JSW Cement, a group company of industrialist Sajjan Jindal-helmed JSW Group, will invest more than `3,200 crore to set up a cement manufacturing facility in Madhya Pradesh and a split grinding unit in Uttar Pradesh.
On completion, the combined cement production capacity of both these units will be 5 million tonne per annum (MTPA). The greenfield facilities include an integrated cement plant with 2.5 MTPA clinker capacity, 2.5 MTPA grinding capacity, 15 MW waste heat recovery system and a residential colony in Madhya Pradesh, JSW Cement said in a statement.
The company would also be setting up a 2.5 MTPA grinding unit in Uttar Pradesh, it said.
The expansion plans follow the company’s plans to acquire Chennai-headquartered India Cements’ entire stake in its wholly-owned subsidiary Springway Mining (SMPL) for `476.87 crore.
“The acquisition of SMPL puts JSW Cement on its path to 50 MTPA capacity with a pan-India footprint. This strategic investment marks our entry into the highly-attractive Central Indian market with a specific focus on servicing the prolific needs of customers in Madhya Pradesh and Uttar Pradesh. This is one of the biggest investments in India made through our cement business,” Parth Jindal, managing director at JSW Cement, said.
“I look forward to working with the governments of Madhya Pradesh and Uttar Pradesh to contribute to their growth and create substantial employment opportunities in both these states,” he added.
JSW Cement’s acquisition of the entire stake in SMPL provides the former with access to limestone reserves of about 106 million tonne, including a mining lease valid until 2065.
The limestone mine is spread over about 500-hectare of land in the Panna district of Madhya Pradesh. JSW Cement’s integrated manufacturing facility will be located adjacent to this mining reserve.
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“This investment will mark our entry into the fast-growing and attractive cement markets in Uttar Pradesh and Madhya Pradesh. These states have one of the highest GDP growth rates and are witnessing significant infrastructure and housing development. We are very excited to be able to enter into this booming construction market and will aim to provide our customers with high-quality green cement and world-class customer service,” Narinder Singh Kahlon, director of Finance and Commercial at JSW Cement said.
JSW Cement has a current production capacity of 17 MTPA — across manufacturing units in Karnataka, Andhra Pradesh, West Bengal, Odisha and Maharashtra – had plans to increase it to 25 MTPA by FY25. The firm plans to further increase it to 50 MTPA.