Indian cement manufacturer JK Lakshmi Cement (JKLC), part of the JK Organisation, hopes to achieve a 10 per cent growth in revenue in the current financial year following recent additions to its capacity and improved operational efficiencies, as well as renewed efforts to grow its concrete solutions and ready-mix divisions.

As part of ambitious five-year plans JKLC aims to scale up production to 30Mta from its current level of  around 16.4Mta, which would place the company among India’s top five cement producers. For FY23-24 it reported a turnover of INR63.84bn (US$750m) faced with subdued demand across the industry.

Recently JKLC added 2.5Mta of capacity to its Udaipur facility and 1.35Mta at its Surat plant, projects which have been identified as key growth drivers by Arun Shukla, the company’s president and director. Additionally, JKLC has earmarked INR25bn to expand its footprint in India through green and brownfield projects, which are expected to bring a further 4.6Mta online by 2027-28. There are also plans to expand mining in Rajastan, northern India, a similar initiative in Gujurat’s Kutch region, and potentially an integrated plant and grinding unit in the north east of the country. A third production line is also being added to the Udaipur plant.

In January India's financial regulators approved the merger of three subsidiaries – Udaipur Cement Works, Hansdeep Industries and Trading, and Hidrive Developers and Industries – into the parent company.

Enhancing efficiencies

JKLC hopes digital logistics tools, including the introduction of AI-based technology in its cement grinding operations, will improve profit margins. Increasingly the company is placing the focus on premium products, such as its Pro Plus  offering, which now accounts for a quarter of its trade business. There are also efforts to promote JKLC’s environmental credentials, such as the launch of its Green Plus Cement brand and increased use of renewable energy, which currently constitutes 49 per cent of its requirements. 

Currently non-cement revenue stands at around INR5bn, but JKLC wants to quadruple this figure in the longer term and is positioning itself as a holistic building solutions provider, with a portfolio including concrete products, wall putty, plastering solutions, tile adhesives and primers.