JK Cement Limited announced a significant capacity expansion at its Muddapur plant in Karnataka. The company successfully increased its cement grinding capacity by 1.00 MnTPA through strategic debottlenecking and optimization of existing production systems, demonstrating operational efficiency without requiring new facility construction.

Capacity Enhancement Through Operational Excellence

The expansion at JK Cement Works, Muddapur has increased the plant's cement grinding capacity from 3.50 MnTPA to 4.50 MnTPA while maintaining its clinker capacity at 2.64 MnTPA. This capacity addition was achieved entirely through improving existing operations rather than building new facilities.

Strategic Implementation and Cost Efficiency

The capacity enhancement was accomplished through debottlenecking and optimization of the existing production system rather than capital-intensive new facility construction. This approach demonstrates operational efficiency and cost-effective capacity expansion strategies, allowing the company to maximize returns on existing infrastructure investments.

Overall Production Capacity Impact

Following this expansion, JK Cement Limited's overall grey cement production capacity has reached 32.26 MnTPA. This figure includes the capacity of the company's subsidiary companies, reflecting the consolidated production capability across the group's operations and strengthening the company's position in the Indian cement industry.

Regulatory Compliance

The announcement was made pursuant to Regulation 30 read with Schedule III, Part A Para A of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company confirmed that disclosures in the prescribed format of SEBI Master Circular were not applicable for this expansion.

The capacity addition showcases JK Cement's ability to enhance production capabilities through operational optimization, demonstrating efficient resource utilization and strategic growth without requiring greenfield investments.

JK Cement Limited has disclosed that its subsidiary J.K. Cement Saifco Private Limited has successfully resolved the regulatory compliance matter with the Legal Metrology Department in Jammu and Kashmir through compounding of the offense.

Resolution Through Compounding

Following the earlier notice received from the Legal Metrology Department, J.K. Cement Saifco Private Limited applied for compounding of the matter. The Department has now passed an order compounding the offense upon payment of Rs. 1,00,000 as compounding fees.

Background of the Matter

The subsidiary had earlier received a notice dated March 09, 2026, from the Office of Deputy Controller, Legal Metrology Department (Enforcement) in the Union Territory of Jammu and Kashmir. The notice was received on March 16, 2026, and directed the company to halt packaging of cement products due to compliance violations under the Legal Metrology Act, 2009.

The original violations alleged included:

• Lack of packaging registration
• Non-functional customer care number
• Un-verification of electronics weighing scales

Financial Impact Assessment

According to the company's disclosure, there is no material financial impact on JK Cement Limited from this regulatory matter. The resolution through compounding allows the subsidiary to resume normal operations while ensuring compliance with legal metrology requirements.

Regulatory Compliance

This updated disclosure was made under Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company filed this continuance intimation with both BSE Limited and National Stock Exchange of India Limited on March 19, 2026, maintaining transparency with investors about the resolution of the subsidiary's compliance matter.

The compounding order also includes the release of seizure memo, indicating that any operational restrictions have been lifted following the settlement.