JSW Cement, the IPO-bound cement venture of the USD 24.25-billion JSW Group, plans to invest around ₹3,000 crore to establish an integrated cement manufacturing facility in Rajasthan, marking its entry into the northern markets.
The proposed investment will be funded through a mix of equity and long-term debt, the company announced on Tuesday, adding that it would create more than 1,000 direct and indirect jobs.
The new cement facility in Rajasthan’s Nagaur district will include a clinkerization unit of up to 3.30 million tonnes per annum, a grinding unit of up to 2.50 mtpa, and an 18-megawatt power plant.
JSW Cement’s current cement manufacturing capacity stands at 21 mtpa.
“The proposed investment to establish our integrated cement facility in Nagaur puts JSW Cement firmly on its path to achieving a pan-India footprint within the next few years,” Parth Jindal, Managing Director, JSW Cement, said in a statement.
The new facility, JSW said, will include an overland belt conveyor stretching about 7 km to transport limestone from the mines to the manufacturing plant, and arrangements to use alternative fuel in the kiln.
JSW Cement has already received certain regulatory and statutory approvals for the new facility, the company said.
The new unit marks JSW Cement’s entry into the north Indian cement market, enabling it to service Rajasthan, Haryana, Punjab, and the National Capital Region.
“This investment will mark our entry into the fast-growing cement markets of North India. These states have one of the highest GDP growth rates and are witnessing significant infrastructure and housing development,” said Nilesh Narwekar, CEO , JSW Cement.
JSW Cement currently has manufacturing units at Vijayanagar in Karnataka, Nandyal in Andhra Pradesh, Salboni in West Bengal, Jajpur in Odisha, and Dolvi in Maharashtra.
The company plans to utilise the proceeds from the IPO to increase its capacity to 60 mtpa over the next five years from 21 mtpa currently, which will require an investment of ₹18,000 crore.
JSW Cement expects over 20% of the total capital expenditure to come through the IPO, and plans to raise the remaining amount through internal accruals and debt.
The JSW Group earlier this year announced plans to invest ₹65,000 crore to set up an integrated steel manufacturing complex in Odisha, which will also include a cement manufacturing unit.
Source: livemint.com
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