Sajjan Jindal-led JSW Steel on Wednesday said it plans to increase its colour-coated steel capacity by nearly three times in the next two years, and is looking at organic as well as inorganic expansion to achieve it.
The company has also appointed Indian cricketer Rishabh Pant as its brand ambassador for three years to promote its colour-coated steel sheets brand JSW Colouron+ as well as TMT bar brand JSW Neosteel.
"We are seeing a growing demand for colour-coated steel from individual home builders and industries as well as warehousing sector. We want to increase our existing capacity by nearly three times in the next two years to be future ready," JSW Group's Parth Jindal told reporters.
Currently, the company's colour-coated steel manufacturing capacity is around 0.75 MTPA which it will take to over 2.1 MTPA in the next two years.
"As a part of our strategy to promote the brand, we decided to induct Pant as our brand ambassador to connect with the youth and to spread awareness about these high quality products," he added.
Commenting on capacity addition plans, JSW Steel Director (commercial, marketing and corporate strategy) Jayant Acharya said the company will look at greenfield as well as brownfield expansions.
"The acquisition of Asian colour-coated has been a move in the direction to increase the capacity of colour coated sheets. We will look at similar opportunities as well as grow organically to achieve the target," he added.
In India, the demand for colour-coated sheets is around 2.5 MTPA and the installed capacity is around 3.5 MTPA, running at a utilisation of 85 per cent.
"The demand for colour-coated sheets is multi-fold, be it in appliances, pre-engineered buildings, warehouses, roofing and cladding, commercial building, among others. The demand is at mid- double digit and with the focus on these sectors, the demand will further grow," Acharya added.
On TMT bars capacity, he said the company has a capacity of 3.5 MTPA of TMT bars, and will scale it up going forward.
"The demand will be driven mainly due to the infrastructure and construction push given in the Budget and has also been the focus of the government," Acharya added.
JSW Steel, the flagship company of the diversified $14 billion JSW Group, has already embarked on a Rs 48,000 crore capex plan for its growth.