India-based building materials manufacturer, JK Cement, has announced plans to invest INR30bn (US$358.4m) to increase its capacity by 25 per cent, from 24Mta to 30Mta by the end of FY25-26.
Nearly INR8bn of the investment has already been made, with work on the brownfield expansion in Panna, Madhya Pradesh, and the greenfield grinding unit in Buxar, Bihar, underway.
At Panna, the investment includes clinker capacity expansion, costing approximately INR24bn, while the greenfield unit in Bihar is expected to require around INR5.5bn. Work on the Panna site has begun, and orders for main plant components and equipment have already been placed. The company expects the facility to be operational by the 3QFY25-26.
Additionally, JK Cement has started acquiring land and securing the necessary approvals for the Bihar grinding unit. Work on the site is expected to commence after the region’s monsoon season.
Raghavpat Singhania, managing director of JK Cement, stated that the expansion is being funded through a mix of debt and equity. He said, “Post the expansion by March 2026, we will have a net debt in the INR3600-3700 crore [INR36bn-37bn] range. Our net debt to EBITDA will remain below two.”
For the period ending 30 June 2024 (1QFY25), the company had a gross debt of INR45.2bn and a net debt of INR28.3bn. In recent quarters, JK Cement has significantly expanded its operations in central and east India. The company has commissioned new capacities, including a unit in Prayagraj, Uttar Pradesh, and a clinker facility in Panna, Madhya Pradesh. These additions are part of JK Cement's broader strategic growth initiative aimed at enhancing its production footprint and meeting rising market demand in these key regions. This ongoing expansion supports the company’s long-term goal of increasing its overall capacity.
