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Informist, Friday, Aug. 14, 2026

 

--JSW Cement: See clinker costs coming down in coming quarters 
--CONTEXT: Comments by JSW Cement mgmt in post-earnings call with analysts 
--JSW Cement: Expect Q2 to be better than Q1 despite monsoons 
--JSW Cement: Expect over 60?pacity use for ops in North India by yr end 
--JSW Cement: See capex of INR 23 bln in FY27, INR 20 bln in FY28 
--JSW Cement: Started to buy domestic coal, see cost coming down going ahead 
--JSW Cement: See fuel costs in Q2 to be similar to Q1, may fall Q3 onwards 

 

By Avishek Rakshit and Shruti Nair

 

KOLKATA/MUMBAI – JSW Cement Ltd. is set to invest a cumulative INR 43 billion over the current financial year and the next to augment its installed capacity rapidly in the next few years, a senior company official said on Friday.

 

"For this financial year, we are going to spend about INR 2,300 crore (INR 23 billion) on growth and about INR 2,000 crore (INR 20 billion) in the next (financial) year. Our intention is to move from 24.1 million tonne current capacity to about 43.5 (million tonnes) over the next few years," the official told sector analysts in a post-earnings conference call.

 

According to the official, expansion to this targeted capacity will require an investment of around INR 76 billion.

 

The company is currently increasing capacity at its Nagaur plant in Rajasthan by 3.5 million tonnes, while a greenfield project of 4 million tonnes is underway in Dolvi in Maharashtra. A second greenfield plant with an installed capacity of 1.7 million tonnes is also under construction in the UAE. By December 2028, once these plants are completed, JSW Cement's total installed capacity will touch 33.3 million tonnes. 

 

The company is also foraying into the central Indian region by setting up a 6-million-tonne plant that will also address demand in parts of eastern India. It is also increasing capacity at its Vijayanagar plant in Karnataka by 4 million tonnes.

 

 

"Central (India) also is on our priority list. We hope to make some announcement in the coming quarters," the official said.

 

For its planned plant in Punjab, JSW Cement has acquired the land necessary for setting up the plant at INR 500 million-INR 600 million. However, more land purchase needs to be made to set up the approach road to the planned plant. 

 

"Now, we are awaiting the EC (environmental clearance). The EC can come anytime...So, once we have that, probably then we will initially work on at Punjab," the official said. The capital expenditure outlay for the current financial year includes the planned investment to set up the plant in Punjab.

 

At the same time, the company, which faced cost escalations arising from the impact of the ongoing West Asia war, expects its clinker costs to come down in the coming quarters and is also prioritising using domestic coal instead of imported fuel to manufacture cement. 

 

Usually, cement companies import coal and petcoke due to domestic shortages or cost benefits. However, this year, following the global macroeconomic volatility due to the West Asia war, import costs have risen for all companies, including JSW Cement. At the same time, India has excessive coal stocks due to muted demand from the power sector and state-owned Coal India stepping up production. Thus, domestic coal costs became very lucrative compared to imported coal and petcoke and Indian coal is also readily available now. 

 

The company official said that JSW Cement's fuel costs in the September quarter might be similar to fuel costs in the June quarter, but would start coming down from the December quarter.

 

As the company plans capacity utilisation of over 60% from its current plant in north India, it also expects the September quarter to be better than the June quarter despite the monsoon. Usually, construction activities come to a halt during the monsoon and hence, the September quarter is the weakest for cement companies. 

 

"Despite Q2 (June quarter) being a monsoon season, we're expecting it to be better than Q1 (June quarter) and signs are visible already in the month of July. We have received approvals for over 29 large infrastructure projects in Q1. Moreover, the project pipeline is also fairly robust and we are also applying for additional approvals across the central bodies," a second company official said. 

 

At 1213 IST, shares of JSW Cement traded 0.6% lower at INR 130.34 on the National Stock Exchange.  End

 

Edited by Avishek Dutta

 

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