ArcelorMittal can’t do a Jio in Indian Steel Industry - Mr Seshagiri Rao
Bloomberg Quint quoted JSW joint managing director and group chief financial officer Mr Seshagiri Rao as saying that Indian steel industry won’t have its “Jio” moment, despite the entry of ArcelorMittal. He told “The entry of ArcelorMittal won’t effect a change in the steel industry, which is unconsolidated and captive in nature. With huge incremental domestic demand of 63-64 million tonnes, one or two players can’t dictate and disrupt the industry trend. The only thing that differentiates us from the rest of the competition is the ability to produce high-quality steel products at lowest prices.”
Mr Jayant Acharya, director in charge of commercial and marketing operations of JSW added “Any competition will be healthy for the company given the economy has enough room for growth.”
JSW has an existing capacity of 18 million tonnes per annum, of which 5 million tonnes is in western India. This, in addition to its upcoming 5 million tonnes plant in Maharashtra, Flat steel products comprise over 70 percent of its product portfolio. The company plans to differentiate its product line as it transitions from a volume- to value-based player to maintain 14-15 percent of market share. Value-added products, the steelmaker said, comprise nearly half of its portfolio—a proportion the company intends to maintain as it gradually ramps up capacity from 18 MTPA to 25 MTPA and then 45 MTPA by 2030.
Here’s how the company plans to use its total capex of Rs 45,000 crore for capacity expansion.
INR 22,000 crore will be spent on ramping up capacity to 25 MTPA
INR 5,000-6,000 crore towards expansion of downstream facilities
INR 13,000-14,000 crore towards acquisition of iron ore mines
Source : Bloomberg Quint