JSW Cement has commissioned a new 1 MTPA grinding facility in Nagaur, Rajasthan, bringing its total grinding capacity to 25.1 MTPA.

New facility at a glance

The Nagaur unit marks a capacity addition for JSW Cement in the state of Rajasthan. The following table summarises the key details of the development:

The commissioning of the Nagaur grinding unit expands JSW Cement's manufacturing footprint in Rajasthan, contributing to the company's overall production infrastructure across India.

Clinker capacity details

In addition to the grinding expansion, the company disclosed that its total clinker manufacturing capacity stands at 9.74 MTPA. This figure includes the clinker capacity at its joint venture, JSW Cement FZC.

The disclosure was made under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, on October 6, 2026.

JSW Cement board has approved a merger with its subsidiary Shiva Cement at a share exchange ratio of 5:41. This consolidation aims to create a single unified cement platform, unlocking operational, financial, and management synergies.

Merger details

The board's approval marks a key consolidation step within the JSW Cement group structure. The share exchange ratio of 5:41 will govern the terms under which Shiva Cement shareholders receive JSW Cement shares as part of the amalgamation. Specifically, JSW Cement will issue 5 equity shares of face value ₹10 for every 41 equity shares of face value ₹2 held in Shiva Cement by public shareholders.

The Scheme of Arrangement is subject to requisite approvals from stock exchanges, SEBI, the National Company Law Tribunal (NCLT), Odisha Industrial Infrastructure Development Corporation, other statutory authorities, and respective shareholders and creditors. The transaction is expected to be completed within 12-14 months, subject to timely receipt of regulatory approvals.

Financial and operational rationale

JSW Cement holds 66.23% of the paid-up equity share capital of Shiva Cement. The merger aims to create synergies by pooling financial, managerial, technical, distribution, and marketing resources. A primary driver is the optimization of raw material procurement; Shiva Cement operates a clinker manufacturing facility in Sundargarh, Odisha, with a capacity of 1.32 mtpa. Integrating this backward into JSW Cement’s operations is expected to reduce dependence on external procurement and improve supply-chain efficiency.

Financially, the consolidation eliminates inter-company guarantees and facilitates more efficient funding arrangements. It also simplifies the corporate structure by removing duplicative administrative functions and regulatory compliances associated with maintaining two separate entities. The scheme will also result in the right sizing of the financial statements of the companies involved.

Shareholding pattern impact

Upon effectiveness, Shiva Cement will cease to exist without being wound up. Public shareholders of Shiva Cement will receive new equity shares in JSW Cement, ranking pari-passu with existing shares. The promoter holding in JSW Cement will dilute slightly from 72.02% to 71.39%, while public shareholding increases from 27.03% to 27.67%.

What the numbers show

The financial data highlights a significant scale disparity between the merging entities. JSW Cement reported a turnover of ₹5,995.28 crore and net worth of ₹7,029.47 crore in FY26, whereas Shiva Cement recorded a turnover of ₹435.17 crore and a negative net worth of ₹(30.08) crore. The scheme includes provisions to adjust Shiva Cement’s accumulated debit balance in Retained Earnings against its Securities Premium Account, aiming to right-size its financial position prior to amalgamation. This indicates that JSW Cement is absorbing a loss-making entity to secure backward integration benefits rather than immediate profit contribution.

Source: https://lodr-files.dhan.co/lodr-inputs/Company/INE718I01012/954583c2-bdc4-4677-9e34-802f01e32943.pdf