MUMBAI: JSW Cement will raise its production capacity by 65% to 34 million tonne by 2028, while operating earnings before interest, tax, depreciation and amortisation (EBITDA) are projected to rise by 19-23%, senior management said on Wednesday.
The cement arm of the Sajjan Jindal-led JSW Group is setting up several greenfield units and one brownfield expansion, which will take capacity to 33.85 million tonne by 2028.
After this phase, the company plans to push capacity to 41.85 million tonne through the second expansion at Vijaynagar and new greenfield plants at Hatta in Madhya Pradesh and in Uttar Pradesh, though no timeline has been specified.
JSW Cement currently operates at 20.60 million tonne, ranking as the ninth-largest cement producer in India. Even at 34 million tonne by 2028, it will trail Nuvoco Vistas Corp, which is expected to reach 35 million tonne by then.
The company will spend Rs 2,000 crore on capital expenditure in both the current and next fiscal, with Rs 456 crore already deployed in the June quarter. While its consolidated loss widened in the June quarter due to an exceptional loss, operating performance improved, with EBITDA per tonne rising to Rs 974 from Rs 758 a year earlier.
It expects EBITDA per tonne to reach Rs 1,150-1,200 by 2028. "We are moving to very attractive geographies. So, that is the number which we hope is doable on a sustainable basis," chief financial officer Narinder Singh Kahlon said.
Alongside scale benefits, the company is targeting aggressive cost cuts to lift profitability. It plans to reduce costs by up to Rs 400 per tonne over the next 12-18 months, of which Rs 200 per tonne has already been achieved.
JSW Cement will also gain incentives for new plants in Rajasthan and Punjab. In Rajasthan, it will be eligible for a capital subsidy of 25% of the investment, capped at around Rs 650 crore, though higher support is likely in line with benefits for other cement firms. In Punjab, the incentive is expected at Rs 375-400 crore.
The company recognised Rs 6.70 crore of incentives in the June quarter.
The cement arm of the Sajjan Jindal-led JSW Group is setting up several greenfield units and one brownfield expansion, which will take capacity to 33.85 million tonne by 2028.
After this phase, the company plans to push capacity to 41.85 million tonne through the second expansion at Vijaynagar and new greenfield plants at Hatta in Madhya Pradesh and in Uttar Pradesh, though no timeline has been specified.
JSW Cement currently operates at 20.60 million tonne, ranking as the ninth-largest cement producer in India. Even at 34 million tonne by 2028, it will trail Nuvoco Vistas Corp, which is expected to reach 35 million tonne by then.
The company will spend Rs 2,000 crore on capital expenditure in both the current and next fiscal, with Rs 456 crore already deployed in the June quarter. While its consolidated loss widened in the June quarter due to an exceptional loss, operating performance improved, with EBITDA per tonne rising to Rs 974 from Rs 758 a year earlier.
It expects EBITDA per tonne to reach Rs 1,150-1,200 by 2028. "We are moving to very attractive geographies. So, that is the number which we hope is doable on a sustainable basis," chief financial officer Narinder Singh Kahlon said.
Alongside scale benefits, the company is targeting aggressive cost cuts to lift profitability. It plans to reduce costs by up to Rs 400 per tonne over the next 12-18 months, of which Rs 200 per tonne has already been achieved.
JSW Cement will also gain incentives for new plants in Rajasthan and Punjab. In Rajasthan, it will be eligible for a capital subsidy of 25% of the investment, capped at around Rs 650 crore, though higher support is likely in line with benefits for other cement firms. In Punjab, the incentive is expected at Rs 375-400 crore.
The company recognised Rs 6.70 crore of incentives in the June quarter.
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