History

_x000D_ JK Lakshmi Cement Ltd. was established on August 6, 1938, in Rajasthan and has grown to become a leading cement and cementitious products manufacturer with facilities in Rajasthan, Chhattisgarh, Gujarat, Haryana, and Odisha. The company also provides construction solutions and regularly contacts builders and associates to understand their needs. _x000D_ _x000D_ The company was listed on the Bombay Stock Exchange in the year 1959. In 1982, the company initiated its journey by setting up a cement plant in Rajasthan with a 0.50 million metric tonnes capacity. Over the years, it underwent various changes, including a shift to multi-product manufacturing in 1995 and a brand name change from JK Corp Limited to JK Lakshmi Cement in 2005. In 2006, it launched its IPO of ₹299.1 crore with a face value of ₹10. _x000D_ _x000D_ The company achieved significant milestones, such as winning safety and environmental management awards. It also diversified its product range to include ready-mixed concrete (RMC) and AAC blocks. In 2014, it increased its clinker and cement grinding capacities and ventured into solar power projects and AAC block production._x000D_ _x000D_ In 2016 and 2017, it expanded with a split grinding unit in Surat and the commissioning of the Pyro Section at Udaipur Cement Works Ltd. The company continued to enhance its capacity and commissioned a waste heat recovery project in 2017._x000D_ _x000D_ In FY2020, JK Lakshmi Cement faced challenges due to the COVID-19 pandemic, leading to a temporary shutdown. However, operations resumed in phases, aligning with government guidelines._x000D_ _x000D_ During FY2019-20, it commissioned a grinding unit in Cuttack, Odisha, and a 20 MW captive thermal power plant in Durg, Chhattisgarh. In FY2021-22, a 10 MW waste heat recovery project was commissioned in Jaykaypuram, Sirohi. In FY2022-23, it achieved another milestone by commissioning an 8 MW floating solar power plant at the Sirohi unit in Rajasthan._x000D_ _x000D_ The company boasts an annual production capacity of 13.9 million metric tonnes, solidifying its prominent standing in the market. With an extensive presence of over 400 cement dumps and a substantial network comprising more than 4000 channel partners, the JK Lakshmi Cement brand holds a prestigious position, acknowledged for its exceptional quality and service delivery. _x000D_

Business Segments 

_x000D_ The company's business segments can be broadly categorised into three main areas:_x000D_

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1. Cement Products: JK Lakshmi Cement produces a wide range of cement products, including Ordinary Portland Cement (OPC), Portland Pozzolana Cement (PPC), Portland Slag Cement (PSC), and Composite Cement. These products are used in various construction applications, including residential, commercial, and infrastructure projects. 
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2. Value-Added Products and Services: Besides its core cement business, JK Lakshmi Cement also offers a range of value-added products and services. These include Ready Mix Concrete (RMC), Gypsum Plaster, Wall Putty, Autoclaved Aerated Blocks (AAC Blocks), Construction Chemicals, and Adhesives. These products and services provide JK Lakshmi Cement with a competitive edge, allowing the company to cater to a wider range of customer needs. 
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3. Other Businesses: JK Lakshmi Cement also has several other businesses, including mining, power generation, and logistics. These businesses provide the company with raw materials, energy, and transportation, which helps reduce its costs and improve its margins.
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_x000D_ Subsidiaries of JK Lakshmi Cement Ltd_x000D_

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• Hansdeep Industries and Trading Company Limited: HITCL is a wholly-owned subsidiary of JK Lakshmi Cement Limited. HITCL is involved in the trading of cement and other building materials. The company has a strong network of distributors across India and is a key player in the marketing and distribution of JK Lakshmi Cement's products.
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• Udaipur Cement Works Limited (UCWL): It is a partially owned subsidiary of JK Lakshmi Cement Limited. UCWL is a cement manufacturing company with a plant located in Udaipur, Rajasthan. The company produces a variety of cement products, including Ordinary Portland Cement (OPC), Portland Pozzolana Cement (PPC), and Portland Slag Cement (PSC). UCWL is a significant contributor to JK Lakshmi Cement's overall production capacity.
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• Ram Kanta Properties Pvt. Ltd.: This is a subsidiary of JK Lakshmi Cement Limited. The company is involved in the development and management of real estate. Ram Kanta Properties Pvt. Ltd. owns and manages several properties in India, including residential, commercial, and industrial properties.
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Key Personnel 

_x000D_ Mr. Bharat Hari Singhania, Chairman _x000D_ _x000D_ Mr. Bharat Hari Singhania, an accomplished industrialist boasting over six decades of experience, has effectively managed diverse industries such as automotive tyres, paper, and synthetics. Mr. Singhania currently serves as the Chairman of the Company, a role he has held since October 1, 2021._x000D_ _x000D_ Under his visionary leadership, JK Lakshmi Cement has executed numerous capacity expansion projects, diversifying the company's portfolio with value-added products. Notably, the first phase of the greenfield project at Durg was successfully commissioned under his guidance. _x000D_ _x000D_ Mr Singhania's focus on enhancing the performance of JK Lakshmi Cement's subsidiaries has significantly contributed to the overall increase in production capacity. His commitment to steering the company towards sustainable growth is reflected in initiatives aimed at bolstering the company's subsidiaries and maintaining high production standards._x000D_

Management Outlook

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• The cement industry has experienced an uptrend in volume growth, driven by economic recovery, urban housing demand, government infrastructure, and rural development initiatives. It would be crucial for JK Lakshmi Cement Limited to quantify and monitor its own volume growth in response to these market dynamics.
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• The Union Budget 2023-24 announced a 33% increase in allocation for key infrastructure sectors, a 66% higher outlay for Pradhan Mantri Awas Yojana (PMAY), and the highest-ever outlay for railways in the last decade. JK Lakshmi Cement Limited focuses on tracking the financial implications of these government allocations on its business, especially regarding potential contracts and increased demand.
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• The commitment to infrastructure development, including plans for 50 new airports and emphasising green energy, suggests a positive outlook for the cement industry. 
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• The increase in diesel prices has impacted logistics costs for the cement industry. JK Lakshmi Cement Limited should assess its logistics costs and consider the adoption of initiatives like CNG/LNG vehicles for efficiency and cost relief while also focusing on the environmental benefits.
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• Despite good demand, rising competition has limited price increases in the cement industry. JK Lakshmi Cement Limited should analyse its pricing strategy in market dynamics, ensuring a balance between maintaining profitability and remaining competitive.
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