JSW Steel plans to invest $22 billion by 2025

Mumbai: JSW Steel, India's third-largest steel maker, plans to invest $22 billion (about Rs 1,32,000 crore) through the next 10 years to raise its total capacity from 14.3 million tonnes (mt) to 40 mt by 2025.

"Since we want to maintain our market share of 13-14 per cent, we have decided to invest this amount in the coming years and be part of the government's 300-mt-steel-capacity plan by 2025," Chairman Sajjan Jindal said on Thursday. "We will look to grow both organically, as well as inorganically to achieve this capacity (40 mt)," he added.

Jindal was speaking on the sidelines of the company's 20th annual general meeting held here.

"JSW Steel is committed to partner India's growth on the strength of its top-tier know-how and committed workforce. We are looking at the future with more optimism than ever before. I invite all of you to share our optimism and support our collective journey forward," Jindal said.

This financial year, the company has planned capital expenditure of about Rs 7,000 crore.

On the acquisition of Welspun Maxsteel, Jindal said, "We are going through the due diligence process; it should take about two months." Welspun Maxsteel runs a sponge iron unit that caters to JSW Ispat's Dolvi plant. Acquisition of Welspun will ensure continuous supply of cheaper raw material to the Dolvi unit.

On JSW brand royalty, Jindal said as the company needed to promote the brand, its board had unanimously decided brand royalty of 0.25 per cent of JSW Steel's consolidated net profit would be given to promoter group company JSW Investments, effective this financial year.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.