JK Cement to enhance production capacity

24 Sep 2024 CW Team

JK Cement is set to increase its production capacity to 30 million tonnes per annum (MTPA) by the end of FY26, up from the current 24 MTPA. This expansion is projected to cost approximately Rs 3,000 crore, with Rs 700-800 crore already invested. The company is focusing on projects in Panna, Madhya Pradesh, and a new facility in Buxar, Bihar.

In Panna, JK Cement plans to expand its clinker capacity at an estimated cost of ?2,400 crore. Construction has already commenced, involving orders for the main plant and equipment, with the unit expected to be operational by Q3 FY26. Additionally, a greenfield grinding unit in Buxar is planned, with an investment of around ?550 crore. This project is in its early stages, with land acquisition of approximately 80 acres underway, and the company is securing the necessary approvals. Construction is anticipated to start after the monsoon season.

To finance its expansion strategy, JK Cement is utilizing a mix of debt and equity. The company has also recently entered the paints sector and aims to diversify into construction chemicals and tile adhesives, allocating ?600 crore for investments in the paint segment.

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