Mumbai: JSW Cement, a division of the JSW Group, proposed to spend about Rs 2,000 crore to reach the 20 million tonnes annual capacity target by December next year, a top official said on Tuesday. The company is also expected to start operations on the much-awaited initial public offer from December and plans to set off the issue by March 2021, the official added.
“With the commissioning of enhanced capacity at the Dolvi plant in Maharashtra from 1 mtpa to 2.2 mtpa, our installed capacity has increased to 12.6 mtpa and we hope that by the end of this fiscal year, we will reach 14 mtpa as we will be commissioning the Jajpur unit in Odisha soon,” JSW Cement managing director Parth Jindal said.
Jindal positive of reaching target
Jindal believes the company, which has grown to 12.6 mtpa from 6 mtpa three years ago, is likely to reach an installed capacity of 20 mtpa by December next year.
“We have a capex plan of around Rs 2,000 crore to achieve the target and we are looking at both organic and inorganic opportunities,” he said.
The company is also assessing a few stressed assets, though the focus will be on the execution in the short-to medium-term since there are plenty of opportunities in brownfield expansion, he said. JSW Cement, which has Rs 2,400 crore debt in its books now, is also considering a 70:30 debt-equity ratio for the expansion.
“We’ve been strategically acquiring limestone mines in Chhattisgarh, Rajasthan and Gujarat. This, coupled with our expansion in Fujairah in the UAE, will give us enough clinker security along with limestone,” Jindal said, adding the Fujairah facility is expected to be operational by March 2020.
He added that JSW will make significant investments in advertising and marketing while entering Odisha and Rajasthan, among other new markets.