Srinagar, Jan 26: In a significant move to expand its footprint in the Jammu and Kashmir cement market, JK Cement Limited has acquired a 60% equity stake in Saifco Cement Private Limited. Valued at approximately ₹174 crore, the acquisition was approved during a board meeting on January 25 and marks a strategic milestone for JK Cement’s growth ambitions.
Located in Khunmoh, Srinagar, Saifco Cement operates an integrated manufacturing unit with a clinker capacity of 0.26 million tonnes per annum and a grinding capacity of 0.42 million tonnes per annum. The facility spans 54 acres and is supported by captive limestone reserves of 129 million tonnes across 144.25 hectares, ensuring a steady supply for future production.
This acquisition allows JK Cement to penetrate deeper into the J&K cement market, leveraging Saifco’s strong regional presence and infrastructure. With Saifco reporting an annual turnover of ₹86 crore, this strategic partnership positions JK Cement as a key player in a region ripe with growth potential.
Strengthening Regional Growth
The acquisition is a calculated move by JK Cement to bypass the challenges of greenfield expansion while enhancing its presence in the strategically vital Jammu and Kashmir industrial sector. Industry analysts view this as a step toward regional consolidation in India’s cement industry, which is poised for significant growth driven by government infrastructure projects and rapid urbanization.
JK Cement’s Managing Director highlighted the importance of the deal, stating, “With Saifco Cement joining our portfolio, we are well-positioned to expand our operational footprint and enhance our production capacity in the growing cement market in Jammu and Kashmir.”
Manzoor Ahmad Guna, Chairman of Saifco Cements, expressed optimism about the partnership, saying, “We are excited to collaborate with JK Cement to scale our operations and solidify our presence as leading players in the Kashmir Valley cement market.”
Boosting the Local Economy
The acquisition is expected to positively impact the local economy, creating job opportunities and fostering growth for regional suppliers. By integrating Saifco into its operations, JK Cement will introduce advanced production techniques, improve cost efficiency, and expand its cement distribution network in Jammu and Kashmir.
The deal involves the purchase of existing shares and a fresh issuance of shares, making Saifco a subsidiary of JK Cement upon completion. The transaction, pending regulatory approvals, is expected to close soon.
Cementing a Future in J&K
With this acquisition, JK Cement demonstrates its commitment to the J&K infrastructure sector and the cement industry’s growth in India. Saifco’s strong foothold in the regional cement market combined with JK Cement’s expertise is set to revolutionize the cement landscape in the region.
As the Indian cement industry braces for robust growth, driven by increasing demand and government initiatives, JK Cement’s move into Jammu and Kashmir’s industrial market underscores its long-term vision to dominate the cement production sector and support the region’s economic development.
This strategic acquisition is more than a business transaction—it’s a bold step toward transforming the cement manufacturing ecosystem in Jammu and Kashmir.
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