Concrete

Building a Stronger Tomorrow

Published

4 years ago

March 1, 2022

admin

Cement major JSW Cement is increasing installed capacities and moving fast towards becoming a green cement producer and a preferred partner in the construction sector.

JSW Cement, a part of the US$ 13 billion JSW Group, is one of India’s fastest growing cement companies and India’s largest green cement company. It is a fast paving way to emerge as a leader in the construction sector, contributing to national projects and strengthening the nation’s infrastructure.
The company is engaged in the manufacturing of cement, clinker and related products, and is one of India’s top five cement companies with a wide portfolio of diverse products and an installed production capacity of 14 million tonnes per annum (MTPA). It has its manufacturing units in Vijayanagar in Karnataka, Nandyal in Andhra Pradesh, Salboni in West Bengal, Jaipur in Odisha, Dolvi in Maharashtra, as well as a clinker plant in Fujairah, UAE. It had acquired Shiva Cement in 2017.
The company has consistently been increasing its revenue and maintaining a strong financial position, despite the onset of the COVID-19-induced pandemic, and remains well positioned to contribute towards AtmaNirbhar Bharat through its world-class cement products. It is positioning itself closer to being listed on the Indian bourses as it moves towards an initial public offering (IPO) towards the end of CY2022. In its quest to be ranked among India’s top five cement players in India and its focus on increasing share of premium products, the Company is expanding its domestic cement manufacturing capacity. With this, it is set to realise its objective of becoming a 25 MTPA producing cement company by 2023.
Notably, within a span of four years, it has more than doubled its manufacturing capacity from 6 MTPA in 2019 to 14 MTPA currently. The cement major plans to augment its capacity mostly through a combination of setting up brownfield and greenfield projects and through inorganic growth opportunities. Currently, it is in the process of adding two cement plants of 5 MTPA each in Rajasthan and Chhattisgarh.

Attracting strategic investors
The company is partnering with new investors to accelerate growth and has begun diluting minority private equity stakes to select investors to accelerate its manufacturing capacity. In December 2021, State Bank of India picked up stake as a strategic investor through the private equity route, done through compulsorily convertible preference shares linked to its future business performance and valuation during IPO.
Prior to this, it raised Rs 1,600 crore from two global private equity investors – Apollo Global Management Inc. and Synergy Metals Investment Holding Limited through a structured private equity deal. Apart from receiving strategic capital to finance growth, these investments are bringing with them deep validation and brand trust. Financing its growth and expansion strategy also positions the company well for its forthcoming IPO.

Geographical diversification
The company has a strong business model with deep market presence in western, eastern
and southern parts of India. It has established a reputation of having delivered superior
quality products to some of India’s largest and prestigious infrastructural projects in the southern and western regions of the country. With a presence in Telangana, Andhra Pradesh, Karnataka, Tamil Nadu, Kerala, Maharashtra, Orissa, and Goa, it has gained a foothold in the relative markets. The cement company draws its key strengths from the Group’s well-established track record in project execution and cost management.

On the path of being a low-cost producer
The company’s state-of-the-art facilities and technological advancements are helping it expand to new markets and target newer customer segments. The acquisition of Shiva Cement’s clinker and grinding units in Orissa will act as a hub to service its manufacturing facilities across the eastern regions of India. It will provide a strategic advantage to service the needs of its customers in the eastern region and strengthen its leadership position as a green cement producer. The acquisition is targeted at turning the company into a low-cost producer of cement per tonne.
Further, it has also commenced a capex plan at the group level – that of expanding its grinding units at Dolvi, Maharashtra, and Nandayal, Andhra Pradesh. Another grinding unit is being added at Salem, Tamil Nadu. When commissioned, the expansion will help provide clinker to its manufacturing units at Salboni, West Bengal and Jajpur, Orissa at competitive rates, thus bringing down its cost curve.

