Chememan signs Khimsar agreement to become major lime producer in India

Chememan Public Company Limited (CMAN), a leading lime producer, inked the Khimsar Agreement with Khimsar Mine Corporation (KMC), marking its initiative to set up a state-of-the-art lime factory in Khimsar, Rajasthan, India. This endeavour positions CMAN on the path of becoming a significant lime producer in India.

The agreement was signed with KMC, a fresh entrant in the Indian mining industry, owned by Dhananjai Singh and his family. The pact signifies CMAN’s strategic ambition to exploit the vast limestone reserves of Rajasthan, which account for over 70% of India’s total limestone reserves.

The Singh family, the proprietors of multiple limestone quarries around Khimsar, have a long-term vision of developing high-grade assets through KMC, aiming to join the ranks of India’s largest lime producers. As per the Khimsar Agreement, CMAN is committed to designing and engineering the lime plant and its infrastructure.

In addition, it will oversee the construction progress, and liaise with contractors and suppliers of production equipment and technology to ensure the project’s timely completion. Once the project is completed, CMAN will handle the commercial and technical management of the new lime plant.

With India’s economy projected to grow between 6% – 8% annually over the next two decades, the demand for lime is anticipated to increase substantially. This is due to its pivotal role as a raw material in many significant industries, including iron and steel, construction, sugar, paper, and chemicals.

The first phase of the project plans to construct a lime plant with a quicklime capacity of 100,000 tons per annum, while the long-term goal is to develop at least 500,000 tons of annual lime production capacity, said Adisak Lowjun, Chief Executive Officer at CMAN.

“We are delighted and enthusiastic about being KMC’s long-term partner in developing a leading lime business in India.”

Competitive edge

Lowjun added that the strategic alliance between CMAN and KMC, backed by their respective strengths and expertise, will foster a competitive edge for KMC to attain its goals.

On a similar note, Singh expressed his optimism about the collaboration, stating that the new lime production facility will be among the finest in India concerning quality, environmental sustainability, and safety. With its location being less than 10 kilometres away from multiple limestone quarries and harnessing the latest production technologies, KMC will enjoy a competitive edge in raw materials and production costs.

KMC’s inaugural lime plant is slated to commence commercial operations in the latter half of 2025, designed to meet global green building standards that prioritise energy savings and is poised to become a key business pillar in Khimsar, Rajasthan.

CMAN, with a production capacity of around 1.2 million tons per year, is one of the world’s top ten lime producers. Operating six lime production plants in Thailand, Vietnam, and India, and a large-scale distribution centre in Western Australia, CMAN caters to more than 300 industrial customers across roughly 30 countries in the Asia-Pacific region. Celebrating its 20th anniversary in 2023, CMAN aspires to be amongst the world’s top five lime producers.

Singh and his family, who own KMC, also run a business group that operates the Tirupathi and Balaji mines and is one of the major suppliers of limestone to numerous lime producers. The group also owns the Khimsar Group of hotels, including Khimsar Fort and Sand Dunes in Khimsar and Urvashi Retreat in Manali.

Additionally, they have a substantial presence in Rajasthan’s real estate sector under Karmasi Estates, reported Bangkok Post.

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Alex Morgan

Alex is a 42-year-old former corporate executive and business consultant with a degree in business administration. Boasting over 15 years of experience working in various industries, including technology, finance, and marketing, Alex has acquired in-depth knowledge about business strategies, management principles, and market trends. In recent years, Alex has transitioned into writing business articles and providing expert commentary on business-related issues. Fluent in English and proficient in data analysis, Alex strives to deliver well-researched and insightful content to readers, combining practical experience with a keen analytical eye to offer valuable perspectives on the ever-evolving business landscape.

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