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JSW Group Plans to invest Rs 10,000 crore for expansion of its ports’ capacity |
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MUMBAI: Sajjan Jindal's JSW Group plans to shape its ports business into a major player in the next five years, becoming the only Indian conglomerate that can pose a challenge to the Adani Group's steep rise in this sector.
The steel-to-energy behemoth, along with its partners, plans to put in Rs 10,000 crore to expand its ports even as it plans to increase capacity more than six times to 200 million tonne (MT) by 2020.
"We at JSW don't set up any goals that are easily achievable. We are not a very large port company today but our ambition is to convert it into one of the major port companies in India," Chairman Sajjan Jindal said.
Apart from the Rs 10,000-crore organic expenditure, Jindal is looking at acquisitions on the east coast to speed up the process of achieving the 200 MT target. It is scanning major and non-major ports, across Andhra Pradesh, Odisha and Tamil Nadu.
The group, through its subsidiary JSW Infrastructure, already operates two ports in Maharashtra and two cargo berths in Goa. It is also building a terminal in Odisha's Paradip Port.
"If we have to grow from 33 MT to 200 MT, we will have to grow at 25% compounded annual growth rate every year. For that, brownfield expansions, some acquisitions, addressing connectivity to attract third party cargo, growing the scale to accommodate larger ships: these are our plans," JSW Infrastructure Chief Executive BVJK Sharma told ET in an exclusive interview.
The Adani Group operates India's largest port company, Adani Ports & SEZ, which has more than 300 MT of cargo carrying capacity at eight locations. The company is also in the process of building and acquiring more capacity on the east coast as it recognises the country's crying need for mechanised ports as old ports struggle to accommodate growing volumes.
JSW may list JSW Infrastructure once it grows to a significant size.
Source : economictimes.indiatimes.com
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