Industry

JSW Cement scouts for assets in south, north & east

Company plans to raise capacity to 20 MTPA by 2020: CEO

JSW Cement Ltd., part of the $13- billion JSW Group, is looking for strategic investments in the south, north and east to scale up its capacities, said a top official

“We are planning to increase the overall cement production capacity from 12.8 million tonnes per annum (MTPA) to 20 MTPA by 2020,” said Nilesh Narwekar, chief executive officer, JSW Cement. “A part of this expansion will be met through inorganic growth,” he added.

The company is adding production capacity at Dolvi in Maharashtra by 1.8 MTPA. Similarly, the new assets which it is scouting for in the south, north and east will bring in an additional 1.8 MTPA each respectively taking the total to about 20 MTPA.

“The ongoing bad loan resolution process has opened up opportunities to acquire cement assets in India. We continue to look for assets with good size,” he added.

Merger & acquisition

“Some merger and acquisitions is happening in the south,” he said.

Mr. Narwekar said that the company would go for an initial public offering only after increasing the installed capacity to 20 MTPA.

On the second quarter performance, he said the company recorded a 63% volume growth, while the overall industry average was 22% . In the south, it posted a 20% growth against the industry growth of 22%.

To a question, he said the growth was driven by continued thrust on infrastructure by the government. Also, it was aided by foraying into new geographies and the thrust given to technology and branding.

(The writer was in Ballari at the invitation of JSW Cement)

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Printable version | Jul 12, 2020 9:50:58 AM | https://www.thehindu.com/business/Industry/jsw-cement-scouts-for-assets-in-south-northeast/article25712565.ece

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