JSW Cement plans Rs 1,800 crore capex
Sajjan Jindal-controlled, JSW Cement Ltd said it is investing around Rs 1,800 crore towards expansion of cement capacity to 20 million tonnes (MT) and looking at initial public offer (IPO) in 2019-20.
“We expect huge demand for cement in the country and plan to expand our cement manufacturing capacity from 12.5 MT to 20 MT by 2020. We are adding 4.5 MT at our Dolvi unit in Maharashtra and 1.2 MT in Vijaynagar unit in Karnataka, apart from 1.2 MT adding in Odisha unit. We will incur capex of around Rs 1,800 crore for capacity expansion over the next three years period,” JSW Cement managing director Parth Jindal told here.
“We will come out with IPO in 2019-20 by diluting 15-20 per cent stake, depending on price band. We will wait for the outcome of general elections in 2019 and create healthy EBITDA profile before launching our IPO,” Jindal said.
Post-IPO, according to Jindal, the company will be targeting at reaching 30 MT capacity by 2025 and 50 MT by 2030, both through organic and inorganic growth.
Despite JSW Cement is one of the recent entrants into the cement market, it is aiming to be in top-5 cement players in India in the next 7-8 years, Jindal added.
The company will be increasing capacity in Dolvi plant from 1 MTPA to 2.2 MTPA by 2018 and further expanding it to 4.5 MTPA by 2019 to cater to the demand in the region. The company plans to incur capex of Rs 750 crore in two phases to expand capacity at Dolvi unit, JSW Cement chief financial officer Narinder Kahlon said.