JK Cement Announces ₹3,000 Crore Investment for Major Capacity Expansion.

JK Cement, one of India's top 10 cement manufacturers, promoted by the Singhania family, plans to invest ₹3,000 crore to increase its production capacity by 25%, bringing it to 30 million tonnes per annum (mtpa) by the end of FY26 from the current 24 mtpa.

The company has already invested ₹700-800 crore, focusing on a brownfield expansion at its Panna facility in Madhya Pradesh and a new greenfield plant in Buxar, Bihar. The Panna project will expand clinker capacity at a cost of ₹2,400 crore, while the Buxar grinding unit will see an investment of ₹550 crore.

Work at Panna has commenced, with equipment orders placed, and the plant is expected to be operational by Q3 FY26. In Bihar, land acquisition is underway, and construction will begin after the monsoon.

JK Cement's Managing Director, Dr. Raghavpat Singhania, said the expansion is being funded through a mix of debt and equity. He expects net debt to remain in the ₹3,600-3,700 crore range by March 2026, with a net debt to EBITDA ratio under 2.

As of Q1FY25, the company had a gross debt of ₹4,515 crore and a net debt of ₹2,830 crore, with a net debt to EBITDA ratio of 1.36.

JK Cement has recently expanded its presence in Central and Eastern India, commissioning units in Prayagraj, Uttar Pradesh, and a clinker facility in Panna. In addition to cement, the company is diversifying into other building materials, such as construction chemicals and tile adhesives. It has also entered the paints segment, with ₹600 crore planned for investment in this sector over the next few years.

The company's paint business is targeting a turnover of ₹300 crore for this fiscal year, and it is reportedly on track to achieve this goal.

HBL