Technical Textile Updates

The JK Organization’s flagship company, JK Lakshmi Cement Ltd. (JKLC), revealed its financial results for the first quarter of the 2025 fiscal year today. Combination Scheme of Organization The Board of the Company today approved the Composite Scheme of Arrangement, which paves the way for the merger of its subsidiaries, Udaipur Cement Works Ltd (UCWL), Hansdeep Industries & Trading Company Limited, and Hidrive Developers & Industries Limited, into itself subject to various regulatory approvals and compliances, as part of the Company’s ongoing efforts to enhance the Value of its shareholders. The merger appointment date is April 1, 2024. Smt. Vinita Singhania, the company’s chairperson and managing director (CMD), made the following statement in response to the Composite Scheme of Arrangement: “The Consolidation of fragmented Cement capacities into a Single Business Focused Listed Entity shall result in Enhancement of Value for all the Stakeholders.” Durability As part of its green initiatives, the company is launching a project at its Sirohi Cement Plant to gradually increase its TSR from 4% to 16%. The Company successfully commissioned WHR 3.5 MW at Sirohi during the quarter. Capex In October 2023, the Company’s Subsidiary, Udaipur Cement Works Ltd. (UCWL), successfully put into service a second clinker line, producing 1.50 million tons annually, doubling its clinker capacity to three million tons annually. The 2.5 million tons per year cement grinding capacity was put into service in March 2024. At its Surat grinding unit, the company is increasing its cement grinding capacity from 1.35 million tons to 2.7 million tons. The project is expected to cost Rs. 225 crores, of which Rs. 150 crore would come from bank term loans, with the remaining amount coming from internal accruals. Additionally, the company is building a railway siding at its Durg cement plant, which will cost Rs. 325 crores. The remaining funds will come from internal accruals and a debt of Rs. 225 crore. In order to increase the clinker capacity at its integrated cement plant in Durg, Chhattisgarh, the company is building an additional 2.3 million tonne per year clinker line, four cement grinding units, and three split location cement grinding units. These locations are located in Prayagraj, Uttar Pradesh, Madhubani, Bihar, and Patratu, Jharkhand, and together they have an aggregate 3.4 million tonne per year cement grinding capacity. It is estimated that the project would cost Rs. 2500 crores and that the remaining amount will be covered by internal accruals and term loans from banks totaling Rs. 1750 crores. Outlook The outlook for the cement industry is favorable for the upcoming year given the government’s emphasis on infrastructure development, higher budgetary allocations for infrastructure development, and several other initiatives for housing and road development. Concerning JK Lakshmi Cement Ltd As a member of the esteemed JK Organization, which has been around for more than 125 years and has activities both domestically and internationally, JK Lakshmi Cement Limited holds a leading position in the industries of tires, cement, paper, power transmissions, sealing solutions, dairy products, and textiles. JK