JSW Steel to spend $22 billion in the next ten years

MUMBAI: JSW Steel will spend $22 billion in the next ten years to add steelmaking capacity in India, in order to maintain its market share of 13-14per cent, its Chairman Sajjan Jindal told shareholders in an annual general meeting held on Thursday.

Jindal said the company is targeting a steelmaking capacity of 40 million tonnes (mt) per annum till 2025. It currently has a capacity to make 14.3 mt per annum, with plants at Karnataka, Tamil Nadu and Maharashtra.

"Our vision plan is to go to 40 mt per annum capacity when India goes to 300 mt per annum. There is no roadmap we have set. It will be done through internal accruals, debt raising and equity.. it will be both organic and inorganic growth," Jindal said.

JSW Steel is in the process of buying smaller rival Welspun Maxsteel for about Rs. 1100 crore. Jindal said the company was going through the due diligence process, and the deal could be sealed within next two months. Earlier in the year, JSW Steel acquired half of Punjab based-Vallabh Tinplate for Rs. 46 crore.

Jindal said India is now at an inflection point, where the government’s focus is on implementing speedy reforms, nurture strong macroeconomic fundamentals and an improved investment scenario, all of which augurs well for the country.