JSW Steel is targeting to increase the capacity from 12 Million Tonne Per Annum (MTPA) to 18 MTPA by FY 24.
Key points to note
- JSW Steel Vijayanagar Works is the largest single-location integrated steel-making facility in India with a current capacity of 12 MTPA.
- 18 MTPA target is through –
- 5 MTPA brownfield expansion to be achieved by FY 24 at an estimated cost of Rs 15,000 crore
- 1 MTPA optimisation of the current facility to be achieved in the next 12 months
- The brownfield expansion has commenced on January 7, 2022. It will cover an area of 600 acre and includes establishing 4.5 MTPA blast furnace, two steel melt shops of 350 tonnes each, and a 5 MTPA hot strip mill along with other ancillary facilities.
- JSW Steel has a current total steel making capacity of 28 MTPA in India & the USA. It claims to have invested Rs 48,000 crore in the past three years on capacity expansions. It targets to ramp this upto 37.5 MTPA by 2024-25 by investing a total of Rs 25,115 crore. Therefore, other than the 6 MTPA at Vijayanagar, it would be expanding by another 3.5 MTPA at other facilities at an estimated cost of additional Rs 10,000 crore.
The Company generated almost Rs 19,000 crore cash from operations during Fy 2021 and Rs 8,654 crore in the 6 months ended September 2021. With bullish commodity cycle continuing, the good operational show should continue in the foreseeable future providing company with adequate funds for the planned expansions.