JSW Cement to invest over Rs 3,200 crore in new plants in MP and UP

JSW Cement is planning to invest over Rs 3,200 crore to establish an integrated greenfield cement manufacturing facility in Madhya Pradesh and a split grinding unit in Uttar Pradesh. The combined cement capacity of these units will be 5 million tonnes per annum (mtpa).

The announcement comes a day after the company picked up India Cements’ Madhya Pradesh unit for Rs 477 crore.

With this, JSW Cement will have access to limestone reserves of about 106 million tonnes, including a mining lease valid until 2065. The limestone mine is spread over about 500 hectares in Panna District of Madhya Pradesh, it said.

The company has also secured most of the regulatory approvals for mining operations and is pursuing requisite approvals for setting up the integrated cement manufacturing facilities.

JSW Cement’s integrated manufacturing facility will be located adjacent to this mining reserve.

Parth Jindal, managing director, JSW Cement said the strategic investment marks the company's entry into central Indian market and is one of the biggest investments in India made through the Group's cement business.

"I look forward to working with the Madhya Pradesh and Uttar Pradesh governments to create substantial employment opportunities in both these States," he said.

The acquisition of the India Cements Madhya Pradesh unit puts JSW Cement on its path to achieve 50 mtpa with a pan-India footprint in the next few years. By 2024-2025, the company is looking to touch 25 mtpa from 17 mtpa now.  

The proposed investment includes an integrated cement plant with 2.5 mtpa clinker capacity, 2.5 mtpa grinding capacity, 15 MW Waste Heat Recovery System, a modern residential colony in Madhya Pradesh and a 2.5 mtpa grinding unit in Uttar Pradesh.