CEO of
JSW Steel, Jayant Acharya, has revealed a significant expansion plan for his
company, involving a capital expenditure (capex) expected to exceed 1 lakh
crore. This ambitious move aims to boost the company’s production capacity to
meet India’s growing demand for steel, a demand aligning with the nation’s
status as the world’s second-largest steel consumer and producer.
JSW’s
Expansion Strategy
The
expansion blueprint includes several strategic avenues, such as potential
downstream capacities in consumer nations, mergers and acquisitions, and
greenfield expansions. While no specific projects have been finalized, the
ultimate objective is to strengthen domestic capacities, reducing dependence on
steel imports. India’s steel industry experienced a 13% growth in demand last
year and anticipates a 15% increase this year, necessitating this expansion to
cater to domestic needs without resorting to imports.
Scaling up
Capacity to 50 Million Tonnes
JSW Steel’s aim is to expand its capacity to 50 million tonnes by
the end of the decade, requiring an additional capex of over 1 lakh crore.
Currently, India’s steel capacity stands around 170 million tonnes, with an
ambitious target to reach 300 million tonnes. Acharya envisions India’s future
as an exporter of engineering goods rather than raw steel, a vision that aligns
with the “China+1 Policy” and India’s self-reliance
in steel production.
Boosting
Domestic Market and Export
Acharya
predicts that the majority of the new capacity will cater to the domestic
market, fostering increased export of value-added engineering goods. The
interview with Acharya offers a unique insight into the company’s ambitious
growth plans and the broader implications for India’s steel industry and its
economy.