JSW owned Shiva Cement to invest Rs 1,500 crore on clinker facility in Odisha

MUMBAI: Shiva Cement, a subsidiary of Parth Jindal-led JSW Cement, will be investing Rs 1, 500 crore in a 1.36 million tonne clinker unit project to be established in Sundergarh district of Odisha through a combination of long-term debt and equity, the company said.

“Once commissioned, this clinker unit will service JSW Cement’s manufacturing facilities across the East region and is expected to create around 500 direct & indirect job opportunities,” said Parth Jindal, JSW Cement's managing director, during the media interaction on Wednesday.

Shiva Cement has already received some of the regulatory and statutory approvals and is on track to obtain other necessary clearances, Jindal said. The company expects to commission the clinker unit by the end of next fiscal.

The project includes setting up of a 1 million tonne per annum (1MTPA) grinding unit, 8 MW waste heat recovery power plant, 4 MTPA crushing plants at its dolomite and limestone mines. The company plans a 10 Km long overland belt conveyor to transport limestone from the mines to the manufacturing plant and own railway siding with 12 Km long railway track upto Sagra station to ensure seamless transportation of finished goods to the market. T

The Rs 1500 crore project will be serviced via debt to the extent of Rs 1.150 crore and JSW will invest ?150 crore through redeemable preference shares and the remaining through a rights issue.

JSW Cement has manufacturing units at Vijayanagar in Karnataka, Nandyal in Andhra Pradesh, Salboni in West Bengal, Jajpur in Odisha and Dolvi in Maharashtra.

“This was always the plan, Clinker was coming all the way from Andhra Pradesh and the cost was very high along with some supply chain disruption taking place at any time. This is a very strategic investment for us,” Jindal said.

Shiva Cement’s clinker project contracts have been awarded to Thyssenkrupp Industries India and Larsen & Toubro. Thyssenkrupp has been contracted to design and supply a new state of the art 4,000 tonnes per day capacity Clinkerization unit and L&T has been awarded the contract for Civil, Mechanical & Refractory erection work of the new clinker unit at Shiva Cement.

For JSW Cement, the new clinker unit being established by Shiva Cement is part of its strategic roadmap to achieve 25 MTPA capacity by 2025, with a special focus on scaling up its presence in the Eastern region of India.

“All business initiatives and investments are driven to achieve the targeted financial, production and sales growth position and list the company publicly in the next few years,” Jindal said.

The current expansion will also aid in a raw material integration with JSW Steel’s planned acquisition of the 3.5 million tonne (MT) Bhushan Power and Steel Ltd (BPSL) is also located in Odisha.

“JSW Steel is set to acquire BPSL, given that they are present in the same location, there will be further raw material integration and security for this current unit,” Parth Jindal said.

Shiva Cement’s plan to establish a new clinker unit further reaffirms the group’s commitment to investments in the State. The new clinker unit at Shiva Cement in Odisha will provide a strategic advantage, Jindal said.