Amid global trade volatility and rising protectionism, JSW Steel is doubling down on India’s domestic demand story with one of the largest capital expenditure plans in the sector.
JSW Steel will invest over ₹2 trillion by FY31, as the company expands capacity, deepens downstream integration and bets on sustained growth in domestic steel consumption, according to Jayant Acharya, Joint Managing Director and CEO.
Speaking in an audio interview, Acharya said the investment programme is anchored around capacity expansion, mining assets, digital initiatives and green steel projects, even as global steel markets remain volatile.
Q4 outlook: Prices recovering after multi-year lows
Steel prices bottomed out during the December quarter but have shown signs of recovery since late December, Acharya said. He added that the government’s decision to impose safeguard duties came at the right time.
“The overall environment will support stronger demand in the fourth quarter, which should help improve prices and partially offset higher coking coal costs,” he said.
₹2 trillion capex roadmap through FY31
Acharya said JSW Steel’s total planned capital expenditure through FY31 will exceed ₹2 trillion, with around ₹1 trillion committed over the next four to five years following recent announcements in Odisha.
Key investment areas include:
- Phase two expansion in Odisha
- Blast Furnace 6 at Vijayanagar
- Green steel plant at Salav
- Joint ventures with JFE Steel and Posco
These projects will add nearly 25 million tonnes of capacity, alongside investments in mining, digital transformation and downstream manufacturing.
Domestic demand cushions global trade risks
On the impact of the European Union’s Carbon Border Adjustment Mechanism (CBAM), Acharya said pricing mechanisms are still evolving, but JSW’s long standing relationships with European customers provide confidence.
However, he emphasised that India remains the company’s primary focus, supported by rising consumption.
“Indian steel demand is increasing by 10–12 million tonnes every year. That gives us the flexibility to divert volumes domestically, where returns are stronger,” he said.
Safeguard duty a positive signal for industry
Acharya welcomed the government’s decision to impose a 12% safeguard duty, calling it an important signal against dumping.
“The steel industry plays a critical role in infrastructure development and employment, especially in rural and hinterland regions. Reasonable margins are essential to reinvest and support economic growth,” he said, adding that while the duty could have been higher, the government’s intent was clear.
Investment plans driven by India opportunity, not tariffs
According to Acharya, JSW Steel’s expansion strategy is not dependent on protectionist measures.
“We were targeting 50 million tonnes of capacity irrespective of safeguard duties. India offers unmatched opportunities due to strong demand, policy stability, infrastructure build-out and demographic advantage,” he said.
On CCI investigation
Responding to allegations of price collusion flagged in a Competition Commission of India (CCI) investigation, Acharya declined to comment on the ongoing process but said JSW Steel remains fully compliant with all laws.
“This is an old case from 2021. In products like TMT, price volatility is extremely high, making allegations of sustained price control difficult to justify,” he said.
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