The cement arm of the JSW Group aims to ramp up capacity by 2023
28 Nov 2019
3 Min Read
Editorial Team
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.
- 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
- 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.
- 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.
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