Beefed up by strong set of numbers for the previous quarter and rising steel prices, JSW Steel yesterday announced that it will hike up its steel capacity by 37 per cent in the next two years. Clearly, it does not intend to relinquish its position as India’s largest steel maker to Tata Steel. The latter is now a strong contender for the title having recently got the NCLT’s nod to acquire Bhushan Steel, barring further litigation challenges of course.
“We have decided to expand our capacity from 18 MT (million tonne) to 24.7 MT, which includes addition of one MT at Vijaynagar and 0.67 MT at Dolvi unit, and also expand our downstream projects by 2020,” Seshagiri Rao, JSW Steel’s joint managing director and group chief financial officer, told reporters while announcing a nearly two-fold rise in consolidated net profit (year-on-year0 to Rs 2,879 crore in the March quarter.
“Looking at the domestic demand growth, we see a shortage of steel if we don’t expand in the next two years,” he added.
The Sajjan Jindal-led company had announced an overall estimated capex plan of Rs 26,815 crore last year. This is now expected to be enhanced by Rs 17,600 crore to implement new projects. Read More