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JSW Steel to invest over Rs 50 bn for boosting downstream manufacturing

The company expects special steel products to contribute 40 per cent of its future volumes while customisation products will add the rest 60%

Press Trust of India  |  New Delhi 


plans to in over Rs 50 billion to strengthen its and is also keen to pursue stressed downstream assets that will come up for bidding in the next round.

JSW Steel, which announced a capex investment programme of nearly Rs 450 billion to expand its capacities in and Maharastra, is planning to invest over Rs 50 billion to strengthen its downstream manufacturing capabilities, company's Joint MD told

This will enable the company to re-orient its product mix and focus on high-products and customisation, he said.

"As part of its effort to ramp up downstream capabilities, will also pursue that will come up for bidding in the next round," he added.

"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," Rao said.

The investment in downstream capabilities by is aimed at capitalising the incremental demand expected to be generated across sectors for specialised steel.

While 300 million tonnes (MT) of is expected to come in, the across applications is coming down.

"This is where the demand for very high-is rising. The circular economy is becoming very active," Rao said.

Jayant Acharya, - Marketing and Strategy, JSW Steel, said, the company will "reduce focus in commodity space and enter into and special 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".

As part of its long-term play, the company is deprioritising its focus on

According to Rao, while the 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 tinplate capacity will increase six-fold.

The company expects special to contribute 40 per cent of its future volumes while will add the rest 60 per cent.

"We are not going to produce the commodity. Basis our very customised steel portfolio and high-end value-added product mix, the business will become less volatile," Rao said.

JSW Steel believes that it is unperturbed about new competition from global

"We think there is enough space for growth and healthy competition is good. If you look at the competition earlier, certain which were stressed were at times forced to sell materials at lower prices to generate cash flows whereas with healthy competitors that problem will be eliminated to some extent," Acharya said.

The company said that it sees the Indian becoming more mature from a competition perspective.

"We see our growth potential with respect to across the short, medium and long-term. I don't think we need to worry about the competitive landscape," he added.

First Published: Sun, November 18 2018. 11:35 IST