Chennai, Oct 11 (SocialNews.XYZ) JSW Cement on Tuesday said it will invest over Rs 3,200 crore to set up an integrated greenfield cement manufacturing facility in Madhya Pradesh as well as a split grinding unit in Uttar Pradesh.
The combined cement capacity across both these units will be 5 million ton per annum (MTPA), the company said.
The proposed investment includes an integrated cement plant with 2.5 MTPA clinker capacity, 2.5 MTPA grinding capacity, 15 MW Waste Heat Recovery System, a modern residential colony in Madhya Pradesh, and a 2.5 MTPA grinding unit in Uttar Pradesh.
On Monday, JSW Cement acquired Springway Mining Private Ltd (SMPL) owning limestone land for Rs 476.87 crore from India Cements Ltd.
Springway Mining was in the process of setting up a cement mill in Madhya Pradesh.
According to India Cements, out of the total consideration, a sum of Rs 373.87 crore has been received on Monday. The balance Rs 103 crore will be received on completion of certain conditions of the Share Purchase Agreement, on or before December 31, 2022.
JSW Cement said the acquisition gives it access to limestone reserves of about 106 million ton, including a mining lease valid until 2065.
The limestone mine is spread over about 500 hectares of land located in Panna District of Madhya Pradesh.
The company has secured most of the regulatory approvals for mining operations and is pursuing requisite approvals for setting up the integrated cement manufacturing facilities.
JSW Cement's integrated manufacturing facility will be located adjacent to this mining reserve.
"The acquisition of Springway Mining from India Cements puts JSW Cement on its path to 50 MTPA capacity with a pan-India footprint. This strategic investment marks our entry into the highly attractive Central Indian market with specific focus on servicing the prolific needs of customers in Madhya Pradesh and Uttar Pradesh," said Parth Jindal, Managing Director, JSW Cement.