The Singhania family-owned firm, amongst the highest 10 cement-makers of the nation, lately introduced a ₹3,000 crore enlargement plan specializing in its core markets.
The enlargement plans have been designed not simply to chase scale, “however to defend relevance and strengthen its place in markets the place it already instructions robust demand and excessive utilisation,” Arun Shukla, president and director of JK Lakshmi Cement, informed Mint throughout an interview.
The cement firm, which final week introduced its December quarter outcomes, reported a 6% enhance in income to ₹1,588 crore. Internet revenue was down 23% to ₹57 crore.
“Our technique may be very clear—wherever we function, we need to be related and formidable,” he mentioned. “The corporate’s precedence is to guard market share and, the place attainable, enhance it in present geographies fairly than pursue a pan-India footprint,” Shukla added.
JK Lakshmi Cement at the moment operates at 73% capability utilisation for the primary 9 months of FY26, larger than the {industry} common of 70%, he mentioned.
Cement capability utilisation has elevated to round 70% from a decadal common of about 65%, pushed by robust demand over the previous three years, particularly from infrastructure and housing initiatives, in line with a Crisil Rankings word in November 2025.
Shukla mentioned utilisation exceeds 90-95% throughout the firm’s peak demand months (November-June). This leaves little headroom to serve prospects throughout high-demand durations, until capability is expanded and threat trying market share, he mentioned.
Capability constraints
The capex will add 4.6 million tonnes (mt) of cement capability, bringing whole put in capability to 22.6 mt by FY28, up from 18 mt at the moment. The plan is to additional take it as much as 30 mt. The enlargement features a new clinker unit and grinding services at Durg, Chhattisgarh, together with three greenfield split-grinding items in adjoining markets.
In cement, clinker, and grinding items are totally different. A clinker transforms limestone into laborious nodules, and a grinding unit crushes the clinker with gypsum into advantageous powder.
The announcement follows latest capability enlargement plans by India’s largest cement gamers. In October, UltraTech Cement, the nation’s greatest cement maker, elevated its capability goal from 167 mtpa to 240 mtpa by 2027-28. Days later in November, the Adani Group raised its cement manufacturing capability goal by almost 10% to 155 mtpa by 2027-28.
Business utilization rose from 63% in FY21 to 68% in FY25, however a wave of latest initiatives will now stall that restoration, in line with a PL Capital report in December. Utilization will keep beneath 70% by way of FY28, limiting how a lot corporations can cost, the report added.
The enlargement plan can be funded by way of a 70:30 mixture of debt and inner accruals. Shukla didn’t specify particulars however mentioned the corporate’s web debt-to-Ebitda stays beneath 1 and “will keep inside comfy ranges throughout the capex cycle”.
JK Lakshmi mentioned cement stays a regional enterprise, with market management various sharply throughout geographies. “Even immediately, the highest 5 gamers within the east, north or south are totally different. Regional energy nonetheless issues,” Shukla mentioned. At 18 mt annual capability, JK Lakshmi nonetheless stays a regional participant.
JK Lakshmi can also be trying to strengthen its market share by way of premiumization.
Premiumization play
Premium merchandise at the moment account for 13–14% of total turnover, a determine the corporate expects will rise to round 16% over the medium time period (six months to 1 yr), pushed by demand for higher-strength and lower-carbon merchandise, Shukla mentioned.
On Monday, the corporate launched its third premium cement.
Different cement makers, equivalent to Nuvoco Vistas Corp. and Birla Corp., are additionally rising their give attention to premium merchandise to elevate margins, as an alternative choice to value hikes. Analysts mentioned the technique is unlikely to work in the long run, Mint reported earlier.
“In a commodity sector like cement, premium gross sales and value financial savings don’t essentially translate into larger Ebitda per tonne, as aggressive depth forces the profit to be handed on to prospects,” Satyadeep Jain, analyst at Ambit Capital, informed Mint earlier. “Premiumization is unlikely to result in any structural enhance in {industry} margins, particularly if everybody succeeds in elevating premium share.”
JK Lakshmi expects to publish double-digit quantity progress in FY26, outpacing the {industry}’s estimated 7–8% progress, supported by infrastructure spending and regular housing demand.