchequer through revenue generation in the form of Royalty, National Mineral Exploration Trust (NMET) contributions, District Mineral Foundation (DMF) funds, and Goods & Services Tax (GST) on both limestone and cement production.

This agreement underscores GMDC Ltd.’s commitment to fostering industrial growth while ensuring the sustainable utilization of mineral resources, thereby strengthening Gujarat’s position as a leading industrial and economic State.

Concrete

JK Cement Acquires Majority Stake in Saifco Cement to Expand in J&K

Saifco has an annual turnover of around Rs 860 million.

Published

2 days ago

February 1, 2025

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JK Cement has made a significant move in its growth strategy by acquiring a 60% equity stake in Saifco Cement, a cement manufacturer based in Srinagar, Jammu and Kashmir. The acquisition, valued at approximately Rs 1.74 billion, was approved during a board meeting on January 25, 2025.

Located in Khunmoh, Srinagar, Saifco’s integrated manufacturing unit, which includes both clinker and grinding capacities, aligns with JK Cement’s expansion plans. Saifco has an annual turnover of around Rs 860 million, and this acquisition not only strengthens JK Cement’s presence in the region but also offers a strategic advantage in the competitive Indian cement industry.

Saifco’s facility, spread across 54 acres, has a clinker capacity of 0.26 million tonnes per annum and a grinding capacity of 0.42 million tonnes per annum. The site also holds captive limestone reserves across 144.25 hectares, with a mineable reserve of 129 million tonnes.

This deal, which is expected to close after receiving regulatory approvals, allows JK Cement to tap into Saifco’s established infrastructure, sidestepping the time-consuming process of greenfield expansion. The acquisition will also position JK Cement to benefit from Saifco’s established market presence and supply chain.

The move signals JK Cement’s ambition to expand further in the Jammu and Kashmir market and beyond, positioning Saifco as a key regional player under JK Cement’s umbrella. The acquisition could also lead to potential job creation and greater economic opportunities for local suppliers. As part of the integration, JK Cement is expected to bring operational synergies, improving production efficiency and cost management.

This deal is seen as a model for regional consolidation in India’s growing cement industry, with JK Cement’s established brand and distribution network poised to enhance Saifco’s operations and product offerings in the region.

(Greater Kashmir)