Focus on value added products

JSW Steel plans to add its investment by Rs.5,000 crore for strengthening its downstream capacity, having earlier announced a mega Rs.45,000 capex investment plan for mills in Karnataka and Maharashtra.

JSW is also keen on acquisition of stressed assets that would come up for bidding in the next round.

The investment will enable the company to re-orient its product mix and focus on high value special steel and customisation, joint managing director Seshagiri Rao told Press Trus of India.

“The next set of assets is either downstream or very small capacities. So, if it makes sense to our downstream integration strategy, we will evaluate the asset and pursue,” he said.

The downstream investment is aimed at capitalizing the increase in specialised steel in the country, where large scale development programmes in various stages of implementation and proress.

India is expecting 300 million tonnes of steel consumption a year but steel intensity across applications is coming down.

“This is where the demand for very high value steel products is rising. Circular economy is becoming very active,” said Rao.

JSW will reduce focus on commodity space and enter into alloy and special steel products for a long-term sustainable business.

“Our aim is to look at more and more de-competitive business segment as a key indicator of osuing on special steel catergories,” explained Jayant Acharaya, JSW’s Director for Commercial, Marketing and Strategy.

JSW’s overall capacity will grow by 40% over the next three years. The downstream capacity will increase by 60%, colour-coated capacity will go up by 140% and tin plate will increase six-folds.

“We are not going to produce commodity. Basis our very customised steel portforlio and high-end value-added product mix, the business will become less volaatile,” Rao stressed. fiinews.com