JSW Cement on Tuesday said it will invest more than ₹3,200 crore to set up two greenfield cement manufacturing facilities having a total manufacturing capacity of 5 million tonnes per annum (MTPA) in central India.
The company, part of the $22 billion JSW Group, will set up an integrated greenfield cement manufacturing facility in Madhya Pradesh as well as a split grinding unit in Uttar Pradesh.
“The combined cement capacity across both these units will be 5 MTPA,” the company said in a statement.
It plans to invest more than ₹3,200 crore to set up the greenfield cement manufacturing facilities.
The proposed investment will be for an integrated cement plant with 2.5 MTPA (Million Tonnes Per Annum) 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.
On Monday, India Cements Ltd. announced selling its entire stake in Springway Mining Pvt. Ltd. (SMPL) to JSW Cement for a total consideration of ₹476.87 crore.
SMPL owns limestone-bearing land in Panna district and is in the process of setting up a cement plant in the Damoh district. Both are in Madhya Pradesh.
“This acquisition provides JSW Cement access to substantial limestone reserves of approx 106 million tonnes, including a mining lease valid until 2065,” JSW Cement said on Tuesday.
The limestone mine is spread over approximately 500 hectares of land in the Panna district.
It has secured most of the regulatory approvals for mining operations and is pursuing requisite approvals for setting up the integrated cement manufacturing facilities.
“JSW Cement’s integrated manufacturing facility will be located adjacent to this mining reserve,” the statement said.
JSW Cement Managing Director Parth Jindal said the acquisition of SMPL puts the company on its path to 50 MTPA capacity with a pan-India footprint.
“This strategic investment marks our entry into the highly attractive Central Indian market with specific focus on servicing the prolific needs of customers in Madhya Pradesh and Uttar Pradesh. This is one of the biggest investments in India made through our cement business,” he said.
JSW Cement has a current capacity of 17 MTPA. It is expected to achieve 21 MTPA capacity by the end of FY23.