New Delhi: Emboldened by impressive performance in the just-ended fiscal, JSW Infrastructure Ltd, a private port operator, has proposed an investment of ₹2,500 crore in the current fiscal to expand its cargo handling facilities.
In an interview to a media group, JSW joint managing director and chief executive officer (CEO) Arun Maheshwari said that the company expected around 50% increase in cargo handling capacity to 258 million tonne with an investment of ₹14,000 crore by 2027. He said that it all proposals, which are currently underway at various stages, are approved, JSW would be investing to the tune of ₹2,500 crore in the 2025 fiscal.
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“We will continue growing the third party customers and down the line, six years would like to see their share in the total volumes at 50%,” added Maheshwari.
The company had announced signing of the concession agreement with Jawaharlal Nehru Port Authority for liquid berths of 4.5 million tonne per annum (mtpa) in October last year, soon after its listing.
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The JSW Infra CEO said that the company will also sign the concession agreement later this month for a 7 mtpa dry bulk terminal in Tuticorin under the PPP (private-public partnership) mode. “We have already signed a concession agreement with Karnataka Maritime Board for the development of a 30 mtpa greenfield port at Keni and is set to sign an agreement for Jatadhar port in Odisha,” he added.
The agreements entail an investment worth ₹4,000 crore, which will start becoming a reality next year onwards and so. With this, JSW’s capex is expected to reach around ₹14,000 crore in the next four to five years in line with JSW Infra’s objective to reach 400 mtpa capacity by 2030.
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The JSW is said to be funding all these expenditure and additional capex through internal accruals as the company boasts a strong balance sheet with low debt. During its listing, the company diluted 11% of its shares.
As per the Securities and Exchange Board of India (SEBI) norms, newly listed firms have three years to achieve a 25% public float. Besides, the JSW also contemplating raising additional funds through its proposed follow-on public offer. The company is also eager to invest in the upcoming port projects in India and abroad and is looking for suitable opportunities to expand its operation.
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“Just as we have considered two to three ports previously, we will remain vigilant for new opportunities. This includes projects initiated by the central government; we will assess their potential impact on our business and decide accordingly,” said Maheshwari.
The company aims for a double-digit growth of 10-12% over the next couple of years. “And on a sustainable basis, talking about five to seven years down the line, it will be 15-17% CAGR (compounded annual growth rate),” he said.
In Q4 of FY2024, JSW posted a net profit of ₹329 crore, up 9% year-on-year. Its revenue climbed 23% to ₹1,200 crore with a cargo volume of 29.3 MT.
