JSW Cement to invest ₹3000 crore in new plant in Rajasthan

JSW Cement plans to invest about ₹3,000 crore to set up a 3.30-MTPA clinkerisation unit and a grinding unit of 2.50 MTPA, along with an 18 MW waste heat recovery-based power plant at Nagpura district in Rajasthan.

The investment also includes about 7 km long Overland Belt Conveyor to transport limestone from the mines to the manufacturing plant and arrangements to use alternative fuel in the kiln.

The proposed investment will be funded through a mix of equity and long-term debt, said the company in a statement on Tuesday.

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JSW Cement has already received some of the regulatory approvals and is on track to obtain other necessary clearances. Once commissioned, this unit will mark JSW Cement’s entry into the North India cement market. The current investment is expected to create more than 1,000 direct and indirect job opportunities.

Parth Jindal, Managing Director, JSW Cement said the proposed investment in the integrated cement facility in Nagaur puts the company firmly on its path to achieving a pan-India footprint in the next few years.

The new capacity will help to tap the markets in Rajasthan, Haryana, Punjab and the NCR region, he said.

Nilesh Narwekar, CEO, JSW Cement said the northern states have one of the highest GDP growth rates and are witnessing significant infrastructure and housing development. The company will tap into the booming construction market with high quality cement, he added.

Industry expansion

JSW Cement investment comes when the market leader Kumar Mangalam Birla-led UltraTech Cement and Gautam Adani-owned Ambuja Cement-ACC have embarked on an aggressive expansion plans.

UltraTech Cement plans to enhance its capacity from 146 MTPA to 157 MTPA by FY25 and targets to achieve 187 MTPA by FY27.

The company plans to invest ₹18,600 crore by FY25.

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The move will strengthen its leadership position in the market. The company is waiting for regulatory approval to acquire 10.75 MTPA of Kesoram Industries.

Second placed Ambuja-ACC will increase its capacity to 140 MTPA by FY’28 from 79 MTPA through internal accruals. The company has cash reserves of ₹24,338 crore as of FY24-end.

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