JK Cements Set To Acquire 60% Stake Of Saifco Cements
HT NEWS DESK
Srinagar, Jan 27: JK Cement Ltd. is set to mark its presence in J&K, as the industrial giant has entered into a joint venture with Saifco Cements.
According to the reports, JK Cement Ltd, one of the leading building materials companies and one of India's leading manufacturers of grey and white cement globally, announced that it has entered into a joint venture agreement with Saifco Cements Pvt. Ltd, one of the leading cement brands in Kashmir with an enterprise valuation of INR 290 Crores.
JK Cement will acquire a 60% stake in Saifco Cements at a value of INR 174 Crore. This acquisition marks a strategic step in expanding JK Cement’s presence in one of the fastest-growing regions of the country and furthering its footprint in Northern India. Saifco Cements brings strong manufacturing capabilities and an impressive presence in the Jammu & Kashmir market, which will scale up to meet the business plan objectives for JK Cement over the next few years. This move aligns with the government’s focus on boosting infrastructural growth in the Jammu and Kashmir region, accelerating the development journey.
Expressing his delight, Dr Raghavpat Singhania, Managing Director of JK Cement Ltd., said, “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.
He said they 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 solidly cementing the goal to manufacture the best for our customers and nation,” he said.
Saifco’s integrated manufacturing unit at Khunmoh in Srinagar is spread across 54 acres of land and has a clinker capacity of 0.26MTPA and grinding capacity of 0.42MTPA. It has captive limestone reserves spread over an area of 144.25 hectares with a total mineable reserve of 129MnT.
Sharing his views on the acquisition, Madhavkrishna Singhania, Joint MD and CEO of JK Cement Ltd. said, “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 government is committed to Jammu and Kashmir's progress and has undertaken multiple projects and initiatives for the state’s growth and infrastructural development. The acquisition will involve both companies working together to increase the capacity of cement production by leveraging the expanse of the limestone reserves in the next 5 years.
Manzoor Ahmad Guna, Chairman of Saifco Cements Pvt. Ltd., said, “We are very happy to join hands with JK Cement and are deeply committed towards the 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. (ANB)
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