By Vipin Agnihotri
Sajjan Jindal, Vice Chairman and Managing Director, JSW Steel, has come up with an ambitious programme in order to increase his presence in the core steel business. There are also indications that he is also interested in diversifying into the sectors such as power, cement, aluminium and infrastructure.
Sajjan Jindal, the second son of the late O.P. Jindal is the most aggressive of the four Jindal brothers. For instance, he doesn’t like his businesses being called the Sajjan Jindal Group. As a matter of fact, he has named his company Jindal South West Holding (JSW) Group.
In terms of statistic, Jindal at this moment of time has projects worth more than Rs 60,000 crore in his chosen sectors in various stages of implementation. It is worth mentioning in this regard that all the new verticals—energy, cement, aluminium and infrastructure— will tap the IPO market once financial closure is achieved.
According to sources, Jindal is moving fast in the power business. It has been making the headlines in the Indian media that JSW Energy plans to build 15,000 MW of capacity by 2015. Initial signs are that JSW Energy will tap the capital market in the first half of this year with a $1-billion IPO to part-finance its plans.
On the other side of the coin, JSW Cement is also lining up to tap the primary market. Point to be noted here is that Jindal has decided to set up a 5.3 MTPA slag-based cement plant in Andhra Pradesh and Karnataka. The cement business of JSW Group will reach financial closure in the first quarter of 2008. According to company sources, the project cost of Rs 2,100-crore will be financed by a combination of debt and equity in ratio of 1:5.
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