JSW steel eyes 15.75 MT output in FY17, plans Rs 7k cr capex

JSW Steel has drawn up a capex plan of around Rs 7,000 crore over the next two years and is looking at crude steel production of 15.75 million tonnes (MT) this fiscal, its CMD Sajjan Jindal said today.
"The company's total capex is around Rs 7,000 crore in the next two-year period. We will be raising funds to partly finance expansion and partly to replace our high cost debt.
"Our goal will be to reduce debt and bring down the debt-equity ratio to manageable levels," Jindal told reporters on the sidelines of the company's annual general meeting (AGM) here.
The domestic steel major is eyeing sales of 15 MT and production of 15.75 MT in the current fiscal.

Jindal said the firm continues to be confident of the India story. Following the ramp-up of new facilities, JSW Steel will be well positioned to deliver around 25 per cent growth in volumes in the coming year, he said.
"With a target of crude steel production of 15.75 MTPA (million tonnes per annum) and saleable sales of 15 MTPA in 2016-17, we are aiming to reduce our cost of production even further, with economies of scale and consistent focus on efficiency improvement. We look forward to consolidating company's leading position in the industry in the year ahead.

"In the current environment, we are not excited about acquisitions, unless they are attractive, and would look to focus on consolidation in the domestic market and adding value to products," Jindal said.

Steel supply from China, the world's biggest producer, remains a "big worry" for the global industry, which continues to be under pressure despite an improvement in prices, he said.
During 2015-16, the steel industry suffered from an unprecedented and unfair inflow of steel imports from China, Japan, South Korea and Russia. These countries continued to sell their surplus steel production at predatory prices. South Korea and Japan benefited due to the free trade agreement with India, he said.
Jindal called for imposing anti-dumping duties and taking measures to protect the domestic steel industry.
"Every country in the world has been putting in anti- dumping duties and measures to protect them from China," Jindal said.

India should also impose anti-dumping taxes on imports or the domestic industry will suffer again, he cautioned.