JINDAL STEEL PLANS $2.4 BILLION SPEND OVER SIX YEARS TO DOUBLE OUTPUT
Jindal Steel & Power Ltd plans to spend $2.4 billion over the next six years to ramp up capacity, joining its peers in announcing massive expansions as a recovery from the pandemic boosts demand.
The steelmaker plans to raise total crude steel capacity to 15.9 million tons by March 2025 from 8.6 million tons, the New Delhi-based company said in an investor presentation on Tuesday. The expenditure also includes plans to more than double pellet production capacity to 21 million tons by 2024, it said.
The Naveen Jindal-led mill, once India’s biggest steelmaker by market value, is set to make fresh investments for growth, after aggressively slashing its debt levels by more than 60% since 2018. The expansion plan is driven by expectations of robust consumption as India aims to invest 100 trillion rupees ($1.3 trillion) in infrastructure to boost economic growth and create jobs.
Rivals Tata Steel Ltd. and Arcelormittal Nippon Steel India Ltd., a joint venture between Arcelormittal SA and Nippon Steel Corp., have already announced plans to more than double capacity, lured by strong demand prospects. Jindal Steel estimates annual demand will recover from pandemic-related disruptions and grow 8% to 9% by 2025.
The steelmaker registered a staggering ten-fold rise in its consolidated profit during the June quarter of this fiscal. The Indian steelmaker posted consolidated net profit of ₹2,515.71 crore during the quarter under review, as opposed to ₹235.71 crore in the year-ago period.
The June quarter marked exemplary performance by all businesses including steel and overseas mines and minerals