The cement arm of the JSW Group aims to ramp up capacity by 2023
Cement

The cement arm of the JSW Group aims to ramp up capacity by 2023

JSW Cement is at present aiming to grow its cement manufacturing capacity to 25 MTPA by 2023. Its current capacity is 14 MTPA. One of the key enablers of its targeted 25 MTPA capacity growth is various projects being undertaken at its subsidiary, Shiva Cement, in Odisha. Upon achieving this capacity target, JSW Cement will rank among top 5 cement companies in India

The company currently owns 54 per cent of Shiva Cement, with the majority purchase made in March 2017 from former promoters and balance acquired through open market purchases from ACC. Since Shiva Cement is located in a limestone-rich area, its mining resources will support JSW Cement’s growth in the Eastern region. In the last three years, the company has made substantial progress in acquiring land (land for manufacturing and mining operations), obtaining government approvals and securing the support of local people to achieve its growth targets. Recently, Shiva Cement received Consent to Establish (CTE) approval for expanding its mines from 0.12 MTPA to 0.345 MTPA. The Environmental Clearance (EC) has also been received for expanded clinker and cement production. Moreover, earlier this month, Shiva Cement was declared as the preferred bidder for the Khatkurbahal (North) Limestone Block via e-auction process. This block is adjacent to its existing mine.
 
The availability of Limestone from the existing and new block will support the company’s plans to establish a 1 MTPA clinker unit at Shiva Cement. This clinker unit will also supply the raw material to JSW Cement’s manufacturing plant at Salboni in West Bengal and Jajpur in Odisha. JSW will also add a 1 MTPA grinding capacity at Shiva Cement. The clinker and grinding projects at Shiva Cement will be established with a capital investment of Rs 8 billion planned over four years from FY20 to FY23.
 
In addition to the expansion projects planned at Shiva Cement, JSW Cement will undertake capacity ramp up across South, West and East regions to reach 25 MTPA targeted capacity.
  1. South: the company plans to add 3.6 MTPA capacity to take its overall green cement capacity to 11.6 MTPA. The capacity expansion at its unit in Toranagallu, Karnataka comprises debottlenecking and installation of a new VRM grinding unit to take its capacity to 6 MTPA from existing 3.2 MTPA. It also plans to put up a new grinding unit of  0.8 MTPA capacity at Salem in Tamilnadu
  2. West: JSW Cement plans to add 2.4 MTPA taking its overall cement capacity to 4.6 MTPA. The new capacity is entirely being set-up at its manufacturing unit in Dolvi, Maharashtra, through debottlenecking and a new VRM.
  3. East: it is adding the largest chunk of production capacities of over 5 MTPA taking its capacity to 9.0 MTPA. The capacity ramp-up will be at its manufacturing units at Salboni, West Bengal where the company will add 2.4 MTPA, Jajpur, Odisha facility with an addition of 1.8 MTPA along with a 1 MTPA capacity addition at Shiva Cement in Odisha.
 JSW Cement’s aggressive ramp-up in capacity will entail a capex investment of approximately Rs 28.75 billion (including the planned capex at Shiva Cement). It is planning a combination of debt and internal accruals to raise these funds.
 
The growth opportunity for PSC cement is visible in the number of infrastructure projects that now uses JSW’s PSC cement across India. The company is becoming a preferred green cement supplier for most of these projects. JSW Cement supplies to these infrastructure projects among many others: Mumbai Metro, West Bengal State Electricity Transmission, APGENCO Power Project, Krishnapatnam Port and Coal India Project. 

