JSW Cement to invest Rs 9,000-cr to up capacity

JSW Cement Limited, part of JSW Group, is planning to increase its cement capacity to 20 million tonnes per annum (mtpa) in the next two-three years from the existing six mtpa capacity.

The proposed expansion would cater to the future demand, and going by the market estimates, t he capacity augmentation may cost Rs 8,000-9,000 crore, a senior company official said.

JSW Cement chief executive officer Anil Kumar Pillai said though the cement sector was witnessing muted growth, some major announcements made in the Union budget towards pushing infrastructure growth, could result in a turnaround from the  second half of this year (from October).  

The company expects capacity utilisation at its plants to touch 70 per cent in the fiscal 2015-16, up from the current 60-65 per cent. Its plants are located in Maharashtra, Karnataka, Andhra Pradesh and Telangana.

According to him, while its Karnataka and Maharashtra plants were running at maximum utilisation, the units in Andhra Pradesh and Telangana were operating lower at 50-55 per cent, said Pillai.

The proposed expansion would be done through a mix of acquisitions and by setting up new plants.

Asked whether JSW Cement was in the race for acquiring French major Lafarge’s cement assets, Pillai stated the company was open to inorganic growth. Reports had stated JSW Cement Ltd may bid for Lafarge SA’s cement units located in Jharkhand and Chhattisgarh.

Pillai said the company did not shelve its Gulbarga projects, adding, “It is an important plant for us. We have applied for environment clearance.”

The company is planning to set up a three mt per year capacity clinker plant at Chittapur in Gulbarga.