India: JSW Cement is considering the construction of a 4.3Mt/yr cement plant in Gulbarga, Karnataka. The company is optimistic about demand revival in the south of India, as economic activity picks up in Andhra Pradesh and Telangana, according to SS Sandhu, associate vice president of JSW Cement.
At present, JSW Cement has 6.4Mt/yr of cement production capacity in Karnataka, Andhra Pradesh and Maharashtra. Sandhu said that the company already has land in Gulbarga and the region is rich in limestone. Another advantage is that supplies could be made from Gulbarga to cement markets in Maharashtra and Gujarat. Since the group company, JSW Steel, produces slag, JSW Cement could manufacture slag cement.
When asked about the economic slow-down, Sandhu conceded that there has been a contraction in construction activity in the south of the country, but that stability has now returned. A lot of projects are expected to come up in the near future in Andhra Pradesh and Telangana, including ones at the new Andhra Pradesh capital that is planned at Vijayawada. The company expects that a pick-up in demand will drive its capacity utilisation to 75% by the end of the current fiscal year from 55 – 60% at present.
