The country’s leading steelmaker JSW Steel is planning to invest another Rs 25,115 crore by 2024-25 to ramp up its capacity to 37.5 million tonne (MT) per annum, its Chairman and Managing Director Sajjan Jindal said in a message to its shareholders.
The company, which sold nearly 15 MT of steel in FY21, claimed to have invested Rs 48,000 crore in the past three years for augmenting its production capacity to nearly 28 MT, company officials said.
The fresh investment of Rs 25,115 crore would further boost the company’s capacity to 37.5 MT, they said. JSW Steel has an installed crude steel capacity of 18 MT in India, comprising 12.5 MTPA of flat products and 5.5 MTPA of long products.
“We are now embarking on the next phase of growth with the newly approved capex plan of Rs 25,115 crore.
“This capital will allow us to augment our crude steel capacity at Vijayanagar by 7.5 MTPA, enhance and digitise our mining capabilities and infrastructure in Odisha and help us set up a state-of-the-art colour-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 is getting stronger as it improves cash flows and efficiently allocates capital, he said. “With the new capacities and strong price environment, we expect our net debt to EBITDA ratio to be 2.75,” Jindal said.