1.

INTRODUCTION

Cement Industry is one of the largest industries of the world and occupies
predominant place as one of the basic industries for development and its employment
generation capacity. Cement ranks next to steel in construction material and so is the
basis of all modern construction.

India is the world’s second largest producer of cement after China with industry
capacity of over 200 Million Tonnes. With the boost given by the government to
various infrastructure projects, road network and housing facilities, growth in the
cement consumption is anticipated in the coming years. In order to meet the
expanding demand, cement companies are fast developing new plants.

The cement industry is poised to add 111 Million Tonnes of annual capacity by the
end of 2009-2010, riding on the back of approximately 141 outstanding cement
projects. 95% of the production is consumed domestically and only 5% is exported.
Demand is growing at more than 10% per annum. More than 90% of production
comes from large cement plants.

The Indian cement industry comprises of 132 large cement plants with an installed
capacity of 148.28 Million Tonnes and more than 365 small cement manufacturing
plants with an estimated capacity of 11.10 Million Tonnes per annum. The Cement
Corporation of India, which is a Central Public Sector Undertaking, has 10 units.

There are 10 large cement plants owned by various State Government. The total
installed capacity in the country as a whole is 204.29 Million Tonnes as on August 31,
2008.
India is producing different varieties of cement like Ordinary Portland Cement (OPC),
Portland Pozzolana Cement (PPC), Portland Blast Furnace Slag Cement (PBFS), Oil
Well Cement, Rapid Hardening Portland Cement, Sulphate Resisting Portland
Cement, White Cement, Blended cement, etc. Production of these varieties of cement
conform to the BIS Specifications.

Ready-mix concrete (RMC) is sometime preferred to on-site concrete mixing because

of the precision of the mixture and reduced worksite confusion. The Indian RMC
business is growing by 25 per cent every year. In India only 2-3 per cent cement
consumption by cement industry goes through RMC, as against 60 per cent in
developed countries. At present, India has 200 RMC plants across the country.

Discovery Of Cement

John Smeaton, who is also known as “father of civil engineering” and credited for
design of many bridges, canals, harbors etc. Was the first proclaimed civil engineer
and pioneered the use of ‘hydraulic lime’, which led to discovery of modern cement.

The common cement or Portland cement was prepared and Patented by Joseph Aspdin
in 1824.

In the later part of 19th century, cement production was taken up by many countries
many decades after the first patent was taken by Aspdin in England.

Importance Of The Cement Industry In

In India, the cement industry is booming right now. The cement industry has
experienced great expansion because of a rising real estate sector, increased global
demand, and increased activity in infrastructure projects like state and national
highways. Production capacity has increased, and the world’s leading cement
corporations are vying for a piece of the Indian market, resulting in a flurry of
mergers and acquisitions. India is now rated second in the world for cement
production.

By 2025, the cement industry in India is estimated to have a demand of roughly 550
to 600 million tonnes per year. This is because various industries, including housing,
industrial building, and commercial construction, are expanding. Furthermore,
infrastructure in India is rapidly increasing, ensuring that demand for cement will be
high in the next few years. In the future years, the country is expected to see.

First Cement Factory Of India

India entered into the Cement Era in 1914, when the Indian Cement Company Ltd.
started manufacturing Cement in Porbundar in Gujarat.
However, even before that a small cement factory was established in Madras in 1904
by a company named South India Industrial Ltd.
Indian Cement Company Ltd produced only one type of cement which was designed
by the British standard committee as “Artificial Portland Cement”. This company
marketed its product in Mumbai, Karachi, Madras and other parts and became a
financial success.
At that time India had to import cement from England. The price of the imported
cement was higher. Some other factors such as increase in domestic demand,
reduction in supply from abroad (due to war), availability of Indian Capital, ample
raw material, Cheap labour, support of the government etc. made it a leading industry
in India in a short period of time.

 In January 1915, a cement unit was started at Katni in Madhya Pradesh

 In December 1916, another unit at Lakheri in Rajasthan was started.
During the First World War period, cement production in these three important
factories was taken under control of the government and later the control was lifted
once the war was over. After the war, 6 more units were launched in India.
In 1924, India’s cement production was 267000 tons. However, initially this increased
production could not reduce the imports and the industry suffered a rate war. This led
to closure of many indigenous units. The Indian companies which were away from
ports or commercial centres faced the lacational disadvantage.
The above incidents led to the industry stakeholder approach to the government for
some kind of protection. The British government constituted a Tariff board , which
recommended protection of the indigenous industry against the dumping of the
imported cement. It recommended raising of the customs duty to 41% which was
around 15% at that time, but this recommendation was not accepted by the
government.

Key Other Landmarks In History Of Cement

 In 1925, first association of the cement manufacturers was formed as “Cement

Manufacturers Association“.
 It was followed by “Concrete Association of India” in 1927.
 In 1930 “Cement Marketing Company of India” was started and this was fol-
lowed by a quota system on the basis of installed capacity of the factories.
 In 1936, all the cement companies except one i.e. Sone valley Portland Ce-
ment Company agreed and formed Associated Cement Companies Ltd.
(ACC).This was the most important even in the history of cement industry in
India. Many more companies were established in the following years.
 Before partition India had 24 factories, out of which India retained 19 factor-
ies, which annual production of 2.1 million tons. Pakistan faced a problem at
the supply side as it had problem of disposal of the cement produced and India
faced a problem in demand side as production fell to 2.1 million tons from 2.7
million tons.
 After Independence, the partition of the country had a bad impact on the ce-
ment industry.
Cement Expansion Scheme

In 1948, the government adopted the Cement Expansion Scheme which envisaged
new factories to increase the production. New factories were established at Bagalkot,
Jaipur, Orissa, Travancore etc. In 1950-51, there were 22 operating units with an
installed capacity of 3.3 million tons. Cement industry was given a great importance
in all the initial five year plans. The target of the first five year plan was to raise the
installed capacity to 5.4 million tons which was achieved. The industry has grown to
manifold since then.

Investment

According to the data released by Department for Promotion of Industry and Internal
Trade (DPIIT), cement and gypsum products attracted Foreign Direct Investment
(FDI) worth US$ 5.28 billion between April 2000 and June 2021.

In 2021, working remotely is being adopted at a fast pace and demand for affordable
houses with ticket size below Rs. 40-50 lakh is expected to rise in Tier 2 and 3 cities,
leading to an increase in demand of cement.

Private equity investments in real estate surged 24% YoY to US$ 477 million
between July 2021 to September 2021.

Some of the major investments and development in Indian cement industry are as
follows:

