JSW Infrastructure to Sell Stake to Fund ₹39,000 Crore Expansion Plans
JSW Infrastructure, India’s second-largest private port operator, has announced plans to sell 14% of its promoter stake to fund an ambitious ₹39,000 crore capital expenditure (capex) programme over the next five years. The expansion plans, focused on ports and logistics infrastructure, include upgrading existing facilities, acquiring stressed assets, and bidding for privatised terminals, all part of the company’s strategic vision to enhance its position in the logistics sector.
The promoters, led by the Sajjan Jindal family, currently hold an 85.61% stake in the company, which was listed in September 2023. To comply with regulatory requirements, they must reduce their stake to below 75% within three years of listing. To meet these requirements while raising capital, the family plans to dilute a significant portion of its holding. Lalit Singhvi, Whole-Time Director and CFO of JSW Infra, shared that the company intends to maintain a 70:30 debt-to-equity ratio to fund the expansion. While the sale of shares will help meet a portion of the equity requirements, the remaining funds will come from the company’s internal cash accruals. “We aim to use our existing cash for equity in the ₹39,000 crore expansion, covering 25-30% of the remaining debt,” Singhvi explained. Of the ₹39,000 crore capex, JSW Infra has allocated ₹30,000 crore for port expansions and greenfield projects and ₹9,000 crore for logistics. This includes the construction of two major ports, Jatadhar Port and Keni Port, with investments of ₹3,000 crore and ₹4,119 crore, respectively. These projects are expected to be completed by FY28 and FY29.
JSW Infra’s logistics arm is also undergoing a transformation, with a ₹4,000 crore slurry pipeline set for completion by 2027 and the expansion of Navkar Corp’s logistics network by FY30. The company is looking at potential acquisitions, particularly in the logistics space, as a way to build on existing capabilities and strengthen last-mile connectivity. JSW Infra’s expansion strategy is closely linked to its vision of creating a comprehensive logistics ecosystem. With a focus on both ports and logistics, the company aims to increase customer loyalty by offering end-to-end solutions. “We will look at acquisitions, whether it is an NCLT-bound company or one that has struggled to scale,” Singhvi added, referring to the company’s willingness to invest in distressed logistics assets. The company operates 10 port concessions across India, with a capacity of 174 million tonnes per annum (MTPA), and manages liquid storage terminals in Fujairah, UAE. As part of its growth strategy, JSW Infra plans to aggressively bid for privatised terminals, which will further expand its market presence.
JSW Infra is targeting a 12-15% increase in earnings before interest, taxes, depreciation, and amortisation (EBITDA) by FY26, alongside a 10% revenue growth. The company plans to achieve these objectives primarily through the expansion of third-party cargo, leveraging investments made in capacity expansion. The port sector is expected to maintain steady EBITDA margins of 52-53%, while logistics margins are projected to improve significantly from 11-12% to 15-16%. Additionally, JSW Infra aims to raise its capacity utilisation to 75% by the end of FY26, up from the current 66%. The company plans to double container cargo capacity at its Mangalore terminal and expand its footprint in the container segment through projects such as the Murbe terminal.
In the wake of the government’s push for shipbuilding, JSW Infra is exploring opportunities to enter the shipbuilding sector. The company, which currently owns 18 ships from countries like China, Korea, and Bangladesh, expressed interest in constructing ships domestically. “We want ships to be constructed in India as well… we are at the discussion stage,” Singhvi noted, signalling the company’s ambitions to diversify its operations further. JSW Infrastructure’s strategy to dilute its stake and raise funds for its expansive capex plans reflects its commitment to becoming a dominant player in India’s logistics and port sectors. The ongoing expansion projects, combined with strategic acquisitions and investments, position the company to achieve sustained growth over the next decade. As it continues to enhance its infrastructure, JSW Infra is setting the stage for a future where its ports and logistics operations are deeply integrated, improving the efficiency of supply chains across India and beyond.
