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JSW Cement in works to increase output to 20 mt by 2020
27 Jul 2017
The increase in spending on real estate and infrastructure has led to an ever increasing demand for cement. Currently, India is the second largest consumer of cement in the world. In light of this, JSW Cement is working hard to double its output to 20 mt by 2020, as reported.
With a 10.9 mt capacity at present, the company is seeking to be known as a major player in a business primarily dominated by regional players such as Dalmia Bharat, LafargeHolcim and UltraTech. It is seeking a combination of organic and inorganic growth and is aiming to increase output by 10 mt in the next three years. Thereafter, the group plans on making an IPO, which will enable them to invest in increasing capacity to 50 mt between 2020 and 2025.
Since limestone is crucial for the cement industry in India, JSW Cement is focusing on taking possession of limestone mines for each of its regional cement units to boost its growth. With the acquisition of Shiva Cement, the company received access to 120 mt of reserves. It also acquired two more mines at Fujairah in UAE as well as Kutch in Gujarat. As per reports, the company is now looking to bid for mines in Rajasthan, Chhattisgarh and Meghalaya.
In East, JSW Cement is concentrating on reducing conversion costs. Since JSW does not have access to slag in the North and Central regions, the group has proposed bids for Monnet Ispat and Bhushan Steel.
As reported, JSW Cement is planning to double the capacity at Salboni to 4.8 mt by investing an additional Rs 600 crore following their Rs 800 crore investment. The company will also be adding a grinding unit of 1.2 mt at Jajpur and a 1.5 mt at Rourkela.