JSW Steel plans major investments to boost capacity to 50m tonnes by FY31

JSW Steel anticipates spending Rs 23,000 crore in FY26 and Rs 21,434 crore in FY27. It spent Rs 16,752 crore in FY24.

JSW Steel has announced ambitious plans to invest Rs 20,000 crore in the financial year 2024-25, aiming to scale up its production capacities to 50 million tonnes by FY31.

Revised Capex Plans

Initially, the company set its capital expenditure (capex) for FY24 at Rs 20,000 crore. However, due to timing issues, it revised this figure to Rs 18,000 crore, with the remaining capex amount deferred to the next financial year.

Future Investment Projections

Looking ahead, JSW Steel anticipates significant investments:

• FY26: Rs 23,000 crore
• FY27: Rs 21,434 crore
• FY24: Rs 16,752 crore

The company’s consolidated capex is projected at Rs 64,434 crore. This includes Rs 19,125 crore allocated for the Dolvi Phase-III project and Rs 4,665 crore for growth, mining projects, and modernization of the Italy Rail Mill, as detailed in an investor presentation on May 17.

Production Goals

JSW Steel aims for consolidated crude steel production of 27.40 million tonnes from its Indian operations by FY25. At the Dolvi plant, the company is increasing its steel-making capacity by 5 million tonnes per annum (mtpa), raising the total capacity to 15 MTPA. This expansion is expected to be completed by September 2027.

Focus on Infrastructure and Private Investment

In its statement, JSW Steel emphasized the government’s ongoing focus on infrastructure development, noting a 36.5% increase in central government capex during April-February 2024. 

The company anticipates that rising utilization levels and robust balance sheets will spur private investment, particularly in energy transition projects and initiatives under the government’s Production-Linked Incentive scheme.

JSW Steel’s substantial investment plans reflect its commitment to expanding its production capabilities and supporting India’s infrastructure development, positioning itself to meet growing domestic and international demand for steel.