JSW Cement Limited, a prominent player in the Indian cement industry, has announced a significant change in its board composition. Sudhir Maheshwari, who served as a Non-Executive Nominee Director, has tendered his resignation from the company's Board of Directors.

Key Details of the Resignation

Reasons and Background

The resignation of Sudhir Maheshwari is directly linked to JSW Cement's recent Initial Public Offering (IPO) and its subsequent listing on stock exchanges. This move aligns with the terms outlined in key agreements:

1. Shareholders Agreement (SHA): Dated June 22, 2021, involving Adarsh Advisory Services Private Limited, Synergy Metals Investments Holding Limited, and JSW Cement.

2. Amendment and Waiver Agreement: Dated August 12, 2024, which included additional parties such as AP Asia Opportunistic Holdings Pte. Ltd. and State Bank of India.

According to the Amendment and Waiver Agreement, Maheshwari's role as a Nominee Director became no longer applicable following the company's IPO.

Implications

Board Committees

Maheshwari will also cease to be a member of various Board Committees from the same date.

Corporate Governance

This change reflects JSW Cement's adherence to post-IPO governance structures and agreements.

Regulatory Compliance

The company has committed to completing all necessary compliances, including filing e-forms with the Registrar of Companies and making required disclosures to stock exchanges.

Company's Response

JSW Cement has formally acknowledged Maheshwari's resignation and has initiated the process of updating its records and making necessary regulatory disclosures. The company expressed appreciation for Maheshwari's contributions during his tenure on the board.

This board-level change marks a new phase for JSW Cement as it transitions into its post-IPO era, potentially signaling shifts in its corporate governance structure aligned with its new status as a publicly-traded company.

JSW Cement , a part of the US$23 billion JSW Group, has strengthened its presence in Eastern India by commissioning a new cement grinding unit in Sambalpur, Odisha. This strategic move aligns with the company's goal to meet the growing demand in the region and solidify its market position.

Key Highlights

• Capacity Expansion: The new state-of-the-art facility adds 1.0 Million Tonnes Per Annum (MTPA) to JSW Cement's grinding capacity.
• Total Capacity: With this addition, JSW Cement's total grinding capacity, including its subsidiaries, has reached 21.6 MTPA.
• Strategic Location: The unit is situated at the geographical border of Odisha, Chhattisgarh, and Jharkhand, providing easy access to raw materials.
• Funding and Operation: The facility is funded and supervised by Shiva Cement, a majority-owned subsidiary of JSW Cement, through a commercial arrangement with Bhushan Power and Steel Limited (BPSL).

Market Implications

The expansion comes at a time when Eastern India is poised for significant growth, particularly in the manufacturing and infrastructure sectors. Odisha, in particular, is playing a crucial role in the region's industrial and economic development.

Nilesh Narwekar, Chief Executive Officer of JSW Cement, commented on the strategic importance of this expansion, stating, "This new state-of-the-art facility in Sambalpur is a strategic initiative by JSW Cement and marks a significant milestone in our journey to expand and consolidate our position in this market."

Environmental Considerations

JSW Cement continues to maintain its position as an environmentally conscious player in the industry:

• The company reports the lowest carbon dioxide emission intensity in the industry, at 277 kg CO2 per ton of cementitious materials.
• The new facility is expected to further consolidate and expand JSW Cement's eco-friendly footprint.

Future Outlook

JSW Cement has ambitious plans for further expansion:

• The company aims to achieve a pan-India presence with a target of 41.85 MTPA grinding capacity and 13.04 MTPA clinker capacity.
• Work is ongoing on the Nagaur integrated unit in Rajasthan, which will add 3.30 MTPA clinker capacity and 3.5 MTPA grinding capacity.

This expansion in Odisha not only strengthens JSW Cement's market position but also contributes to the overall growth and development of Eastern India's infrastructure sector. As the region continues to develop, the demand for cement is expected to rise, positioning JSW Cement favorably to capitalize on these opportunities.

About JSW Cement

As JSW Cement continues to expand its operations and maintain its commitment to sustainable practices, it is well-positioned to play a significant role in India's infrastructure development, particularly in the eastern region.