JSW Metal to infuse over Rs 25,000 cr to ramp up capability

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The country’s leading steelmaker, JSW Steel, plans to invest an additional 25,115 billion rupees through 2024-25 to increase its capacity to 37.5 million tons (MT) per year, its chairman and general manager Sajjan Jindal said in a statement to its shareholders.

The company, which sold nearly 15 MT of steel in FY21, said it had invested Rs 48,000 billion in increasing its production capacity to nearly 28 MT in the past three years, company officials said.

The new investment of Rs 25,115 crore would further increase the company’s capacity to 37.5 MT, they said. JSW Steel has an installed crude steel capacity of 18 MT in India, of which 12.5 MTPA flat products and 5.5 MTPA long products.

“We are now starting the next phase of growth with the newly approved investment plan of 25.115 billion rupees.

“This capital will allow us to increase our crude steel capacity in Vijayanagar by 7.5 MTPA, improve and digitize our mining capacities and infrastructure in Odisha, and help us build a state-of-the-art color-coated facility in Jammu & Kashmir to support local demand and Development in the state, “Jindal said in the latest annual report.

The company’s balance sheet will be stronger as it improves cash flows and efficiently distributes capital, he said. “Given the new capacity and the strong pricing environment, we expect a net debt to EBITDA ratio of 2.75,” said Jindal.

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