Stock Insight: Concrete Future

JK Cement (Idirect Code: JKCEME) has an interesting beginning. Its origins are traced to JK Synthetics, a company involved in manufacturing man-made fibres and cement. Heavy losses saw its net worth eroded and the hence decision to de-merge the two businesses. Subsequently, the cement division was de-merged and a new company was born in November 2004 - JK Cement. Now, a pure and focused cement player, the company is identified as one of the leading grey cement players in north India and the second-largest white cement manufacturer in India. The company currently operates two grey cement plants in Rajasthan - Nimbahera and Mangrol - with an aggregate capacity of 3.55 mtpa. It recently expanded its grey cement capacity by 0.5 mtpa, increasing its installed capacity for grey cement to 4.05 mtpa. The white cement plant has a capacity of 0.3 mtpa which has been expanded to take the total installed capacity to 0.35 mtpa. JK Cement's white cement business accounts for almost 17 per cent of total revenue. Entry barriers to the white cement business are high due to the non-availability of quality limestone. JK Cement has access to large reserves of limestone for producin

This article was originally published on December 01, 2006.