JK Cement, promoted by the Singhania family, and among the top-10 cement makers in India, is looking to invest ₹3,000 crore to up its capacity by 25 per cent to 30 million tonnes per annum (mtpa), from the existing 24 mtpa, by FY26-end.
Nearly ₹700-800 crore of the investment has already been made, and work is on towards ongoing brownfield expansion in at Panna (Madhya Pradesh) and greenfield facility at Buxar (in Bihar).
Investment at Panna include expansion of clinker capacity at an approximate cost of ₹2,400 crore, while at the greenfield grinding unit in Bihar the investment expected is around ₹550 crore.
In case of Panna, the work has already started. The orders for main plant and equipment have already been placed and the company management expects the unit to be on-stream by Q3 of FY26. Similarly, in case of the Bihar grinding unit, land acquisition of around 80 acres is underway and the company is securing the necessary approvals. Work is expected to begin post monsoon.
According to Dr Raghavpat Singhania, Managing Director, JK Cement, expansion plans are being funded through a mix of debt and equity. “Post the expansion being completed by March 2026, we will have a net debt in the ₹3,600-3,700 crore range. Our net debt to EBITDA will continue to be below 2,” he told businessline.
For the quarter ending June 30, 2024 (Q1FY25), JK Cement had a gross debt of ₹4,515 crore, and net debt of ₹2,830 crore. “If you look at the balance sheet, t net debt to EBITDA was 1.36.”
Over the last few quarters, JK Cement has expanded in Central and East India. Capacities recently commissioned include one unit at Prayagraj (Uttar Pradesh) and another clinker facility in Panna.
Category expansion
Beyond white cement and grey cement, JK Cement will look to diversify into other building material categories and value-additions. It recently entered the paints segment and plans to be in other categories such as construction chemicals, tile adhesives and so on.
Around ₹600 crore of investment has been planned as capex in the paints segment, “Part of the investment has been made and the remaining will be in done over the next two-three years,” Singhania said.
During a recent investor meet, the company’s top brass said, the paint business was targeting a turnover of ₹300 crore this fiscal; and it was “on-track”.
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