JSW Steel’s Big Growth Push: Chairman Announces Major Expansion Plans Amid Rising Import Concerns

JSW Steel Chairman Sajjan Jindal shared the company’s growth plans and raised concerns about the impact of rising steel imports on local businesses. At the company’s annual general meeting, Jindal outlined plans to increase JSW Steel’s production capacity from 34 million tonnes per year to 42 million tonnes by September 2027.

Expansion Plans

By the year 2030-31, they aim to expand their capacity to 50 million tonnes annually. To achieve this, the company will invest Rs 64,434 crore over the next three years, including Rs 20,000 crore in the current fiscal year.

Despite a nearly 14% increase in steel demand for 2023-24, local steel producers are struggling with profitability due to rising imports. Jindal noted that global steel demand remains weak, and increased steel imports from countries like China are putting pressure on domestic steel prices. Even with price cuts, imported steel is often cheaper than locally produced steel.

Profit for the June Quarter

JSW Steel’s profit for the June quarter fell by almost a third compared to last year, and the company is facing challenges with imported steel pricing. India has been importing more steel than it exports, a trend that continues this fiscal year.

Jindal mentioned that many countries have set up barriers against steel imports and that the Indian steel industry is working with the government to address this issue.

Vijayanagar Plant

Looking ahead, Jindal highlighted the goal to make their Vijayanagar plant in Karnataka the largest steel plant in the world, with a capacity of 24 million tonnes. Although he didn’t specify a timeline, this plant is currently the largest in India with a capacity of 12.5 million tonnes.

The company is also focused on securing raw materials and optimizing costs. JSW Steel currently operates 13 of its 24 iron ore mines and is working to start three new coking coal mines, which will provide an additional 2 million tonnes of coking coal each year.