J K Cement: J K Cement started its operations on May 1975 by setting up its first plant at Nimbahera in Rajasthan.

An affiliate of J K Organization, which was founded by Lala Kamlapat Singhania, J K Cement is one of the leading manufacturers in the sector of cement manufacturing in North India. Starting with a production capacity of 0.3 million tons, the company has gradually increased its capacity; now the company has the capacity to produce 2.8 million tons. J K Cement is the second largest white cement manufacturer in India in regards to production capacity. The company has proximity to huge reserves of premium quality limestone, as essential ingredient for cement manufacturing. The company's distribution network for grey cement consist of more than 40 feeder depots, serviced by seven regional sales office located at Delhi, Haryana, Uttar Pradesh, Punjab, Gujarat, Madhya Pradesh and Rajasthan. J K cement's white cement distribution network comprises of 20 feeder depots and 13 regional offices. Besides, the company also has a total of more than 4000 retail stores, 22 sales promoters and four handling agents. J K Cement Production plants: The company has three major production plants located in the states of Rajasthan and Gujarat. The first plant of J K Cement was set up in Nimbahera, Rajasthan in the year 1975 with an initial capacity of 0.3 million ton per annum. With the incorporation of newer technology and modern equipment, the production capacity was enhanced to 2.8 million ton per annum. Located just 10 kms away from the Nimbahera unit, the Mangrol plant gets major benefits like technical and commercial assistance from the that plant. The Gotan unit located at Gujarat which manufacturers white cement started production commercially in 1984 with a production capacity of 0.05 million ton per annum. Currently the unit has a capacity utilization of around 75% and an operating profit of 30% consistently. The unit has ISO-9001:2000 QMS, ISO-14001:1998 EMS and OHSAS-18001:2005 recognition. Manufacturing Process: The production process for cement consists of drying, grinding and mixing limestone and additives like bauxite and iron ore into a powder known as raw meal. The raw meal is then heated and burned in a pre-heater and kiln and then cooled in an air cooling system to form a semi-finished product, known as a clinker. Clinker (95%) is cooled by air and subsequently ground with gypsum (5%) to form Ordinary Portland Cement (OPC). Other forms of cement require increased blending with other raw materials. Blending of clinker with other materials helps impart key characteristics to cement, which eventually govern its end use. There are two general processes for producing clinker and cement in India: a dry process and a wet process

The basic differences between these processes are the form in which the raw meal is fed into the kiln, and the amount of energy consumed in each of the processes. In the dry process, the raw meal is fed into the kiln in the form of a dry powder resulting in energy saving, whereas in the wet process the raw meal is fed into the kiln in the form of slurry. There is also a semi-dry process, which consumes more energy than the dry process but lesser than the wet process.

Dry Process: The basic steps involved in the production process are: All J.K. Cement plants are dry process plants. Limestone is crushed to a uniform and usable size, blended with certain additives (such as iron ore and bauxite) and discharged on a vertical roller mill, where the raw materials are ground to fine powder. An electrostatic precipitator dedusts the raw mill gases and collects the raw meal for a series of further stages of blending. The homogenized raw meal thus extracted is pumped to the top of a preheater by air lift pumps. In the preheaters the material is heated to 750C. Subsequently, the raw meal undergoes a process of calcination in a precalcinator (in which the carbonates present are reduced to oxides) and is then fed to the kiln. The remaining calcination and clinkerization reactions are completed in the kiln where the temperature is raised to between 1,450C and 1,500C.

The clinker formed is cooled and conveyed to the clinker silo from where it is extracted and transported to the cement mills for producing cement. For producing OPC, clinker and gypsum are used and for producing Portland [Pozzolana] Cement (PPC), clinker, gypsum and fly ash are used. In the production of Portland Blast Furnace Stag Cement (PSC), granulated blast furnace slag from steel plants is added to clinker.

Access to Limestone Reserves: Limestone accounts for being the main raw material for the cement manufacturing process and for every 1 tonne of cement produced 1.4 tonnes of limestone is required. Moreover there is also no substitute that can be used in place of limestone. Since JKCL was one of the first cement companies to start production in Rajasthan it got access to the best quality limestone reserves on a first cum first serve basis .Moreover the limestone reserves for the company are approximated to last for the next 40 years for both the white and grey cement manufacturing requirements taking into consideration the already expanded capacities of 4.0 Mln tonnes of grey cement and 0.4 Mln tons of white cement. Supply Chain Issues: Manufacturing operations could be disrupted for reasons beyond anyones control. These disruptions may include extreme weather conditions, fire, natural catastrophes or raw material supply disruptions. The facilities are also subject to operating risks, such as the breakdown or failure of equipment, power supply or processes, performance below expected levels of output or efficiency, obsolescence, labor disputes, natural disasters, industrial accidents and the need to comply with the directives of relevant government authorities. In addition, there is a risk that production difficulties such as capacity constraints, mechanical and systems failures, construction/upgrade delays or delays in the delivery of machinery may occur, causing suspension of production and reduced output. Any significant manufacturing disruption could adversely affect ability to make and sell products, which could have a material adverse effect on our business, financial condition and results of operations. Due to the nature of business and despite compliance with requisite safety requirements and standards, operations are subject to operating risks associated with cement manufacturing. These hazards include storage tank leaks and ruptures, explosions, discharges or releases of hazardous substances, manual handling, exposure to dust and the operation of mobile equipment and manufacturing machinery.

Disruptions in supply and transport could the system: The production of cement is dependent on a steady supply of various raw materials. These inputs are transported to plants by land, and cement is transported to customers by land and rail transport. Transport of our inputs and finished products is subject to various

bottlenecks and other hazards beyond control, including poor road and other transport infrastructure, accidents, adverse weather conditions, strikes and civil unrest. Either an increase in the price of transportation or interruptions in transportation of inputs or finished products could have an adverse effect on business, financial condition and results of operations. In addition, cement is a perishable product as its quality deteriorates upon contact with moisture over a period of time. Therefore, prolonged storage or exposure to moisture during transport may result in such cement stocks being written off. Similarly, JK cement is sold in bags that may split open during transport, again resulting in such stock being written off.