Dear Shareholders, Partners, and Stakeholders,
It is with great pleasure and a sense of responsibility that I present to you the
integrated annual report of JK Lakshmi Cement Limited for the fiscal year ending March
2024. As we navigate through the dynamics of the cement industry, characterized by both
challenges and opportunities, I am proud to reflect on our performance, industry trends,
and the outlook for the coming years.
Amidst global challenges of inflation, tightening of monetary policies and supply chain
disruptions, India remains a bright spot.
The past year has witnessed geopolitical shifts, rapid technological projects and
evolving global trade policies collectively ?nfluencing the global economic environment.
While advanced economies have displayed varied recovery rates, emerging markets have
demonstrated robust growth, offering new avenues for expansion and collaboration.
Our country, ranked as the world's 5th largest economy in 2024, is
experiencing rapid growth across diverse sectors such as information, technology,
services, agriculture and manufacturing. According to the International Monetary Fund's
latest World Economic Outlook, India's economy is expected to grow at a strong rate of
6.5% in 2024 and 2025, significantly outpacing the global growth rates. This robust growth
trajectory positions India to potentially reach a $7 trillion economy by 2030.
India's economic outlook remains exceptionally promising bolstered by the government's
focus on infrastructure, renewable energy, alternate fuels, and the 'Make in India'
initiative. These efforts are expected to stimulate further economic activities and
significantly boost demand for cement and building materials.
Industry Outlook and Trends
The cement industry in India has continued its growth trajectory, with the installed
capacity reaching 638 million tons in FY24, refecting a substantial increase from the
previous fiscal year. Looking ahead, the industry is poised for further expansion, with a
projected capacity addition of approximately 60 million tons in FY24-25. While
infrastructure and housing segments drive demand, the industry ? faces challenges in
matching incremental
demand with capacity additions, which could impact utilization levels. However,
initiatives such as the Production-Linked Incentive scheme and economic recovery efforts
are
expected to bolster demand. Despite the competitive landscape, JK Lakshmi Cement has
maintained its position, contributing 16.5 million tons to the nation's capacity share.
Our strategic approach towards capacity addition, with a focus on sustainable growth, has
resulted in a commendable 5.4% CAGR in capacity addition over the past five years. JK
Lakshmi Cement remains committed to capitalizing on emerging opportunities and enhancing
its market presence through strategic initiatives.
The industry witnessed signif?cant fluctuations in demand and pricing dynamics during
FY24. While the overall demand grew by 9% for the financial year, 425 MnTPA in FY24 over
392 MnTPA in FY23, regional variations were observed, with the East region leading the
growth momentum at estimated 10%, followed by West, Central and South between 6-8%, while
North region has been f?at. However, heightened competitive intensity, coupled with
capacity additions, exerted downward pressure on cement prices, impacting industry
profitability. Despite these challenges, JK Lakshmi Cement remained resilient, leveraging
its operational efficiencies to navigate through the market dynamics. In order to leverage
the robust growth projections of the Eastern region, increase our footprint &
participation in this dynamic region, we have acquired a mine in Assam.
Our Performance and Strategic Plan
Amidst the evolving industry landscape, JK Lakshmi Cement has demonstrated resilience
and agility in its operations. Despite market challenges, our production and sales
remained steady during the Jan-Mar'24 quarter. Our Sirohi and Durg operations have
showcased commendable performance, with notable growth in production and sales volumes.
Furthermore, our commitment to excellence has been recognized through various accolades
and awards, underscoring our unwavering dedication to quality, safety, and sustainability.
Under Smart Business Solutions we are dedicated to developing innovative solutions with
a compelling value proposition, expanding our asset footprint, and exploring new business
opportunities. These endeavours are expected to contribute significantly to our overall
business, reaching 40% of our operations.
As we look towards the future, JK Lakshmi Cement remains steadfast in its commitment to
delivering value to all stakeholders. Setting ambitious targets, we aim to take its
capacity to 30 MnTPA by fiscal year 2030. To realize this vision, the company has
strategic plans in place, including both brownfield and greenfield expansion projects
totalling 10.80 MnTPA, expected to be completed by FY27. In November 2023, our board gave
an approval to set up an additional grinding unit with a capacity of 1.35 MnTPA at its
Surat Grinding Unit. The unit is expected to be commissioned by March 2025 and will incur
an investment of Rs 225 crore.
The Company has planned to add a new clinker line with a capacity of 2.3 MnTPA at its
Durg integrated unit along with grinding units with a total cement capacity of 4.6 MnTPA.
This project is expected to be commissioned by March 2027 and will incur an investment of
Rs 2500 crore.
In addition, we have also planned to install three split location grinding units with a
total cement grinding capacity of 3.4 MnTPA, one each at Prayagraj in Uttar Pradesh,
Madhubani in Bihar and Patratu in Jharkhand.
Putting Sustainability at the core of our operations
Sustainability lies at the heart of your Company's ethos, permeating all aspects of our
business operations. We steadfastly afford our commitment to achieve net-zero by 2047. In
our pursuit of sustainability, we have actively engaged with global agencies and industry
associations such as UNGC, RE 100, EP 100 and GCCA. Our sustainability efforts include
promoting LNG trucks in logistics operations, achieving a water positivity level of 4X,
and targeting a Thermal Substitution Rate (TSR) of 20% by 2030. Our renewable energy usage
reached at 38% in FY 2023-24. The Company aims to meet all 100% electrical energy needs
through renewables by 2040. Community & Development - Waves of Change Our
commitment to socially responsible business practices is deeply rooted in our corporate
DNA, driving us to pioneer and deliver impactful CSR projects for vulnerable communities
around our operations. With a core focus on strengthening community relationships, we
strive to bring sustainable change to the quality of life through innovative solutions in
Education, Health, Water & Sanitation, Skills Development, Livelihood Promotion, and
Rural Development.
One of our signif?cant achievements is the inauguration of the Shripati Singhania
Skill Centre at our plant in Pindwara, Sirohi, Rajasthan. This centre embodies our motto
of "Transformation through skilling" and offers a range of educational and
skilling opportunities such as coaching, mentoring, employability training, career
counselling, digital literacy, and capacity building.
Through our tailor-made and impactful CSR projects, we have positively impacted over
2.5 lakh lives, making a tangible difference in communities. Our flagship project,
"Addressing needs of new- born in the community and at home," has garnered high
appreciation, including recognition at the 3rd International Conference on CSR (ICCSR).
Additionally, our Jharli unit in Haryana has been honoured with the Most Impactful
Livelihood Initiative of the Year Award at the Indian CSR Awards 2023.
Building a better future with your support JK Lakshmi Cement is committed to
delivering value to all stakeholders. Our focus on innovation, operational excellence, and
sustainability will continue to drive our growth journey, ensuring a brighter and
sustainable future for generations to come. Our foundation, built on sustainable practices
and innovative solutions, positions us well not only to meet current demands but also to
anticipate future needs. We remain committed to enhancing shareholder value and
maintaining our dedication to transparency, governance, and corporate responsibility.
I extend my gratitude to each one of you for your steadfast support and belief in our
vision and capabilities. Your trust and commitment propel us toward achieving greater
heights. Together, we are poised to make JK Lakshmi Cement synonymous with strength,
durability, and innovation.
Thank you once again for your support and trust. Let us continue on this journey of
growth and success, setting new benchmarks in the industry.
Warm regards,
| VINITA SINGHANIA |
| Chairperson & Managing Director |