J K Cement Agrees To Buy Toshali Cement For INR 157 Crore

J K Cement Gives A Permit For Approving The Acquisition Agreement With Toshali For Its Management Control And Complete Hold

J K Cement Ltd signed an accord for purchasing Toshali Cement's management control and paid the full capital of Toshali, which was settled at INR 157 crore. This deal would allow the company to extend its operations in the Eastern Region.

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With the signing of this agreement, Toshali, originally founded in 2002 with two operational units, will evolve into a subsidiary of the company.

Indian Cement Demand Is To Grow 8-9 Percent In FY24, More Than The FY23 9 Percent

The persistent efforts of the Indian government for building infrastructure will propel the demand for cement by 8-9 percent this fiscal year, along with the 9 percent growth seen in FY22, which will boost the industry's profitability. This means the industry will grow at a rate of 4.5 percent.

In addition, the agricultural sector and the growing concentration on executing inexpensive housing projects will be another factor driving the industry's expansion.

According to ICRA, India's FY22 cement production will likely grow by ~12 percent YoY, backed by the demand for rural housing and Government's keen interest in infrastructural development.

It is anticipated that by FY24, the Indian cement industry will probably witness an addition of 80 million tonnes (MT) in capacity.

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According to the article by Procurement Resource, J K Cement Ltd has bought management control of Toshali for INR 157 crore, turning Toshali into a subsidiary of the company.

This deal will help the company expand its operations in the Eastern Region and align with the expanding cement industry in the country, which is being driven by the demand for rural housing and government initiatives like ‘PM Gati Shakti - National Master Plan (NMP)’.