JSW Severfield Structures Ltd (JSSL), a joint venture between Mumbai-headquartered JSW Steel and UK-based Severfield Reeve Structures, plans to invest around Rs 300 crore for expanding the capacity of its Vijayanagar unit.
It also plans to spend Rs 200 crore for setting up new specialty steel plants in West Bengal and the Delhi region in the next two years. These plants will fabricate steel into special structures, which will cater to the need of construction and infrastructure sectors.
"We are planning to set up new units in the Delhi region, along with West Bengal, in the next two years to promote steel structures in the construction of buildings," Sajjan Jindal, vice-chairman and managing director of JSW Steel, said. He was speaking to reporters after the inauguration of JSSL's plant in Vijayanagar.
In the first phase, the Vijayanagar unit can produce 35,000 tonnes of fabricated steel a year.
The capacity will be expanded to 90,000 tonnes in a year. Jindal said while the investment for setting up the unit was around Rs 200 crore, the company would infuse Rs 300 crore more for expanding its capacity. According to experts, the foray of JSW into specialty steel will give it an edge over peers, as the company is expected to cash in on realty and infrastructure boom. JSSL will also create a captive demand for its steel products, an analyst said.
According to Jindal, JSSL has orders worth Rs 70 crore. "We have already received large orders from four clients as of now and are receiving many enquiries from clients."
JSSL will cater to the domestic demand. On JSW Steel's upcoming plant in West Bengal, Jindal said JFE Steel had shown interest in investing.