JSW to emerge as India’s largest steelmaker after BSPL acquisition

Tuesday, 09 March 2021 11:45:51 (GMT+3)   |   Kolkata

With creditors of the financially stressed Indian steelmaker Bhushan Power and Steel Limited (BSPL) voting last week in favour of its acquisition by JSW Limited, the latter is expected to emerge as India’s largest steel producer by the end of the current fiscal year, changing the pecking order of domestic steel producers in terms of capacities, SteelOrbis has learned on Tuesday, March 9, from industry calculations of projected capacities.

Last week, financial institutions and creditors of BSPL approved the acquisition by JSW, directing the latter to deposit around $2.65 billion in an escrow account and to complete the takeover of the stressed steelmaking assets by March this year.

The acquisition of BSPL will add 3 million mt per year to JSW’s current steelmaking capacity. JSW is also close to the completion of a project to double the capacity of its Dolvi steel mill to 10 million mt per year. Another 1 million mt per year capacity has been added by JSW’s acquisition of the stressed steelmaking assets of Monnet Ispat Limited.

These organic and inorganic capacity additions have been projected to take JSW’s total domestic steelmaking capacity to 27 million mt per year, making it the largest domestic steel producer in India by the end of the current fiscal and changing the overall ranking of domestic steel companies in terms of installed capacities.

As per the current pecking order, Tata Steel with an installed capacity of 20 million mt per year is the country’s largest steel producer, followed in second place by state-run Steel Authority of India Limited (SAIL) with 19.63 million mt, and by JSW in third slot with a current capacity of 18 million mt.

It may, however, be noted that with 13 million mt per year capacity overseas, Tata Steel’s total global capacity adds up to 33 million mt per year.

However, industry analysts have pointed out that, in the longer term, the pecking order will change again with Tata Steel having drawn up a corporate strategic plan to increase its steelmaking capacity to 40 million mt and JSW to increase its capacity to 50 million mt per year through organic and inorganic expansion projects.

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