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Growth target for JSW Steel

Disclosure - 10 December 2017
JSW Steel, Growth Goal

JSW Steel: new global investments and acquisitions.

JSW Steel is the largest Indian steel manufacturer on the Indian market, with an annual output of 18 million tonnes. It has production sites in India as well as assets in the US, Chile and Mozambique.

According to reports in the financial portal Live Mint, JSW Steel, Sajjan Jindal’s group, plans to further grow its production from the current 18 million tonnes to 23 million tonnes, incurring a total expenditure of Rs 23,800 crore (equivalent to EUR 3.1 billion) within the next three years.

This expenditure, according to Seshagiri Rao, JSW’s CFO and M&A Director, will be financed by debt and equity while maintaining the same equity/debt and EBITDA/debt ratios.

Reportedly, the intentions will be to acquire ailing steel companies and create a specialised platform with the cooperation of financial investors.

Acquisitions could also take place in Europe, where the company has already identified possibilities.

“If you look at the assets available in Europe, the number of personnel employed per million tonnes is significantly less than what is required in India to pursue acquisitions either through external routes or organic business expansions,” Rao pointed out.

Other sources report JSW’s intentions:
Bloomberg reported in August on possible investment intentions in JFE Steel Corp, Japan’s second largest steel manufacturer.
Business Standard reported in early November that JSW was in discussions with Piramal Enterprises about a partnership to acquire insolvent assets.