JSW Steel will invest over ₹2 trillion by FY31, says Jayant Acharya

JSW Steel bets on India's demand story, plans over ₹2 trillion capex and 56 mt capacity by FY31 amid global trade barriers and price volatility

Amid global volatility and rising trade barriers, JSW Steel is betting big on domestic demand. In an audio interview, JSW Steel joint managing director and chief executive officer Jayant Acharya speaks to Ishita Ayan Dutt about the ongoing and planned investments through FY31, the near and long-term outlook for the steel industry and the Competition Commission of India (CCI) investigation report on alleged price collusion. Edited excerpts:

 

Lower steel prices reflected in your net sales realisation in Q3FY26. What is the outlook for Q4?

 

Prices were at a multi-year low in the last quarter and started recovering from the end of December. The safeguard duty was also timely. The general environment will support stronger demand during the fourth quarter, which will allow us to improve prices and offset part of the increase in coking coal costs.

 

It appears that you are stepping up your growth plans and now looking at 56 million tonnes (mt) capacity by FY31 as opposed to 51 mt earlier. Is that correct?

 

We have just announced the first phase of the Odisha project which will come up in Jagatsinghpur. Additionally, we will have other brownfield options. So, we should be close to 56 mt including Ohio – with India at around 55 mt by FY31.

 

What kind of investments are you planning through FY31?

 

We will be investing in excess of ₹2 trillion. After the Odisha announcement, the total capex spend will be ₹1 trillion, which will be spent over 4-5 years. We will be adding other capacities as well. They are the second phase in Odisha, blast furnace 6 at Vijayanagar, green steel plant at Salav, and our joint ventures with JFE Steel and Posco. So, we will be adding about 25 mt. We will also spend in mining, digital and downstream capacities.

 

Is the carbon border adjustment mechanism (CBAM) impacting your exports to the European Union (EU)?

 

Certain elements of the CBAM calculations are still being understood. But I believe prices will move up and we have established relationships with our customers in Europe over more than 2-3 decades. So, they will continue to source from credible suppliers like us.

 

But countries are increasingly using tariffs to protect domestic markets, whether framed as trade measures or mechanisms such as CBAM.

 

In my view, India remains well positioned, supported by strong domestic demand. Every year, Indian steel demand is increasing by 10-12 mt. So, we would be diverting quantities into India because that is where the maximum benefits are.

 

Are you comfortable with the phase-wise safeguard duty starting at 12 per cent?

 

It’s a welcome step that the safeguard duty has been finalised.

 

It is important for us to understand that the steel industry plays a vital role in driving economic activity across the hinterland and rural regions. This supports infrastructure development and creates jobs where the heart of the country is. That’s why the steel industry needs to earn reasonable margins to be able to plough back uplifting the country at large.

 

The industry wants to be self-sufficient and make for India and the world. That cannot happen if dumping is allowed domestically while exports are constrained by rising tariffs across countries.

 

It should have been more than 12 per cent, but the message from the government is clear — that we will not allow material to be dumped.

 

What prompted you to accelerate your investment plans — is it the safeguard duty?

 

The opportunity provided by India. We had been targeting 50-mt capacity with or without the safeguard duty.

 

But we feel that the country provides tremendous opportunities. We have stability. Large scale reforms have been undertaken — economic, labour and financial.

 

We are seeing physical, social and digital infrastructure being laid out in the country.

 

And, we have a huge demographic dividend, which is likely to play out. India offers an opportunity that no other country can provide. We have iron ore — a key raw material — the expertise to develop assets and there is a strong demand for steel. We are putting up capacities in line with the growing demand in India.

 

A CCI investigation report has alleged price collusion by a number of steel companies, including JSW steel. How would you respond to it?

 

I would not like to comment on an ongoing process. But JSW Steel remains fully confident in its compliance with all the applicable competition laws or any other laws of the land.

 

This is an old case from 2021. In a product like TMT, the supplies are mainly from the secondary sector at about 70 per cent — the primary sector is smaller. This is also a product where the price volatility is the highest. For instance, in the July-September quarter, the price of TMT dropped by ₹7,000 a tonne. Such a price drop in a product makes it difficult to cover interest and depreciation costs — so, how can price advantage be taken?

 

I don't see merit in this case, but anyway, JSW Steel remains fully compliant with all laws.