JSW Infrastructure, the ports business of Sajjan Jindal-led JSW Group, is planning to hike capacity utilisation across all its ports to about 80-85% in the coming years, banking on a rise in cargo movement in the country. The firm is also planning to nearly double total cargo handling capacity to 300 million tonne per annum, a top official said.
“The present capacity utilisation across our ports is at about 64%, due to the mix of terminal and greenfield ports. We can probably take this up to 80-85% with the existing investment as all these assets are strategically located. With cargo volumes increasing, utilisation would rise, and on top of that, we are looking to acquire under the government’s privatisation move,” JSW Infrastructure joint MD & CEO Arun Maheshwari told FE in an interview.
He, however, declined to provide a timeframe for hiking capacity utilisation.
As of FY23-end, JSW Infrastructure – which had been in operations since 2004 – has a total cargo handling capacity of 158.4 million tonne across nine ports and terminals in eastern and western coasts and a capacity utilisation of 57%.
JSW Infrastructure had earlier placed bids worth Rs 2,000 crore to acquire three ports under the government’s privatisation move. In case of the company winning these bids, it would add another 10-12% capacity.
Maheshwari, who did not disclose the names of the ports and terminals the company had placed bids for, expects to win “some of the bids”.
The firm is also planning to nearly double total cargo handling capacity to 300 million tonne over the next 5-7 years.
Earlier, industry sources had told FE that the firm would require to invest about Rs 13,000 crore for doubling of capacity.
“We are net-debt free. Our wish-list is to get to 300 million tonne, and we would require that kind of capex,” Maheshwari said, without specifying the amount the company needed to invest.
The firm also forayed into liquid storage, by signing an agreement to acquire a liquid storage facility of 465,000 cubic metre capacity at the Fujairah port, UAE, for $187 million, and would be keen on similar opportunities.
JSW Infrastructure, which posted an 88.9% rise in consolidated net profit at ₹254 crore for the “subdued” quarter ended September due to the monsoons, expects the second half of the fiscal to be “much better”.