Shiva Cement Limited, the Odisha-based cement company, and a subsidiary of JSW Cement Ltd, India's leading producer of green cement, will invest over Rs 1,500 crore in a 1.36 million tonne clinker unit project to be established in Sundergarh district of Odisha. It will fund this investment through a combination of long-term debt and equity. This project also includes setting up of a 1 MTPA grinding unit, 8 MW Waste heat recovery power plant, 4 MTPA crushing plants at its Dolomite and Limestone mines, 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. The design of the plant incorporates best technologies and will be most-modern and energy-efficient with waste heat recovery and co-processing unit using alternative fuels. The project was approved during the Company's Board Meeting held last month.
Shiva Cement has already received some of the Regulatory and statutory approvals and is on track to obtain other necessary clearances. Once commissioned, this clinker unit will service JSW Cement's manufacturing facilities across East Region and is expected to create around 500 direct & indirect job opportunities. Consequently, Shiva Cement is expected to become a strategic hub for JSW Cement's operations in East region of India.
Commenting on the new clinker project at Shiva Cement, Mr Parth Jindal, Managing Director of JSW Cement Ltd said, "JSW Group has long-standing relationships in the State of Odisha through our Cement, Infrastructure & Steel businesses. Shiva Cement's plan to establish a new clinker unit further reaffirms our Group's commitment to investments in the State. Through this investment we hope to contribute to the overall economic development of Odisha as well as create new direct and indirect job opportunities. The new clinker unit at Shiva Cement in Odisha will provide a strategic advantage to service the needs of our customers in the region and further strengthen JSW Cement's leadership position in the Green Cement category in India. We expect to commission the clinker unit by the end of next fiscal."
Shiva Cement's clinker project contracts have been awarded to Thyssenkrupp Industries India and Larsen & Toubro.
1. Thyssenkrupp has been contracted to design and supply a new state of the art 4,000 tonnes per day capacity Clinkerization unit
2. Larsen & Toubro 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. JSW Cement remains focused on its goal to become a leading green cement player in India in terms of EBITDA per tonne. Thus, 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.
Shares of SHIVA CEMENT LTD. was last trading in BSE at Rs.14.94 as compared to the previous close of Rs. 14.23. The total number of shares traded during the day was 713951 in over 701 trades.
The stock hit an intraday high of Rs. 14.94 and intraday low of 14.25. The net turnover during the day was Rs. 10545254.