My dear fellow shareholders,
I am pleased to share that our growth journey continuesand to gain momentum. I am proud
to share that the Company's expansion plan to increase its capacity from 1.5 million tons
to 3.0 million tons by setting up a new cement grinding plant at Sikka — a milestone
in our strategic roadmap to expand production and strengthen market share, is now ready
and currently undergoing trial runs. This new cement plant will be eligible for the
incentives of the Government of Gujarat, for which we remain highly grateful for
investment friendly policies of the Government of Gujarat. This achievement underscores
our commitment to operational excellence and lays the groundwork for the next chapter in
our growth story. As shared in the previous year, this new addition is now fully
functional, to reach our production capacity of 3 million tonnes of cement per annum.
The Sikka grinding unit is not merely an expansion — it symbolizes our resilience,
foresight, and readiness to participate in growing industry. It equips us to respond more
effectively to market demands & to serve our customers better.
Cement is very unique product, its commonly known as commodity & cyclical industry.
But I completely disagree with this. It has now proved beyond doubt, when entire globe is
challenged by the trade barriers & tariffs, cement out shines those considerations.
It's a domestic industry depending upon local growth dynamics. The industry pays highest
GST @28% rate which is only charged to "Sin or Luxury" goods. Cement is neither
sin nor Luxury product but a core sector product. I would earnestly hope & export
someday a more sympathetic view is taken on the tariff on cement & brought it down in
line with the GST levied on steel & other basic building material products.
Although demand growth moderated to just around 4%, due to a high base, prolonged
monsoon, and the temporary slowdown in construction activity during the elections 2024,
the industry navigated it well from increases in costs and pricing pressures. Despite
these headwinds, I am pleased to share that the Board has proposed a dividend of 1.50 per
share, reaffirming our commitment to shareholder value.
Our disciplined capital allocation strategy—balancing debt and equity has enabled
us to finance expansion while sustaining financial robustness. At Kamal Cement, our
continued focus on working capital and cash flow management has been instrumental in
executing growth projectsefficiently strong Return on Equity
(ROE) and Return on Capital Employed (ROCE) without burdening the balance sheet.
Beyond financial performance, our commitment to ESG and community initiatives remains a
cornerstone of our purpose. Our programs in healthcare, education, vocational training,
and livelihood support are making tangible differences across our host communities,
aligning growth with social impact.
The celebration of our 80th anniversary was a heartfelt tribute to our
legacy and the people who shaped it. The event brought together long-serving employees,
suppliers, business partners, community leaders, and their families—a powerful
reminder that Digvijay's story is built not only on infrastructure but also on trust,
passion, and shared purpose.
As we commemorate our 80 years journey, we find ourselves at an important
confluence—anchored in a proud legacy and fully prepared for the challenges and
opportunities ahead. We are deeply grateful for the enduring trust of our shareholders,
employees, partners, and communities. Your continued belief empowers us to dream bigger
and deliver better.
Together, we move forward—not merely to grow, but to grow responsibly. To build a
legacy defined not by scale, but by resilience, integrity, and lasting contribution to
India's growth story.
Sincerely,
Anil Singhvi
Executive Chairman