Contrary to the downturn in the steel industry, private sector steel manufacturer JSW steel is no way slowing down or cutting down on its capacity.
India’s steel industry has been facing a slowdown due to weak global market conditions and steel manufacturers are looking at ways of cutting down on their costs.
‘No slowdown as far as JSW Steel is concerned. We are not cutting back in fact we are adding capacity’ said JSW Steel’s Senior Vice President-Sales & Marketing (Long&Coated), Mr Sanjay Agrawal. He said that this is the right time to add and build on capacity so that one can take advantage when the market turnarounds.
Led by the billionaire Mr Sajjan Jindal, JSW Steel currently has a 18 million tonne capacity with another 5 million tonnes to be commissioned shortly.
‘By next year you shall see us add an additional 5 million tonnes. In fact even at our Vijayanagar plant 1.2 million tonnes shall be added’ said the senior Vice President, JSW Steel.
This he said shall get commissioned in the next 6-8 months and informed that all of this is getting funded through internal accruals.
Playing down the effect of the slowdown in the auto sector on the steel industry he said that India’s per capita consumption of steel is still low and there is an enormous room for growth.
India’s per capita steel consumption is said to be around 70 Kgs compared to a global figure of 224 kgs of finished steel consumption.
There is a huge demand for affordable housing in the country hence this would be an area where steel would be required said the Vice President, JSW Steel.
Similarly he stated that the government shall soon start spending big on infrastructure.
‘In the next 3-4 months you shall see the government open its taps and release funds on huge infrastructure projects’ said Mr Agrawal.
He further added that by 2030 JSW Steel shall have a capacity of 50 million tonnes.