Cooperation Capital entered negotiations for a stake in JSW Cement in March 2021, when the group was weeks away from the pandemic’s peak in India. The company, part of the USD 23 billion JSW Group, had been seeking capital for over seven months. A large global fund was close to signing, and a representative from the group told the potential investor they were too late. After securing data room access, a representative from the group visited the Cooperation office in Dubai. The deal appeared all but finalized when, within two weeks, the American fund decided to wait due to the uncertainty surrounding Covid.
Remote Due Diligence
With travel restrictions in place, the Cooperation team conducted due diligence entirely over video. They held dozens of calls with finance, accounts, marketing, and technical teams from JSW Cement. The detailed answers provided by the company’s staff gave the investors the confidence to proceed despite the inability to visit key plants. The team relied on their previous experience with similar facilities in the US and Europe to evaluate the business.
The core of JSW Cement’s business is slag, a byproduct of steelmaking that had previously been discarded. The company uses this slag instead of clinker, making its product less carbon-intensive. JSW Cement holds more than four-fifths of the ground slag cement market in India. The group had spent over a decade convincing builders and contractors to trust a product they were unfamiliar with.
Negotiating Terms
JSW Cement required USD 200 million, a sum that exceeded the capacity of the growing investment firm. The negotiator offered half of that amount. Parth Jindal, who runs the business, was a tough and clear-headed bargainer. He understood that the group could borrow money at low rates and was under no pressure to accept the offer. He pushed for a valuation that reflected the decade of work his team had put into the business.
Despite the initial delay, Cooperation ended up leading the round. Six weeks later, the global fund returned and signed the shareholders’ agreement on identical terms. State Bank of India, India’s largest lender, also signed the same agreement later in December. Each investor put in Rs 750 crore, or approximately $100 million, and received a board seat. Cooperation had entered the process late but emerged as the lead investor.
Experience And The Slag Advantage
Cooperation Capital’s team had familiarity with facilities like those in JSW Cement through prior work in the US and Europe. They relied on this experience to understand the operations and to proceed with the investment despite the inability to visit the plants in person.
Exiting the Investment
The investment took four months to complete from the initial teaser to the first check. In August 2025, Parth Jindal took JSW Cement public. Cooperation Capital sold part of its stake at that time, having more than doubled its money on the investment. The process highlighted how external events can shift market positions and how thorough preparation can allow latecomers to secure advantageous deals.
