Sajjan Jindal-led JSW Group said it plans to set up up a INR1900crore (US$3.91m) cement plant with a production capacity of 5Ma by the end of next financial year. The proposed cement unit will be located in Karnataka and Andhra Pradesh and will be undertaken by the group’s subsidiary JSW Cement, say media reports.
JSW Group chief Financial Officer Seshagiri Rao said JSW Cement had already tied up INR1500crore (US$3.09m) debt for the venture and the rest would be provided by the group.
The company said it would use two vital raw materials for making cement, slag and fly ash. JSW, already having steel plants and captive cement plant in Karnataka, will use the required raw materials, including slag and fly ash, from its various steel plants, while required power for the project will be arranged from various power plants located in both states.
The move is aimed to capture South Indian cement market currently dominated by Dalmia and India Cement, the release said.
Rao added that the cement plant would partly come at Nandiyar in Andhra Pradesh, where a clinker plant will also come up. The company is also setting up a grinding unit at Vijaynagar. Besides, it is also going to commission 300MW plant at Jaigarh in Maharashtra.