Sajjan Jindal-led JSW Group on Sunday said its "multi-locational" Rs 1,900-crore cement plant with an annual production capacity of 5 million tonnes will come up by the end of next financial year.
"The 5 million tonnes plant will come become operational in next 18 months," JSW Group CFO Seshagiri Rao said in an interview.
The proposed cement unit will come up in two states — Karnataka and Andhra Pradesh.
JSW Cement, a group subsidiary, which is undertaking the project, has already tied up Rs 1,500 crore debt for the venture, he said, adding, the rest will be provided by the group.
The company will use two vital raw materials for making cement — slag and fly ash — from its steel business. While slag is a byproduct of process of making steel, fly ash comes out from burning coal.
The company already has a three-lakh tonne captive cement plant at Vijaynagar in Karnataka.
"The cement plant will partly come at Nandiyar in Andhra Pradesh. There we are setting up clinker plant. We are setting up a grinding unit at Vijaynagar," Rao added.
JSW Group is aiming to tap the Southern India cement market with the commercial foray, he said. The market is presently dominated by the likes of India Cements and Dalmia Cement.