Captive limestone mines
A significant benefit to the cement company is its ability to procure limestone from captive mines at Kurnool district, Andhra Pradesh, with proven reserves of 134 million tonnes. It has acquired limestone mining rights in Rajasthan, Chhattisgarh and Gujarat. Two years ago, it acquired new milestones in Kutch (125 MT) and Nagpur (205 MT). It has another 300 MT limestone reserve at Fujairah plant, UAE. It also has an agreement with steel players for procuring slag at bulk rates.

Locational advantage
The Company enjoys strategic locational advantage – that of being in close proximity to raw material sources and modes of transport. A majority of its raw materials are manufactured inhouse, and in close proximity to the manufacturing facilities, which gives it greater control over quality and consistency during the manufacturing process. Its target markets of Karnataka, Maharashtra, Andhra Pradesh, Telangana, Kerala, West Bengal, Tamil Nadu, Bihar, Jharkhand, Orissa and Goa are located adjacent to its manufacturing units. Cement being a capital-intensive industry, the locational advantage positively impacts its profitability.

Improving operating efficiency
The Company’s operating efficiency is improving on a consistent basis, largely driven by the sale of portland slag cement and grounded granulated blast furnace slag in southern and western India. The move is likely to result in lower consumption of raw material, power and fuel per tonne of cement. Further, its manufacturing facilities being in close proximity to sources of procuring raw material and its addressable markets also leads to reduction in freight cost. As a result, JSW Cement reported higher EBITDA per tonne of Rs 811 in FY2020 from Rs 700 in the two preceding years. This was facilitated by an increased sale of blended cement and the high-margin ground granulated blast furnace slag. Going forward, driven by improving realisation and receding input prices, the Company is likely to report higher EBITDA per tonne.

Building a greener planet
Strengthened with innovative and sustainable technology, the company is living its vision of being India’s top green cement producer. It has set a strategic roadmap towards achieving best-in-class energy efficiency in production. The company forayed into construction chemicals with the launch of a unique green product range. It has set up a 0.3 million tonne facility at Bellary in Karnataka. It also entered the ready-mix concrete (RMC) market with its first commercial unit in Chembur, Mumbai. This is a part of its larger strategy to increase customer base and offer integrated building material bouquet of offerings comprising cement, construction chemicals and steel with concrete. It maintains a unique focus on green building materials, which positions it as one of India’s leading manufacturers of green ‘sustainable’ cement. It is set to launch its unique eco-friendly concrete for use in commercial construction projects and expand its RMC business in southern and western India.

Growing demand
The demand for cement is set to increase in India owing to the growth in housing, infrastructure, industrial projects. Rise in affordable housing is also set to create rising demand for affordable housing units. Further, as rural housing recovers due to better Kharif season and improved food grain production, demand will further increase.

Benefiting from India’s infrastructure push
The growth potential in the Company is driven largely by the government’s push for large infrastructure projects and a boom in housing construction. India presents an exciting construction and infrastructure story as it goes about significantly increasing its allocation for capital expenditure to support its investment cycle. The Government maintains a continued focus on the infrastructure and construction sector with higher budgetary allocation year-on-year. During the Union Budget 2022-23, the Finance Minister allotted ` 48,000 crore for housing projects under the affordable housing scheme, further boosting the prospects of cement companies.
The Government is working on upgrading the road length of 1,25,000 km under the National Infrastructure Pipeline (NIP) in the next five years. The NIP has expanded to 7,400 projects from the previous 6,835 projects, paving the way for increased demand for cement.

Key risks
However, JSW Cement’s lower capacity utilisation and limited portfolio diversification is a key worry. Also, the substantial capacity expansion planned exposes the company to risks related to project execution. Further, being in the commodity sector, the company is highly susceptible to volatility in input cost and realisation and also to cyclicality in the cement sector. It is also exposed to volatility in input prices for key components including freight, fuel, power and raw material, which has the capability to impact its Operating Profitability Margin.

