JSW Cement to invest ₹2,875 cr to add 11 mtpa capacity.
November 29, 2019
JSW Cement plans to invest ₹2,875 crore to enhance capacity to 25 million tonnes per annum from 14 mtpa by 2023.
Earlier, the company had planned to achieve production capacity of 20 mtpa by 2020 with an investment of ₹2,000 crore and list the company on the stock exchange with an initial public offer.
However, due to liquidity constrains and adverse market conditions the company has deferred both the expansion and initial public offer plan to 2021.
The company will invest ₹800 crore over 4 years in Siva Cement, a listed entity, to set up 1 mtpa clinker and 1 mtpa grinding unit.
Parth Jindal, Managing Director, JSW Cement, said the company will be among the top five cement companies in the next four years when the expansion projects are completed.
Demand picks up
The demand for cement has already picked up in the last two months and should gather pace by early next year, he said.
Once the expansion is completed, JSW Cement plans to raise about ₹4,000 crore through an IPO to fund its next phase of expansion to set up fresh capacity of 10 mtpa, Jindal said.
In the South, the company plans to add 3.6 mtpa capacity to take its overall cement capacity to 11.6 mtpa. The expansion at its unit in Toranagallu, Karnataka includes debottlenecking and installation of a new grinding unit to take its capacity to 6 mtpa from 3.2 mtpa. It also plans to put up a new grinding unit of 0.8 mtpa capacity at Salem in Tamil Nadu.
In the West, JSW Cement plans to add 2.4 mtpa, taking its overall cement capacity to 4.6 mtpa, by debottlenecking and setting up a new grinding unit.
In the East, it will add the largest chunk of production capacities of over 5 mtpa, taking its total capacity to 9 mtpa. The capacity will be ramped up at the manufacturing unit at Salboni, West Bengal where the company will add 2.4 mtpa , another 1.80 mtpa at Jajpur in Odisha apart from 1 mtpa at Shiva Cement in Odisha.