JSW Steel Limited is one of India’s leading private sector steel maker and among the world’s giant steel players. The company has manufacturing units spread over
six different locations in India and also in the world market in US, South America and Africa. They operate one of their steel plants in Bellary, Karnataka, which is running at 70-80% capacity utilization owing to the lack of captive iron ore mine and long term supply agreement for the same. At present the company is sourcing the raw material from the open market. They are already importing around 100 MnT of coal and cannot afford to import iron ore too of the same or the required amount.
The company is further planning to open up a new plant in Bellary which will be producing auto-grade steel for the domestic market. The market presently imports around 3-4 MnT of the auto-grade steel at a cost of $800-1,000/MT. The plant will be commenced from the month of December, 2013, said the chairman and managing director of JSW Steel, Mr. Sajjan Jindal.
They are investing a total of $1 Billion for the plant which is specifically designed to cater o the requirement of the Indian automotive industry. “The 2.3 million ton-a-year capacity plant, once commissioned, will substitute the auto-grade steel imports. We are in talks with all the auto majors and most of them have already approved the product quality also. We expect the unit to generate revenues of $2 Billion and an EBIDTA of $500 million once it attains full capacity utilization,” Mr. Jindal said.