JK Lakshmi, Chettinad Cement in Race to Acquire Deccan Cements Amid AP Infra Boom

According to sources quoted by The Economic Times, talks are at an advanced stage between JK Lakshmi Cement and Chettinad Cement in acquiring Deccan Cements. The company seeks a valuation of $360 million (₹3,110 crore) for the deal. This comes at the right time, as Andhra Pradesh is on an infrastructure development spurt, creating demand for freight-centric cement manufactured locally.

Deccan Cements, with its headquarters in Hyderabad and a plant located near Vijayawada, is expected to see its output hit the mark of 4 million tonnes at the end of the year 2025. The valuation that the company is seeking is roughly $90 per tonne, lower than greenfield project costs that often exceed $100 per tonne. This matches the normal trend concerning valuation in the southern region, which is relatively lower capacity used and net-realised cement per tonne.

Chettinad Cements is headquartered in Chennai, whereas it has plants in Andhra Pradesh and Telangana, while the JK Lakshmi Cement of Delhi does not have any presence in the territory. Therefore, this acquisition becomes significant in placing JK Lakshmi strategically in the northern market.

Indeed, the potential sale is being handled by EY (Ernst & Young) on behalf of Deccan Cements. Led by Parvathi Penmetcha, the company operates in a prime location near Amaravati, the new state capital of Andhra Pradesh, and at the heart of the state’s infrastructure boom. As part of this buildup, the Central Government recently announced a package of ₹50,000 crore across various projects within and around Amaravati, adding to the long-term prospects for cement producers in the region.

In the meantime, Deccan Cements has witnessed a meteoric rise in its stocks in 2025, amounting to nearly 64%, year to date. By July 17, the stock had reached an all-time high of ₹1,125. On Thursday, it closed at ₹1,048.75, down 1.73%. Currently, the stock is under the scrutiny of BSE on account of heightened volatility and unusual price movements.

This is likely to prove a watershed in the competitive dynamics of cement in southern India, as the meter increasingly swells on state investments in hard-core infrastructure.