Jindal Cement, a key entity within the Naveen Jindal-led conglomerate, is set to embark on a substantial capacity expansion, aiming to quadruple its cement production to 10 million tonnes annually within the next two to three years. This strategic move is backed by a significant investment of approximately ₹3,000 crore. Chief Executive Officer Rohit Vohra confirmed in an exclusive interaction that the company has obtained all necessary approvals to enhance its output.
At the moment, Jindal Cement has a 2.5 million tonne yearly grinding capacity. This capacity is split between its facility in Angul, Odisha, which has a capacity of 1.5 million tonnes, and its plant in Raigarh, Chhattisgarh, which produces one million tonnes. Both of these facilities are well situated close to Jindal Steel’s current steel operations, which may provide operational and logistical advantages.
The planned capital cost for this development amounts to ₹3,000 crore. A significant amount, ₹2,500 crore, will go towards expanding capacity at these current locations. This entails increasing the capacity of the Raigarh plant by 3 million tonnes and the Angul facility by an additional 1.5 million tonnes. Vohra has referred to this gradual process of expanding operations as a “calibrated and sustainable manner,” highlighting effectiveness and purposeful expansion.
The goal of Jindal Cement’s strategy is to increase scale in a sustainable and regulated way. By growing at its current sites, the company hopes to take advantage of its operational know-how and infrastructure, which might cut down on the time and expense of starting new greenfield projects. Benefits pertaining to energy, logistics, and the sourcing of raw materials might also be unlocked by being close to Jindal Steel’s facilities, which would boost competitiveness and reduce costs.
Jindal Cement’s major expansion comes at a time when India’s housing and infrastructure industries are expanding rapidly. Forecasts show that there will probably be a significant need for cement for a number of years to come. An estimated 600 million tonnes of cement are produced in India each year. Major companies like UltraTech Cement and Adani Cement, which together own more than half of the total capacity share, dominate the market. It is anticipated that Jindal Cement’s action will increase competitiveness and possibly change market dynamics.
Investors seeking development prospects in the Indian cement industry are expected to regard Jindal Cement’s aggressive expansion strategy favourably, even though particular market reactions have not yet been noticed. A move like this might force rivals to reconsider their own market positioning and expansion plans. Increased capacity may result in more affordable prices and better product availability in important areas, which would help end users and advance the industry as a whole.
