Nidhipati Singhania’s JK Cement has completed the acquisition of 100% stake in Toshali Cement as per a stock exchange disclosure made by the company.
JK Cement has 20 million tonnes per anum of capacity and ranks amongst the top 8 cement manufacturers in the country.
With the acquisition of Odisha-based Toshali Cement the company will add a further 0.6 million tonnes per anum of cement capacity.
The total acquisition cost is Rs. 90 crore not including the cost of a limestone mining license that is also part of the deal.
Post transfer of the mining license JK Cement will make an additional payment of Rs. 67 crore.
Advt“Upon this acquisition, Toshali has become a wholly owned subsidiary of the Company with immediate effect. The transfer of the Mining Lease is subject to necessary statutory and regulatory approvals, which is likely to be completed within 18 months hereof”, JK Cement said in the exchange filing.
Toshali Cement has two manufacturing units which are both operational.
The first one located in Odisha’s Koraput district has integrated units with 0.33 million tonne per anum of clinker capacity and 0.2 million tonne per anum of grinding capacity.
The second unit located in Odisha’s Cuttak district is a grinding unit with 0.44 million tonne per anum of cement production capacity.
Toshali Cement was incorporated in 2002.
The country’s top cement manufacturers have all announced capacity addition plans.
CareEdge Ratings said in a recent webinar that these are on the back of demand increases expected from major government initiatives such as large road construction programs and housing schemes for the poor.