Power List 2020

JSW Cement is investing Rs 2,875 crore to nearly double its manufacturing capacity to 25 million tonnes per annum by FY23 through organic expansion. The country’s ninth-largest cement maker has an installed capacity of 14 MTPA across west, south and east India. About Rs 1,400 crore of this fund will be raised through debt while the rest will be realised through internal accruals. The capacity expansion will happen on the back of increased raw material supply from its subsidiary Shiva Cement. The cement maker had earlier set a target of 20 MTPA manufacturing capacity
by 2020, which it is likely to miss due to the ongoing demand slowdown. Clinker is a substance made from limestone and clay and is one of the primary raw materials required to manufacture cement.

To reach 25 MTPA of installed capacity,  the company will undertake capacity expansion at its existing plants. With the planned capex of Rs 2,875 crore, the company will be adding capacity at a cost of $35 per tonne against the industry average of $80 per tonne. In the South, the company plans to
add 3.6 mtpa capacity to take its overall cement capacity to 11.6 mtpa. The expansion at its unit in Toranagallu, Karnataka includes debottlenecking and installation of a new grinding unit to take its capacity to 6 mtpa from 3.2 mtpa. It also plans to put up a new grinding unit of 0.8 mtpa capacity at
Salem in Tamil Nadu. In the West, JSW Cement plans to add 2.4 mtpa, taking its overall cement capacity to 4.6 mtpa, by debottlenecking and setting up a new grinding unit.