Prism Johnson Limited has announced a significant expansion in its outsourced cement grinding capacity, leveraging its partnership with RLJ Cement Limited. The move marks a strategic enhancement in Prism Johnson's production capabilities, positioning the company for potential growth in the cement sector.

Capacity Enhancement Details

RLJ Cement Limited, a key partner of Prism Johnson, has successfully completed a capacity enhancement project at its Mirzapur Plant in Uttar Pradesh. The expansion has increased RLJ's cement production capacity by 0.20 MTPA, bringing its total capacity to 0.50 MTPA. This development directly benefits Prism Johnson, boosting its outsourced grinding capacity from 1.17 MTPA to 1.37 MTPA.

Partnership Dynamics

The relationship between Prism Johnson and RLJ Cement is governed by a Non-Exclusive Supply Agreement. Under this arrangement, RLJ manufactures and supplies cement according to Prism Cement's quality specifications. This cement is then sold to Prism Johnson's customers, allowing the company to meet market demand efficiently.

Strategic Implications

This capacity enhancement is part of Prism Johnson's broader strategy to expand its production capabilities through partnerships. By leveraging outsourced grinding capacities, the company can potentially respond more flexibly to market demands without the need for significant capital investments in new facilities.

Regulatory Compliance

In compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, Prism Johnson has duly informed the National Stock Exchange of India Limited and BSE Limited about this development. The company's disclosure provides transparency to shareholders and the market about its operational enhancements.

Conclusion

The expansion of Prism Johnson's outsourced grinding capacity through its partnership with RLJ Cement Limited represents a significant step in the company's operational strategy. As the cement industry continues to evolve, such partnerships may play a crucial role in allowing companies like Prism Johnson to adapt to market demands efficiently and cost-effectively.

Prism Johnson Limited , a prominent player in the Indian cement industry, has announced a strategic move to enhance its presence in the Madhya Pradesh market. The company has entered into a cement supply agreement with Jabalpur Cement Industries Private Limited (JCIPL), marking a significant step towards improving local availability and expanding its operational capacity.

Key Highlights of the Agreement

• Supply Source: The cement will be sourced from Prism Johnson's Jogidhana plant in Jabalpur, Madhya Pradesh.
• Quality Assurance: JCIPL will manufacture cement according to Prism Johnson's quality specifications and other requirements.
• Commencement Date: The supply agreement is set to begin on August 18, 2025.
• Annual Acquisition: Prism Johnson will acquire 0.09 MT of cement annually from JCIPL throughout the agreement's term.
• Agreement Duration: The initial term is set for one year, with the possibility of extension upon mutual agreement.

Strategic Importance

This agreement holds significant strategic value for Prism Johnson, particularly in the Madhya Pradesh market. The company disclosed that Madhya Pradesh accounted for approximately 19% of its cement sales volume in the fiscal year 2025. By improving local availability through this partnership, Prism Johnson aims to strengthen its position in this key market.

Capacity Enhancement

The collaboration with JCIPL is part of Prism Johnson's broader strategy to increase its grinding capacity through supply agreements. With this new arrangement:

• The company's grinding capacity will initially increase from 1.08 MTPA to 1.17 MTPA.
• By September 30, 2025, the capacity is expected to reach 1.38 MTPA.

About Jabalpur Cement Industries Private Limited

JCIPL, incorporated on November 3, 2020, is based in Madhya Pradesh. The company specializes in the manufacture and sale of Portland Pozzolana Cement (PPC cement). Key details include:

• Plant Location: Jogidhana, Jabalpur, Madhya Pradesh
• Current Rated Capacity: 0.18 MTPA
• Recent Financial Performance:

Market Impact

This strategic partnership is expected to bolster Prism Johnson's competitive edge in the Madhya Pradesh cement market. By leveraging JCIPL's manufacturing capabilities and improving local availability, Prism Johnson is well-positioned to meet the growing demand in the region more effectively.

The cement industry continues to be a crucial sector in India's infrastructure development, and such collaborations are likely to play a vital role in meeting the country's construction needs while optimizing operational efficiencies for cement manufacturers.