In November 2021, UltraTech Cement announced its commitment to the Global

Cement and Concrete Association (GCCA) 2050 Cement and Concrete Industry
Roadmap to produce carbon-neutral concrete by 2050.
In November 2021, Dalmia Cement announced plans to produce 100% low carbon
cement by 2031. The company has a US$ 405-million carbon capture and utilisation
(CCU) investment plan to help it realise its goal.
Dalmia Cement plans to spend US$ 1.35 billion to increase its installed cement
capacity by 52% to 50MT/yr from 33MT/yr before the FY2024.
In November 2021, Dalmia Cement announced plans to invest US$ 70.1 million for
setting up its upcoming 2MT/yr cement plant in Bokaro, Jharkhand.
In October 2021, JK Cement Ltd. Signed a long-term strategic Memorandum of
Understanding (MoU) with Punjab Renewable Energy Systems Private Limited
(PRESPL). The MoU is part of JK Cement’s attempts to decarbonize its operations
and significantly scale-up the use of biomass-based and alternate fuels as
replacements to fossil fuels, like coal, in its manufacturing operations.
In October 2021, JSW Group collaborated with Salesforce to support an ambitious
digital strategy. Using Salesforce’s Sales Cloud and Service Cloud, JSW Group will
offer a single group interface, enhancing distribution, customer experience and supply
chain for the large project division across its steel and cement businesses.
In October 2021, Hyderabad-based Penna Cement Industries, received approval from
the capital markets regulator Securities and Exchange Board of India (SEBI), to go
ahead with its Rs. 1,550 crore (US$ 206.75 million) initial public offering (IPO).
In September 2021, Ambuja Cement launched ‘Concrete Futures Laboratory’, a one-
stop solution that will enable budding professionals to test, learn and experience
various aspects of cement and concrete.
In September 2021, the Odisha government approved Ramco Cements expansion plan
with an additional grinding capacity of 0.9 MTPA capacity at Haridaspur in Jajpur
with an investment value of Rs.190 crore (US$ 25.5).
In August 2021, Ramco Cement plans to invest additional Rs. 601.2 crore (US$ 80.8)
to upgrade cement plants that will be completed by March 2022. In April 2021, the
company had invested Rs. 401 crore (US$ 53.9) for upgrades.
In August 2021, Dalmia Cement will invest Rs. 773.8 Crore (US$ 104 million) to
expand its cement operations in Jharkhand.
In August 2021, UltraTech Cement announced plans to increase cement capacity by
19.8 MTPA between 2022 and 2023. Upon completion of the project, which is valued
at Rs. 6,510 crore (US$ 875 million), the capacity would rise to 136.3 MTPA.
In September 2021, Shree Cement launched three projects that were valued at Rs.
4,806 crore (US$ 646 million). Of this, Rs. 3,541 crore (US$ 476 million) will be
used to establish 3.8 MTPA cement plant in Rajasthan, while the remaining amount
will be spent on establishing a grinding plant in West Bengal and installing solar
power plants at various cement plants across the country that are valued at Rs. 759
crore (US$ 102 million) and Rs. 506 crore (US$ 68 million), respectively.
In September 2021, Ambuja Cement introduced Concrete Futures Laboratories to test
various aspects of cement and concrete.
In August 2021, Ambuja Cement announced to invest Rs. 310 crore (US$ 41.82
million) to expand its manufacturing capacity in Ropar Unit, Punjab and cater to the
rising demand from manufacturing sector for housing construction and public
infrastructure development. The expansion activities are expected to be completed by
June 2023.
In July 2021, Ramco Cements launched Ramco Super Plaster, a plastering solution for
brick work and plastering applications.
In July 2021, Vedanta announced that its aluminium unit invited bids for alliances
from cement manufacturing companies such as JK Cement, ACC and UltraTech
Cement to utilise fly ash, a by-product, to produce low-carbon cement.
In July 2021, Ramco Cements announced its plan to invest US$ 64 million in capacity
expansion and modernisation activities of its plant unit in Tamil Nadu.
In July 2021, Dalmia Bharat Ltd. Announced its plan to raise the company’s
production capacity to 110-130 million tonnes per annum by 2031.
In July 2021, JSW Cement signed an agreement with Synergy Metals Investments
Holding Ltd. And Apollo Global Management Inc. To raise investment funds worth
Rs. 1,500 crore (US$ 202.35 million) and expand its production capacity to 25 million
tonnes from 14 million tonnes.
In June 2021, Ambuja Cements and ACC announced to invest in Industry 4.0 under
its ‘Plants of Tomorrow’ programme, which aims to boost cement manufacturing
through enhanced plant optimisation, improved plant availability and a safer
operational environment.
In June 2021, Ramco Cements Limited commissioned the Line III of its
Jayanthipuram Plant, with a clinker manufacturing capacity of 1.50 million tonnes per
annum.
In June 2021, JSW Cement entered construction chemical business with the
introduction of an exclusive green product range.

Government Intiative

In order to help private sector companies, thrive in the industry, the Government has
been approving their investment schemes. Some of the initiatives taken by the
Government off late are as below:

In October 2021, Prime Minister, Mr. Narendra Modi, launched the ‘PM Gati Shakti –
National Master Plan (NMP)’ for multimodal connectivity. Gati Shakti will bring
synergy to create a world-class, seamless multimodal transport network in India. This
will boost the demand for cement in the future.
In July 2021, the government established a council of 25 members (comprising
UltraTech Cement MD Mr. K C Jhanwar, Dalmia Bharat Group CMD Mr. Puneet
Dalmia) for the cement industry to reduce waste, achieve maximum production,
enhance quality, reduce costs and encourage standardisation of products.
In Union Budget 2021-22, the Government of India extended benefits, under Section
80-IBA of the Income Tax Act, until March 31, 2021, to promote affordable rental
housing in India.
As per the Union Budget 2021-22, the government approved an outlay of Rs.
1,18,101 crore (US$ 16.22 billion) for the Ministry of Road Transport and Highways,
and this step is likely to boost the demand for cement.
As per the Union Budget 2021-22, National Infrastructure Pipeline (NIP) expanded to
7,400 projects from 6,835 projects.
The Union Budget allocated Rs. 13,750 crore (US$ 1.88 billion) and Rs. 12,294 crore
(US$ 1.68 billion) for Urban Rejuvenation Mission: AMRUT and Smart Cities
Mission and Swachh Bharat Mission, respectively and Rs. 27,500 crore (US$ 3.77
billion) has been allotted under Pradhan Mantri Awas Yojana.

Road Ahead
The eastern states of India are likely to be the newer and untapped markets for cement
companies and could contribute to their bottom line in future. In the next 10 years,
India could become the main exporter of clinker and gray cement to the Middle East,
Africa, and other developing nations of the world. Cement plants near the ports, for
instance the plants in Gujarat and Visakhapatnam, will have an added advantage for
export and will logistically be well armed to face stiff competition from cement plants
in the interior of the country. India’s cement production capacity is expected to reach
550 MT by 2025.

Due to the increasing demand in various sectors such as housing, commercial

construction and industrial construction, cement industry is expected to reach 550-600
million tonnes per annum (MTPA) by the year 2025.

A number of foreign players are also expected to enter the cement sector owing to the
profit margins and steady demand.

How JK Cement Founded

The J. K. Organisation is an Indian industrial conglomerate, with headquarters in

Delhi, Kanpur and Mumbai. It is run by the Singhania family, which rose to
prominence in Kanpur, India, under Lala Kamlapat Singhania. The name JK is
derived from the initials of Kamlapat and his father Seth Juggilal (1857–1922), who
belonged to the family associated with the Marwari firm Sevaram Ramrikhdas of
Mirzapur. The JK group was founded in 1918.

The group rose in importance in the 1950s to 1980s, when it was the third-largest
industrial conglomerate in India after the Birla and Tata conglomerates. The group
has multi-business, multi-product, and multi-location operations, with interests in
many countries. It has overseas manufacturing operations in Mexico, Indonesia,
Romania, Belgium, Portugal, the UAE, and Switzerland. The organization also
includes research and development institutes in various fields. The family is currently
divided into three main groups headed by Dr. Gaur Hari Singhania based in Kanpur,
Shri Hari Shankar Singhania based in Delhi and Shri Vijaypat Singhania based in
Mumbai. The three men are cousins who now run independent businesses,[4][5]
which are technically and legally separate entities and have no cross-holdings or
common directors and employees, sharing only the family history.

The company has made its first international foray with the setting up of a green-field
dual process white cement-cum-grey cement plant in the free trade zone at Fujairah
U.A.E to cater to the GCC and African markets. The plant at Fujairah has a capacity
of 0.6 million tonnes per annum for White Cement with a flexibility to change over its
operation to produce upto 1 million tonnes per annum of Grey Cement.J.K. Cement
was the first Company to install a captive power plant in the year 1987 at Bamania
Rajasthan. J.K Cement is also the first cement Company to install a waste heat
recovery power plant to take care of the need of green power. Today at its different
locations the Company has captive power generation capacity of over 140.7 MWs
which include 23.2 MW of waste heat recovery power plants.From the year 1998 to
2004 modifications in kilns and cement mills etc. Were implemented which increased
the aggregate installed capacity of the company’s Nimbahera facility to 2.8 MTPA.
The operations of second grey cement plant at the existed Mangrol were commenced
with a five stage pre-heater and an in-line calciner kiln plant in 2001 with an installed
capacity of 0.75 MTPA. During the year 2005-06 the company had commissioned 10
MW turbine to meet the necessity under the grey cement segment. Jaykaycem
Limited became a wholly owned subsidiary of the company in the year 2006 and
acquired land to set up a Greenfield Grey Cement plant at Mudhol Karnataka. In the
year of 2006-07 the company had sanctioned enhancement in working capital Facility
(both funded and non-funded) to Rs. 105 crores from Rs.65 crores. Started all the
captive power projects i.e. 10MW turbine 20MW Petcoke based Captive Power Plant
& Waste Heat Recovery power plant. The Company had acquired from IDBI the
assets of Nihon Nirmaan Ltd at Gotan during the year 2007 for Rs.42 crores and
decided to utilize this facility to produce Grey cement.
The Kanpur family runs JK Cement Ltd and JK Technosoft, which provides
technology solutions to organizations, while the Delhi family runs JK Tyre, JK Paper,
JK Lakshmi Cement, JK Fenner India Ltd, Umang Dairies Ltd, JK Seeds, Global
Strategic Technologies (a military solutions and equipment division), JK Risk
Managers & Insurance Brokers. The Mumbai family runs the Raymond Group of
companies. Though run independently of each other, the various companies that are
part of the organization all use the JK Group Logo, in recognition of the family’s
history. By tradition, the oldest male member of the family becomes the President of
the JK Organisation and grants use of the logo to companies run by various family
members when they apply for membership and pay an annual fee.

