JK Cement: Redefining the industry through sustainable measures

In FY 2016-2017, JK Cement hit the US $1-billion market cap, which was a historic event in its more than four decades of existence. Could you tell us what contributed to JK Cement's impressive performance?
It's been a remarkable year for JK Cement, we registered higher sales of FY 2016-17 vis-à-vis Rs4327.84 Crore in FY 2015-16. Our net profit peaked at Rs259.58 Crore and our earning per share reached Rs37.12. Our growth is a testament to our persistent efforts in cost reduction, brownfield expansions and other efficiency initiatives. We have also initiated other pan-organisational improvement processes, with projects such as Nirmaan, which focuses on business and technology transformation.
JK Cement's grey cement business underwent a re-branding initiative recently, which emphasises your commitment to safety. What is the rationale behind the concept and why did you choose to adopt it?
To assess stakeholder's needs and expectations, we conducted an extensive market research and brand study that included in-depth interactions with our dealer community, business organisers and employees. One of the key insights that emerged was that the need for safety is crucial. Also, critical to the Indian context is the importance of leaving behind a lasting legacy for future generations. It is an investment where the consumer has high financial and emotional stakes. Using these key insights, 'Build Safe' was established as JK Super Cement's new positioning.
A study by Columbia University highlighted that the cement industry alone accounts for 5% of global carbon emissions. What measures have you put in place to limit your organisation's carbon footprint?
We were among the first Cement companies in India to install a Waste Heat Recovery plant in our Nimbaheraproduction unit. We have taken various initiatives to minimise the environmental impact of carbon emissions and conserve energy and natural resources. In this journey, we are taking various measures, such as investment in Green PowerGeneration Systems, alternate Fuels and Raw Material, manufacturing of blended cement, renewable power and supply Chain Integration. We are also promoting R&Don Green Cement like Composite Cement and LimestoneCalcined Clay Cement in India to conserve natural resources and fossil fuels by reducing carbon emissions.
How important is the GCC region for JK Cement's operations? Aside from the GCC, which regional markets has the strongest growth potential for your company?
Our state-of-the-art White Cement plant in Fujairah, UAE, commenced operations in 2014 with a focus on meeting growing demand of Middle East, Africa and APAC countries. GCC region in Middle East has the highest per capita White Cement consumption in the world and demand for aesthetics and high end architectural applications will ensure robust white cement consumption. There are many projects such as Dubai World Expo 2020, FIFA World Cup 2022, Etihad Rail Project and Saudi housing projects which are in the pipeline, in line with the vision of overall growth and prosperity in the region. JK White Cement is positioned as one of the top selling brands in this region and we are the preferred White Cement solution provider for Consultants and Architects owing to our solution based selling strategy.
During the last three years, we have rapidly expanded our distribution network in over 40 countries around the globe with major inroads in Africa and APAC countries. Africa has shown strong growth with CAGR of 4.1% between 2008- 2016 and is expected to grow at CAGR of 5% between 2017-20. White Cement demand in South East Asian markets are also increasing due to boosting in dry-mix applications.We are further expanding our geographical coverage to penetrate and meet end customers' requirement of high quality products.