JK Cement, led by Nidhipati Singhania, has acquired a 100% stake in Toshali Cement, making it a wholly-owned subsidiary of JK Cement. The total acquisition cost, excluding the price of a limestone mining licence, is reported to be Rs. 90 crore. Additionally, JK Cement will make an additional payment of Rs. 67 crore after transferring the mining licence. The acquisition was confirmed through a stock exchange disclosure made by the company.
With the acquisition of Toshali Cement, JK Cement adds a further 0.6 million tonnes per annum of cement capacity to its existing production capabilities. JK Cement already has a capacity of 20 million tonnes per annum, making it one of the top 8 cement manufacturers in India. This acquisition allows JK Cement to strengthen its market presence and meet the growing demand for cement in the country.
Toshali Cement operates two manufacturing units in Odisha. The first unit, located in the Koraput district, has a clinker capacity of 0.33 million tonnes per annum and a grinding capacity of 0.2 million tonnes per annum. The second unit, situated in the Cuttack district, is a grinding unit with a cement production capacity of 0.44 million tonnes per annum. The acquisition of Toshali Cement’s operations will further enhance JK Cement’s production capabilities and market reach in the region.
The acquisition of Toshali Cement comes at a time when the top cement manufacturers in India are planning to increase their capacity due to expected demand increases from major government initiatives, such as large road construction programs and housing schemes for low-income people. JK Cement’s expansion through this acquisition positions the company to capitalise on these opportunities and contribute to the growth of the cement industry in India.
RTM Watch’s Take
JK Cement’s completion of the acquisition of Toshali Cement marks a significant milestone for the company. This strategic move allows JK Cement to expand its production capacity and strengthen its market presence in the cement industry. With the expected growth in demand for cement in India, this acquisition positions JK Cement to capitalise on the opportunities presented by major government initiatives. Overall, this acquisition aligns with JK Cement’s growth strategy and reinforces its position as one of the top cement manufacturers in the country.
