India's leading bourses, the National Stock Exchange (NSE) and Bombay Stock Exchange(BSE), have given consent to the merger of three subsidiaries into JK Lakshmi Cement. The three subsidiaries Udaipur Cement Works, Hansdeep Industries and Trading, and Hidrive Developers and Industries, will merge into JK Lakshmi Cement.
On 31 July 2024, the board of JK Lakshmi Cement had approved the amalgamation scheme, which will simplify the group structure and make it more commercially meaningful to have one combined entity focussed in the business of cement and cement products.
On 1 January 2025, the BSE and NSE signified that they had no adverse objection to the proposed scheme, JK Lakshmi Cement said in a BSE filing. For Udaipur Cement Works Ltd (UCWL), its shareholders will receive four shares of JK Lakshmi Cement for every 100 shares they hold in the company.
JK Lakshmi Cement has a total capacity of 16.5Mta in FY23-24. Its revenue was at INR63,190m (US$736.4m) while UCWL's revenue in FY23-24 was INR11,630m.
According to the latest annual report of JKLC, its strategic plan includes brownfield and greenfield expansions with the aim of increasing capacity to 30Mta by 2030. To achieve this, it has ongoing strategic expansion projects totalling 10.80Mta, scheduled for completion by FY26-27.
