Mumbai: JSW Steel, India’s 3rd largest steel maker plans to get $22 billion dollars (Rs 1, 32,000 cr) over the next 10 years to be able to take its total capacity to 40 million tonne by 2025.
“Because we want to sustain our business of 13-14% going forward, we have made the decision to get this amount in the future & be part of government’s 300-million-tonne steel capacity plan by 2025,” Chairman Sajjan Jindal said today. “We (JSW Steel) will look to develop together, the organic as much as the inorganic way to order this achieves (40 million tonne),”he included.
Jindal was discussing on the side lines of the 20th annual general meeting held here today.
At present, the Mumbai-based steel producer has a complete installed capacity of 14.3 million tonne.
“JSW Steel is committed to partner India’s growth on the strength of its top-tier know-how and committed work force. We are looking towards the future with more optimism than ever before. I invite all of you to share our optimism and support our collective journey forward,”Jindal said addressing the shareholders.
“JSW Steel is committed to partner India’s development on the strength of its top-tier know-how & committed work force. We are looking towards the future with more optimism than ever prior to. I invite all of you to share our optimism & support our collective journey forward,”Jindal said dealing with the investors.
In the current financial year, the steel company has a capital expenditure plan of about Rs 7,000 crore.
Regarding the acquisition of smaller rival Welspun Maxsteel, Jindal said, “we are going through the due diligence process at present and it should take about two months for the same.”
Welspun Maxsteel runs a sponge iron unit which currently caters to JSW Ispat’s Dolvi plant with the needed raw material. Acquisition of Welspun will secure continuous supply of cheaper raw material to JSW’s Dolvi unit.
On JSW brand royalty, Jindal said company’s approvals are in position & since the company needs to promote the product its board has all made the decided to go forward with the same.
The board has decide that a brand royalty of 0.25 per cent of consolidated net profit of JSW Steel will be separated with to the promoter group company JSW Investment efficient this financial.
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