JSW Cement Ltd., part of the $11-billion JSW Group, said it plans to expand its yearly capacity by more than a third to 20 million tonnes in the next two years.
The company wants to increase its capacity to a sizeable scale before listing, Parth Jindal, managing director of the cement maker, told BloombergQuint in an interview. The initial public offering, if it happens, will be in FY21, he said, adding that the company plans to hike capacity to 30 MTPA in a phased manner after the IPO.
JSW Cement, predominantly present in the south, has a capacity of 12.6 MTPA which is being increased to 14 MTPA by the end of this financial year. Post this expansion, JSW Cement will have 10 MTPA capacity in the south, 6 MTPA in the east and 4 MPTA in the west.
The company said it would require Rs 1,500 crore for expanding its capacity by 6 MTPA by FY21, of which Rs 500 crore would come from internal accruals and the remaining Rs 1,000 crore through debt.
JSW Cement competes with regional peers like The India Cements Ltd., The Ramco Cements Ltd. in south India and Dalmia Bharat Ltd. in east India, apart from pan-India rivals like UltraTech Cement Ltd., ACC Ltd. and Ambuja Cements Ltd.
Watch the full interview here:
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