JK Cement buys Nihon Nirman for Rs. 42 crores

JK Cement has acquired Nihon Nirman from the Industrial Development Bank of India (IDBI) for Rs. 42 crores. The acquisition of the 300,000-tonne Nihon Nirman plant will push up JK Cement’s capacity to produce grey cement to 4.3 mn tonnes per annum. JK Cement would invest another Rs. 33 crores for converting the white cement making plant into a grey cement plant. The production is expected to begin by September and would help JK Cement increase its grey cement capacity at a lower cost. The grey cement would be produced from Nihon Nirman and will be sold in the northern markets, where the company enjoys a strong presence. A team from the Japanese firm Taiheiyo Cement Corporation visited the Nihon Nirman site and calculated that it could produce 300,000 tonnes of grey cement per annum. The plant will cater to Rajasthan market, especially in the Jodhpur and Ganganagar belt. With this new grey cement plant, the company expects to save up to Rs. 1000 per tonne.

Article in the Business Standard.