JSW Cement, one of India's leading manufacturers of Green Cement and part of US$ 13 Billion JSW Group, has achieved significant presence in South and West India, and is now building is presence in the East primarily driven by escalation of growth in its slab based cement products. The company has been recording higher than industry growth in volumes. During Q2FY19, JSW Cement recorded 63% volume growth while industry average was 22% in the markets they operate. The same trend was visible across regions where the company has its marketing operations.
JSW Cement had preferred to grow largely through building Greenfield projects but it did acquire a stake of 54.4 per cent in Shiva Cement in 2017. JSW Cement, India’s one of the largest cement producers has announced that it will be looking at inorganic expansion to reach its target of increasing capacity to 20MTPA by 2020. Following the commissioning of the ongoing projects, JSW's medium-term plan is to make an initial public offering (IPO) at the end of 2019. "End of 2019 or early 2020 is what we are targeting for the IPO," said Parth Jindal, JSW Cement's managing director. The longer-term plan is for the company to expand further to 30MTPA by 2025 and 50MTPA by 2030 with both organic and inorganic growth. "The company views the improving economic growth scenario, continued thrust on boosting India’s infrastructure sector and materialization of pent-up demand as primary drivers for cement consumption," said Nilesh Narwekar, CEO. "As part of our strategy to capitalise on these opportunities, JSW Cement is planning to increase its overall cement production capacity to 20MTPA by 2020," said Mr. Narwekar.
JSW Cement currently markets two variants of Green Cement products, JSW Cement Portland Slag Cement (PSC) and heavy duty Concreel HD Cement. JSW has its cement manufacturing plants in South, West and East regions of India and is well placed to service the growing demand in these regions.
JSW Cement has been expanding rapidly in recent years from its start-up in 2009 and this summer it also announced that it will be setting up its first overseas grinding unit in Fujairah, UAE. In October this year JSW Cement reported to construct a new 1.2MTPA (Million Tonnes per annum) grinding plant in Kalinganagar Industrial Complex in Jajpur, Odisha, India. Both these projects are scheduled to be completed by the end of 2019, by which time the Portland slag cement producer aims to have a cement capacity of 20MTPA.
JSW Cement has plants at Vijayanagar in Karnataka, Nandyal in Andhra Pradesh, Salboni in West Bengal and Dolvi in Maharashtra. The commissioning of the 2.4MTPA Salboni grinding plant earlier this year took the company's cement capacity up to 10.3MTPA and the company has already indicated that it plans to further expand the facility to 3.6MTPA . At Dolvi, the company has completed the first stage of a two-stage investment plan. The first phase has seen the unit's capacity increase from 1MTPA to 2.2MTPA in February 2018, taking overall company capacity to 12.5MTPA . The second stage of the INR15bn (US$206.6m) programme will lead to a further increase to 4.5MTPA next year. The Vijanagar works will also benefit from a 2.4MTPA expansion.
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