JK Cement Acquires Toshali Cement, Expanding Footprint in Eastern India

22 Feb 2024 , 01:01 AM

According to a stock exchange statement from the firm, Nidhipati Singhania’s JK Cement has successfully acquired a 100% share in Toshali Cement. 

JK Cement is one of the top 8 cement producers in the nation, with an annual capacity of 20 million tons.

The company will increase its cement capacity by an additional 0.6 million tonnes annually with the acquisition of Toshali Cement, located in Odisha.

Not counting the cost of a limestone mining license that is also a part of the sale, the total acquisition cost is ₹90 crore. 

After the mining license is transferred, JK Cement will pay an extra ₹67 crore.

With immediate effect, Toshali is now a fully owned subsidiary of the company following this acquisition. According to JK Cement’s exchange statement, ‘the transfer of the Mining Lease is subject to necessary statutory and regulatory approvals, which is likely to be completed within 18 months of hereof.’ 

There are two functioning manufacturing units owned by Toshali Cement.

The first one, which is situated in the Koraput region of Odisha, includes integrated units with a clinker capacity of 0.33 million tonnes per year and a grinding capacity of 0.2 million tonnes per year. 

The second facility, a grinding facility with a capacity to produce 0.44 million tonnes of cement annually, is situated in the Cuttak district of Odisha. 

In 2002, Toshali Cement became a corporation.

The leading cement producers in the nation have all disclosed plans to increase their capacity. 

In a recent webinar, CareEdge Ratings stated that these are the result of anticipated demand increases brought on by significant government initiatives including large-scale road development projects and affordable housing initiatives.

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