JK Cement to Pump 3,000 Cr. for Capacity Expansion
JK Cement Ltd. will be investing about Rs. 3,000 crore to enhance its cement manufacturing capacity to 30 Million Metric Tonne Per Annum (MMTPA) during FY-26 from the current 24 MMTPA.
Out of this total amount, JK Cement has already utilised Rs. 700-800 crore as of now.
JK Cement to Expand in Madhya Pradesh & Bihar
JK Cement to Add 3.3 MMTPA Clinker Production at Panna Plant in FY-26
JK Cement is in the process of adding a 3.3 MMTPA clinker production line (designated as line-2) at its Panna cement plant in Madhya Pradesh by Q3 of FY-26.
This expansion is estimated to cost about Rs. 2,400 crore.
Capacity augmentation at Panna plant will take JK Cement’s total clinker production to 17.8 MMTPA from the current 14.5 MMTPA.
Company to Add 6 MMTPA Grey Cement Production in FY-26
JK Cement will be setting up a greenfield cement grinding unit in Buxar, Bihar, which is expected to be commissioned in FY-26. This 6 MMTPA plant will entail a cost of about Rs. 550 crore.
During its Q1 FY-25 earnings call, JK Cement’s management had said, “…in case of the grinding unit at Bihar, the Greenfield grinding unit, we have just finalized the land acquisition, now moving in for the various approvals. In the meantime, we have already placed orders for main plant and equipment, and we are hopeful here also, that we should be able to start work post-monsoon”.
Since work at Buxar has not commenced yet, it can be speculated that this Rs. 700-800 crore has been invested in Panna.
JK Cement Envisions Cement Production Growth to 50 MMTPA by 2030
In its September 2024 investor presentation, JK Cement mentioned that it has the potential to grow cement production to 50 MMTPA by 2030.
For this, the company envisions a 6 MMTPA greenfield cement plant in Jaisalmer, a third clinker line at Panna of 6 MMTPA capacity, brownfield expansion of 5 MMTPA at JK Cement’s Muddapur plant in Karnataka, and a 3 MMTPA expansion in Odisha.
It is to be noted that this capacity addition comprises the company’s next leg of expansion once its 30 MMTPA cement production target is met.
As for the order of these upcoming expansions, JK Cement’s management elaborated, “…we feel that Jaisalmer part unit line one may be the first one to come up, which may be followed by Karnataka and then afterwards it could be Panna line 3 and followed by, I mean, along with Panna line 3, it could be Orissa”.
About JK Cement Ltd.: JK Cement Ltd. has its head office in Kanpur, Uttar Pradesh. The company manufactures grey and white cement, wall putty, and paints. For FY-24, JK Cement reported a turnover of Rs. 11,556 crore.
