JSW Infrastructure plans to invest over ₹2,500 Cr in FY2025 to expand its cargo handling capacity

MUMBAI : Private port operator JSW Infrastructure Ltd plans to invest over ₹2,500 crore in fiscal year 2025 to expand its cargo handling capacity, said Mr. Arun Maheshwari, joint MD and CEO of the company.

By 2027, the company anticipates a 50% increase in capacity to 258 million tonne with an investment of ₹14,000 crore, said Mr. Maheshwari.

“With more approvals underway, once these are finalized, our investments for the current fiscal year will stand at more than ₹2,500 crore,” he said. “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%.”

After its listing in October last year, the company announced the signing of the concession agreement with Jawaharlal Nehru Port Authority for liquid berths of 4.5 million tonne per annum (mtpa).

It will also sign the concession agreement this month for a 7 mtpa dry bulk terminal in Tuticorin through a private-public partnership mode. The company has 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.

 “This is an investment of about ₹4,000 crore, which will start taking shape from next year onwards and so, our total capex is to reach around ₹14,000 crore in the next four to five years,” he added. JSW Infra aims to reach 400 mtpa by 2030.

The company, Maheshwari said will fund all these payments and new 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, newly listed firms have three years to achieve a 25% public float. The company plans to raise additional funds through its proposed follow-on public offer.

“We continue to express a keen interest in any upcoming port projects in India and abroad. As opportunities present themselves, we will evaluate them,” Mr. Maheshwari added.

“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.”

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.