JSW Infra plans massive Rs 30,000 crore capex to ramp up cargo capacity to 400 MTPA by FY30

MUMBAI : JSW Infrastructure, India’s second largest private port operator, has laid out a massive capex plan of Rs 30,000 crore, in an effort to ramp up its cargo-handling capacity to 400 MTPA by FY30.

The port operator has lined up brownfield projects at three locations and intends to initiate greenfield developments at another three locations to set up new ports. To enhance its end-to-end logistical abilities, the port company is relying on recent acquisition of Navkar Corporation among others.

Rinkesh Roy, the Joint MD & CEO said the company wants an integrated ports and logistics ecosystem that ‘aligns’ with India’s growth and infrastructure goals. Centre aims to increase India’s existing ports capacity of 2,600 MTPA by four-fold to 10,000 MTPA by FY47. JSW Infra’s CFO Lalit Singhvi said the company will drive capacity additions through acquisitions.

JSW Infra added that it has made ‘significant progress’ in diversifying customer base and its share of third-party cargo outside JSW Group companies has increased from 5% in FY19 to 48% in 1HFY25. During the first half of the fiscal, JSW Infra had spent Rs 400 crore for capex-related requirements. The management has guided for a 50-50% mix between third party and group customers over the medium to long term.

Earlier this year, in June, JSW Infra through its subsidiary JSW Port Logistics had acquired 70.37 percent of Navkar Corporation’s shares from the promoters, in order to expand its footprint in logistics and enhance port connectivity. The acquisition was seen as a first step towards a comprehensive, pan-India logistics network for JSW Infra.

In June, the port operator also won an Letter of Acceptance (LoA) for construction of a Gati Shakti terminal at Arokkonam, Chennai.

On a YTD basis, shares of JSW Infrastructure are higher by 49%. The company is debt free as of September 2024 and has a market capitalisation of Rs 66,000 crore.

JM Financial had recently issued a Buy recommendation on the stock with a target price of Rs 390 per share by March 2026, on the back of port acquisition and development plans and possible tariff hikes subject to approvals. The sharp depreciation of Rupee was cited as a risk factor for the business.