homebusiness Newscompanies NewsJSW Steel CEO unveils ambitious plans, says capex to exceed ₹1 lakh crore for capacity expansion
JSW Steel CEO unveils ambitious plans, says capex to exceed ₹1 lakh crore for capacity expansion
'We need to add capacities just to make sure that we don't import steel,' Acharya said. JSW Steel plans to scale up its capacities to 50 million tonnes by the end of the decade, expecting a growth rate of 8-10%. This plan entails an additional capex of over ₹1 lakh crore.
JSW Steel CEO Jayant Acharya has announced a bold strategy for the company, revealing plans for a capital expenditure (capex) that will surpass ₹1 lakh crore in the coming years. The CEO expressed a strong focus on creating domestic capacities, underlining India's status as the second-largest consumer and producer of steel globally.
Acharya emphasised the potential for downstream capacities to be established in consuming countries, indicating the possibility of mergers and acquisitions (M&A) and greenfield expansions in the near future. However, he clarified that no specific considerations were being made at this stage.
The CEO painted a positive picture of India's growth momentum, stating that the country is in a "nation-building phase" that is expected to continue for two decades, with a robust demand for steel. Steel demand in India grew by 13% last year and is projected to increase by 15% this year, highlighting the need for additional capacities to avoid importing steel.
"We need to add capacities just to make sure that we don't import steel," Acharya said. JSW Steel plans to scale up its capacities to 50 million tonnes by the end of the decade, expecting a growth rate of 8-10%. This ambitious plan entails an additional capex of over ₹1 lakh crore.
Acknowledging India's fortune as a domestic-dependent economy, Acharya emphasised the need to be self-reliant in steel production. India's current steel capacity is approximately 170 million tonnes (MT), and the country aims to reach a capacity of 300 MT.
Acharya outlined the company's vision for the future, stating, "As we go into the next seven years, I would see more exports of engineering goods out of India and less export of direct steel." He projected that the majority of the increased capacity would be consumed in the domestic market, paving the way for greater exports of value-added engineering goods.
Furthermore, Acharya highlighted India's advantage in the global market due to the "China+1 Policy," anticipating increased opportunities for growth despite challenges. The CEO expressed optimism about India's potential to export more engineering goods compared to direct steel, signalling a strategic shift in the country's steel export landscape.
Watch the accompanying video for the full interview.
(Edited by : Shoma Bhattacharjee)
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