A day after acquiring India Cements unit, JSW Cement is planning to invest over ₹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 mtpa.
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.
JSW Cement on Monday acquired a 100 per cent stake in Springway Mining from India Cements for ₹477 crore.
With this, JSW Cement can access to substantial 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.
The company has secured most of the regulatory approvals for mining operations and is pursuing requisite approvals for setting up the integrated cement manufacturing facilities.
Attractive market
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 the highly attractive 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 Springway Mining from India Cements puts JSW Cement on its path to 50 mtpa with a pan-India footprint.
Narinder Singh Kahlon, Director Finance and Commercial, JSW Cement said both the states have one of the highest GDP growth rates and are witnessing significant infrastructure and housing development.
The company will enter into the booming construction market and provide high quality green cement, he said.