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.

Prism Johnson Limited has significantly increased its stake in Sentini Cermica Private Limited, transforming the joint venture into a subsidiary and strengthening its position in the ceramic tiles segment. The company invested ₹49.68 crore in a rights issue, raising its ownership from 50% to 90% on a fully diluted basis.

Investment Details

According to a regulatory filing, Prism Johnson acquired 4,96,80,000 equity shares of Sentini Cermica at ₹10 each, totaling ₹49.68 crore. The allotment of these rights shares took place on August 8, marking a strategic move to consolidate Prism Johnson's presence in the ceramic tiles industry.

About Sentini Cermica

Sentini Cermica, incorporated on January 11, 2002, is engaged in the manufacture and supply of ceramic tiles. The company operates a manufacturing plant in Vijaywada, Andhra Pradesh.

Financial Performance

The regulatory filing also revealed Sentini Cermica's turnover for the past three fiscal years:

Strategic Implications

This acquisition transforms Sentini Cermica from a 50:50 joint venture into a subsidiary of Prism Johnson. The move is expected to enhance Prism Johnson's capabilities in the ceramic tiles segment and potentially lead to improved synergies and market presence.

Regulatory Compliance

The transaction, while falling under the category of a related party transaction, was conducted at arm's length. Prism Johnson has confirmed that no governmental or regulatory approvals were required for this acquisition.

This strategic investment underscores Prism Johnson's commitment to expanding its footprint in the ceramic tiles market, potentially positioning the company for stronger growth in this segment.