The target is to achieve the installed capacity of 20 MTPA by 2020, the firm said in a statement.
By Kritika Saxena
JSW Cement, part of the JSW Group, is looking to scale up its presence in the east after having achieved significant presence in south and west India, driven by escalation of growth in its slag-based cement products.
With four manufacturing plants in Vijaynagar in Karnataka, Nandyal in Andhra Pradesh, Salboni in West Bengal and Dolvi in Maharashtra, where it utilises slag from steel plants manufacturing units produce Portland Slag Cement, JSW Cement currently markets two variants of cement: JSW Portland Slag Cement (PSC) and superior quality Concreel HD. The company will add another product of cement — Compchem which produces lesser carbon dioxide — by 2019.
At present, Ambuja and UltraTech supply this product in the market.
Currently, the firm has cement production capacity of 12.8 million tonnes per annum (MTPA) and by March 1, 2019, it is targeting to enhance the capacity to 14 MTPA. “A part of this, capacity expansion will be met through inorganic growth. The ongoing bad loan resolution process has opened up opportunities to acquire cement assets in India. We view these strong assets of debt-laden companies to have a strong potential to grow while enabling swift scaling and optimisation of these capacities,” said JSW Cement chief executive officer (CEO) Nilesh Narwekar.
The target is to achieve the installed capacity of 20 MTPA by 2020, the firm said in a statement. After that, JSW Cement is planning an IPO by 2021; by then the company will be having 70-80% utilisation of its installed capacity, Rs 15,000-18,000 crore of equity valuation and debt of Rs 3,200 crore. Currently, the debt stands at Rs 2,000 crore.