JSW Cement Ltd signalled its intention to expand capacity to 20Mta from its current 12.5Mta and launch an initial public offering (IPO) sometime after the 2019 general election, the company's Managing Director, Parth Jindal, said on Monday.
Mr Jindal said that the capital raised through the IPO will be used to further expand capacity as the company aims to be one of the top three cement manufacturers in the country.
The capacity expansion will be implemented by setting up a new 1.2Mta manufacturing facility at Jajpur in Odisha as well as ramping up capacity to 4.5 Mta in Dolvi and to 1.2Mta at the facilities of the recently-acquired Shiva Cements.
"We are targeting 20Mta capacity by 2019 through various organic expansion plans that we have embarked upon, also we expect our capacity utilisation to reach 75 per cent from the current 67-68 per cent mark, which is when we feel we should come to the market for the fuel for further expansion," Mr Jindal said.
The announcement was made at a press conference to mark the commencement of manufacturing of a “heavy duty” variety of cement at the company’s Dolvi plant in Maharashtra.
