JK Lakshmi Cement Ltd. has approved the acquisition of a 77.96% equity stake in NECEM Cements Ltd. The transaction involves a Share Purchase Agreement with NECEM and its promoters. This strategic move aims to significantly strengthen the company’s footprint in the North East region and secure approximately 40 Million Tonnes of limestone reserves through NECEM’s leased land holdings. The acquisition is planned to be completed on or before 31st March 2026.
Strategic Acquisition in North East
The Committee of Directors of JK Lakshmi Cement Ltd. convened on 12th March 2026 and approved the acquisition of a substantial 77.96% equity shareholding in NECEM Cements Ltd. (‘NECEM’). Following this approval, the Company immediately entered into a Share Purchase Agreement with NECEM and its existing shareholders.
Target Entity Details (NECEM)
NECEM Cements Ltd., incorporated in 1985, operates within the Cement Industry. Financial details for the year ended 31st March 2025 show: Total Revenue from operations at ₹ 1.56 Crore, Profit After Tax (PAT) at ₹ (4.59) Crore, and Total Asset Size of ₹ 11.31 Crore. The acquisition is explicitly not a Related Party Transaction.
Rationale and Future Impact
The primary object of this acquisition is to leverage NECEM’s assets. NECEM possesses approximately 150 Bigha of Council leased land in Assam, which includes a small township and crucial Captive Mining Rights with estimated Limestone Reserves of Approx. 40 Million Tonnes. The plan is to utilize NECEM, along with adjacent land, to establish a new Clinkerisation Unit (0.95 Million Tonnes) and a Cement Grinding Unit (0.95 Million Tonnes). This initiative is designed to accelerate the Company’s Vision Journey toward achieving 30 Million Tonnes of capacity, enabling the group to graduate to a Large Sized Cement Group. Furthermore, the acquisition is expected to strengthen the Company’s footprint in North East and ensure long-term sustainability of its limestone reserves.
Transaction Terms and Timeline
- Consideration: The acquisition involves a Cash Consideration plus the takeover of certain past liabilities.
- Cost: The estimated cost of acquisition is ₹ 19 Crore plus the assumption of specific past liabilities.
- Completion Period: The indicative time period for the completion of the acquisition is set for on or before 31st March 2026.
Historical Financial Snapshot (Amounts in ₹ Crores)
The following table summarizes the brief financial details of NECEM for comparison:
| Financial Details | FY 2024-25 | FY 2023-24 | FY 2022-23 |
|---|---|---|---|
| Total Revenue from operations | 1.56 | 3.22 | 2.44 |
| PAT | (4.59) | 0.01 | 0.00 |
| Total Asset size | 11.31 | 15.75 | 15.38 |
Source: BSE
