JK Lakshmi Cement Expansion Plans Target 30 MTPA Capacity by 2030

Published on April 18, 2025

The JK Lakshmi Cement expansion plans are set to transform the company into one of India’s top five cement manufacturers by 2030, according to recent announcements by company leadership. In a press conference held this week, Arun Shukla, President and Director of JK Lakshmi Cement, outlined the company’s ambitious growth trajectory, which aims to nearly double its current production capacity through strategic investments across multiple regions of India. The comprehensive JK Lakshmi Cement expansion plans come amid robust growth projections for India’s cement sector, which continues to be driven by infrastructure development and residential construction projects.

Cement Market Growth Projections

India’s cement industry is poised for significant growth in the coming years, according to Shukla’s market assessment. “Cement demand will continue to be driven by infrastructure and housing projects in India and is likely to witness a 7-8 percent growth this fiscal year (FY26),” he stated during the press briefing. This positive outlook has provided the confidence for JK Lakshmi Cement to advance its expansion plans across key operational markets where the company has already established a strong presence.

The anticipated market growth aligns perfectly with the JK Lakshmi Cement expansion plans, positioning the company to capitalize on increased demand while strengthening its market share across multiple regions. Industry analysts note that cement companies with well-executed capacity expansion strategies will be best positioned to benefit from India’s long-term infrastructure development trajectory.

Major Investment for Capacity Expansion

At the core of the JK Lakshmi Cement expansion plans is a substantial capital investment program aimed at significantly increasing production capacity. The company has committed to investing between ₹2,500-3,000 crore to boost its production capabilities by an additional 4.6 million tonnes per annum (MTPA) by the fiscal year 2027. This initial phase of expansion represents just one component of the company’s larger strategic vision.

JK Lakshmi Cement’s production facilities will see significant upgrades as part of the company’s expansion strategy. (Image: Representative)

The company concluded the previous fiscal year (FY25) with a total production capacity of 18 MTPA. Through its comprehensive JK Lakshmi Cement expansion plans, the manufacturer aims to reach an installed capacity of 30 MTPA by FY30, representing a nearly 67% increase from current levels. This growth trajectory would position JK Lakshmi Cement as the fifth-largest cement producer in India, a significant advancement in the highly competitive market.

“In all, our capacities by FY30 should be in the 30-31 MTPA range.” Arun Shukla, President and Director, JK Lakshmi Cement

Regional Expansion Strategy

The JK Lakshmi Cement expansion plans feature a carefully constructed regional approach that builds upon the company’s existing market strengths while exploring new growth areas. Currently, JK Lakshmi Cement maintains a strong presence across East, North, and West India, with these regions serving as the primary focus for the upcoming capacity additions and operational enhancements.

By distributing its expansion plans across multiple regions, JK Lakshmi Cement aims to optimize logistics costs while ensuring access to diverse markets. This strategic approach allows the company to mitigate regional demand fluctuations while capitalizing on growth opportunities in specific high-potential areas.

East India Brownfield Expansion

A significant component of the JK Lakshmi Cement expansion plans involves enhancing production capacity at its East India facilities. According to Shukla, the company will be investing in brownfield expansions at its existing operations in the eastern region. This approach leverages established infrastructure while adding new production capabilities in a cost-efficient manner.

The company currently operates two key facilities in East India: an integrated cement manufacturing plant at Durg in Chhattisgarh and a grinding unit at Cuttack in Odisha. The planned brownfield expansions at these locations will be financed through a combination of debt and internal accruals, reflecting the company’s balanced approach to funding its growth initiatives.

The East India market represents a significant growth opportunity for cement manufacturers due to ongoing infrastructure development and increasing housing demand. The JK Lakshmi Cement expansion plans for this region position the company to capture a larger share of this growing market while optimizing production and distribution costs.

West and North India New Projects

As part of its comprehensive growth strategy, the JK Lakshmi Cement expansion plans include several new projects across West and North India. Shukla revealed that the company has recently acquired mining rights in two strategic locations: Nagor in Rajasthan and Kutch in Gujarat. These acquisitions provide the foundation for significant new production facilities.

At both newly acquired locations, the JK Lakshmi Cement expansion plans call for the establishment of grinding plants, each with a production capacity of 3 MTPA. Additionally, the company intends to add a third production line at its Udaipur facility along with a 2.5 MTPA integrated grinding unit. These projects collectively represent a significant portion of the company’s targeted capacity growth.

Strategic Focus on Northeast India

In a forward-looking component of its growth strategy, the JK Lakshmi Cement expansion plans include new initiatives in Northeast India, a region that has received increased government attention for development. The company recently signed a Memorandum of Understanding (MoU) with the Assam government for a greenfield cement production project in the state.

This greenfield project in Assam is expected to be completed over the next 7-8 years, indicating the company’s long-term commitment to the region. While the specific capacity for this facility has not yet been announced, it forms an important component of the broader JK Lakshmi Cement expansion plans for the decade ahead.

“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).” Arun Shukla, President and Director, JK Lakshmi Cement

Corporate Restructuring and Integration

Alongside its capacity expansion plans, JK Lakshmi Cement is also implementing important corporate restructuring initiatives designed to streamline operations and enhance efficiency. A key component of this strategy is the integration of Udaipur Cement Works Ltd, a subsidiary of the company, with the parent organization.

According to Shukla, this merger process is expected to be completed by August of this year. The integration was previously approved by the company’s board as part of a broader corporate restructuring plan aimed at optimizing operational efficiency and creating a more cohesive organizational structure.

The industry benchmark for cement production capacity investment provides context for the scale of the JK Lakshmi Cement expansion plans. According to general standards in the cement manufacturing sector, the establishment of 1 MTPA of production capacity typically requires a capital expenditure of approximately ₹1,000-1,200 crore. This metric highlights the significant financial commitment underlying the company’s growth strategy.

As JK Lakshmi Cement progresses with its ambitious expansion plans, the company is positioned to significantly strengthen its market presence across multiple regions of India. By strategically distributing its investments across brownfield expansions, greenfield projects, and corporate restructuring initiatives, the cement manufacturer is creating a comprehensive framework for sustainable long-term growth in India’s dynamic construction materials market.

With cement demand projected to maintain robust growth in the years ahead, the JK Lakshmi Cement expansion plans represent a timely and strategic response to market opportunities. The company’s journey toward becoming India’s fifth-largest cement producer by 2030 will be closely watched by industry stakeholders as a bellwether for the sector’s overall development trajectory.

Published on April 18, 2025 | Updated on April 18, 2025