SRINAGAR, Jan 26: JK Cement has acquired a 60% stake in Saifco Cements for Rs. 174 crore to strengthen its presence in northern India.
The Kashmir Monitor was the first to break the story on July 28, 2023.
JK Cement entered into a joint venture with Saifco Cement two years later. With this deal, JK Cement is boosting its production capacity by leveraging Saifco’s resources.
“We are very happy to join hands with JK Cement and are deeply committed to 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 endeavor towards bringing the country’s leading business houses to the valley and contributing 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,” said Manzoor Ahmad Guna, Chairman, Saifco Cements Pvt. Ltd.
Saifco’s integrated manufacturing unit at Khunmoh in Srinagar is spread across 54 acres of land and has a clinker capacity of 0.26 million tonnes per annum and a grinding capacity of 0.42 million tonnes per annum. It has captive limestone reserves spread over an area of 144.25 hectares with a total mineable reserve of 129 million tonnes.
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. 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.
JK Cement ranks amongst the country’s top 10 cement manufacturers and has a capacity of 24.2 million tonnes per annum. It also forayed into the paints business with JK Maxx in 2023.
“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,” said Madhav Singhania, JK Cement’s joint managing director and chief executive officer.
As of now, Kashmir’s cement market is occupied by prominent players like SAIFCO, Khyber, Tramboo, TCI, and HK Cement. In addition to these private companies, the state-owned JK Cements is also present in the region. However, due to its financial difficulties, JK Cements has been actively seeking a buyer and has stopped production for some time now.
The conglomerate’s entry into the market has the potential to bring about transformative changes, given its reputed track record and strong presence in various sectors across the country. It is expected that the new player’s operational expertise and financial strength will contribute to the growth and expansion of the cement industry in Kashmir.
The new development is viewed as a positive step towards enhancing economic prospects in the region and promoting industrial growth.