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)

The World Steel Association projects the global demand for steel to post a modest growth of 1.2 per cent in 2025 after a 0.9 per cent decline in 2024. Contrast this with India’s 8 per cent projected growth in steel demand this year, driven by infrastructure investments, and it comes as no surprise that steel imports are rising.

In response to rising imports, the Union Ministry of Steel has proposed doubling the basic customs duty on finished steel products to 15 per cent, up from the current 7.5 per cent, notes Mrityunjay Kumar Srivastava, Head of Supply Chain Management, Tata Projects. With this move, the Government hopes to curb the influx of cheaper steel imports and bolster domestic manufacturers. While these tariffs support local industries, he points out that they also present challenges for companies like Tata Projects, saying, “Increased import costs can strain budgets and affect project timelines.”

To read the full story Click Here

The President of the World Cement Association (WCA), Wei Rushan, addresses members to highlight the significant transformations shaping the global cement industry. Emphasising the need for innovation, sustainability, and collaboration, he called on industry stakeholders to embrace the evolving economic, regulatory, and geopolitical challenges ahead.

“The cement industry is experiencing profound changes, with businesses managing overcapacity and upgrading, balancing sustainable development with short-term survival, and weighing social responsibility against shareholder returns,” stated Rushan. “While each region faces unique challenges, our shared focus remains on driving sustainable growth, embracing technological advancements, and tackling climate change.”

As outlined in the WCA’s recent White Paper, global cement demand is expected to decline by 22 per cent by 2050. In established markets like Europe and North America, price increases are expected to persist, while in some emerging markets, prices may experience a short-term decline. However, from a long-term perspective, we expect emerging market to remain dynamic and resilient.

Key regional developments

Multinational companies are adjusting their strategies and scaling back cement business, focusing instead on North America. Meanwhile cement production in Europe continues to decline due to strict CO2 regulations and necessary capacity reductions, driving up cement prices. Efforts to address overcapacity in China and Japan have led to significant consolidation and restructuring.

In contrast, cement production in India is rapidly expanding, with more than 200 million tons produced. Indian companies are strengthening their domestic leadership, while multinational companies are exiting this high-potential market.

Globally, regional leaders are gaining influence, except in Europe and North America, where European multinationals continue to dominate. Chinese cement producers and other independent companies are aggressively expanding, particularly in Africa and Southeast Asia, solidifying their market presence.

Addressing global challenges

Wei identifies overcapacity as a major challenge facing the industry today. As a global representative for the cement industry, the WCA is willing to work with producers and stakeholders to explore ways to modernise and upgrade outdated plants. “To remain both profitable and environmentally responsible, the cement industry must aim to reduce capacity by 50 per cent, from 4.7 billion tons to 2.3 billion tons within the next decade. This requires focusing on modern, sustainable production units.”

He also noted carbon reduction and carbon neutrality as another key challenge. Although progress has been made through Carbon Capture and Storage (CCS) technologies, Rushan acknowledged the high costs and energy intensity of these solutions.

“Cement plays a crucial role in building sustainable infrastructure,” Mr. Wei continued. “By accelerating innovation, adopting low-carbon technologies, and fostering global collaboration, we can ensure cement remains an environmentally responsible material.”

The WCA urges industry stakeholders worldwide to act now by adopting sustainable practices, embracing innovation, and redefining cement industry norms.