JK Cement Board Greenlights Rs. 4,805 Cr. CapEx for 7 MMTPA Capacity Addition
JK Cement Ltd.’s board has approved an investment of about Rs. 4,805 crore towards augmenting the company’s production capacity by 7 Million Metric Tonne Per Annum (MMTPA).
Currently, JK Cement has an installed production capacity of 25.26 MMTPA.
4 MMTPA Clinkerisation Unit, 7 MMTPA of Grinding Units Planned
As a part of aforementioned expansion, JK Cement will add a clinkerisation unit of 4 MMTPA and a cement grinding unit of 3 MMTPA capacity in Jaisalmer, Rajasthan. Apart from this, the company will also establish two split grinding* units, one each in Rajasthan and Punjab respectively. Each of these split grinding units will have 2 MMTPA capacity.
However, the company has not given the break-up of its approved investment for these units.
*Split grinding units are not part of an integrated cement plant, and are small standalone grinding plants which are not in vicinity to clinker production units. Such plants are often located near markets.
Company’s FY26 Target of 30 MMTPA Capacity On Track
JK Cement has set a target to achieve 30 MMTPA cement production capacity in FY26. In order to materialise this goal, the company has already undertaken aggressive capacity addition steps in the form of greenfield and brownfield expansions.
The company is expanding its clinker production capacity by 4 MMTPA, and its cement grinding capacity by 6 MMTPA. Clinker production will be expanded at JK Cement’s Panna facility in Madhya Pradesh.
As for grinding plants, JK Cement is in process of 1 MMTPA brownfield expansion each at its Panna, Hamirpur (in UP) and Prayagraj (in UP) facilities. Moreover, JK Cement is investing about Rs. 500 crore to set up a greenfield integrated cement manufacturing plant at Buxar, Bihar with a production capacity of 3 MMTPA.
During the company’s Q1 FY26 earnings call, JK Cement’s management added, “…[after these expansion operations] we will be 31.26 [MMTPA]. We have certain opportunities in the South which we are working out and that materializes, it will be 32 million tons by FY26”.
The company expects these expansion projects to be completed by the end of CY2025.
Larger Target of 50 MMTPA by 2030
JK Cement’s long-term plan is to grow its cement manufacturing capacity to 50 MMTPA by 2030. The recently approved investment by the company’s board will likely add to the company’s cement production capacity post-FY26, therefore contributing to its 2030 target.
In its FY25 annual report, the company mentioned that this target will be realised through a combination of greenfield and brownfield expansions. The company also added that it is actively considering opportunities for expansion “…across Jaisalmer, Muddapur (in Karnataka), and Panna”.
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-25, JK Cement reported a turnover of Rs. 11,879.15 crore.
