JSW Cement eyes IPO by FY 2019-20

October 26, 2016 11:21 pm | Updated December 02, 2016 11:48 am IST - CHENNAI:

JSW Cement, one of the largest manufacturers of Portland Slag Cement, is planning to come out with an initial public offering by fiscal 2019-20, said a top official.

“We have plans to increase our production capacity from 6.8 million tonnes per annum (MTPA) to 30 MTPA by 2020 investing Rs.12,000 crore. While the first phase calls for increasing the capacity by 10 MTPA at an investment of Rs.2,500 crore, rest is for the second phase,” said JSW Cement Managing Director Parth Jindal.

The cement major is hopeful of completing its first phase of expansion by 2018. The plan involves increasing the capacity from the present 6.8 MTPA to 17 MTPA. The expansion cost will be met through a mix of debt (75 per cent) and equity (25 per cent).

“The first phase expansion will be completed by fiscal 2018-19. Thereafter, we need a year for stabilisation of assets. At this stage, we have to achieve turnover of Rs.6,000-Rs.7,000 crore and generate EBITA of Rs.1,200 crore. Only then will it be prudent for us to go for an IPO next year,” he said.

Asserting that their focus was on East and West, he said: “We are planning to capture sizeable market share in Jharkhand, Madhya Pradesh and West Bengal. Over the next six months, we will bid for lime stone reserves in Jharkhand and Rajasthan to take care of our new cement plants in North and East.”

The company has production plants in Vijayanagar and Ballari (Karnataka), Dolvi (Maharashtra) and Nandyal in Andhra Pradesh. The grinding units are planned for Salboni (3.6 MT), Vijayanagar (2.4 MT) , Dolvi (1.2 MT), Mangaluru (1.2 MT) and Odisha (1.2 MT).

He also said the company clocked a turnover of Rs.1,400 crore during March 2016 and this year it would touch Rs.2,000 crore.

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