India-based JK Cement Ltd announced it will acquire a 60 per cent stake in Saifco Cements, located in Khunmoh, Srinigar. The INR1.74bn (US$20.1m) deal is expected to enable JK Cements to enter the Jammu and Kashmir regional market.
JK Cement’s Managing Director, Raghavpat Singhania, in a statement emphasised the strategic importance of this acquisition, stating, “With Saifco Cement joining our portfolio, we are well-positioned to not only expand our operational footprint but also enhance our production capacity and offerings in the growing cement market in Jammu and Kashmir.”
Thanks to JK Cement’s well-established brand and market reach, the purchase will provide Saifco Cements to strengthen its resource base to scale up operations and improve its product range.
“We are excited about the opportunity to work together to scale our operations and establish ourselves as the leading cement players in the Kashmir Valley.”, said Manzoor Ahmad Guna, chairman, Saifco Cements.
Saifco Cements has an annual turnover of approximately INR860m. The company operates an integrated cement plant with a clinker capacity of 0.26Mta and a cement capacity of 0.42Mta. Its captive limestone reserves are located on a 144.25ha plot and have a total mineable reserve of 129Mt.
The remaining stake will be held by existing shareholder Manzoor Ahmed Guna’s family.
