JSW Infra invites PE investments, discussions on

JSW Infrastructure, the ports and logistics arm of the Rs 17,000-crore Sajjan Jindal-led JSW Group, is looking for private equity (PE) investment. A top company official said it was in initial discussions with investors over a possible stake dilution.

“We are looking at investments, both at the project level and holding company level. We are getting good valuations now and the evaluation process by PE players is on. Equity requirement for this financial year is not very great but as the speed of expansion increases, we will need to seek new revenue models,” B J V K Sharma, joint managing director and CEO of JSW Infrastructure, told Business Standard.

The company plans to invest around Rs 10,000 crore in the next 10 years. It has also planned to augment its cargo handling capacity from the present 30 million tonnes (mt) to 180 mt.

The ports and logistics arm has interests in port development, shipyards, roads and rail connectivity and inland waterways. The company operates Jaigarh port in Maharashtra, whose capacity is 10 mt of cargo and is looking at an expansion to 20 mt. The port was inaugurated in 2009 and in addition to coal imports for JSW Energy’s 1,200-Mw power plant close by, the company is also talking to others to use the port’s services. The company also operates South West Port Ltd, which has developed two berths at Mormugao harbour on a build-own-operate-transfer basis and can handle 20 mt of cargo. JSW also operates a shipyard at Dabhol, Maharashtra.

“There is a lot of integration possible in port business. We can look at road and railway line development close to ports, port-based special economic zones, free trade warehousing zones, and container freight stations. We have to work on creating demand; cargoes do not come easily,” said Sharma. Adding: “There are opportunities for acquiring some port businesses. Investment bankers keep coming up with opportunities. The evaluation process for these activities is currently on.”