SRINAGAR: JK Cement has marked a significant milestone by acquiring a 60 per cent stake in Saifco Cements, a Srinagar-based cement manufacturer in Kashmir. This Rs 174 crore transaction, announced on January 26, 2025, is a strategic move to expand JK Cement’s presence in the Jammu and Kashmir region and solidify its footprint in Northern India, reports appearing in media said.
Saifco Cements operates an integrated Khunmoh, Srinagar facility spread over 54 acres. The plant boasts a clinker capacity of 0.26 million tonnes per annum and a grinding capacity of 0.42 million tonnes per annum. Besides, it has access to extensive limestone reserves spanning 144.25 hectares, with a total mineable reserve of 129 million tonnes. Its enterprise valuation was put at Rs 290 crore. This acquisition positions JK Cement to utilise Saifco’s resources to bolster regional production.
The acquisition put JK Cements among the key players in Kashmir’s cement manufacturing sector. It emerges as the first major company to acquire the decision-making in a Kashmir company as part of the strategic tie-up. The Singhania-owned company is the sixth major cement producer in India with an estimated revenue of around Rs 9000 crore. By partnering with a regional company that already has the infrastructure, JK Cements has skipped the challenges of starting a new facility from scratch.
JK Cement’s Managing Director, Raghavpat Singhania, described the acquisition as a pivotal step in the company’s growth strategy, highlighting Jammu and Kashmir’s immense potential for infrastructural development. “Jammu and Kashmir holds strategic importance for us, and partnering with Saifco Cements aligns with our goal to manufacture the best for our customers and nation. This acquisition allows us to tap into a region ripe with opportunities,” Singhania was quoted as saying. The acquisition will see both companies collaborating to enhance cement production capacity by utilising the extensive limestone reserves over the next five years.
Madhavkrishna Singhania, Joint Managing Director and CEO of JK Cements echoed these sentiments, citing the region’s per capita cement consumption of approximately 168 kilograms, which is just 55 per cent of the national average. “The scope for growth is vast, and cement demand typically outpaces economic expansion in regions undergoing significant infrastructural development,” he stated. He also emphasised the company’s intention to increase Saifco’s production capacity in the coming years by leveraging its rich limestone reserves.
The deal was in the offing as the two companies had reached an understanding at least three years ago. They had signed a non-disclosure agreement but when the reports appeared in the media, the negotiations were denied. They finally signed the agreement and made it public in 2025.
