Prism Johnson Forges New Cement Tie-up, Boosts Capacity 📈

Prism Johnson Limited (PRSMJOHNSN) is making a strategic move to bolster its presence in the Indian cement market! The company has just announced a new supply agreement with Jabalpur Cement Industries Private Limited (JCIPL), marking a significant manufacturing tie-up.

Starting August 18, 2025, JCIPL will manufacture and supply cement from its plant in Jogidhana, Jabalpur, Madhya Pradesh, directly to Prism Johnson. This isn’t just any deal; it’s a smart play to enhance local availability of cement in Madhya Pradesh, a region that contributed a substantial 19% to Prism Johnson’s cement sales volume in FY25. Talk about focusing on key markets! 🎯

What’s particularly exciting is the impact on Prism Johnson’s overall grinding capacity. Thanks to this new arrangement and existing supply agreements, their total grinding capacity is set to increase from 1.08 MTPA to 1.17 MTPA immediately, and then further to an impressive 1.38 MTPA by September 30, 2025. That’s a solid boost to their operational capabilities!

Under the terms of the agreement, Prism Johnson will acquire 0.09 MT of cement annually from JCIPL. The initial term is for one year, with provisions for extensions based on mutual agreement. The consideration for this supply will be based on the quantity of cement purchased.

For those curious about the partner, Jabalpur Cement Industries Private Limited was incorporated in November 2020 and specializes in Portland Pozzolana Cement (PPC). Their plant in Jogidhana currently has a rated capacity of 0.18 MTPA. Looking at their financials, JCIPL’s turnover has seen a significant jump, from NIL in FY23 to ₹0.04 Crores in FY24, and then to ₹6.49 Crores in FY25.

As of the last market close, Prism Johnson’s shares were trading at ₹145.4, reflecting a 3.2% dip. This strategic tie-up could be a key step in their ongoing growth trajectory, strengthening their supply chain and market reach. Keep an eye on how this partnership unfolds! 👀

source: Corporate Announcement

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