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JSW Cement plans Rs 1,800-cr capex, aims for IPO in 2019-20

Post-IPO, according to Jindal, the company will be targeting at reaching 30 MT capacity by 2025

Press Trust of India  |  Mumbai 

JSW Steel

Sajjan Jindal-controlled, Cement Ltd today said it is investing around Rs 1,800 crore towards expansion of cement capacity to 20 million tonnes (MT) and looking at (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 and 1.2 MT in Vijaynagar unit in Karnataka, apart from 1.2 MT adding in unit. We will incur capex of around Rs 1,800 crore for capacity expansion over the next three years period," Cement managing director Parth Jindal told PTI 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 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 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, Cement chief financial officer Narinder Kahlon said.

The company said it has commenced its retail foray in West India region with the launch of Concreel HD in

Jindal group has presence in steel, energy, cement, infra and is now looking at entering into paint sector by launching Paints next year, he added.

First Published: Mon, October 16 2017. 20:01 IST