JSW Steel, the flagship company of the diversified JSW Group, will expand its production capacities in the country to 37 million tonnes per annum (MTPA) by the financial year 2025. The company has also earmarked Rs 10,000 crore to increase the use of renewable energy.
“By FY25, we expect our consolidated India steel making capacity to be at 37 MTPA from 27 MTPA at present. These additions are being complemented by growing our downstream capacities, which have increased significantly in the past two to three years and are creating substantial value for JSW Steel,” said chairman Sajjan Jindal at the company’s Annual General Meeting (AGM) on Wednesday.
The current macro challenges notwithstanding, the future of the Indian steel industry is healthy, with demand expected to grow at a steady rate through the decade. In FY22, India’s steel consumption grew to 106 MTPA, from the pre-pandemic level of 100 MTPA, he said.
“As a cost-competitive exporter of steel, India has an opportunity to take on a larger role in the global steel trade, aided by the government’s continued thrust on manufacturing-led growth and merchandise exports. At JSW Steel, we are also expanding our India capacity in a phased manner to tap into these opportunities,” Jindal added.
Speaking on the export duties imposed on steel in May 2022, he said it was a “significant, but short-term headwind.”“We continue to engage with the government on this matter and believe that the duties were imposed only to rein in inflation and will be withdrawn once inflation moderates,” he said.
The company is also undertaking various initiatives to reduce carbon footprint in line with India’s net zero ambitions, he said, adding, that the company has already earmarked rS 10,000 crore to increase the use of renewable energy. This includes the use of renewable power in our operations, he added.