JK Cement Limited (NSE: JKCEMENT, BSE: 532644) has announced a major strategic agreement with Gujarat Mineral Development Corporation Ltd. (GMDC) for the long-term supply of 250 million tonnes (MT) of limestone from the Lakhpat Punrajpur Mines in Kutch, Gujarat.
Key Highlights of the Agreement
Total Limestone Secured:250 million tonnes (MT).
Source of Supply:Lakhpat Punrajpur Mines, Kutch, Gujarat.
Agreement Signed With:Gujarat Mineral Development Corporation Ltd. (GMDC).
Objective:Ensures a steady supply of high-quality limestone for JK Cement’s expansion plans.
Strategic Importance:Strengthens JK Cement’s market position in Western India.
Strategic Impact & Future Growth
✔ Secures Long-Term Raw Material Supply
Limestone is a critical raw material for cement production, and this agreement ensures a stable supply for JK Cement’s future expansion.
✔ Strengthens Presence in Western India
The West Indian cement market is a high-growth region, and this agreement enables JK Cement to expand its footprint in Gujarat & Maharashtra.
✔ Supports Capacity Expansion Plans
JK Cement has been aggressively expanding its manufacturing facilities, and this limestone agreement provides the necessary raw materials for increasing production.
Long-term supply agreements help in cost optimization, reducing price volatility risks in raw material procurement.
JK Cement’s Growth & Expansion Strategy
JK Cement is actively expanding its manufacturing capacity across multiple locations, with plants in:
Nimbahera, Mangrol, Gotan (Rajasthan)
Muddapur (Karnataka)
Jharli (Haryana)
Panna, Ujjain, Katni (Madhya Pradesh)
Balasinor (Gujarat)
Aligarh, Hamirpur, Prayagraj (Uttar Pradesh)
✔ This agreement aligns with JK Cement’s broader vision of becoming a dominant player in the Western and Central Indian cement markets.
Conclusion
The long-term limestone supply agreement with GMDC is a significant milestone for JK Cement, ensuring a steady supply of high-quality raw material, supporting expansion, and strengthening its competitive edge in the Western Indian market.
