Sajjan Jindal-led JSW Steel is planning to increase steel making capacity by 2.5-fold to 45 million tonnes per annum (mtpa) by 2030 to maintain its 15% market share, with brownfield expansions contributing to most of the rise.
Confirming the development, Seshagiri Rao, joint MD and Group CFO told The Hindu : “We are planning to almost double our Vijayanagar steel plant to 23 mtpa from 12 mtpa now, in phases. We also plan to double the Dolvi plant capacity to 12 mtpa. Monnet Ispat is 1.5 mtpa now with scope for further expansion.”
JSW has so far been unable to bag significant steel projects through the Insolvency and Bankruptcy Code (IBC) process as it lost Bhushan Steel to Tata Steel, which bought it for ₹36,000 crore.
JSW did not express interest in Essar Steel initially but later partnered the NuMetal consortium to place a bid in the second round. The creditors finally chose ArcelorMittal’s bid. JSW Steel has recently signed an MoU with the Odisha government to set up a 12 mtpa greenfield plant for ₹35,000 crore.
The company has emerged has the highest bidder to acquire the 3.5 mtpa steel plant of Bhushan Power and Steel Limited (BPSL) for ₹19,700 crore, a move challenged by Tata Steel at the National Company Appellate Tribunal (NCLAT) as the lenders allowed JSW Steel to revise the bids.
‘Competition welcome’
On the competition with the entry of foreign majors such as ArcelorMittal and Liberty House, Mr. Rao said: “Steel is a globalised commodity. We have been exporting steel to developed markets, where these global majors operate. A healthy competition is always welcome.”
JSW Steel has acquired the 1.5 MT steel making capacity of Monnet Ispat, owned by Mr. Jindal’s brother-in-law Sandeep Jajodia for ₹2,875 crore and plans to turn it around before merging it with itself. The firm has expanded its capacity from 1.6 mtpa in 2002 to 10 mtpa in 2010 and to 18 mtpa by 2018.
