The Government has really done well in identifing certain sectors which need thrust and rapid growth. The RERA bill and housing for all schemes, the concretization of National Highways NH, development of ports, SEZ and improvising State Highways and its links to NH great intiatives and we see a huge demand for cement in the coming years.
Rahul Akkara, Vice President - Strategy & Brand, JSW Cement shares his view with Sandeep Sharma about his company, brand equity, product offerings, existing manufacturing base, installed capacity, capex planned, demand scenario, business generated in last year, opportunities available, latest technology and likely impact of GST on the cement Sector.
Could you tell us about your company, brand equity, product offerings and achievements?
JSW Cement operates out of the Southern Markets, Maharashtra, Goa and West Bengal. We started our journey in 2014 and to date we have been able to take 8% of the Market share for PSC cement which is a new category that introduced. As a company we manufacture and sell PSC Cement, Concreel HD and GGBS from our various plants which are present in south and Maharashtra. We are the 1st Indian company to be awarded the Green Pro certification, making our products eco friendly which is very important in today’s environment.
Could you share with us details about your existing manufacturing base, installed capacity and production process?
Today we have 3 large manufacturing facilities. 4.8 MNMT in Nandiyal – AP, 3.00 MNMT capacity in Bellary – Karnataka and 0.6 MNMT in Dolvi – Raigad Maharashtra.We are also in the process of starting our operations in West Bengal where we have put the state’s largest cement facility @ 2.4MNMT capacity.
Are you planning any capex in the current financial year?
As you are aware, we are expanding currently not just at our existing facilities but we are also putting up new facilities across several markets in East, West, and South, such expansions require CAPEX .
How is the current demand scenario for Cement in your area of operation?
The demand for Cement is only growing, thanks to the govt on initiating various projects. Currently, Cement in India is growing at CAGR 7%
How did your company fare so far in terms of business generated, growth rate achieved and your expectations from the current financial year?
While there has been a slowdown in cement in Q4 last year, JSW Cement continues to be on the growth chart, we have grown at 15% over last year and this year with GST and other landmark initiatives by the govt, we only see the demand and growth to go higher up.
What kind of opportunities do you see in the real estate, roads, and highways segment?
The Government has really done well in identifying certain sectors which need thrust and rapid growth. The RERA bill and housing for all schemes, the concretization of National Highways NH, development of ports, SEZ and improvising State Highways and its link to NH are great initiatives and we see a huge demand for cement in the coming years.
Could you share with us insights about the technological superiority of your cement production process?
We manufacture cement through finish mode using Roller press technology which is one of its kind technologies in India.
What can be the impact of GST on the cement industry in India?
GST should ease the way for doing cement business in the country and this should also help in stabilizing prices across markets.