JSW Infra plans 400 mtpa cargo handling capacity, Rs 30K cr capex by FY30

Company to strengthen its ports in multiple states; focusing on its logistics arm too

JSW Infrastructure (JSW Infra) plans to expand its cargo handling capacity by more than two-fold to 400 million tonnes per annum (mtpa) by Financial Year 2030 (FY30). It plans an estimated capex of Rs 30,000 crore over FY25-30 for the same, according to a stock exchange filing.

 

The company has a cargo capacity of 170 mtpa and it aims to enhance it to 288 mtpa by FY28, according to Elara Capital. It will raise capacity to 400 mtpa by FY30 at a compound annual growth rate (CAGR) of 15 per cent.

 

The company is improving its ports in Jaigarh and Dharamtar in Maharashtra and Goa to add a cargo handling capacity of 42.5 mtpa. JSW Infra’s significant port projects are Jatadhar in Odisha, Keni in Karnataka, and Murbe in Maharashtra. The three greenfield projects are estimated to add 93 mtpa of cargo handling capacity for the company. A capex of Rs 4,119 crore will be infused for Keni Port, while a capex of Rs 3,000 crore will be used for Jatadhar Port. The Murbe Port project’s cost is estimated to be Rs 4,259 crore.

 

JSW Infra is the fastest-growing port operator with a volume CAGR of 25 per cent to 106 mtpa in FY19–24, according to Elara Capital. The residual period of concession (a shipping ministry metric) for JSW Infra’s portfolio is over 25 years, the highest among its peers.

 

The company is focusing on its logistics arm. In FY25, it acquired a majority stake in Navkar Corporation, a logistics firm, for Rs 1,012 crore and a 30 mtpa under-development slurry pipeline project in Odisha for Rs 1,700 crore.

 

The company said in a statement that while it continues to benefit from its association with JSW Group companies, it has diversified its customer base. “The share of third-party cargo increased from 5 per cent in FY19 to 48 per cent in H1 FY25. The company aims for an equal mix of group and third-party customers, enhancing operational stability and profitability,” it added.

 

"We are committed to developing a robust, efficient, and integrated ports and logistics ecosystem that aligns with India's economic growth and infrastructure development goals," said Rinkesh Roy, joint managing director and chief executive officer of JSW Infra. "By prioritising capacity expansion and diversifying our customer and product profiles, I am confident we will deliver substantial long-term value to our stakeholders."

 

JSW Infra reported zero net debt as on September 30, 2024. The company’s cash flow from operations improved from Rs 330 crore in FY19 to Rs 1,800 crore in FY24, according to JM Financial.

 

Lalit Singhvi, chief financial officer and whole-time director of JSW Infra, said, “I am excited to share that JSW Infra's robust financial foundation, with a solid balance sheet and zero net debt, fuels our ambitious expansion plans. We are strategically positioned to drive capacity additions and pursue value-accretive acquisitions, all while maintaining solid financial matrices."