Coal news and updates

JK Cement acquires 60% stake in Saifco Cements

In a move to expand its reach in northern part of India, JK Cement has acquired 60 percent equity stake in Saifco Cements Private Limited for Rs 149.79 crore, according to a BSE filing. marking a strategic move to expand its presence in the Union Territory of Jammu & Kashmir. The acquisition is a part of long-term strategic move for JK Cement to expand its foot print in the Union Territory of Jammu & Kashmir and enhance its regional operations and market. The deal includes the purchase of shares from existing promoters and fresh equity issuance by Saifco. With this acquisition, Saifco has now become a subsidiary of JK Cement, and the company will assume management control with immediate effect. Saifco Cements, incorporated in 1997, operates an integrated cement plant in Khunmoh, Srinagar, with a clinker capacity of 0.26 million tons per annum (mtpa) and a grinding capacity of 0.42 mtpa. Its turnover for FY 2024–25 stood at Rs 73.17 crore, following Rs 86.30 crore in FY 2023–24 and Rs 90.20 crore in FY 2022–23. As part of the post-acquisition transition, the board of Saifco will be reconstituted. Three directors nominated by JK Cement will join the board, alongside two existing directors from the promoter group. The acquisition is not categorised as a related party transaction and was carried out via cash consideration. It also complies with applicable statutory and regulatory norms. JK Cement stated that this move would not only extend its geographic reach but also align with its strategic focus on capacity expansion and regional diversification. This development marks another milestone in JK Cement’s expansion roadmap, reinforcing its position as a leading player in India’s cement industry. (SOURCE: ICMW)