JK are committed to being honest and ethical in all their interactions, maintaining the
highest ethical standards in all market, financial and operational practices. They are
passionate about creating a culture of perfection that encourages and promotes
excellence in products and services, through innovation and continuous improvement.

JK cement was one of the first cement producers to install a Waste Heat Recovery
plant in India and has repeatedly won awards for its environmental and sustainability
management.

The products are marketed under the brand names J.K. Cement and Sarvashaktiman
for OPC products J.K. Super for PPC products and J.K. White and Camel for white
cement products. The company has made its first international foray with the setting
up of a green-field dual process white cement-cum-grey cement plant in the free trade
zone at Fujairah U.A.E to cater to the GCC and African markets. The plant at Fujairah
has a capacity of 0.6 million tonnes per annum for White Cement with a flexibility to
change over its operation to produce upto 1 million tonnes per annum of Grey
Cement.J.K. Cement was the first Company to install a captive power plant in the
year 1987 at Bamania Rajasthan. J.K Cement is also the first cement Company to
install a waste heat recovery power plant to take care of the need of green power.
Today at its different locations the Company has captive power generation capacity of
over 140.7 MWs which include 23.2 MW of waste heat recovery power plants.From
the year 1998 to 2004 modifications in kilns and cement mills etc. Were implemented
which increased the aggregate installed capacity of the company’s Nimbahera facility
to 2.8 MTPA. The operations of second grey cement plant at the existed Mangrol
were commenced with a five stage pre-heater and an in-line calciner kiln plant in
2001 with an installed capacity of 0.75 MTPA. During the year 2005-06 the company
had commissioned 10 MW turbine to meet the necessity under the grey cement
segment. Jaykaycem Limited became a wholly owned subsidiary of the company in
the year 2006 and acquired land to set up a Greenfield Grey Cement plant at Mudhol
Karnataka. In the year of 2006-07 the company had sanctioned enhancement in
working capital Facility (both funded and non-funded) to Rs. 105 crores from Rs.65
crores. Started all the captive power projects i.e. 10MW turbine 20MW Petcoke based
Captive Power Plant & Waste Heat Recovery power plant. The Company had
acquired from IDBI the assets of Nihon Nirmaan Ltd at Gotan during the year 2007
for Rs.42 crores and decided to utilize this facility to produce Grey cement. From
enhancing the domestic footprint the company had taken steps to go beyond national
boundaries. Entered into a Memorandum of Understanding (MoU) with Fujairah
Municipality during November of the year 2007 in the United Arab Emirates through
the subsidiary J K Cement Works (Fujairah) FZC to set up a 2.25 MTPA grey cement
plant to service the steadily increasing demand in the GCC region. During the year
2007-08 the company formed a wholly owned subsidiary under the name and style of
J.K.Cement (Fujairah) FZ to undertake the business of cement and investment in the
state of UAE. This Company has formed another subsidiary company under the name
and style of J.K.Cement Works (Fujairah) FZC under which it is proposed to set up a
green field cement plant at Fujairah UAE. The 10 MW of the Waste Heat Recovery
Power Plant of the company was commissioned at Nimbahera in March of the year
2008.In the year 2009 the company extended its footprint by setting up a green-field
unit in Muddapur Karnataka giving it access to the markets of south-west India. The
company also commissioned a 50 MW coal based captive power plant at the
Karnataka unit and a 7.5 MW coal-based captive power plant at its cement plant at
Gotan in Rajasthan.In 2012 J.K Cement enhanced white cement capacity at its cement
plant at Gotan in Rajasthan by 0.2 million tonnes per annum (MnTPA) increasing the
total white cement capacity to 0.6 MnTPA. The company also increased wall putty
capacity to 0.3 MnTPA at the Gotan unit.In 2014 J.K Cement commissioned a 1.5
MnTPA grinding unit for grey cement capacity at Jhajjar Haryana. During the year it
also commissioned a 1.5 MnTPA grey cement capacity unit at Mangrol Rajasthan.
The company also commissioned a 0.6 MnTPA white cement capacity unit at
Fujairah in UAE. The company also commissioned a 25 MW coal based power plant
and 10 MW WHR Power plant at Mangrol in Rajasthan. During the year J.K Cement
expanded wall putty capacity to 0.5 MnNTPA at its unit at Gotan in Rajasthan.The
Board of Directors of J.K Cement at its meeting held on 3 August 2015 considered
and/or taken note that the company acquired 100% paid up equity capital and
thereupon made Jaykaycem (Central) Ltd. (an unlisted public limited and part of
promoter group company) its wholly owned subsidiary. This will facilitate to
implement the business plan of Jaykaycem (Central) Ltd. And/or to implement its
future cement project(s).In 2016 J.K Cement set up a 0.2 MnTPA wall putty plant in
Katni Madhya Pradesh. In 2018 the company initiated work on 4.2 MnTPA
Brownfield expansion for grey cement at Mangrol Rajasthan which is about 40% of
existing capacity. The estimated cost outlay for the expansion project is Rs 2000
crore. On 7 June 2018 J.K Cement announced that the successfully implemented
additional installed capacity of 0.2 MnNTPA at its unit at Katni in Madhya Pradesh.
With this the total installed capacity at J.K.White Katni stands at 0.4 MnTPA. With
this the company has achieved white cement based Wall Putty manufacturing capacity
of 0.9 MnTPA.The Board of Directors of J.K Cement at its meeting held on 28 June
2018 interalia decided to offer issue and allot equity shares through domestic and/or
international offerings representing equity shares etc. For an amount not exceeding Rs
700 crores through public issue and/or private placement and /or rights issue and/or
preferential allotment and/or qualified institutional placement (QIP) subject to
shareholders’ approval sought in the ensuing Twenty Fourth Annual General Meeting
of the company. The funds are proposed to be utilised for the purpose of funding the
company’s long term growth repayment/prepayment of debt general corporate
purposes including capital expenditure and working capital or any other purposes as
may be permissible under applicable law and approved by the Board of
Directors.During the FY2019the Company through Qualified Institutions Placement
(QIP) allotted 7341001 Equity Shares (fully paid up) to the eligible Qualified
Institutional Buyers (QIB) at a price of Rs 695.80 per equity share of face value of Rs
10 each (inclusive of premium of Rs 685.80 per equity share) aggregating to Rs
51078.68 lacs.As on 31 March 2019the company has three subsidiaries. During the
yearBander Coal Company Pvt Ltda Joint Venture companyhas been
liquidated.During 2018-19the company commissioned wall putty unit at Katni having
installed capacity of 2 Lacs tonnes per annum.Grey Cement expansion of 4.2 million
tonnes per annum with 2.8 million clinker production line 1 million tonnes Cement
grinding and Waste Heat Recovery system at Mangrol Rajasthan. 1 million cement
grinding at Nimbahera Rajasthan along with two Split Grinding Units of 1.5 million
tonnes at Aligarh (Uttar Pradesh) and 0.7 million tonnes at Balasinor (Gujarat) in on
schedule and will be completed by March 2020.To upgrade existing Line No-3 at
Nimabhera resulting in increased Clinker Production by 1000 TPD. This is scheduled
to complete by December 2020. The Company’s long-term plan is to set up integrated
plant having capacity of 3.0-3.5 MnTPA plant at Panna (Madhya Pradesh) to achieve
18 MnTPA capacity by 2022. For this proposed expansion the Company has two
mining leases. These leases have enough reserves to support expansion of 15 MnTPA
in phases. The Company commissioned 2.6 MnTPA clinker production line at
Mangrol and 3.5 MnTPA cement grinding at Nimbahera Mangrol and Aligarh and
started commercial dispatches. Work of 0.7 MnTPA split grinding unit at Balasinor
(Gujarat) was stopped on account of the outbreak of COVID-19. The work has
restarted with limited workforce and is expected to be completed in Q3FY21. The
Company had to stop upgradation and modernisation of Line-3 at Nimbahera due to
migration of labourers. The construction work has restarted with limited workforce.
The company had to suspend work of 0.3 MnTPA Wall Putty capacity at Katni due to
the COVID-19 outbreak. The construction work has restarted with limited workforce
and is expected to be completed by Q2FY21.The operations and business
performance of the Company during the Quarter ended June 30 2020 was adversely
impacted due to the shutdown of the Company’s plants at various locations on
account of lockdown announced by the Government after the outbreak of COVID-19
pandemic in March 2020. Operations were resumed in a phased manner since April
20 taking cognizance of the Governments’ advisories around resuming manufacturing
activities and after obtaining necessary permissions from the concerned authorities in
this behalf. The Company has commissioned 0.7 MnTPA Grey Cement grinding unit
at J.K. Cement Balasinor and 0.3 MnTPA putty plant at J.K. White Cement Katni on
October 8 2020 and October 192020 respectively.

