JK Cement Outlines ₹5,000-6,000 Crore Capex, Targets 50 MTA Capacity by FY30
JK Cement Limited has outlined an ambitious long-term growth strategy in its Q1 FY27 Investor Presentation, setting a target to increase its grey cement manufacturing capacity to 50 million tonnes per annum (MTPA) by FY30. To achieve this goal, the company plans to invest ₹5,000–6,000 crore over the next two years in capacity expansion and strategic infrastructure projects.
The expansion roadmap reflects JK Cement’s confidence in India’s growing cement demand, driven by infrastructure development, housing projects, and industrial investments.
Expansion Plan to Drive Future Growth
JK Cement currently operates with a grey cement capacity of 32.3 MTPA. The company aims to expand this to 50 MTPA by FY30, significantly strengthening its position among India’s leading cement manufacturers.
The planned investments will focus on new clinker and cement production facilities, grinding units, and supporting infrastructure to meet rising domestic demand.
Major Projects Under Development
The company is executing two major expansion projects in Rajasthan that are expected to become operational during the first half of FY28.
Jaisalmer Integrated Cement Project
JK Cement is developing a large greenfield integrated cement plant at Jaisalmer, Rajasthan.
Key details include:
- Clinker Capacity: 4 MTPA
- Cement Capacity: 3 MTPA
- Estimated Investment: ₹3,630 crore
- Expected Commissioning: H1 FY28
The project will significantly enhance clinker availability and improve the company’s manufacturing footprint in North India.
Bikaner Grinding Unit
The company is also setting up a 2 MTPA split grinding unit at Bikaner, Rajasthan.
Project highlights:
- Grinding Capacity: 2 MTPA
- Investment: ₹565 crore
- Expected Commissioning: H1 FY28
The grinding unit will strengthen JK Cement’s distribution network and improve supply efficiency across key markets.
Securing Raw Material Resources
Alongside capacity expansion, JK Cement continues to strengthen its long-term resource security.
The company has acquired multiple limestone and coal blocks, ensuring a reliable supply of critical raw materials for future production while reducing dependence on external sources.
This strategy supports operational stability and cost efficiency over the long term.
Positive Industry Outlook Supports Expansion
JK Cement expects favorable industry conditions to support its growth strategy.
According to the investor presentation, India’s economy is projected to grow by around 6.6% in FY27, while domestic cement demand is expected to increase by 7–8% annually.
Several factors are likely to drive demand, including:
- Higher government infrastructure spending.
- Increased housing construction.
- Industrial and commercial development.
- Continued urbanization.
The Union Budget’s significant allocation for infrastructure development is also expected to provide sustained support for the cement industry.