Shiva Cement hit an upper circuit of 5% at Rs 15.68 after the company said that it will invest over Rs 1,500 crore in a 1.36 million tonne clinker unit project to be established in Sundergarh district of Odisha.
The company said it will fund this investment through a combination of long-term debt and equity. The 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.
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, Parth Jindal, managing director of JSW Cement, 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.
Odisha-based Shiva Cement is a subsidiary of JSW Cement. Shiva Cement reported a net loss of Rs 6.26 crore in Q2 FY21 as compared to a net loss of Rs 6.23 crore in Q2 FY20. Net sales during the quarter declined by 6.5% YoY to Rs 5.32 crore.
Separately, media reports suggested that JSW Cement has pushed back its plans for an initial public offering by two years to around December 2022 due to slowdown and COVID-19 disruptions.
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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)
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