JSW Steel to focus on inorganic & organic growth:Sajjan Jindal

Leading integrated steel manufacturer JSW Steel is looking at inorganic growth in both domestic and international markets as well as organic growth, to steer the company on its growth path, company chairman and managing director Sajjan Jindal said.

"Inorganic growth has always been an integral part of our growth journey and we will continue to explore strategic opportunities, both in domestic and international markets," he said while addressing shareholders in the company's annual report for 2017-18.

With a likely thrust on infrastructure development, the medium to long-term outlook for the domestic steel demand growth is very positive, he added.

Inorganic plans for the domestic market include buying stressed assets through NCLT, and towards that end it has tied up with Numetal, which is co-promoted by the Essar Group to buy Essar steel.

It can be noted that JSW Steel bids were disqualified for Bhushan Steel and Bhushan Power and Steel.

In the domestic market, JSW Steel also plans to make capital expenditure of Rs 45,000 crore by FY21 to expand capacities at Vijayanagar and Dolvi units and modernise and expand capacities of downstream businesses.

These expansions will further enhance efficiencies and completion of these project will take our overall capacity from 18 mtpa to 24.7 mtpa by March 2020, Jindal said.

In consortium with a financial partner, the company has emerged as the preferred bidder for acquiring Monnet Ispat, a 1.5 mtpa steel making facility in Chhattisgarh.

"Located in close proximity to the mineral rich belts of Chhattisgarh and Odisha, this acquisition will be crucial in furthering our footprint in the central and eastern markets of India," Jindal said.

Global economies are increasingly stepping up protectionist trade measures to safeguard the interest of their domestic industries. While this trend could continue in the future, it will not hinder JSW Steel's growth in the international markets, he pointed out.

It has chalked out big plans for the US market to produce American melted and manufactured steel with a total capacity of 4 mtpa and investment up USD 1 billion.

"Our overall investment blueprint for the US market, to produce American melted and manufactured steel with a total capacity of 4 mtpa is estimated upto USD 1 billion," he said.

The company recently acquired an integrated flat steel making facility in the US, Acero Junction Holdings, with a potential capacity of 3 mtpa for an enterprise value of USD 182 million.

"We propose to invest up to USD 500 million cumulatively at this junction in phases to make it a fully integrated 3 mtpa steel making capacity," Jindal said.

It has also signed the MoU to consider investment of up to USD 500 million in phases at the Plate & Pipe Mill facility at Texas, which are directed towards capability enhancement as well as backward integration to set up upto 1 mtpa hot-end facility.

Similarly, it is in the process of acquiring the rolling facilities of Italian steelmaker Aferpi, with a capacity of 1.3 mtpa for about Euro 55 million. Through this acquisition, the company will get a stronger foothold in the European market and can swiftly tap into the emerging opportunities in the continent, Jindal said.