JSW Cement Postpones IPO Plans To 2022

JSW group’s initial public offer for its cement business has been postponed by two years from the earlier date of December 2020, said Parth Jindal, MD, JSW Cement. The company will use the intervening period to ramp up capacity from the current 14 million tonnes (mt) per annum to 20 mt a year by 2022. “Last year was very weak for the cement sector; it was the first year since 1991 when there was a decline in cement consumption in the country," Jindal said. “There’s a decline again this year because of which our plans to expand had to be been postponed. Year to date this year, our cement production is lower by 30% from the year before. The aggregate sale volumes of listed cement companies declined 13% year-on-year in in the March quarter, on account of the lockdown beginning. After falling 85% year-onyearin April, domestic cement demand recovered quickly in May 2020, with the decline reducing to 22% yoy for the month. The recovery was driven by rural demand which was aided by a good rabi crop, adequate availability of local labour and lower spread of covid-19, a July 30 report by credit ratings agency India Ratings said.