JK Cement has officially entered into a joint venture with Kashmir-based Saifco Cements by acquiring a 60% stake for Rs 174 crore. This strategic move, announced on January 26, 2025, aims to enhance JK Cement's presence in the northern Indian market, particularly in Jammu and Kashmir, where it seeks to leverage local resources to boost production capacity.

Key Details of the Joint Venture

Acquisition Value: ₹174 crore.
Stake Acquired: 60% of Saifco Cements.
Location: Saifco's integrated manufacturing unit is located in Khunmoh, Srinagar, covering an area of 54 acres.
Production Capacity:
Clinker capacity: 0.26 million tons per annum.
Grinding capacity: 0.42 million tons per annum.

Saifco has extensive limestone reserves across 144.25 hectares, with a total mineable reserve of 129 million tons.

This acquisition positions JK Cement among the key players in Kashmir's cement industry, which includes established competitors like Khyber and TCI. The partnership is expected to facilitate increased production and operational efficiency by utilizing Saifco’s existing infrastructure and resources. Both companies plan to collaborate over the next five years to expand cement production capacity significantly.

Madhav Singhania, JK Cement’s joint managing director, highlighted the potential for growth in the region, noting that cement demand often leads economic expansion, particularly in areas with significant infrastructural development opportunities.

The acquisition marks a significant milestone for JK Cement as it continues to strengthen its foothold in strategic markets across India, further solidifying its position as one of the country's top cement manufacturers.

Agencies