J.K. Cement Limited (JK Cement) is one of the largest cement manufacturers in
Northern India. J.K. Cement has an installed grey cement capacity of 10.5 million
tonnes per annum (MnTPA) making it one of the leading manufacturers in the
country. It is also the second largest white cement manufacturer in India with annual
capacity of 600000 tonnes. J.K. Cement is also the second largest producer of Wall
putty in the country with an annual installed capacity of 700000 tonnes. J.K. Cement
is an affiliate of the J.K. Organization which was founded by Lala Kamlapat
Singhania in the year 1994. The Company produces 53-grade 43-grade and 33-grade
Ordinary Portland Cement (OPC) grey cement Portland Pozzolana Cement ('PPC')
under grey and white cement. JK Water proof is another product from JK Cements
used for flooring wall application and other specialized applications. The products are
marketed under the brand names J.K. Cement and Sarvashaktiman for OPC products
J.K. Super for PPC products and J.K. White and Camel for white cement products.
The company has made its first international foray with the setting up of a green-field
dual process white cement-cum-grey cement plant in the free trade zone at Fujairah
U.A.E to cater to the GCC and African markets. The plant at Fujairah has a capacity
of 0.6 million tonnes per annum for White Cement with a flexibility to change over its
operation to produce upto 1 million tonnes per annum of Grey Cement.J.K. Cement
was the first Company to install a captive power plant in the year 1987 at Bamania
Rajasthan. J.K Cement is also the first cement Company to install a waste heat
recovery power plant to take care of the need of green power. Today at its different
locations the Company has captive power generation capacity of over 140.7 MWs
which include 23.2 MW of waste heat recovery power plants.From the year 1998 to
2004 modifications in kilns and cement mills etc. were implemented which increased
the aggregate installed capacity of the company's Nimbahera facility to 2.8 MTPA.
The operations of second grey cement plant at the existed Mangrol were commenced
with a five stage pre-heater and an in-line calciner kiln plant in 2001 with an installed
capacity of 0.75 MTPA. During the year 2005-06 the company had commissioned 10
MW turbine to meet the necessity under the grey cement segment. Jaykaycem
Limited became a wholly owned subsidiary of the company in the year 2006 and
acquired land to set up a Greenfield Grey Cement plant at Mudhol Karnataka. In the
year of 2006-07 the company had sanctioned enhancement in working capital Facility
(both funded and non-funded) to Rs. 105 crores from Rs.65 crores. Started all the
captive power projects i.e. 10MW turbine 20MW Petcoke based Captive Power Plant
& Waste Heat Recovery power plant. The Company had acquired from IDBI the
assets of Nihon Nirmaan Ltd at Gotan during the year 2007 for Rs.42 crores and
decided to utilize this facility to produce Grey cement. From enhancing the domestic
footprint the company had taken steps to go beyond national boundaries. Entered into
a Memorandum of Understanding (MoU) with Fujairah Municipality during
November of the year 2007 in the United Arab Emirates through the subsidiary J K
Cement Works (Fujairah) FZC to set up a 2.25 MTPA grey cement plant to service
the steadily increasing demand in the GCC region. During the year 2007-08 the
company formed a wholly owned subsidiary under the name and style of J.K.Cement
(Fujairah) FZ to undertake the business of cement and investment in the state of UAE.
This Company has formed another subsidiary company under the name and style of
J.K.Cement Works (Fujairah) FZC under which it is proposed to set up a green field
cement plant at Fujairah UAE. The 10 MW of the Waste Heat Recovery Power Plant
of the company was commissioned at Nimbahera in March of the year 2008.In the
year 2009 the company extended its footprint by setting up a green-field unit in
Muddapur Karnataka giving it access to the markets of south-west India. The
company also commissioned a 50 MW coal based captive power plant at the
Karnataka unit and a 7.5 MW coal-based captive power plant at its cement plant at
Gotan in Rajasthan. In 2012 J.K Cement enhanced white cement capacity at its
cement plant at Gotan in Rajasthan by 0.2 million tonnes per annum (MnTPA)
increasing the total white cement capacity to 0.6 MnTPA. The company also
increased wall putty capacity to 0.3 MnTPA at the Gotan unit. In 2014 J.K Cement
commissioned a 1.5 MnTPA grinding unit for grey cement capacity at Jhajjar
Haryana. During the year it also commissioned a 1.5 MnTPA grey cement capacity
unit at Mangrol Rajasthan. The company also commissioned a 0.6 MnTPA white
cement capacity unit at Fujairah in UAE. The company also commissioned a 25 MW
coal based power plant and 10 MW WHR Power plant at Mangrol in Rajasthan.
During the year J.K Cement expanded wall putty capacity to 0.5 MnNTPA at its unit
at Gotan in Rajasthan. The Board of Directors of J.K Cement at its meeting held on 3
August 2015 considered and/or taken note that the company acquired 100% paid up
equity capital and thereupon made Jaykaycem (Central) Ltd. (an unlisted public
limited and part of promoter group company) its wholly owned subsidiary. This will
facilitate to implement the business plan of Jaykaycem (Central) Ltd. and/or to
implement its future cement project(s).In 2016 J.K Cement set up a 0.2 MnTPA wall
putty plant in Katni Madhya Pradesh. In 2018 the company initiated work on 4.2
MnTPA Brownfield expansion for grey cement at Mangrol Rajasthan which is about
40% of existing capacity. The estimated cost outlay for the expansion project is Rs
2000 crore. On 7 June 2018 J.K Cement announced that the successfully implemented
additional installed capacity of 0.2 MnNTPA at its unit at Katni in Madhya Pradesh.
With this the total installed capacity at J.K.White Katni stands at 0.4 MnTPA. With
this the company has achieved white cement based Wall Putty manufacturing capacity
of 0.9 MnTPA. The Board of Directors of J.K Cement at its meeting held on 28 June
2018 interalia decided to offer issue and allot equity shares through domestic and/or
international offerings representing equity shares etc. for an amount not exceeding Rs
700 crores through public issue and/or private placement and /or rights issue and/or
preferential allotment and/or qualified institutional placement (QIP) subject to
shareholders' approval sought in the ensuing Twenty Fourth Annual General Meeting
of the company. The funds are proposed to be utilised for the purpose of funding the
company's long term growth repayment/prepayment of debt general corporate
purposes including capital expenditure and working capital or any other purposes as
may be permissible under applicable law and approved by the Board of Directors.
During the FY2019the Company through Qualified Institutions Placement (QIP)
allotted 7341001 Equity Shares (fully paid up) to the eligible Qualified Institutional
Buyers (QIB) at a price of Rs 695.80 per equity share of face value of Rs 10 each
(inclusive of premium of Rs 685.80 per equity share) aggregating to Rs 51078.68
lacs.As on 31 March 2019the company has three subsidiaries. During the year Bander
Coal Company Pvt Ltda Joint Venture company has been liquidated.During 2018-19
the company commissioned wall putty unit at Katni having installed capacity of 2
Lacs tonnes per annum.Grey Cement expansion of 4.2 million tonnes per annum with
2.8 million clinker production line 1 million tonnes Cement grinding and Waste Heat
Recovery system at Mangrol Rajasthan. 1 million cement grinding at Nimbahera
Rajasthan along with two Split Grinding Units of 1.5 million tonnes at Aligarh (Uttar
Pradesh) and 0.7 million tonnes at Balasinor (Gujarat) in on schedule and will be
completed by March 2020.To upgrade existing Line No-3 at Nimabhera resulting in
increased Clinker Production by 1000 TPD. This is scheduled to complete by
December 2020. The Company's long-term plan is to set up integrated plant having
capacity of 3.0-3.5 MnTPA plant at Panna (Madhya Pradesh) to achieve 18 MnTPA
capacity by 2022. For this proposed expansion the Company has two mining leases.
These leases have enough reserves to support expansion of 15 MnTPA in phases. The
Company commissioned 2.6 MnTPA clinker production line at Mangrol and 3.5
MnTPA cement grinding at Nimbahera Mangrol and Aligarh and started commercial
dispatches. Work of 0.7 MnTPA split grinding unit at Balasinor (Gujarat) was stopped
on account of the outbreak of COVID-19. The work has restarted with limited
workforce and is expected to be completed in Q3FY21. The Company had to stop
upgradation and modernisation of Line-3 at Nimbahera due to migration of labourers.
The construction work has restarted with limited workforce. The company had to
suspend work of 0.3 MnTPA Wall Putty capacity at Katni due to the COVID-19
outbreak. The construction work has restarted with limited workforce and is expected
to be completed by Q2FY21.The operations and business performance of the
Company during the Quarter ended June 30 2020 was adversely impacted due to the
shutdown of the Company's plants at various locations on account of lockdown
announced by the Government after the outbreak of COVID-19 pandemic in March
2020. Operations were resumed in a phased manner since April 20 taking cognizance
of the Governments' advisories around resuming manufacturing activities and after
obtaining necessary permissions from the concerned authorities in this behalf. The
Company has commissioned 0.7 MnTPA Grey Cement grinding unit at J.K. Cement
Balasinor and 0.3 MnTPA putty plant at J.K. White Cement Katni on October 8 2020
and October 192020 respectively

