JK Cement Ltd has acquired a 60 per cent equity stake in Saifco Cement Pvt Ltd, marking a strategic move to expand its footprint in the Jammu and Kashmir market. The acquisition involves both existing shares and a fresh issuance of shares, enabling JK Cement to integrate Saifco Cement as a subsidiary.
Saifco Cement, based in Khunmoh, Srinagar, operates an integrated manufacturing facility with a clinker production capacity of 0.26 million ton per annum and a grinding capacity of 0.42 million ton per annum. The facility spans 54 acre and is supported by captive limestone reserves covering 144.25 hectare, with mineable reserves estimated at 129 million ton.
This acquisition enables JK Cement to bypass the challenges of setting up greenfield projects in the region. By leveraging Saifco Cement’s existing infrastructure and established supply chain, JK Cement aims to improve operational efficiency and meet the growing demand for cement in the region.
The Indian cement industry is experiencing robust growth, driven by increasing urbanization and infrastructure development. With this acquisition, JK Cement seeks to enhance its production capabilities and extend its reach into this strategically significant market.
In addition to strengthening its operational base, the acquisition is anticipated to positively impact the local economy. Opportunities for employment, collaboration with local suppliers, and workforce development initiatives are expected to follow as the company integrates its operations with Saifco Cement.
By utilizing Saifco Cement’s resources and aligning them with its own expertise, JK Cement aims to scale operations and expand its product portfolio, contributing to the evolving infrastructure needs in Jammu and Kashmir.