JK Cement, promoted by the Singhania family and ranked among the top ten cement manufacturers in India, plans to invest ₹3,000 crore to increase its production capacity by 25% to reach 30 million tonnes per annum (mtpa) by the end of FY26, up from the current 24 mtpa.
The company has already invested ₹700-800 crore in ongoing brownfield expansions in Panna, Madhya Pradesh, and a new greenfield facility in Buxar, Bihar. The Panna project includes an expansion of clinker capacity, with an estimated investment of ₹2,400 crore, while the Buxar grinding unit is expected to require around ₹550 crore.
Construction has commenced in Panna, with orders placed for the main plant and equipment, and the unit is anticipated to be operational by Q3 of FY26. In Buxar, land acquisition of approximately 80 acres is currently in progress, along with the securing of necessary approvals, with construction expected to begin after the monsoon season.
Dr. Raghavpat Singhania, Managing Director of JK Cement, stated that the expansion will be financed through a combination of debt and equity. Upon completion of the expansion by March 2026, the company projects a net debt in the range of ₹3,600-3,700 crore, maintaining a net debt-to-EBITDA ratio below 2.
As of the quarter ending June 30, 2024 (Q1FY25), JK Cement reported a gross debt of ₹4,515 crore and a net debt of ₹2,830 crore, reflecting a net debt-to-EBITDA ratio of 1.36.
Recently, JK Cement has expanded its presence in Central and East India, with new capacities commissioned at a unit in Prayagraj, Uttar Pradesh, and another clinker facility in Panna.
In addition to cement production, JK Cement is diversifying into other building materials and value-added products. The company has recently entered the paints segment, planning to invest around ₹600 crore in capital expenditure over the next two to three years. The paint business is projected to achieve a turnover of ₹300 crore in the current fiscal year and is reportedly “on track” to meet this target.