The dual process cement plant of JK Cement Works (Fujairah) FZC has a capacity
either to produce 0.6 MnTPA of White Cement or 1.0 MnTPA of Grey Cement. This
capacity expansion has made JK Cement among the top 3 White Cement
manufacturing groups in the world. The plant is specially designed to switch from one
product to another (White to Grey Cement & vice-versa) as per market demand. This
“Composite Dual Process Cement Plant” is one of the first of its kind in the
world.Today JK White Cement UAE is enjoying premium in terms of quality,
innovation, pricing, market capturing and coverage.

 Company Strength
J K Cement enjoys certain vital advantages that have helped them in becoming one of
the leading names in the field of cement manufacturing in India and abroad. First the
company has proximity to huge reserves of premium quality limestone, as essential
ingredient for cement manufacturing. Based on certain studies undertaken, it is
estimated that the limestone reserves of the company are sufficient to support the
planned production capacity for approximately 40 years.

Latest Financial Figures (Figures in Rs. Crores)

ET 500 Rank(2014) 308

Industry Cement

Turnover 2844.13

Profit after Tax(PAT) 77.15

MCAP (Market Capitalization) 3185.64

Assets 4655.79

Second the company has an extensive marketing network for grey and white cement
both within and outside India. The company's distribution network for grey cement
consist of more than 40 feeder depots, serviced by seven regional sales office located
at Delhi, Haryana, Uttar Pradesh, Punjab, Gujarat, Madhya Pradesh and Rajasthan. J
K cement's white cement distribution network comprises of 20 feeder depots and 13
regional offices. Besides, the company also has a total of more than 4000 retail stores,
22 sales promoters and four handling agents.
  JK Cement Production Plants
The company has three major production plants located in the states of Rajasthan and
Gujarat. The first plant of J K Cement was set up in Nimbahera, Rajasthan in the year
1975 with an initial capacity of 0.3 million ton per annum. With the incorporation of
newer technology and modern equipment, the production capacity was enhanced to
2.8 million ton per annum. Located just 10 kms away from the Nimbahera unit, the
Mangrol plant gets major benefits like technical and commercial assistance from the
that plant.

The Gotan unit located at Gujarat which manufacturers white cement started
production commercially in 1984 with a production capacity of 0.05 million ton per
annum. Currently the unit has a capacity utilization of around 75% and an operating
profit of 30% consistently. The unit has ISO-9001:2000 QMS, ISO-14001:1998 EMS
and OHSAS-18001:2005 recognition.

JK Cement Plant Locations

Grey Cement Plant Locations

Nimbaher Mangrol Mudhol , Gotan

a Muddapu
r

Nimbahera Mangrol, Taluk P.O.Gota

Dist - Tehsil Mudhol - n-
Chittorgar Nimbahera 587122 342902,
h, Dist - Dist - Dist -
Kailash Chittorgar Bagalkot, Nagaur,
Nagar - 1, h, Karnataka Rajastha
Rajasthan Rajasthan Phone - n
- 312617 Phone - 08350- Phone -
 Phone - 01477 - 289000 01591 -
01477 – 246324 Fax - 230201
220087 08350 - Fax -
280710 01591 –
230206

Grinding Unit White Cement Unit

Jharli Gotan

P.O - Jharli Gotan - 342902,

Dist - Jhajjar Dist - Nagaur,(Rajasthan)
Haryana - 124106 Phone - 01591 - 230201
Fax - 01591 - 230206

 JK Cement Technical Experience

J K Cement Company has more than 25 years of experience in the Indian Cement
Industry. Owing to this huge experience, the company has the best skills at its
disposal for quick expansion of production capacity, maximize production efficiently
and reduce the costs. Over the years the company has developed a considerable client
base and has earned the distinction of having a strong reputation of quality
production. Besides, the company has a reputation of constantly upgrading and
efficiently modernizing the production capacities
J K Cement's manufacturing unit at Nimbahera was chosen by the World Bank and
the Danish International Development Agency as one of the four training centers in
India to serve as the Regional Training Center in North India. The operation of the
training center gives the company access to state of art training aids, live working
models, and technical expertise developed by well known national and international
cement producers.

JK Cement Production Capacity

Cement manufacturers are on a capacity addition spree, thanks to the ongoing demand
recovery. Regional player JK Cement Ltd is the latest one to announce fresh
expansion. It is setting up a greenfield cement production capacity of 4 million tonnes
per annum (mtpa) in central India. This follows the ongoing ramp-up of its 4.2 mtpa
capacity in the north.

With these expansions, the visibility for cement volumes growth improves further,
analysts said. Secondly, share of the south, which is struggling with over-supply,
should reduce from around 20% to 12% in the regional mix. Once the new unit is
commissioned, analysts estimate the share of central India to be around 20%.

Meanwhile, JK Cement’s December quarter earnings were decent. A key highlight

was the cement volumes, which grew 25% year-on-year (y-o-y) to 2.76 million
tonnes. Since volumes were aided by a ramp-up in recent capacities, the decision to
expand has got the Street particularly excited, analysts said. On Wednesday, the JK
Cement stock scaled to a new 52-week high of ₹2,428 on the NSE.

In a post-earnings conference call, the management said this capacity addition would
help expand its reach across central India, spanning Uttar Pradesh and Madhya
Pradesh. Currently, it is present only in western parts of the states. The management
expects demand growth of 6% in central India over the medium term, which would
mean smooth absorption of a slew of capacity expansions by other companies.
Analysts from Motilal Oswal Financial Services Ltd point out three significant
advantages of expanding in northern and central India. “They strengthen its market
share in north and central, the most attractive regions in the country; they reduce the
share of south in the volume mix to just ~12%; and they lower costs as ~90% of the
grey cement capacity post-expansion would be fuel-efficient," the domestic brokerage
house said in a report on 9 February.

