JSW Steel to invest Rs 19,000 crore in capacity expansion at Dolvi plant

21 May 2024 , 11:28 AM

JSW Steel plans to invest around ₹19,000 Crore in capacity expansion  at Dolvi Plant to meet demand for value-added special steel products, according to CEO Jayant Acharya.

He stated that it would be very cost-effective since some of the infrastructure facilities are already in place (and) some of the equipment are already there as part of phase two.

The investment will increase the firm’s overall capital expenditure to beyond ₹64,000 Crore in three years.

The country’s largest steel maker said that it will add another 5 million tonnes of capacity to its Dolvi plant in Maharashtra, bringing the total to 15 million tonnes per year by September 2027. The company expects to have a total production capacity of 42 million tonnes across India by then.

The National Steel Policy 2017 envisions India’s steel output capacity reaching 300 million tonnes by 2030-31.

JSW Steel wants to have a capacity of 50 million tonnes by then, whereas Tata Steel aims for a manufacturing capacity of 40 million tonnes.

Adding five million tonnes of capacity at Dolvi will cost JSW approximately $460 per tonne, which is much less than the global average of $700 per tonne. The corporation intends to fund this capex mostly through internal accruals.

JSW Steel’s Q4 PAT falls 65% year on year to ₹1,332 Crore, with a dividend of ₹7.30 per share. JSW Steel reported a 64.66% fall in overall net profit to ₹1,332 Crore in Q4 FY24, compared to ₹3,741 Crore in Q4 FY23. In the fourth quarter of FY24, operating revenue declined 1.48% year on year to ₹46,269 Crore.

At around 10.59 AM, JSW Steel was trading 2.40% higher at ₹912.20, against the previous close of ₹890.80 on NSE.

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