India steelmaker Evonith Steel Limited (ESL) has finalized an investment plan of $672 million to increase its annual crude steel production capacity from 1.1 million mt to 3.5 million mt under the second phase of its expansion project, the company said in a statement on Friday, November 28.
According to the company, the investment will be financed through a combination of internal accruals, debt, and proceeds from an initial public offering (IPO), expected to take place over the next 18-24 months. The expanded capacity will primarily cater to the automotive sector and the white goods manufacturing industry, strengthening ESL’s presence in value-added steel markets.
First phase expansion completed earlier
ESL operates under the ownership of Nithia Capital, a global investment firm.
In the first phase of its growth strategy, ESL increased its capacity from 500,000 mt per year to 1.1 million mt per year, which included the commissioning of a 300,000 mt per year ductile iron pipe manufacturing facility.