JSW Cement Limited, the cement division of the JSW Group, has announced plans to significantly increase its cement grinding capacity in India. The company, which recently submitted its draft red herring prospectus (DRHP), aims to more than double its current capacity from 20.60 million tonnes per annum (MTPA) to nearly 41 MTPA. This expansion will be achieved through a combination of new (greenfield) projects and upgrades to existing (brownfield) facilities.
The company sees strategic benefits in leveraging synergies with other JSW Group entities, particularly its steel and port operations. There is also a focus on “green cement” products, such as ground granulated blast furnace slag (GGBS), which aligns with JSW’s sustainability goals.
According to the DRHP, JSW Cement’s expansion efforts are primarily focused on the northern and central regions of India, aligning with industry trends towards creating a nationwide presence. The board has approved plans for six new facilities in Rajasthan, Punjab, Madhya Pradesh, Uttar Pradesh, and Odisha, along with a new plant in Dolvi, Maharashtra, and an upgrade to its Vijayanagar facility in Karnataka. These projects are expected to add a combined 20.25 MTPA to the company’s grinding capacity.
Currently, JSW Cement’s 20.60 MTPA capacity is distributed across several locations in southern and eastern India. This includes facilities in Andhra Pradesh, Tamil Nadu, and Karnataka, the latter of which is co-located with a major JSW Steel plant. The eastern facilities are located in Odisha and West Bengal, with another unit at Dolvi, Maharashtra, near a JSW Steel facility and a JSW Infrastructure-operated port.
Additionally, JSW Cement plans to increase its clinker production capacity from 6.44 MTPA to 13.04 MTPA. This will be facilitated by the new Rajasthan and Madhya Pradesh plants, each contributing 3.30 MTPA. Clinker, a crucial component in cement production, is produced from limestone and other minerals. JSW Cement’s clinker production also extends to a facility in the United Arab Emirates, which supplies the Dolvi grinding unit via sea routes.
The company emphasizes the importance of synergies within the JSW Group, such as access to blast furnace slag from JSW Steel’s operations and integrated logistics support, including existing road, rail, and port connections.
The locations for the new facilities have been chosen for their proximity to limestone reserves, vital for clinker production. JSW Cement currently operates a limestone mine in Madhya Pradesh and holds rights or intentions to mine in Nagaur, Rajasthan, and Kutch, Gujarat. The company’s limestone reserves are estimated at 1.1 billion tonnes as of the end of FY24.
