JSW Cement Acquires 100 Percent Stake In India Cements' Limestone Mining Subsidiary
"This is one of the biggest investments in India made through our cement business," JSW Cement Managing Director Parth Jindal said.
JSW Cement has acquired a 100 per cent stake in Springway Mining, a subsidiary of India Cements. The deal will offer substantial access to limestone reserves, to the tune of approximately 106 million tonnes. The acquisition also includes a mining lease that is valid until 2065.
JSW Cement is looking to invest over Rs 3,200 crore in order to set up an integrated greenfield cement manufacturing facility in Madhya Pradesh. JSW Cement will also establish a split grinding unit in Uttar Pradesh. Both these units will have a combined capacity of 5 metric tonnes per annum (MTPA).
As per the proposed investment plan, there will be an integrated cement plant with a clinker capacity of 2.5 MTPA, a grinder capacity of 2.5 MTPA, a 15 MW waste heat recovery system, a modern residential colony in Madhya Pradesh, and a 2.5 MTPA grinding unit in Uttar Pradesh.
The limestone unit that JSW Cement acquired is situated in the Madhya Pradesh district of Panna, spread over an area of approximately 500 hectares.
JSW Cement also plans to set up an integrated manufacturing facility adjacent to the reserve and the company is currently pursuing the needed approvals to set up the manufacturing facility.
"The acquisition of Springway Mining from India Cements puts JSW Cement 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," said JSW Cement Managing Director Parth Jindal.
"This is one of the biggest investments in India made through our cement business. I look forward to working with the Governments of Madhya Pradesh and Uttar Pradesh to contribute to their growth and create substantial employment opportunities in both these States," Jindal added.
Narinder Singh Kahlon, Director of Finance & Commercial of JSW Cement, believes that the investment will mark the company's entry into the "fast-growing and attractive cement markets in Uttar Pradesh and Madhya Pradesh."
"These States have one of the highest GDP growth rates and are witnessing significant infrastructure and housing development," Kahlon added.
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