JK Lakshmi Cement looks for 10% growth in FY'26

JK Lakshmi Cement is targeting a double-digit growth in revenues in the current fiscal along with improvement in margins helped by capacity expansions and better operational efficiency, its President & Director, Arun Shukla, said on Friday.

Besides, the JK Organisation group firm, is also working to increase its revenue from adjacencies such as concrete solutions and ready-mix business, eyeing 10 per cent of contribution from it in the next 3-4 years.

JK Lakshmi Cement Ltd (JKLC), has plans to invest additional funds to expand its production capacity to 30 million tonnes per annum (MTPA), from the present 18 MTPA and become among the top five cement producers of the country by 2030.

The company, which had reported a revenue of Rs 6,383.73 crore in FY'24 and like other players faced a slowdown in demand, expects this fiscal year to be better.

"I think, the Industry is going to grow at a rate of about 7 to 8 per cent in FY'26 and our endeavour is to grow at least 10 per cent," Shukla told PTI.

The company expects the recent capacity addition of 2.5 MTPA at Udaipur plant will help the company to achieve this growth. Along with this, in Surat also, the company is adding another 1.35 million tons per annum (MTPA).

"These expansions are going to be growth drivers that will take us to 10 per cent growth," he added.

JKLC has announced Rs 2,500 crore investment, which will increase its capacity to 4.6 MTPA in the Eastern part of India which includes brownfield and greenfield projects, which are going to be completed by 2027-28.

"We do have a plan to put up additional capacity in the northern part of India, in Rajasthan, where we already have mining lease rights. We have already started initial processes, and we are going to put up 3 MTPA there. We do have mining rights in Kutch, Gujarat, we are going to put up an additional 3 MTPA to start with," said Shukla.

Along with this, JKLC has "interest in the North East as well, and there also we want to put up an integrated unit along with a grinding station. We are also going to put up a third line at our existing Udaipur Cement works. With this, our plan is to reach more than 30 million tons by 2030," said Shukla.

The company will fund these expansion plans with a mix of debt and internal accruals.

Besides, JKLC also expects margins to improve as it is working to increase efficiency in its entire value chain, digitising logistic solutions and integrating AI-enabled features in the cement grinding process. It has also recently gone for a brand rejuvenation exercise, where it launched Green Plus Cement.

Moreover, JKLC is also focusing on the premiumisation of its offerings, which is helping it to increase margins.

According to Shukla, now Pro Plus, JKCL's premium product, is more than 25 per cent of its trade. This is also helping the company to increase its margins and revenue.

"We are not only trying to give a very differentiated product to our customers but also trying to improve the price positioning," he said, adding that JKLC is also increasing the use of green energy.

Currently, 49 per cent JKLC requirements are from renewable energy and the company has plans of further upgradation.

Over expansion into adjacent categories, Shukla said JK Lakshmi Cement wants to be the provider of smart building solutions to its customers.

"Cement is one of our products, along with that, we have a sizable portfolio of other building materials" as a concrete solution, putty and plastering solutions, tiles adhesives and primers etc.

Currently, JKLC is getting Rs 500 crore from segments other than grey cement.

"Our plan is to take this portfolio to Rs 1,000 crore and then maybe to Rs 1,500 crore or Rs 2,000 core," he said, adding "We do have plans to grow our footprint in ready-mix business, AC block, and some of the other products."