Published 20:12 IST, December 19th 2024
JSW Infrastructure Unveils Massive Rs 30,000 Crore Capex Plans for FY 25-30
The company has also set a target to achieve net-zero greenhouse gas (GHG) emissions by 2050, aligning with global efforts
JSW Infrastructure Limited (JSWIL), India's second-largest private port operator, has revealed an ambitious plan to invest Rs 30,000 crores between FY25 and FY30 to enhance its cargo-handling capacity to 400 million tonnes per annum (MTPA). This strategic growth initiative marks a significant step in the company’s mission to reshape India’s ports and logistics sector and position itself as a leader in the industry.
Massive Capacity Expansion Strategy
The company’s extensive Rs 30,000 crore capital expenditure (capex) plan aims to boost its port and logistics capacity significantly by FY30. Key initiatives in this strategy include:
Brownfield Projects: Enhancing the capacity of existing ports at Jaigarh, Dharamtar, and Goa, which will provide a strong foundation for scaling operations.
Greenfield Developments: Building new ports at Jatadhar, Keni, and Murbe to further expand its infrastructure footprint.
Logistics Integration: Strengthening its logistics capabilities through acquisitions, such as the purchase of Navkar Corporation, and investing in a slurry pipeline project, creating a more integrated end-to-end logistics network.
Diversifying for Long-Term Stability
In addition to expanding its physical infrastructure, JSW Infrastructure has made significant strides in diversifying its customer base. While the company continues to benefit from its strong ties with JSW Group companies, it has seen substantial growth in third-party cargo. The share of third-party cargo has surged from just 5 per cent in FY19 to 48 per cent in the first half of FY25. This diversification is part of the company’s strategy to achieve an even split between group and third-party customers, which will contribute to operational stability and long-term profitability.
Commitment to Sustainable Development
JSW Infrastructure is also committed to environmental sustainability. The company has set a target to achieve net-zero greenhouse gas (GHG) emissions by 2050, aligning with global efforts to combat climate change. As part of its sustainability initiatives, JSWIL plans to reduce its direct emissions while continuing to develop its infrastructure in an environmentally responsible manner.
Strong Financial Foundation to Fuel Growth
JSWIL’s ambitious expansion plans are underpinned by a robust financial foundation. The company boasts a strong balance sheet with zero net debt, providing it with the financial flexibility to execute its massive capex strategy and pursue value-accretive acquisitions. According to Lalit Singhvi, CFO & Whole Time Director of JSW Infrastructure, the company is well-positioned to drive capacity additions and maintain solid financial metrics while pursuing its growth initiatives.
Updated 20:14 IST, December 19th 2024