JSW Steel is planning to invest about Rs. 45,000 crore over a period of four years from FY2017-18 to FY2020-21, to expand steel making capacities, besides modernising and expanding capacities of its downstream businesses.
“These projects will further enhance our efficiencies and generate superior returns. The completion of these projects will take our overall capacity from 18 MTPA currently to 24.7 MTPA by March 2020,” JSW Steel chairman Sajjan Jindal said while addressing shareholders at the company’s 24th AGM on Tuesday.
The company is looking for inorganic growth, both in domestic and international markets to expand capacities as part of its strategy.
“In the domestic market, our consortium, along with a financial partner, has emerged as the successful bidder for acquiring Monnet Ispat and Industries Limited, a 1.5 MTPA steel-making facility in Chhattisgarh,” Mr. Jindal said. The National Company Law Tribunal (NCLT) recently approved a Rs. 2,875-crore bid by a consortium of Aion Investments and JSW Steel to acquire the bankrupt Monnet Ispat and Energy, which owes more than Rs. 11,000 crore to lenders.
JSW plans to merge Monnet Ispat with itself in a year’s time after the turnaround of the company. The company is awaiting the judgment of the National Company Appellate Law Tribunal (NCLAT) with respect to bids of Essar Steel, where it joined the Numetal consortium as partner.
Mr. Jindal is optimistic about the steel demand in the country. “We are very constructive about the long-term growth potential for steel consumption in India. Even at a reasonable rate of growth of around 7% p.a. for the overall steel demand, India will need to create over 150 million tonnes of new steel capacity in the next 10 years. As one of the most competitive and efficient players with a healthy balance sheet, your company will be looking to capitalise on this opportunity and invest in capacity expansion through both organic and inorganic routes and grow our market share,” he told shareholders.
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