Aiming for 30 Million Tonnes Capacity by 2030
JK Lakshmi Cement, a leading cement manufacturer in India, is embarking on an ambitious expansion journey to increase its capacity to 30 million tonnes by 2030. The company plans to invest around ₹2,500-3,000 crore in the first phase and additional developments across various regions, including Rajasthan, Gujarat, the East, and the North East.
Capacity Expansion Plans
- 4.6 Million Tonnes Capacity to be Added in the East by FY27-FY28
- Acquired Mining Lease Rights in Nagore, Rajasthan, and Kutch, Gujarat, to Add Three Million Tonnes Capacity Each
- Integrated Grinding Unit to be Set up in the North East with 2.5 Million Tonnes Capacity
- Third Line to be Added at the Udaipur Cement Works (UCWL) Plant by FY29-FY30
Investment and Capacity Utilization
The company plans to invest around ₹2,500-3,000 crore to add 4.6 million tonnes capacity. The capacity utilization is expected to be around 75-80%, which is higher than the industry average of 65-69%.
Subsidiary Merger
The company has approved a composite scheme of arrangement to merge its subsidiaries, Udaipur Cement Works (UCWL), Hansdeep Industries & Trading Company, and Hidrive Developers & Industries into itself. The merger is expected to be completed by July-August 2025.
Adjacent Businesses
In the long-term, the company aims to double its revenue contribution from adjacent businesses such as AAC Blocks and RMC to ₹1,000 crore within a year. The company plans to invest around ₹200-300 crore in AAC Blocks and RMC segments.
Carbon Net-Zero Goal
The company has set a target of becoming carbon net-zero by 2047 through renewable energy, digitalisation, and waste reuse strategies. The company has already implemented various measures to reduce its carbon footprint, including using renewable energy sources, reducing dependence on fossil fuels, and implementing efficient products.
Customer Break-up
About 58-60% of the company’s customers are individual buyers, followed by 20-25% from infrastructure and 10-15% from industrial/commercial sectors.
Key Statistics
| Expansion Plans | Investment (₹ Crore) | Capacity Addition (Million Tonnes) |
|---|---|---|
| East | 2,500-3,000 | 4.6 |
| Rajasthan | 4,000-5,000 | 3 |
| North East | 2,000-3,000 | 2.5 |
The company’s expansion plans are expected to be completed by 2030, with the company aiming to increase its capacity to 30 million tonnes. The company plans to invest around ₹2,500-3,000 crore in the first phase and additional developments across various regions.
Subsidiary Merger Update
The company has approved a composite scheme of arrangement to merge its subsidiaries, Udaipur Cement Works (UCWL), Hansdeep Industries & Trading Company, and Hidrive Developers & Industries into itself. The merger is expected to be completed by July-August 2025.
Adjacent Businesses Update
The company plans to invest around ₹200-300 crore in AAC Blocks and RMC segments. The company aims to double its revenue contribution from adjacent businesses such as AAC Blocks and RMC to ₹1,000 crore within a year.
Carbon Net-Zero Goal Update
The company has set a target of becoming carbon net-zero by 2047 through renewable energy, digitalisation, and waste reuse strategies. The company plans to invest around ₹2,500-3,000 crore in the first phase and additional developments across various regions.
JK Lakshmi Cement’s Vision for the Future
The company’s vision for the future is to become a leading cement manufacturer in India, with a strong presence in various regions. The company aims to increase its capacity to 30 million tonnes by 2030 and to become carbon net-zero by 2047.
Conclusion
JK Lakshmi Cement’s ambitious expansion plans are expected to shape the cement industry in India.