Displaying items by tag: JSW Cement
India: JSW Cement has increased the capacity of its Bellary cement grinding plant in Vijay Nagar to 3.4Mt/yr from 1Mt/yr. The cement producer said that the additional capacity would help it strengthen its distribution network throughout south of the country. The chairman and managing director of JSW Group, Shri Sajjan Jindal, and other dignitaries inaugurated the new unit.
India: JSW Cement has acquired a promoters' share in Shiva Cement and has also launched an open offer to acquire a 32% stake from public shareholders in the company. JSW Cement, with Sun Investments Private and Reynold Traders, has made an open offer to the public equity shareholders of Shiva Cement to buy up to a 32% share in the company at a value of US$12.8m. In late September 2016 promoters of Shina Cement held a 37.15% stake, while public shareholders held the remaining 62.85%, according to Indian media.
India: JSW Cement has launched a new product called Concreel HD in the south of India. It is marketed as an environmentally-friendly product with improved chemical resistance and superior cohesion. It is targeted at strength bearing applications such as beams, columns, slabs and foundations due to its high early and long-term strength as well as its quick setting time.
India/Switzerland/UK: The five bidders that gave their final bids for Lafarge India’s 11Mt/yr cement business have been called to London, UK for the final leg of discussions, which started on 7 July 2016. Multinational bidders, including Mexico’s Cemex and China’s Anhui Conch, are believed to have bid aggressively. Domestic bidders Ajay Piramal Group, Nirma and Sajjan Jindal-led JSW Cement also submitted bids earlier in the week.
The bids are in the range of Euro1.19-1.33bn, which implies an enterprise value of US$108-121/t, comparable to UltraTech’s recent acquisition of JP Group’s cement assets for US$116/t.
“This discussion in London could take three to four days to finalise,” said a banker familiar with the development. “The winner will be decided not just on the price quoted for assets but also other conditions for the bid,” he said. Once the winning bid is decided, an exclusivity agreement will be signed with the bidder and it will take around three months to complete the deal.
India: Parth Jindal has been appointed as Managing Director of JSW Cement. He will assume the position in July 2016 and will be assisted by Anil Kumar Pillai as CEO, according the Business Line.
Jindal is the son of Sjjan Jindal, the chairman of JSW Group. The 25-year old has worked previous as an Economic Analyst for JSW Steel amongst other positions in the group. He is also the chief executive of the group's sport company, which owns Bangalore Football Club.
India: JSW plans to invest US$610m to boost its port and cement capacity in the next two years. It plans to almost double its ability to handle cargo at its ports to 62Mt/yr, with a target to further increase it to 200Mt/yr by 2025, according to group CFO Seshagiri Rao. Cement capacity is estimated to increase to 17Mt/yr in the next 24 months from 6Mt/yr at present.
"Ports appear to be a very attractive investment as ports and inland waters have not at all been leveraged in India," said Rao to Bloomberg. "We feel that in each of the core infrastructure sectors there is a huge amount of change happening." Rao said that the group will build its own cement plants instead of acquiring an existing business.
India: To improve its finances, Jaypee Group has revived its negotiations with JSW to sell its entire 20 – 22Mt/yr cement portfolio. The top officials, including Manoj Gaur, Executive Chairman and CEO of Jaypee Group, met Sajjan Jindal, Chairman on JSW Steel, to discuss the acquisition. Jaypee Group has an outstanding debt of around US$11.6bn. The talks are still at early stage.
India: JSW Cement has ordered eight 90t/hr roller press slag grinding units from KHD Humboldt Wedag India Private Ltd (India) and KHD Humboldt Wedag GmbH (Germany) for its plants in India.
India: According to the Economic Times, JSW Cement plans to bring down its cement-making cost by as much as 75% by setting up grinding units closer to markets, in contrast to the traditional model of clinker units placed near the source of raw material.
According to the plan, the new units will use clinker imported from countries that have a surplus, thus allowing JSW Cement to add 1Mt/yr of capacity for about US$28.3m, compared to US$132m required to set up a similar capacity under the traditional model.
JSW Cement plans to establish several such grinding units on the country's east coast in West Bengal and Odisha, taking its cement capacity up to 20Mt/yr by 2020. "Our novel model involves setting up inexpensive grinding facilities closer to the markets rather than building cost-intensive clinker units closer to the raw material reserves," said Parth Jindal, son of group chairman Sajjan Jindal.
According to Anil Kumar Pillai, CEO at JSW Cement, typically 67% of cement capacity investment goes into clinkerisation and 33% goes into grinding. "We are investing 33% in grinding units. Hence, our balance sheet will be far leaner, service cost on interest will be far lower and our profitability ratio will be far better," said Pillai.
"Once our balance sheet gets strengthened with strong earnings profile to support large-scale investments, we will look at backward integration to acquire limestone reserves and set up clinkerising units," said Jindal.
India: According to the Deccan Herald, JSW Cement plans to start four more greenfield grinding plants, two each in West Bengal and Tamil Nadu, as part of its plan to grow its cement and clinker capacities to 20Mt/yr by 2018.
JSW Cement director and CEO Anil Kumar Pillai said that the company expects cement demand growth in its current fiscal year, which ends on 30 September 2015 and will gain pace in the next fiscal year. "The government's new infrastructure-led industrialisation plan will really boost cement demand. Already analysts have predicted a double-digit GDP growth rate, which will give a 15% hike in cement demand," said Pillai.
The greenfield projects are part of JSW Cement's US$1.41bn investment plan. "Each of the projects will have an investment of US$54.8 – 62.6m. In Tamil Nadu, we have identified one location at Tuticorin and the other will be near Puducherry. It will take 36 months to commission the units. Funds for these projects will be raised via internal accrual and bank borrowings," said Pillai.
JSW Cement is looking for land in West Bengal and will announce the details soon. The company has production plants in Vijayanagar and Bellari in Karnataka, Dolvi in Maharashtra and Nandyal in Andhra Pradesh. JSW Cement has achieved 55% of its production capacity in the last fiscal year. "In the last fiscal year, we produced 3.2Mt of cement and we have set a target of 4.2Mt in the current fiscal year. We expect to achieve 65% capacity utilisation once growth momentum gains in the third and fourth quarter," said Pillai.
Regarding industry rumours that JSW Cement is in the race to acquire Lafarge's cement assets in Jharkhand and Chhattisgarh, Pillai said that the company was open to inorganic growth and will not go for exports.
Meanwhile, JSW Cement is installing a 10MW power plant that uses waste gas in Nandyal. "JSW Cement has committed US$15.7m of investment for this project and it will be commissioned within 12 to 14 months," said Pillai.