JK Cement Partners with Saifco Cements to Expand its Market Presence in Northern India

JK Cement Ltd, an India major cement producer, signed a joint venture with Saifco Cements Pvt. Ltd., the largest cement brand in the Kashmir Valley. For JK Cement, this is its first foray into the company as it has entered into a joint venture with Saifco Cements and obtained 60% equity for INR 174 Crore out of an enterprise valuation of INR 290 Crore.

This acquisition comes at a strategic initiative by JK Cement to establish stronger footprints of the business unit in North India, where expansion is gaining increased momentum specifically towards Jammu and Kashmir; an area reported by many market commentators as amongst one of the greatest growth avenues at present within a country. End.

Saifco Cements has an established manufacturing capacity which gives a useful market presence in the state of Jammu & Kashmir. Its integrated manufacturing facility at Khunmoh in Srinagar spans 54 acres and has a clinker capacity of 0.26 MTPA and grinding capacity of 0.42 MTPA. Besides this, it has captive limestone reserves covering 144.25 hectares with a minable reserve of 129 million tonnes to assure long-term production.

This partnership will draw on Saifco’s facilities while helping JK Cement expand and achieve its business goals going into the future. The two are set to up cement production capacities and exploit limestone in the region during the next five years.

Dr. Raghavpat Singhania, MD of JK Cement, said in a statement on the deal and added that through this acquisition it would not just help JK Cement grow but even help the regional development. “We are dedicated to a non-disruptive integration and eagerly look forward to the infrastructural growth in the state of Jammu & Kashmir,” he concluded.

Manzoor Ahmad Guna, chairman of Saifco Cements, said he welcomed the tie-up as a shared vision to enhance the cement industry in the region. “We are looking forward to collaborating with JK Cement to expand our business and establish ourselves as leaders in the Kashmir Valley,” he said.