JSW Steel to invest over INR 5,000 crore on downstream units

2018-11-20

Nov. 20, 2018 - JSW Steel announced a capex investment programme of nearly INR 45,000 crore to expand its capacities in Karnataka and Maharastra, is planning to invest over INR 5,000 crore to strengthen its downstream manufacturing capabilities to re-orient its product mix and focus on high value special steel products and customization. The investment in downstream capabilities by JSW Steel is aimed at capitalising the incremental demand expected to be generated across sectors for specialised steel.

While overall capacity of JSW Steel will grow by 40 per cent over the next three years, the downstream capacity will increase by 60 per cent, colour coated capacity will go up by 140 per cent and tin-plate capacity will increase six-folds. He said “We are not going to produce commodity. Basis our very customised steel portfolio and high-end value-added product mix, the business will become less volatile.”

He also said “As part of its effort to ramp up downstream capabilities, JSW Steel will also pursue stressed downstream steel assets that will come up for bidding in the next round. The next set of assets is either downstream or very small capacities. So, if it makes sense to our downstream integration strategy. We will evaluate the asset and pursue.”

Jayant Acharya, Director Commercial - Marketing and Strategy, JSW Steel, said “The company will reduce focus in commodity space and enter into alloy steel and special steel space to make the business more sustainable in the long term. Our aim is to look at more and more de-competitive business segment as a key indicator of focusing more on special steel categories.”