JK Cement, backed by the Singhania family and one of India’s top 10 cement producers, is set to invest ₹3,000 crore to boost its production capacity by 25%, reaching 30 million tonnes per annum (mtpa) by the end of FY26. This is an increase from its current capacity of 24 mtpa.
As part of this plan, around ₹700-800 crore has already been allocated for ongoing brownfield and greenfield projects at Panna (Madhya Pradesh) and Buxar (Bihar). The expansion in Panna involves a clinker production capacity increase at an estimated cost of ₹2,400 crore, while the greenfield grinding unit in Bihar is expected to cost about ₹550 crore.
Work on the Panna project has commenced, with main plant and equipment orders already placed, and the facility is projected to be operational by the third quarter of FY26. In Bihar, land acquisition of approximately 80 acres is ongoing, with construction expected to begin post-monsoon once the necessary approvals are secured.
According to Dr. Raghavpat Singhania, Managing Director of JK Cement, the expansion is being financed through a mix of debt and equity. Upon completion in March 2026, the company’s net debt is anticipated to be in the ₹3,600-3,700 crore range, with a net debt-to-EBITDA ratio of under 2. As of June 30, 2024 (Q1FY25), JK Cement reported a gross debt of ₹4,515 crore and a net debt of ₹2,830 crore, with a net debt-to-EBITDA ratio of 1.36.
Recently, JK Cement has expanded its presence in Central and East India, commissioning new units in Prayagraj (Uttar Pradesh) and an additional clinker facility in Panna. Alongside cement production, the company is also diversifying into other building materials, including construction chemicals and tile adhesives, as well as entering the paints market.
An investment of around ₹600 crore is planned for the paints segment, part of which has already been made, with the remainder to be completed over the next two to three years. The paint business is targeting a turnover of ₹300 crore for this fiscal year and is reportedly “on track” to meet its goal, as per statements from the company’s leadership during a recent investor meeting.
