JK Lakshmi Cement board has approved a significant corporate restructuring move, announcing a scheme of arrangement to merge three of its subsidiaries: Udaipur Cement Works (UCWL), Hansdeep Industries and Trading Co., and Hidrive Developers and Industries, the company informed exchanges on 31 July. The appointed date for the merger is set for 1 April, 2024.
Key details of the merger include the merger of Udaipur Cement Works, where shareholders of UCWL will receive four shares of JK Lakshmi Cement for every 100 shares held in UCWL. Additionally, for the mergers of Hansdeep Industries and Hidrive Developers, no new shares will be issued as JK Lakshmi Cement already owns all shares of both companies.
Post-merger, JK Lakshmi Cement will have two subsidiaries. The company will hold a 100 per cent stake in Hansdeep Industries' subsidiary, Ramkanta Properties, and maintain an 85 per cent stake in Agrani Cements.
The Scheme of Arrangement is expected to become effective in the second half of the calendar year 2024.
JK Lakshmi Cement operates manufacturing facilities and owns immovable properties across several states, including Rajasthan, Chhattisgarh, Gujarat, Haryana, and Odisha. The company boasts two integrated plants in Rajasthan and Chhattisgarh, with split grinding units located in Haryana, Gujarat, and Odisha.
As of Q1 FY25, JK Lakshmi Cement's total capacity stands at 11.7 million tonnes, with a clinker capacity of 7 million tonnes. Udaipur Cement Works has an integrated plant in Rajasthan, with a cement capacity of 4.7 million tonnes and a clinker capacity of 3 million tonnes. Hidrive Developers owns an industrial plot adjacent to the Surat Grinding unit, and Hansdeep Industries is a preferred bidder for limestone mines at Nagaur, Rajasthan. This strategic restructuring aims to streamline operations and consolidate the company’s market position, leveraging the strengths of its subsidiaries to enhance overall efficiency and profitability.
JK Lakshmi Cement’s restructuring plan marks a strategic move to optimise its operations and reinforce its market standing. The successful implementation of this scheme is anticipated to bolster the company's operational capabilities and drive long-term growth.
