JSW Steel's CEO, Jayant Acharya, has unveiled an ambitious strategy for the company, outlining plans for a capital expenditure (capex) exceeding Rs 111 trilion in the coming years. He underscored a strong commitment to bolstering domestic capacities, recognising India's status as the world's second-largest consumer and producer of steel.

Acharya highlighted the potential establishment of downstream capacities in consuming countries, suggesting the possibility of mergers and acquisitions (M&A) and greenfield expansions in the near future. However, he clarified that specific considerations were not currently under evaluation.

Painting a positive outlook on India's growth trajectory, Acharya described the nation as being in a "nation-building phase" set to extend for two decades, with robust steel demand. Last year, steel demand in India increased by 13%, and a further 15% growth is projected this year, necessitating additional capacities to mitigate steel imports.

Acharya emphasised the imperative of expanding capacities to avoid reliance on steel imports, stating, "We need to add capacities just to make sure that we don't import steel." JSW Steel aims to elevate its capacities to 50 million tonnes by the end of the decade, with an anticipated growth rate of 8-10%. This ambitious plan entails an additional capex exceeding Rs 1 lakh crore.

Recognising India's dependency on domestic production, Acharya stressed the importance of self-reliance in steel production. With the current steel capacity at around 170 million tonnes (MT), India aims to achieve a capacity of 300 MT.

Acharya outlined the company's vision for the future, foreseeing increased exports of engineering goods from India and a reduction in the direct export of steel over the next seven years. He projected that the majority of the expanded capacity would be consumed in the domestic market, facilitating greater exports of value-added engineering goods.

Additionally, Acharya highlighted India's advantage in the global market, leveraging the "China+1 Policy." He expressed optimism about increased growth opportunities despite challenges, anticipating a strategic shift in India's steel export landscape toward a higher proportion of engineering goods compared to direct steel exports.

Source: cnbctv18.com