JSW Steel to invest Rs 17,718 cr
Steel maker JSW will invest more than Rs 17,000 crore to increase production capacity to 10 million tons by 2010, amid reports it was considering a secondary listing in overseas bourses.
By PTI |
NEW DELHI: Steel maker JSW will invest more than Rs 17,000 crore to increase production capacity to 10 million tons by 2010, amid reports it was considering a secondary listing in overseas bourses.
"The firm will invest Rs 17,718 crore (about $4.5 billion) to ramp up production capacity to 10 million tons (MT) from current 3.2 MT. Of the total money, we will invest Rs 3,937 crore (about USD 1 billion) this fiscal," JSW Group Director Finance Seshagiri Rao said.
He said of the total money, the company has already raised $500 million (about Rs 2,000 crore) till April and the remaining money would be raised through cash accruals.
The company has plans to increase production to 30 MT by 2020, but blueprint for the same was yet to be finalised.
Rao said outlook for steel looked bright with the construction sector doing well. Besides sales of other steel products were also picking up.
"I have reasons to believe that steel prices would not go down as the sector is doing well," Rao said.
JSW is also considering a secondary listing on an overseas stock exchange either in Singapore, New York or London to fund its expansion plans.
The plan would fit in with efforts to expand outside India through possible acquisitions in Europe for about $500 million, JSW Vice-Chairman and Managing Director Sajjan Jindal said.
"The firm will invest Rs 17,718 crore (about $4.5 billion) to ramp up production capacity to 10 million tons (MT) from current 3.2 MT. Of the total money, we will invest Rs 3,937 crore (about USD 1 billion) this fiscal," JSW Group Director Finance Seshagiri Rao said.
He said of the total money, the company has already raised $500 million (about Rs 2,000 crore) till April and the remaining money would be raised through cash accruals.
The company has plans to increase production to 30 MT by 2020, but blueprint for the same was yet to be finalised.
Rao said outlook for steel looked bright with the construction sector doing well. Besides sales of other steel products were also picking up.
"I have reasons to believe that steel prices would not go down as the sector is doing well," Rao said.
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JSW is also considering a secondary listing on an overseas stock exchange either in Singapore, New York or London to fund its expansion plans.
The plan would fit in with efforts to expand outside India through possible acquisitions in Europe for about $500 million, JSW Vice-Chairman and Managing Director Sajjan Jindal said.
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