JSW Steel To Emerge Largest Producer By Next Fiscal
Sajjan Jindal-led JSW Steel is expected complete the project to double production capacity to 10 million tonne per annum (mtpa) by May and emerge as the largest steel producer in the country. The company will remit ?19,350 crore by March 25 and add another three million tonne to its current capacity of 18 mtpa. The company has proposed merger one mtpa of Monnet Ispat with itself next fiscal. In 2018, JSW Steel joined hands with Aion Investment to acquire the stressed Monnet Ispat and renamed it to JSW Ispat Special Products. It had planned to merge the company after turning over the asset. JSW Ispat had recorded an EBITDA of ?152 crore and net profit of ?29 crore in December quarter. In all, JSW Steel will add about nine mtpa next fiscal to top the table of large steel companies in India. As of now, JSW Steel is marginally behind Tata Steel and Steel Authority of India in the domestic market. Currently, Tata Steel’s consolidated India crude steel production capacity stands at 19.6 mtpa with manufacturing facilities in Jamshedpur in Jharkhand, Kalinganagar and Dhenkanal in Odisha, Sahibabad in Uttar Pradesh and Khopoli in Maharashtra. Recently, Tata Steel has restarted the phase-two expansion of its Kalinganagar steel plant to 8 mtpa from 3 mtpa. The project was halted temporarily due to Covid induced pandemic. In 2018, Tata Steel acquired Bhushan Steel through its wholly-owned subsidiary and renamed it to Tata Steel BSL which currently has production capacity of 5.6 million tonnes. Tata Steel Jamshedpur has production capacity of 14 mtpa of crude steel. Though the debt on the books of JSW Steel will increase substantially after the acquisition of BPSL, its topline will go up and realisation will also be better with the completion of many downstream expansion projects.