- Parth Jindal, Managing Director, JSW Cement
This time last year, JSW Cement launched its 'Concreel HD' in India's southern markets. Now, the company has begun its retail foray in western India, having commenced the manufacture of Concreel HD at its Dolvi unit in Maharashtra, which will be marketed through 1,000 retail outlets. 'We will increase capacity in our Dolvi plant from 1 mtpa to 2.2 mtpa by 2018 and further expand it to 4.5 mtpa by 2019 to cater to the demand in the region,'says Parth Jindal, Managing Director, JSW Cement. 'The company is on track to meet its vision of 20 mtpa by 2020,' he adds, as he speaks about the company's plans in conversation with SERAPHINA D'SOUZA.
What impact will the launch of this product in the western region have on the company's turnover?
Currently, in the west, JSW Cement caters to the non-trade segment - real estate and construction - and are not present in the trade segments. With the launch of this product, we will establish our retail presence and expect this to increase off-take from the western region. We are adding another 1.2 million tonne to our current 1 million tonne capacity, from which we aim to have 1 million tonne for the non-trade and 1 million tonne for the trade segment. This expansion will significantly impact our turnover. Further, we will set up units across the coastline from Gujarat to Kerala and Tamil Nadu via the coast.
The capacity of all plants put together is roughly about 12.6 million tonne. Our target is to reach 20 million tonne by 2020.
What prompted you to enter the west region?
Having launched Concreel HD in the west, we will be competing with all the 'A' category players in this space. Maharashtra is an important market for us considering that JSW Steel is expanding its capacity from 5 million tonne to 10 million tonne in Dolvi. Hence, cement capacity is increasing from 2.2 million to 4.5 million over the next two years. So, considering this expansion, this launch was extremely important. Our 2.2 mtpa capacity Dolvi plant will be used to fulfil the demand for Concreel HD in the western belt. Initially, the product will be available in the Mumbai, Thane, Navi Mumbai and Raigad regions, and will then cover the rest of Maharashtra, including Pune, Nasik, Ratnagiri and Satara in the initial months of 2018.
Next year, we expect to have about 20 per cent market share in the western region. We are currently operating at more than 100 per cent capacity utilisation (in the west), which is why we have added 1.2 million capacity. Pan-India, we are targeting a capacity utilisation of 75 per cent next year.
Tell us about the applications of this product in the Indian scenario.
The genesis of the name comes from concrete + steel. It is an all-application cement for the trade segment but about 60 per cent of consumption happens in the concrete category. It is an arduous cement for concrete; one cement with six strengths. It has high early strength and quick setting, improves chemical resistance, provides for superior cohesion, is durable and a green product. It is ideal for strength-bearing applications such as beams, columns, slabs and foundations.
What opportunities are you exploring in coming months?
The Indian cement market will see an improvement in demand. This will be driven by the infrastructure and housing segments. Concreel HD is well-positioned to capitalise on these opportunities. Our aim is to do an IPO in 2019-2020, and build the company from 20 million tonne to 50 million tonne.
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