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JSW Cement aims to double cement grinding capacity to nearly 41 MTPA

The board-approved expansions include six greenfield units in Rajasthan, Punjab, Madhya Pradesh, Uttar Pradesh, Odisha, as well as another greenfield unit in Dolvi, Maharashtra, and a brownfield expansion in Vijayanagar, Karnataka.

MUMBAI / August 20, 2024 / 16:16 IST
The company plans to double its cement grinding capacity, as well as expand its clinker capacity.
     
     
    26 Aug, 2025 12:21
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    JSW Cement Ltd plans to more than double its cement grinding capacity in India to nearly 41 million tonnes per annum (mtpa) from the current 20.60 mtpa through both greenfield and brownfield investments, according to its draft initial share sale documents.

    The JSW Group company added that it sees synergies with the group's steel and port operations and sees growth potential in "green cement" products such as ground granulated blast furnace slag (GGBS).

    The company said it plans to add capacity in northern and central India to become a pan-India operator, as has been the trend in the Indian cement industry over the past year. The board-approved expansion plans include six greenfield units in Rajasthan, Punjab, Madhya Pradesh, Uttar Pradesh, Odisha, and Dolvi, Maharashtra, plus a brownfield unit in Vijayanagar, Karnataka, collectively adding 20.25 mtpa of cement grinding capacity.

    Of the current 20.60 mtpa cement grinding capacity, 11 MTPA is located in south India, at Nandyal in Andhra Pradesh, Salem in Tamil Nadu, and at Vijayanagar in Karnataka, the latter being co-located with its group company JSW Steel's major manufacturing facility. The other major capacity is located in the east of the country, at Jajpur in Odisha, and another at Salboni in West Bengal. The company also has a grinding unit at Dolvi, also the site of another JSW Steel facility, and located near a minor port operated by JSW Infrastructure, a group company that was listed last year.

    JSW Cement also added that it is planning to expand its clinker capacity to 13.04 MTPA, from the current 6.44 MTPA, with the proposed Rajasthan and Madhya Pradesh units, located in Nagaur and Hatta respectively, adding 3.30 MTPA each in clinker capacity. The company's listed subsidiary Shiva Cement also owns a clinker unit in Odisha.

    Clinker is a key input for the cement grinding process and is derived from limestone and other minerals. Besides having clinker capacity in India, JSW Cement also has a clinker facility in the United Arab Emirates, with which the company services its Dolvi cement grinding works in Maharashtra through a shipping route.

    The company said in the DRHP that it is counting on synergies within the JSW Group, such as steel, power, and ports, to come good for the company. JSW Cement has made use of group synergies in the past, most notably being located on or near JSW Steel facilities, such as at Vijayanagar and Dolvi, which also provides access to relatively low-cost blast furnace slag, and also helps with integrated logistics, including through existing road, rail, and port links.

    The proposed locations are also themed on integration and synergies with group companies, with the proposed greenfield unit in Odisha being located at JSW Steel's subsidiary Bhushan Power and Steel in Sambalpur, and greenfield and brownfield units located in Dolvi and Vijayanagar respectively, according to the JSW Cement DRHP.

    The capacity expansion decisions have also been made keeping in mind proximity to limestone reserves, according to the DRHP. JSW Cement has an operational limestone mine in Madhya Pradesh, and has the right to mine, or has letters of intent for various limestone mines in Nagaur, Rajasthan, and also in Kutch, Gujarat. JSW Cement said that it has aggregate limestone reserves of 1.1 billion tonnes as estimated at the end of FY24.

    Shiladitya Pandit
    first published: Aug 20, 2024 11:20 am

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