Dealer channel checks by various brokerages have shown that cement prices in central
and northern India are better than other regions. According to the management, in
4QFY21, cement prices have softened across operating geographies on account of
severe winters, but are still up 2-3% on a y-o-y basis.

But not all is hunky dory. The rising cost of key input petroleum coke (petcoke) could
weigh on operating margins from a near-term perspective. The consumption cost of
petcoke was up ₹1,200 a tonne quarter-on-quarter and stood at ₹8,800 a tonne in
3QFY21, the management said. It inched up further by ₹1,000 per tonne in 4QFY21.

In a bid to mitigate the impact of rising petcoke prices on margins, the company has
increased the proportion of imported coal in the kiln fuel mix. But the company
management expects its power and fuel cost to rise by ₹80 per tonne, going ahead.

JK Cement has set a target of increasing production capacity to about 23 million

tonnes per annum in the next two years, from 15 million tonnes now, by expanding its
footprints in northern and central India.

“We will maintain and grow our market share in the short term. Apart from the
ongoing expansion in Panna, and now in Hamirpur, we already have plans for another
4 MT expansion,” the cement maker’s chief executive officer, Madhav Krishna
Singhania, told ET. “We have visibility of reaching around 23 million tonnes per
annum by 2023.”
In line with this plan, the company is setting up a new manufacturing plant at
Hamirpur in Uttar Pradesh.

“The upcoming manufacturing plant at Hamirpur will have a capacity close to 2 MT

per year and is a part of JK Cement’s overall expansion plans…,” Singhania said.
“We have an aggressive expansion road map in place and there are plans to enter into
other markets.”

The company has earmarked ₹2,970 crore as capital expenditure for adding 2 MT
capacity each at the Panna and Hamirpur projects. The investment will be financed
partly through debt (₹1,700 crore) and internal accruals, he said. Panna’s capacity
will help meet the demands of the markets of Madhya Pradesh, while the production
at Hamirpur will be largely for the UP market. On a long-term basis, the company’s
facility at Panna has a land bank and raw material to grow the capacity to 15 million
tonnes, Singhania said.

JK Cement has about 12 MT of grey cement facility in the north spread across
Rajasthan, Haryana, western UP and Gujarat, and 3 MT in Karnataka which caters to
southern Maharashtra and parts of Kerala.

The company will be expanding its footprint in the north and the central regions in the
coming years and is keen to take over assets through NCLT if it matches the
company’s strategies. “While the northern market is very attractive in terms of
demand and capacity utilisation, we have the capabilities to become a market leader in
the central region,” Singhania said.

The company recently secured a limestone mine in Jaisalmer, but with just the
mineral concession it will take at least 5-6 years to set up a new plant. At present, the
average utilisation level of JK Cement is 75-80%. The company’s consolidated Ebitda
in FY21 was at ₹1,536 crore.
JK Cement is targeting 10% higher Ebitda this year and aims to add at least 2,000
dealerships in the grey cement segment to its network of 5,000.

 PRODUCTS

J K Cement produces ordinary Portland cement of 53–grade, 43–grade and 33–

grade. It markets these cements under the brand name J K cement and
Sarvashakitman.

It also manufactures Portland Pozzolana Cement and markets it under the name J K
Super.

It markets white cement under the name J K White and Camel.

J.K. Cement has introduced water repellent material in powder form. It has also
introduced white cement based putty for plastering walls and ceiling and sells the
same under the name JK Wall Puty.

Manufacturing Process

At JK White Cement Works, Gotan, we use technical expertise from F.L. Smidth &
Co. From Denmark and state-of-the-art technology with continuous on-line quality
control by micro processors and X-rays to ensure that only the purest White Cement is
produced. We manufacture White Portland Cement through these 5 significant stages
– crushing, raw meal grinding, clinkerisation, cement grinding and packing for
dispatch.
  At the raw mill, crushed limestone, clays and feldspar of desired chemical
compositions are fed through electronic weigh feeders.

 Clinkerisation is the heart of cement manufacturing process, where the raw

material is fed to a pre-heater at a controlled rate through an electronic weigh
feeder. The feed enters the kiln through cyclones and fuel is fired at the kiln
outlet end.

 Clinker and gypsum are fed to the cement mills through electronic weigh
feeders at controlled rate and ground in ball mills. The classifier (high
efficiency separator) controls the fineness of white cement. The finished
product of desired chemical composition and physical properties is transported
to Cement Silos for storage.

 Whites cement is drawn from cement silos, for packing in bags by electronic
rotary packer and in small pouches by Fill, Form and Seal machines.

Plant Quality Focus

At JK Cement, quality is not just a product centric vision but an Omni-organisational

vision. With a firm belief that quality begins and ends with people, the management
has inculcated a quality culture in the very thought process of the organisation.

JK Cement Works (Nimbhera&Mangrol)

JK Cement has effectively pledged its reputation as the market leader in quality of
cement manufactured. At Nimbahera and Mangrol, our labs are equipped with State-
of-the-art Process control instrumentation and quality control system. The testing
laboratory is manned by qualified personnel to ensure quality of product comparable
to the best available in the market at all times. The quality management system at JK
Cement Works is certified by the Prestigeous Lloyds Register for quality assurance
since the year 1995
Our plants are also ISO 9001:2008 & ISO 14001:2004 certified and are in the process
of getting our laboratory accredited with the NABL-National Accreditation Board for
Testing and Calibration Laboratories.

JK Cement Works(Muddapur)

JK Cement Works, Muddapur is equipped with high efficiency dust filtration systems,
which are installed for the main manufacturing process as well as at various transfer
points to avoid dust emission to the atmosphere. Thus the plant has latest
technologies, process control as well as quality control for plant operation with Robo
lab and Automatic Blain Analyser. The entire plant is controlled from Central Control
Room (CCR) with sophisticated control systems of latest technologies including
Fuzzy Operations.

JK Cement Works(Gotan)

In keeping with the vision of international quality standards, the Quality Management
System (QMS) of JK White Cement Works, Gotan has been certified by the
prestigious Lloyds Register for Quality Assurance since the year 1993. It was not only
one of the few Cement plants which was certified with ISO 9001, but also among the
very few whose Marketing department is also included in the scope of certification.

The Plant has now been certified with the latest revised standard of ISO 9001.
Besides, the plant is also accredited with OHSAS 18001 ISO 14001 and Social
Accountability 8000 certification, all of which go on to make it one of the most
comprehensive, holistic quality management endeavours in the category.

Certification
At JK Cement, our quality parameters have been verified by various certification
bodies. All our units are certified with Quality Management System and
Environmental Management System as per ISO 9001 and 14001. The Certification
Agency is Lloyds Register Quality Assurance Limited. Besides the above, our White
Cement plant is also certified for OHSAS 18001 and SA8000. JK White Cement
carries the CE Mark (Mark of European Conformity as per European Construction
Products Directive).

It was not only one of the few Cement plants which was certified with ISO 9001, but
also among the very few whose Marketing department is also included in the scope of
certification. The Plant has now been certified with the latest revised standard of ISO
9001.

Brands

JK Super Cement – PPC

JK Super Strong

JK Super Strong Weather Shield

JK Super Cement-OPC

JK Super Cement-PSC

JKC WhiteMaxX

JKC WallMaxX

JKC RepairMaxX

JKC SmoothMaxX

JKC SheildMaxX

JKC LevelMaxX

JKC LevelMaxX Plus

JKC GypsoMaxX

JKC BondMaxX

JKC PlastoMaxX

JKC TileMaxX Eropxy Grout

JKC TileMaxX Cementitious Grout

JKC Wood Amore

Vision of JK Cement

To be the preferred manufacturer of cement and cement-based products that partners

in nation building, engages with its community and cares for all stakeholders.

Mission of JK Cement
JK Cement aims to deliver innovative products and solutions that meet the needs of its
customers.Together with our exceptional people and strong stakeholder relationships,
we commit to the highest standards of quality, productivity, sustainability and
performance that drive shareholders value and long-term success.

