IBEF: November 29, 2019
JSW Cement intend to invest Rs 2,875 crore (US$ 411.36 million) to increase the capacity to 25 million tonnes per annum from 14 mtpa by 2023.
The company previously set the target to reach production capacity of 20 mtpa by 2020 with an investment of Rs 2,000 crore (US$ 286.1 million) and list the company on the stock exchange with an initial public offer.
Though, due to liquidity limits and unfavourable market conditions the company has deferred both the expansion and initial public offer plan to 2021.
It will invest Rs 800 crore (US$ 114.47 million) over next four years in Siva Cement, which is a listed entity, to set up 1 mtpa clinker and 1 mtpa grinding unit.
Mr. Parth Jindal, Managing Director, JSW Cement, said that when the expansion projects of the company will be completed, it will enter the position among the top five cement companies.
The demand for cement has already picked up in the last two months and should gather pace by early next year, he said.
JSW Cement plans to raise an amount of Rs 4,000 crore (US$ 572.3 million) through an IPO to fund its next phase of expansion to set up fresh capacity of 10 mtpa after the set expansion is completed, Jindal said.
The company, in southern India intend to add 3.6 mtpa capacity to take its total cement capacity to 11.6 mtpa. The expansion at its unit in Toranagallu, Karnataka comprises of debottlenecking and installation of a new grinding unit to take its capacity to 6 mtpa from 3.2 mtpa. The company also plans to put up a new grinding unit of 0.8 mtpa capacity at Salem in Tamil Nadu.
The company plans to add 2.4 mtpa in West and make its total cement capacity to 4.6 tpa, by debottlenecking and setting up a new grinding unit whereas in the East, it will add the largest chunk of production capacities of over 5 mtpa, bringing 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.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.