JK Cement Board Clears ₹4,805 Cr Plan for New Units in Rajasthan, Punjab

JK Cement Ltd has approved a ₹4,805 crore greenfield expansion to add 7 MTPA capacity, strengthening its position in northern and western India’s cement market.

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Summary

  • JK Cement Ltd has approved a ₹4,805 crore greenfield expansion to boost its production capacity by 7 million tonnes per annum, including new units in Rajasthan and Punjab.
  • The expansion will increase JK Cement’s total installed capacity to over 32 MTPA, strengthening its presence in northern and western India amid rising demand for construction materials.
  • This move follows JK Cement’s recent acquisition of Saifco Cements in Jammu & Kashmir, aligning with its strategy of geographical diversification and capacity growth.

JK Cement Ltd has announced a major greenfield expansion, with its board approving investments worth ₹4,805 crore to increase the company’s production capacity by 7 million tonnes per annum (MTPA). The move is aimed at strengthening its position in India’s competitive cement industry and meeting the growing demand for construction materials across the country.

According to a regulatory filing, the expansion will include a clinkerisation unit of 4 MTPA and cement grinding capacity of 3 MTPA at Jaisalmer, Rajasthan. In addition to this, the company plans to set up two split grinding units, each with a capacity of 2 MTPA, one in Rajasthan and the other in Punjab. The overall project is expected to provide a significant boost to JK Cement’s presence in northern and western India, where cement consumption has been on the rise due to infrastructure development and housing demand.

Currently, JK Cement has a grey cement capacity of 25.2 MTPA. With this expansion, its installed capacity will cross 32 MTPA once the projects are completed and commissioned. The company is already one of India’s leading cement producers and has a strong presence in both grey and white cement segments. On the white cement front, JK Cement operates with a capacity of 1.12 MTPA in India, while also manufacturing wall putty with a production capacity of 1.33 MTPA. The company is recognized globally as one of the major players in the white cement market.

The expansion decision comes close on the heels of JK Cement’s acquisition of a majority stake in Saifco Cements, a Jammu & Kashmir-based cement producer. That acquisition marked JK Cement’s entry into a new regional market and aligned with its strategy of geographical diversification and capacity growth.

Industry analysts note that cement demand in India is projected to grow steadily, supported by government spending on roads, highways, housing, and industrial development. Rajasthan has become a hub for cement manufacturing due to its limestone reserves, and Jaisalmer provides strategic advantages for setting up new clinkerisation facilities. Punjab, on the other hand, offers a growing urban housing market and proximity to key northern states, making it a suitable location for a grinding unit.

With this expansion, JK Cement aims to balance capacity growth with market demand, while also strengthening its logistics and supply chain. The company’s decision comes at a time when several large cement producers in India are pursuing aggressive capacity expansion plans to capitalize on infrastructure growth and government-led construction initiatives.

Image source- jkcement.com

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