List of Sources:
https://www.livemint.com/companies/news/jsw-cement-raises-rs1-500-crore-from-global-pe-investors-11627470886355.html
https://www.livemint.com/companies/news/sbi-picks-up-minority-stake-in-jsw-cement-for-rs-100-crore-11640066677872.html
https://www.constructionweekonline.in/uncategorized/18265-jsw-cement-forays-into-rmc-business-with-first-commercial-unit-in-mumbai
https://www.cemnet.com/News/story/171098/jsw-cement-to-sets-its-sights-on-ipo-and-green-cement-leadership.html
https://www.financialexpress.com/industry/interview-jsw-cement-in-talks-to-raise-200-m-by-march-21-to-list-by-dec-22/2136793/
https://www.thehindu.com/business/jsw-cement-eyes-30-mtpa-by-2025/article26314362.ece

Up Next

Towards Sustainability: Slag Grinding Circuits

Don't Miss

Growing With Innovation

Concrete

Cement Makers Reaffirm Commitment to Sustainable Growth

Published

4 hours ago

June 5, 2026

admin

World Environment Day spotlight on innovation and circularity

On World Environment Day, the Indian cement industry reiterated its commitment to supporting India’s climate ambitions through sustainable manufacturing, resource efficiency and the adoption of cleaner technologies.

The Cement Manufacturers’ Association (CMA) said the sector remains aligned with the Government of India’s Net Zero commitments and is accelerating efforts to reduce its environmental footprint while supporting the country’s infrastructure and development agenda.

Parth Jindal, President, CMA and Managing Director, JSW Cement, said the industry is increasingly adopting cleaner technologies, improving energy efficiency and expanding the use of alternative fuels and raw materials. He also highlighted the growing importance of circular economy practices, where industrial by-products and waste streams from one sector are utilised as resources in another.

“The Indian Cement Industry is aligned to the Government’s commitments on carbon mitigation and is accelerating the adoption of cleaner technologies, resource efficiency and circular economy practices while actively exploring the potential of Carbon Capture, Utilisation and Storage (CCUS) as a critical pathway for deep decarbonisation,” said Jindal.

He added that coprocessing industrial waste and by-products helps conserve natural resources, reduce disposal requirements and lower the environmental footprint across multiple sectors.

According to Jindal, sustainability is no longer limited to manufacturing processes but is increasingly influencing investment decisions, innovation strategies and long-term growth plans within the industry.

Echoing similar views, Dr Raghavpat Singhania, Vice President, CMA and Managing Director, JK Cement, said sustainable development extends beyond emissions reduction and must also focus on responsible resource utilisation and waste minimisation.

“Sustainability in the built environment cannot be measured by emissions alone. It is equally about how efficiently we use resources, how effectively we minimise waste and how responsibly we create the infrastructure that will serve future generations,” said Singhania.

He noted that the cement industry is advancing its sustainability agenda through greater resource efficiency, increased circularity, technological innovation and continuous improvements in manufacturing practices. As a key contributor to India’s infrastructure development, the sector has a critical role to play in balancing economic growth with environmental responsibility.

On the occasion of World Environment Day, industry leaders reaffirmed their commitment to supporting India’s climate goals while delivering the materials required for resilient, durable and sustainable infrastructure.

Concrete

Building a Greener Future Together

Published

22 hours ago

June 4, 2026

admin

Environmental sustainability requires immediate action, not just long-term commitments and discussions. Recycling, circular economy practices, and technology-driven waste management can help industries reduce environmental impact while supporting sustainable growth.

Author: Jignesh Kundaria, Director and CEO, Fornnax Technology

World Environment Day serves as an important reminder that environmental sustainability can no longer remain confined to discussions, reports, or long-term commitments. The environmental challenges facing the world today demand immediate, measurable, and collective action. Across industries and communities, waste generation continues to outpace our ability to process it responsibly, placing increasing pressure on ecosystems, natural resources, public health, and the well-being of future generations.

