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JSW to invest $22bn

Jindal: Eye on target

Mumbai, July 31: JSW Steel plans to invest $22 billion over the next decade to put in place a production capacity of 40 million tonnes by 2025.

The country’s third-largest steel maker today said it remained committed to the proposed greenfield projects in Bengal and Jharkhand.

JSW Steel now has an installed capacity of 14.3 million tonnes.

“To retain a market share of 13-14 per cent, the company has prepared a blue print to increase steel capacity to 40 million tonnes per annum by 2025. This will entail a capital outlay of $22 billion over the next decade,” JSW Steel chairman Sajjan Jindal told shareholders at the company’s 20th annual general meeting here today.

He said though the company was committed to greenfield projects in Bengal and Jharkhand, “committing additional capital to these projects is limited to securing raw material linkages as it is fundamental to achieve financial closure’’.

Jindal said investments worth $200 billion were required to meet the government’s target of a steel-making capacity of 300 million tonnes by 2025 from the current 105mt.

During 2013-14, despite a sluggish domestic demand, constrained iron ore availability and higher procurement costs, Jindal said the company managed to improve margins from 17.8 per cent to 19.4 per cent and its market share to 13.2 per cent.

 
 
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