JSW Steel to Invest Over Rs 50,000 Crore to Set Up 10 MTPA Green Steel Plant for European Market
JSW Steel, a flagship company of the USD 24-billion JSW Group, has announced a massive investment plan of over Rs 50,000 crore to establish 10 million tonnes per annum (MTPA) of green steel production capacity. The project will be executed at its brownfield facility located in Salav, Raigad district, near Mumbai, over the next three to four years. This strategic move aligns with global sustainability goals and comes in response to the increasing demand for eco-friendly steel in the European market, driven by stringent environmental regulations.
Company Chairman Sajjan Jindal emphasized that this new green steel facility will be significantly more efficient, emitting just one-fifth of the carbon emissions compared to traditional steel plants. The investment not only signals JSW Steel’s commitment to sustainability but also strengthens India’s position in the global green manufacturing space. Earlier in March, JSW Steel had revealed its phased plan to scale up green steel capacity at Salav to 4 MTPA, and this latest announcement marks a substantial expansion of that vision.
Jindal also raised serious concerns about unfair trade practices impacting the Indian steel industry. He pointed out that countries like China and Vietnam are attempting to dump steel into the Indian market, which could destabilize domestic producers. He expressed confidence that the Indian government is vigilant and will likely impose safeguard duties within a few days to counteract such dumping, ensuring fair play and protecting local manufacturers.
Addressing misconceptions about the steel sector’s efficiency, Jindal highlighted the immense capital requirements of the industry. He stated that India needs to invest around USD 20 billion annually to meet the growing steel demand, which is increasing at a rate of 10-12% per year. To achieve this, domestic steelmakers must remain profitable to reinvest in capacity building and infrastructure development.
Jindal also noted that while China has reached its peak in steel consumption, it is scaling back production and aggressively looking for international markets to export its surplus steel. Last year alone, China exported 120 million tonnes of steel, a significant portion of which made its way into India through Vietnam. He urged Indian businesses to rise to the occasion and capitalize on the disruption in global trade by boosting productivity and innovation.
JSW Steel currently has a capacity of 34.2 MTPA and aims to become the largest steel producer in the world with a long-term goal of reaching 100 MTPA. While no timeline was disclosed for this target, the company’s aggressive expansion strategy indicates a clear roadmap toward global leadership in steel production.
Diversification remains a key focus for the JSW Group. Jindal shared that the company is planning to manufacture battery cells in India, leveraging Chinese technology and exploring collaborations with Korean firms. Additionally, the group has ambitious plans in the public markets, with an initial public offering (IPO) for JSW MG Motor India expected in 2-3 years. JSW Cement is also gearing up for an IPO, though it is not expected to be a large offering.
Jindal concluded by calling on Indian entrepreneurs to seize current opportunities presented by global economic shifts. He emphasized the importance of hard work and innovation over leisure and stressed the need for increased investment in research and development. While acknowledging the group’s limited current R&D spending, he noted that ideally, up to 5% of revenue should be allocated for innovation, though sourcing these funds remains a challenge.
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