One of the most significant shifts required today is a change in how society perceives waste. Rather than being viewed as a material to be discarded, waste must be recognised as a valuable resource that can contribute to both economic growth and environmental protection when managed through the right technologies and systems. This mindset forms the foundation of the circular economy model that countries across the world are increasingly adopting to reduce landfill dependence, recover valuable materials, and create more sustainable industrial ecosystems.

India has made meaningful progress in strengthening awareness around sustainability, recycling, and environmental responsibility over the past decade. Significant efforts are being made to formalise the recycling sector through improved infrastructure, technology adoption, policy implementation, and broader stakeholder participation. These developments are creating a stronger foundation for responsible waste management and resource recovery across the country.

However, achieving long-term environmental impact requires collaboration from all stakeholders. Industries, policymakers, technology providers, and communities must work together with greater accountability to strengthen recycling ecosystems, encourage responsible waste management practices, and create sustainable outcomes through consistent execution rather than temporary interventions.

As someone closely associated with the recycling industry, I firmly believe that technology will play a decisive role in addressing future environmental challenges. Advanced recycling systems have the potential to recover valuable resources, reduce pollution, minimise landfill burdens, and conserve energy, creating a more sustainable future for generations to come. This belief is deeply reflected in Fornnax’s motto, “Committed to Create a Green Future,” which embodies our commitment to building long-term environmental value through innovation and responsible action.

At the same time, technology alone cannot deliver meaningful change. Real progress requires intent, awareness, participation, and a shared sense of responsibility. Sustainable development can only be achieved when innovation is supported by collective action and a genuine commitment to environmental stewardship.

On this World Environment Day, let us move beyond conversations and take meaningful steps towards creating a cleaner, greener, and more sustainable planet. By embracing innovation, strengthening recycling ecosystems, and acting responsibly today, we can create lasting environmental impact and secure a better future for generations to come.

Concrete

JK Lakshmi Advances LC3 Cement Expansion

Company highlights commercial production and research partnerships

Published

4 days ago

June 1, 2026

admin

The meeting reviewed progress in limestone calcined clay cement (LC3) technology and its commercial adoption in India’s cement sector, focusing on low-carbon alternatives to conventional binders. JK Lakshmi Cement noted that limestone calcined clay cement can reduce carbon dioxide emissions by up to 40 per cent compared with conventional cement and said this reduction supports industry decarbonisation. The company highlighted that it was among the first two cement manufacturers in India to move LC3 into commercial production after the Bureau of Indian Standards approved the technology as a cement standard.

Vinita Singhania said the transition of LC3 from research to commercial production reflected collaboration between industry, academia and international institutions. Maya Tissafi acknowledged JK Lakshmi Cement’s role in advancing LC3 adoption in India and its contribution in taking the technology from laboratory trials to commercial implementation. Both representatives underlined the growing relevance of sustainable construction materials as India expands infrastructure and urban development.

The meeting explored continued collaboration with Swiss research institutions such as EPFL, EMPA and ETH Zurich alongside Indian academic partners and development organisations. JK Lakshmi Cement has been associated with the LC3 initiative since 2014 and worked with EPFL, IIT Delhi, IIT Madras, Development Alternatives and Technology and Action for Rural Advancement. The company conducted one of the earliest industrial trials of LC3 and recently announced commercial production of Green Pro LC3 cement from its Jaykaypuram plant in Rajasthan.

India remains the world’s second-largest cement producer and expansion of infrastructure, urbanisation and housing demand continue to support long-term sector growth, increasing interest in low-carbon technologies. The company reported an annual turnover of more than Rupees (Rs) 60 bn and current cement capacity of about 18 million (mn) tonnes (t) per annum, with a target of reaching 30 million (mn) tonnes (t) by 2030. Apart from grey cement, the company also makes ready-mix concrete, gypsum plaster, wall putty, primers, adhesives and fly ash blocks, and both sides concluded on the need for continued collaboration to develop sustainable construction solutions.