JSW Cement is at present aiming to grow its cement manufacturing capacity to 25 MTPA by 2023. Its current capacity is 14 MTPA. One of the key enablers of its targeted 25 MTPA capacity growth is various projects being undertaken at its subsidiary, Shiva Cement, in Odisha. Upon achieving this capacity target, JSW Cement will rank among top 5 cement companies in IndiaThe company currently owns 54 per cent of Shiva Cement, with the majority purchase made in March 2017 from former promoters and balance acquired through open market purchases from ACC. Since Shiva Cement is located in a limestone-rich area, its mining resources will support JSW Cement’s growth in the Eastern region. In the last three years, the company has made substantial progress in acquiring land (land for manufacturing and mining operations), obtaining government approvals and securing the support of local people to achieve its growth targets. Recently, Shiva Cement received Consent to Establish (CTE) approval for expanding its mines from 0.12 MTPA to 0.345 MTPA. The Environmental Clearance (EC) has also been received for expanded clinker and cement production. Moreover, earlier this month, Shiva Cement was declared as the preferred bidder for the Khatkurbahal (North) Limestone Block via e-auction process. This block is adjacent to its existing mine. The availability of Limestone from the existing and new block will support the company’s plans to establish a 1 MTPA clinker unit at Shiva Cement. This clinker unit will also supply the raw material to JSW Cement’s manufacturing plant at Salboni in West Bengal and Jajpur in Odisha. JSW will also add a 1 MTPA grinding capacity at Shiva Cement. The clinker and grinding projects at Shiva Cement will be established with a capital investment of Rs 8 billion planned over four years from FY20 to FY23. In addition to the expansion projects planned at Shiva Cement, JSW Cement will undertake capacity ramp up across South, West and East regions to reach 25 MTPA targeted capacity.South: the company plans to add 3.6 MTPA capacity to take its overall green cement capacity to 11.6 MTPA. The capacity expansion at its unit in Toranagallu, Karnataka comprises debottlenecking and installation of a new VRM grinding unit to take its capacity to 6 MTPA from existing 3.2 MTPA. It also plans to put up a new grinding unit of  0.8 MTPA capacity at Salem in TamilnaduWest: JSW Cement plans to add 2.4 MTPA taking its overall cement capacity to 4.6 MTPA. The new capacity is entirely being set-up at its manufacturing unit in Dolvi, Maharashtra, through debottlenecking and a new VRM.East: it is adding the largest chunk of production capacities of over 5 MTPA taking its capacity to 9.0 MTPA. The capacity ramp-up will be at its manufacturing units at Salboni, West Bengal where the company will add 2.4 MTPA, Jajpur, Odisha facility with an addition of 1.8 MTPA along with a 1 MTPA capacity addition at Shiva Cement in Odisha. JSW Cement’s aggressive ramp-up in capacity will entail a capex investment of approximately Rs 28.75 billion (including the planned capex at Shiva Cement). It is planning a combination of debt and internal accruals to raise these funds. The growth opportunity for PSC cement is visible in the number of infrastructure projects that now uses JSW’s PSC cement across India. The company is becoming a preferred green cement supplier for most of these projects. JSW Cement supplies to these infrastructure projects among many others: Mumbai Metro, West Bengal State Electricity Transmission, APGENCO Power Project, Krishnapatnam Port and Coal India Project. 

Next Story
Infrastructure Transport

Large Format Store Planned At M G Road Metro Station

M G Road station in Bengaluru is set to host the city’s first large-format commercial and experience space, with planning led by Bangalore Metro Rail Corporation Limited. BMRCL has invited proposals to develop and operate a central business district destination at the Purple?Pink Line interchange. The plan positions the station as a commercial hub designed to serve a broad commuter base across the city. The proposal is part of a broader effort to activate transit nodes commercially. Tender documents set a minimum monthly rental of Rs 0.944 million (mn), inclusive of GST, for the large-format..

Next Story
Infrastructure Energy

Government Cancels Auction Of Eleven Critical Mineral Blocks

The government has cancelled the auction of 11 critical and strategic mineral blocks after receiving a poor investor response and failing to attract a sufficient number of qualified bidders. The decision represents a setback to plans to ramp up domestic exploration and production of critical minerals amid global supply chain disruptions and rising demand for materials used in clean energy and advanced technologies. The mines ministry issued an annulment notice setting out the reasons for the cancellations. The annulment notice indicated that the auction process for five mineral blocks was canc..

Next Story
Infrastructure Energy

Gujarat Pushes Biogas Growth With 193 Operational Units

Gujarat has operationalised 193 biogas plants across the state and is planning to add 60 more units as part of a broader push to scale up clean and sustainable energy solutions. The existing plants, established under various government-supported schemes, process organic waste including cattle dung and agricultural residue to produce biogas and a nutrient-rich slurry. The output is mainly used for cooking and other energy needs in rural and semi-urban communities, while also improving local waste management practices. The Gujarat Energy Development Agency (GEDA) is leading the initiative and is..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement