JSW aims to be among the top 5 cement firms in India, says MD Parth Jindal

economictimes.indiatimes.com:

Parth Jindal, managing director, JSW Cement and JSW Paints, outlined the company's growth plans as it prepares for a public listing next year. Edited excerpts:

How is current market opportunity playing out for JSW Cement?
Our capacity is currently at 19 million tonnes a year. By the end of this calendar year, we will be at 21 million tonnes in capacity.

For the next phase of growth, we've drawn a roadmap to go to 60 million tonnes over the next five years. Currently, we plan to do it all organically and we will be investing close to ₹18,000 crore over the next five years. Over the last few years, we have also acquired limestone mines through the auction process in various states.

All of our existing plants have brownfield expansion scope as well. We are aiming to become one of the top five cement players in the country. Right now, you have Ultratech, then you have Adani Cement, Shree Cement and Dalmia.

We want to increase our presence to hold about 10% of the market share. In the next calendar year, our plan is do an IPO.

How much equity is the promoter group looking to dilute?
We are looking at raising between ₹3,500 crore and ₹4,000 crore and we want to dilute anywhere between 10-15% in the first round. Over the next three years, we will have to go to 25% equity dilution.

Initially, the size of the IPO will be anywhere between ₹3,500-4,000 crore with 10-15% dilution, depending on what valuation the market is giving us. After the IPO, we will have the financial ammunition to organically grow to a capacity of 60 million tonnes. We also aggressively look at consolidation opportunities.