JSW Steel to raise Rs 14,000 crore for acquisitions & expansions

JSW Steel is planning to raise about Rs 14,000 crore via equity share sale and debentures to fund expansion and acquisitions.

The JSW group company plans to step up its steel-making capacity to 24 million tonnes per annum (MTPA) by 2022 through brownfield expansions at a cost of Rs 48,715 crore.

The board of the company has given nod to new investments of Rs 5,700 crore. This includes downstream investment of about Rs 1,000 crore, cost savings projects of about Rs 2,200 crore and mining and sustenance capex of about Rs 2,000 crore.

The expansion includes doubling the capacity of JSW Steel’s Dolvi plant to 10 MTPA, capacity expansion of CRM-1 complex at Vijayanagar works, modernisation-cum-capacity enhancement at downstream facilities of JSW Steel Coated Products and strategic cost savings projects.

Recently, JSW Cement has decided to double its production capacity in next few years. The company, a part of the $13 billion JSW Group, currently manufactures 4 million tonne per annum (mtpa) in the East.

In a statement, the company said capacity ramp-up will involve a combination of brownfield expansions at Salboni unit in West Bengal and the Odisha-based Shiva Cement plants, as well as a greenfield project in Odisha.

Image Credit : static-news.moneycontrol.com

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