JSW Steel's Jt MD & CEO, Jayant Acharya, unveils ambitious plans for a capital expenditure exceeding ₹1 lakh crore to propel capacities to 50 million metric tons by the end of the decade, reports CNBC TV18. Emphasizing self-reliance, Acharya envisions India becoming a net exporter of value-added engineering goods. The strategy aligns with India's robust steel demand, aiming to avoid imports and contribute to the country's nation-building phase.
JSW Steel's Jt MD & CEO, Jayant Acharya, has announced a bold vision for the company, disclosing plans for a capital expenditure (capex) that will surpass ₹1 lakh crore in the coming years. The focus is on expanding capacities to 50 million metric tons by the end of the decade, anticipating a growth rate of 8-10%.
Acharya expressed a strong commitment to bolstering domestic capacities, highlighting India's pivotal role as the second-largest consumer and producer of steel globally. He underscored the necessity of additional capacities to meet the robust demand for steel in India, ensuring the country avoids becoming dependent on steel imports.
In light of India's impressive growth momentum, Acharya painted a positive outlook, describing the nation as being in a "nation-building phase" set to continue for two decades. Steel demand in India witnessed a 13% growth last year and is projected to increase by 15% this year. The ambitious plan to scale up capacities aligns with the imperative goal of avoiding steel imports.
Acknowledging India's reliance on a domestic-dependent economy, Acharya stressed the importance of self-reliance in steel production. With India's current steel capacity at approximately 170 million metric tons (MT), the goal is to reach a capacity of 300 MT, positioning the country as a significant player in the global steel market.
Acharya outlined JSW Steel's vision, foreseeing more exports of value-added engineering goods and less direct steel exports. The CEO projected that the increased capacity would predominantly cater to the domestic market, with a strategic shift towards exporting higher-value engineering goods.
Furthermore, Acharya highlighted India's advantageous position in the global market, driven by the "China+1 Policy." Despite challenges, he expressed optimism about India's potential to export more engineering goods than direct steel, signaling a transformative shift in the country's steel export landscape.
In conclusion, JSW Steel, under Jt MD & CEO Jayant Acharya's leadership, has set forth an ambitious plan with a colossal capital expenditure exceeding ₹1 lakh crore. The goal is to propel capacities to 50 million metric tons, aligning with India's strong steel demand and avoiding reliance on steel imports. The vision emphasizes self-reliance, positioning India as a net exporter of value-added engineering goods. Acharya's positive outlook reflects India's "nation-building phase" and its potential to play a pivotal role in the global steel market.