Prestigious Projects of JK Cement

Superior products and a strong brand name represent the company’s abiding strengths.
Our brands have been the preferred choice for builders and architects. Here is a
glimpse of some of our prestigious projects where our products have been used.

Atal tunnel,himachal pradesh

Built using JKC WallMaxX & JKC PriMaxX
Statue of Unity, Gujarat
Built Using JKC WallMaxX & JKC PriMaxX

The National War Memorial, Delhi

Built Using JK Super OPC 43

Metro Train, Ahmedabad

Built Using JK Super OPC 5

AIIMS, Nagpur

AIIMS, Nagpur

High Court, Delhi

High Court, Delhi

Mumbai Goa Expressway

Mumbai Goa Expressway

Supreme Court Of India, New Delhi

Supreme Court Of India, New Delhi

Agra Lucknow Expressway

Built Using JK Super OPC 43

Dravyavati River Project

Built Using JK Super OPC 43

Amrita Hospital

Built Using JK Super OPC 43

Kishanganga HEP
Built Using JK Super OPC 43

Vishnugad Pipalkoti HEP

Built Using JK Super OPC 53

JK Cement Organization

At JK Cement, we participate in the holistic development of the communities in

which we operate. Our strategies and initiatives have brought smiles to numerous
families. We have built schools, colleges, training institutes, hospitals, temples and
other social infrastructure, as a part of our community intervention. Our in-house
policy for the upliftment of the masses finds reflection in a comprehensive and
ongoing outreach programme, entailing participation in various social, charitable,
healthcare, educational and religious initiative.

We are committed towards building sustainable future and preserving the

environment. At JK Cement, we have a stringent eco-friendly policy. Besides regular
technology updates for emission reduction, effluent management and energy
efficiency, we also actively partner with the local administration around our plants to
undertake afforestation and conduct plantation drives. JK Cement Ltd. Is also a
member of the prestigious Indian Green Building Council. Conservation, harvesting
and management of water resources in the water starved state of Rajasthan has also
been our priority.

Community Welfare of JK Cement

At JK Cement, we participate in the holistic development of the communities with
which we operate. Special care has been taken to enrich lives by initiating significant
infrastructural projects for the development of areas around the plants.

The Company engages with the local communities through various social initiatives,
such as infrastructural development, livelihood support, education, community care,
environmental protection, healthcare services and sports. Our interventions have
helped elevate the lives of the underprivileged sections of society.

AWARDS

JK Cement is firmly committed to achieving excellence. Our unstinting commitment

towards highest standards of quality has earned us various accolades through the
years. Our plants have been bestowed with many prestigious awards related to
productivity, environment management, and logistics besides our brands and
Campaigns winning many laurels.

2011– Productivity Excellence Award, 2010–11from the Rajasthan State Productivity

Council.

2012 – Its Maliakhera Mine was awarded the first prize in Mine Lighting & Electrical
Installation and Storage, Transport, Handling & Use of Explosives (2012)
Nimbahera Mine – Awarded the first prize in Maintenance of Mine Plans, Sections &
Statutory Records and second prize in Publicity, Propaganda & House Keeping
(2012)

Tilakhera Mines – Awarded first prize in Publicity, Propaganda & House Keepingand
second prize in Maintenance of Mine Plans, Sections & Statutory Records (2012)

2018 – JK Cement recognized amongst the Most Desirable 30 Power Brands.

2019 - JKWC, Gotan wins CSR Excellence Award by Employers Assn. Of Rajasthan.
 2020- JKWC, Gotan wins 5 awards at RECA Awards and CII Awards & Summit.

2. RESEARCH AND METHODOLOGY

This report acts a general guide line in framing the entire research work. Further
itgives clear ideas about defining the research problem, research design,
samplingdesign, methods of data collection and measurement and scaling techniques.
Thisreport acts as a general guideline in framing the entire research work. Hence,
aresearch should be a step towards the awareness of the expanding needs of
thecustomers and thereby to meet them. Just as many dissatisfied customers do
notregister formal complaints, satisfied customers may not provide the
feedback necessary to understand as to why the satisfaction has occurred. Hence, a
detailedresearch is required to know as to what is lacking in the system and what can
be done thereof. A recent study of the corporate world has clearly established the
factthat only such of those corporations which have given their customers maximum
value for their money, have survived and further, only such of those companies
 

that have gone beyond the stage of satisfying the customers into delighting them by

exceeding their expectations have really grown beyond one’s wildest dreams.

 Research methodology is a method used to systematically and scientifically solve the

research problem. The present study is about the

Study of consumer behaviour on J.K Cement and factors affecting its purchases

RESEARCH DESIGN

A research design is purely the frame work or plan used to study and analyze the data
collected. Research is the scientific way to solve the problem and it is increasingly
used to study the market potential. This involves exploring all possible methods of
solving the research problems, examining the alternative methods one by one and
arriving at the best method, considering the resources at the disposal of the researcher.

DESCRIPTIVE RESEARCH

The Research design used for this study is Descriptive design, which includes surveys
and fact findings of different kinds. The major purpose of descriptive research is a
description of the state of affairs, as it exists at present .The entire analysis is
described in detail with the use of a well structured questionnaire and the
interpretation there on.

SAMPLE DESIGN

A sample design is a definite plan for obtaining a sample from a given population.It
refers to the technique or the procedure the researcher would adopt in selectingitems
for her sample. The random sampling technique is to be employed for data Collection.
45 dealers and retailers were interviewed altogether from KALYAN for the collection
of primary data through questionnaire in order to extract pieces of information and
opinions about J.K. cement.

SOURCE OF DATA

The data for this study was collected from primary source and secondary source. The
primary data was collected through questionnaire and survey. This catered to the
needs of studying the objectives. The secondary data was collected from articles given
in internet, journals and magazines to gather information about the company and the
topic of the study.

PRIMARY DATA
Primary data was obtained by interviewing the dealers and retailers, the customers.

SECONDARY DATA

Through past records of the company, annual reports, magazines and journals and
internet to understand the topic.

SAMPLE SIZE

About 90 respondents were surveyed and assessed for their opinion about Cement.
Survey was done in KALYAN only.

RESEARCH METHODOLOGY

Survey Method was chosen to obtain the needed information from the respondents so
as to study the various magnitudes of the project objectives.

RESEARCH INSTRUMENTS

 2 Questionnaires are structured for evaluating the customers and dealers and
retailers.

CONTACT METHOD

Personal visit to various shops & various places in Kalyan.

SAMPLING PROCEDURE

NON-PROBABILISTIC CONVENIENT SAMPLING

Technique was followed for getting the response to the questionnaire.

PERIOD OF STUDY

The reference period for conducting this study is from 02nd Feb to 13th March 2022.

FUNDAMENTAL OF THE COMPANY

Now, let’s take a deep dive into the fundamentals of the company.
The company will be evaluated on 10 categories and each would be given a
rating out of 5 stars. From this, we will arrive at a combined stock rating for
the company. As the ratings are based on long term past performance, they are
relevant for at least 3 years in the future until FY 2022. The categories are as
follows.

1. Economic Moat

2. Model and Management

3. Growth Ratios

4. Profitability Ratios

5. Cash Flow Ratios

6. Liquidity and Solvency Ratios

7. Efficiency Rati

8. Valuation Ratios

9. ROE(Du Pont Analysis)

10. Future Prospects

 (All units are INR Millions except ratios and per share data)

1. ECONOMIC MOAT

The cement business does not have a highly distinguished product, so operational
efficiency gives price dominance in the market. The cement manufacturing process is
such that the cost of electricity and transport comes to around 35% of the total
cost. JK Cement has an installed grey cement capacity of 14+ MnTPA which makes it
one of the top cement manufacturers in the country. Further JK White Cement, a
division of JK Cement, enjoys a PAN India presence and is a leading producer of
Wall Putty in the country.

The Company is the second-largest manufacturer of white cement in India, with an

annual capacity of 600,000 tonnes. JK White Cement is sold across 43+ countries
around the globe and has now become one of largest producers of White Cement in
the world, with a total white cement capacity of 1.20 MnTPA and wall putty capacity
of 0.9 MnTP. This overall shows a good economic moat for the company. Therefore
this category gets only 3 stars in JK Cement fundamental analysis.

