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JSW Cement to Invest Rs. 3,000 Cr. in Rajasthan Greenfield Unit

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JSW Cement, part of the JSW Group, will be investing about Rs. 3,000 crore in setting up a greenfield integrated cement plant in Nagaur, Rajasthan. This information was given by the company via a press release dated 21st May 2024.

Clinkerization Unit, Cement Grinding Unit to be Set Up

JSW’s Nagaur plant will have a 3.3 Million Metric Tonne Per Annum (MMTPA) clinkerization unit. This unit will be fed limestone using a 7 Km long overland belt conveyor. Apart from the clinkerization unit, a cement grinding unit of 2.5 MMTPA capacity will be set up at JSW Cement’s upcoming Nagaur facility.

As per the company’s release, this project will be funded through a combination of long-term debt and equity.

Waste Heat Recovery System to be Installed, Provision of Alternative Fuels for the Kiln

JSW Cement added that the plant will be equipped with an 18 MW Waste Heat Recovery System (WHRS) based power plant. Additionally, the limestone kiln will have provisions for the use of ‘alternative fuels’. This gains importance from an environmental standpoint since limestone kilns which are used to produce clinker are the main source of Carbon dioxide emissions from any cement plant. Other than the processing of limestone itself, use of coal for fuel adds to carbon emissions from kilns. However, JSW Cement’s release did not clarify on the nature of these alternative fuels.

JSW Cement has already received some of the regulatory and statutory approvals and is on track to obtain other necessary clearances”, added the company’s release.

Nagaur Plant to Mark JSW Cement’s Entry in Northern Indian Markets

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JSW Cement’s Nagaur integrated cement plant will be its first such facility in northern India. Mr. Parth Jindal, Managing Director of JSW Cement, further explained, “The proposed investment to establish our integrated cement facility in Nagaur puts JSW Cement firmly on its path to achieving a pan-India footprint within the next few years. The new capacity in this region will enable us to service the prolific needs of our customers in the Northern States of Rajasthan, Haryana, Punjab and the NCR region.

Adding to this, Mr. Nilesh Narwekar, CEO of JSW Cement, said that the company’s investment in Nagaur marks its entry into the “…fast-growing and attractive cement markets of North India”. Mr. Narwekar attributed the attractiveness of this market to the many housing and infrastructure projects coming up in northern India, which also happens to be a region with high GDP growth rates. “We are very excited to be able to enter into this booming construction market and will aim to provide our customers with high-quality cement and a world-class customer service”, he said.

The company added that its investment in the Nagaur plant is expected to generate about 1,000 direct and indirect employment opportunities in the region.

JSW Cement IPO Expected After Lok Sabha Elections, Company Eyes 60 MMTPA Capacity by FY-30

As per an article dated 31st August 2023, Mr. Parth Jindal had told Mint during an interview that the company has plans to go public after the 2024 Lok Sabha elections in order to raise about Rs. 4,000 crore. Further, Mint reported on 21st May 2024 that JSW Cement would utilise the expected IPO proceeds for augmenting its manufacturing capacity.

The company targets expanding its capacity to 60 MMTPA from the current 21 MMTPA in the next 5 years. This expansion is expected to cost about Rs. 18,000 crore in total. JSW expects to fund 20% of this sum using IPO proceeds, while the rest is expected to be funded through a combination of debt and internal accruals.

About JSW Cement: Mumbai-based JSW Cement is a part of the JSW Group. The company has its facilities in locations which include Karnataka, Andhra Pradesh, West Bengal, Odisha, Maharashtra, and the UAE amongst others. Currently, JSW has a total cement production capacity of 21 MMTPA.