Chettinad Cement and JK Lakshmi Cement are in a competitive bid to acquire Deccan Cements, aiming for strategic expansion as regional cement demand soars due to Andhra Pradesh’s infrastructure boom, as per an Economic Times report. The acquisition target carries a valuation of $360 million, or ₹3,110 crore.
Deccan Cements, headquartered in Hyderabad with manufacturing units near Vijayawada, is seeking an enterprise value of ₹3,110 crore or $360 million. With the company set to reach 4 million tonnes annual capacity by the end of 2025, this places its valuation at about $90 per tonne. This is slightly below replacement costs in the sector, often exceeding $100 per tonne in greenfield projects. EY has been engaged to assist with the sale process.
JK Lakshmi Cement, with no manufacturing footprint in Andhra Pradesh or Telangana, sees Deccan as a gateway into the southern market. Alternatively, Chettinad Cement already has a presence in both states, and a deal would allow it to consolidate further. Deccan’s proximity to Amaravati gives it a geographic advantage in supplying key infrastructure projects, aligning well with the state’s ₹50,000 crore development plan for the capital city.
Read More: Adani Group Applies for CCI Approval to Acquire Jaiprakash Associates!
Despite firm market demand, Deccan Cements reported muted full-year profits of ₹8 crore on revenue of ₹527 crore for FY25. Its EBITDA per tonne stood at ₹489, significantly below the industry average of ₹900 to ₹1,200 per tonne. Moreover, the company had a net cash outgo of ₹87 crore, raising concerns over its financial efficiency compared to well-scaled peers.
On July 25, 2025, Deccan Cements share price opened at ₹1,074.00 on NSE, above the previous close of ₹1,047.40. During the day, it surged to ₹1,094.00 and dipped to ₹1,065.95. The stock is trading at ₹1,067.95 as of 9:20 AM. The stock registered a moderate gain of 1.96%.
Over the past week, it has moved up by 0.56%, over the past month, it has moved up by 15.62%, and over the past 3 months, it has moved up by 36.82%.
On July 25, 2025, JK Lakshmi Cement share price opened at ₹975.00 on NSE, below the previous close of ₹983.75. During the day, it surged to ₹981.95 and dipped to ₹975.00. The stock is trading at ₹979.40 as of 9:20 AM. The stock registered a marginal change of -0.44%.
Over the past week, it has declined by 1.56%, over the past month, it has moved up by 10.51%, and over the past 3 months, it has moved up by 23.49%.
The bidding war between Chettinad Cement and JK Lakshmi Cement to acquire Deccan Cements reflects growing strategic interest amid a regional infrastructure surge. As demand rises, the acquisition offers both geographic and operational synergies for the winning bidder.
Disclaimer: This blog has been written exclusively for educational purposes. The securities or companies mentioned are only examples and not recommendations. This does not constitute a personal recommendation or investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Investments in securities are subject to market risks. Read all related documents carefully before investing.
Published on: Jul 25, 2025, 2:05 PM IST
Team Angel One
We're Live on WhatsApp! Join our channel for market insights & updates
Get the link to download the App