2. BUSINESS MODEL AND MANAGEMENT

The business model is such that cost leadership provides market dominance. The cost
of electricity, storage and transport eat away most of the operating margin. Many
cement companies, therefore, have a dedicated power plant to meet their electricity
needs. JK Cement was the first company to install a captive power plant in the year
1987 at Bamania, Rajasthan. It was also the first cement company to install a waste
heat recovery power plant. Today, the company has a captive power generation
capacity of over 125.7+ MWs which includes 23.2+ MW of waste heat recovery
power plants.
The company has also set up a green-field dual-process White Cement-cum-Grey
Cement plant in the free trade zone at Fujairah, U.A.E to cater to the GCC and
African market. JK cement is also steadily enhancing their capacity, diversifying
products, applying new technology and expanding thier presence in the global market.
This overall shows good upcoming growth for the company.

Mr Yadupati Singhania was the Chairman and Managing Director of the company
before is demise recently. He had played a pivotal role in the introduction of
international quality white cement in India. Mr Raghavpat Singhania is the Executive
Director (Corporate and White Cement). He is also the Dy. Managing Director of JK
Cement Works, (Fujairah) FZC, which is a subsidiary of JK Cement. Overall the
company has seen stable management and no previous instances of principal-agent
conflicts. Therefore this category gets only 4 stars in JK Cement fundamental
analysis.

3. GROWTH RATIO

The revenue has shown a stable growth rate of 12.29% CAGR over the last 10 years.
The operating and Net income has also shown good improvement over the years. The
capital expenditure has also been stable and the working capital has shown a linear
increase. This overall shows good growth for the company in the past as well as in the
coming years. Therefore this category gets 4 stars in JK Cement fundamental analysis.

Despite a blip in sales in the April-June 2021 quarter on account of pandemic-led

disruptions, JK Cement is “optimistic” and expects its growth momentum to continue
in 2021-22 also, recovering quickly in the rest of nine months led by a “good growth”,
JK Cement Chief Operating Officer (Grey Cement Business) Rajnish Kapur told .

When asked about the growth, he said, “Last fiscal, we did close to Rs 1,500 crore
(EBITDA). We will be targeting more this year. We had good growth last year and
we are expecting 8-10 per cent topline (revenue) growth this year.”
“Given the vibrant economic climate that we have in our country, with a lot of
highway and metro projects coming up, I am optimistic that in the coming nine
months, we will have good growth,” he added.

On the April-June quarter, in which the second wave of COVID-19 hit the country,
Kapur said the start of this fiscal was one of the “toughest times”.

“The July-September quarter will not be too fruitful as we have monsoon but in
comparison to the monsoon quarters of other years, we will be in good condition as
there is a lot of demand on the ground that needs to be satisfied. For third and fourth
quarters, we are very confident,” he said.

Meanwhile, he also said the possibility of a third wave will also be considered and as
a company, JK Cement is planning for that also.

On capital expenditure (capex) or investment, Kapur said it must make sense to the
company’s long-term plan and did not rule out an acquisition for the growth of the
company.

“Limestone reserve, transfer of mines, availability of cash flow, it all matters. But, at
the same time, we are certainly open to taking bold decisions and new challenges for
the expansion if they make sense to our long-term strategy,” he said.

On retail sales of cement for individual house construction, etc, Kapur said it would
come back. “It might not be as much as we are expecting it to be but it will go up.”

The only challenge would be the money at the hand of people to start construction at
the individual level which hopefully would improve by jobs coming back, he said.

According to him, people have now realised that life has to go normal beyond
COVID-19 also.
 “If you look at per-capita consumption, the young population and the way we are
becoming more of a nuclear family, I do not see any reason why retail will not come
back,” he said.

“I also feel that post-COVID-19, the workforce has localised now. Because of this,
people are making houses and doing construction,” Kapur added.

4. PROFITABILITY RATIOS
The profitability margins of the company have seen stability even with the
increased scale of operations and high depreciation. This is because of the
economies of scale and higher asset utilization. The fluctuations in the margins
are due to the cyclic demand of the market and are normal in cement
companies. Therefore this category gets only 4 stars in JK Cement
fundamental analysis.

Formula:- Net profit margin = Revenue-Cost/Revenue

Profitability March21 March20 March19 March18 March17

Ratios:

PBDIT Margin(%) 25.71 23.19 17.86 19.34 21.10

PBIT Margin(%) 21.84 19.27 13.96 15.29 16.41

PBT Margin (%) 15.98 11.93 9.50 9.57 8.63

Net Profit 9.52 7.32 6.52 7.44 5.61

Margin(%)

Return on 16.14 12.79 11.23 15.92 11.26

Networth/Equity(%)

Return on Capital 18.57 16.88 12.62 14.60 13.11

Employed(%)

Return on 6.57 5.09 4.67 5.71 3.60

Assets(%)

Total 0.75 0.77 0.73 1.02 1.31

Debt/Equity(X)

Asset Turnover 69.01 69.55 71.70 76.72 64.27

Ratio(%)

5. CASH FLOW RATIO

Both the Net Income and Capital expenditure has shown some improvement in recent
years. This indicates good growth prospects. The Free cash flow has remained
positive and the operating cash flow growth has shown a nominal decline. Overall
the company has seen a slight deterioration of its cash position. Therefore this
category gets only 3 stars in JK Cement fundamental analysis.

Formula:- Price to cash flow ratio = Share price\cash flow price

per share.

CASH FLOW March2021 March2020 March2019 March2018 March2017

OF JK Cement
(in Rs. Cr.)

12months 12months 12months 12months 12months

Net profit/loss 1092.68 734.45 412.43 383.22 285.62

before
extraordinary
items and tax

Net cash flow 1590.25 1371.75 703.87 883.11 771.81

from operating
activities

Net cash used in -1343.69 -1476.54 -802.32 -95.81 -649.16

investing
activities

Net cash used -137.46 -113.11 172.83 -722.79 -345.60

for financing
activities
 Foreign -0.87 -6.66 -22.65 16.80 -18.96
exchange
gains/losses

Adjustment on 0.00 0.00 0.00 0.00 0.00

amalgamation
merger
demerger others

Net INC/DEC 108.23 -224.56 51.73 81.32 -241.91

in cash and
cash
equivalents

Cash and Cash 38.50 263.06 211.33 130.02 372.02

equivalents
begin of year

Cash and Cash 146.73 38.50 263.06 211.33 130.02

equivalents end
of year

6. LIQUIDITY AND SOLVENCY RATIO

Solvency refers to an enterprise’s capacity to meet its long-term financial

commitments. Liquidity refers to an enterprise’s ability to pay short-term obligations
—the term also refers to a company’s capability to sell assets quickly to raise cash.

KEY TAKEAWAYS

 Solvency and liquidity are both important for a company's financial health
and an enterprise's ability to meet its obligations.

 Liquidity refers to both an enterprise's ability to pay short-term bills and debts
and a company's capability to sell assets quickly to raise cash.
  Solvency refers to a company's ability to meet long-term debts and continue
operating into the future.

The current ratio has shown some recovery in recent years and is still above the
minimum requirement of 1. This shows the company has a surplus of current assets
over current liabilities. The financial leverage and debt to equity have declined over
the years and the profitability margins have been stable. This improves the solvency
of the company. Therefore this category gets only 5 stars in JK Cement fundamental
analysis.

A company with adequate liquidity will have enough cash available to pay its ongo-
ing bills in the short run. Here are some of the most Liquidity ratio.

LIQUIDITY AND March2021 March2020 March2019 March2018 March2017

SOLVENCY
RATIO

Current Ratio(X) 1.72 1.31 1.32 1.32 1.18

Quick Ratio(X) 1.33 0.92 0.93 0.87 0.75

Inventory Turnover 9.22 8.71 8.93 8.64 7.54

Ratio(X)

Dividend Payout 0.00 33.77 21.52 16.36 13.26

Ratio (NP) (%)
Dividend Payout 0.00 21.99 13.46 10.59 7.22
Ratio (CP) (%)

Earnings Retention 0.00 66.23 78.48 83.64 86.74

Ratio(%)

Cash Earnings 0.00 78.01 86.54 89.41 92.78

Retention Ratio(%)