JK Lakshmi Cement eyes 30 mtpa capacity by FY30

Cement demand will continue to be driven by infra and housing projects in India and is likely to witness a 7 -8 per cent growth this fiscal (FY26), Arun Shukla, President and Director, JK Lakshmi Cement, said.

The company, anticipating a positive demand growth across its key operational markets, is investing ₹2,500-3,000 crore to ramp up production by 4.6 million tonnes per annum (mtpa) by FY27.

It exited FY25 with a capacity of 18 mtpa and is targeting to become the fifth largest cement-maker in the country with an installed capacity of 30 mtpa by FY30. JK Lakshmi Cement’s strong markets include East, North and West India.

According to Shukla, the company will be investing in its east India facilities – for brownfield expansion — through a mix of debt and internal accruals. It has two facilities in East India – an integrated capacity at Durg in Chattisgarh and a grinding unit at Cuttack in Odisha.

“We recently acquired mining rights in Nagor (Rajasthan) and Kutch (Gujarat) – where we will set up grinding plants each having a capacity of 3 mtpa; a third line in Udaipur and a 2.5 mtpa integrated grinding unit. In all, our capacities by FY30 should be in the 30-31 mtpa range,” he told reporters during a press conference.

Integration of Udaipur Cement Works Ltd, a subsidiary of the company, with the parent is likely to be through by August, Shukla said. The merger was a part of the corporate restructuring plan that the company’s board had approved last year.

N-E focus

The cement-maker has recently signed an MoU with the Assam government for a greenfiled project, likely to be completed over the next 7-8 years. The capacity is yet to be announced. “There is government focus on the North-East, and we are present in the Eastern region. So it makes logical sense for us to expand there (NE),” he said.

Incidentally, a general thumb-rule in cement-making is that in order to set up a 1 mtpa capacity, capex is in the ₹1,000-1,200 crore range, approximately.

Published on April 18, 2025