JSW Cement plans $360 mn factory in Rajasthan to meet rising demand
23 May 2024 CW Team
JSW Cement, a key player in India's construction material industry, announced the intention to invest approximately $360.2 million in establishing a new cement factory in Rajasthan, responding to the escalating demand for this vital construction component. This strategic move comes amidst a surge in government infrastructure spending and a robust real estate sector, prompting Indian cement manufacturers to expand production capacities. The proposed unit by JSW Cement aims to cater to the markets of Rajasthan, Haryana, Punjab, and the national capital region, marking the company's foray into the northern market, currently dominated by Shree Cement and UltraTech. The investment in Rajasthan leverages the state's abundant limestone reserves and promises to optimize freight costs, bolstering the firm's core profit margins, as noted by Ashutosh Murarka, a research analyst at Choice Broking. Despite being a relative newcomer, JSW Cement's expansion plans highlight its ambition and potential in the industry. The new facility, with a clinkerisation unit capable of producing up to 3.30 million tonnes per annum (MTPA) and a grinding unit with a capacity of up to 2.50 MTPA, is expected to generate around 1,000 direct and indirect jobs. The investment will be financed through a combination of equity and long-term debt, reflecting JSW Cement's commitment to sustainable growth and employment generation. (Source: Economic Times)