JSW Cement targets to double cement grinding capacity to 41 MTPA

This expansion will be achieved through a combination of greenfield and brownfield investments.

The company, part of the JSW Group, noted that it expects to benefit from synergies with the group's steel and port operations and sees significant growth potential in "green cement" products, such as ground granulated blast furnace slag (GGBS).

JSW Cement plans to expand its presence in northern and central India, aligning with the broader industry trend of becoming a pan-India operator.

The expansion plan, approved by the board, includes the establishment of six new greenfield units in Rajasthan, Punjab, Madhya Pradesh, Uttar Pradesh, Odisha, and Dolvi, Maharashtra, as well as a brownfield unit in Vijayanagar, Karnataka, adding a total of 20.25 mtpa of cement grinding capacity.

Currently, of the 20.60 mtpa cement grinding capacity, 11 mtpa is situated in South India, with facilities in Nandyal (Andhra Pradesh), Salem (Tamil Nadu), and Vijayanagar (Karnataka), the latter being adjacent to a major JSW Steel manufacturing plant. Other major capacities are located in the eastern part of the country, at Jajpur (Odisha) and Salboni (West Bengal).

There is also a grinding unit at Dolvi, near a minor port managed by JSW Infrastructure.

Additionally, JSW Cement plans to increase its clinker production capacity from 6.44 mtpa to 13.04 mtpa. The new facilities in Rajasthan and Madhya Pradesh, located in Nagaur and Hatta, will each contribute 3.30 mtpa to this expansion.

The company’s subsidiary, Shiva Cement, also owns a clinker unit in Odisha.

Clinker, an essential component in the cement grinding process, is produced from limestone and other minerals. In addition to its clinker capacity in India, JSW Cement operates a clinker facility in the United Arab Emirates, which supplies its Dolvi cement grinding operations in Maharashtra via a shipping route.

In its draft red herring prospectus (DRHP), JSW Cement emphasized its reliance on synergies within the JSW Group, including steel, power, and port operations, to support its growth. The company has previously leveraged these synergies, such as co-locating near JSW Steel facilities at Vijayanagar and Dolvi, providing access to affordable blast furnace slag and integrated logistics through existing road, rail, and port infrastructure.

The proposed locations for expansion are strategically chosen to integrate with other group companies, with the greenfield unit in Odisha being situated at JSW Steel's subsidiary Bhushan Power and Steel in Sambalpur, and additional units planned for Dolvi and Vijayanagar.

The expansion plans also consider proximity to limestone reserves, with JSW Cement operating a limestone mine in Madhya Pradesh and holding mining rights or letters of intent for limestone mines in Nagaur (Rajasthan) and Kutch (Gujarat).

The company has an estimated 1.1 billion tonnes of aggregate limestone reserves as of the end of FY24.