JSW Steel Ltd has outlined an aggressive expansion roadmap, targeting a total steelmaking capacity of nearly 80 million tonnes by FY32, while planning capital expenditure of ₹22,000 crore to ₹24,000 crore in FY27 as it accelerates capacity additions, raw material security and downstream investments.
Speaking during the company’s earnings call, joint MD & CEO Jayant Acharya said JSW Steel incurred capex of ₹4,612 crore during the March quarter and ₹15,600 crore for FY26.
He said the company’s approved growth plan currently entails investments of ₹1.26 lakh crore over the next four to five years.
“Our sense is that we would require another ₹1 lakh crore between now and FY33 because if you plan new capacity additions, the payments would spill over into the following year. So, you effectively have about six to seven years over which this capex would be spread,” he said.
Capacity target raised to 62 MT by FY32
JSW Steel has revised its India capacity target upward from 50 million tonnes by FY31 to 62 million tonnes by FY32, leveraging expansions across existing manufacturing sites.
In addition, the company’s joint ventures with JFE Steel and POSCO are expected to contribute a cumulative capacity of 16 million tonnes by FY32.
Including the company’s Ohio operations with 1.5 million tonnes capacity, the combined capacity of JSW Steel and its joint ventures would be close to 80 million tonnes.
Acharya said the scale would position JSW Steel among the world’s largest steel producers.
Vijayanagar expansion to create world’s largest single-location steel plant
The company announced an additional 5 million tonnes expansion at its Vijayanagar facility in Karnataka, taking the plant’s overall capacity to 25 million tonnes.
According to the company, the expansion would make Vijayanagar the world’s largest single-location steel plant.
JSW Steel also said its previously announced 1 million tonne expansion at Kadapa and the first phase of the 5 million tonne JSW Utkal project are progressing on schedule.
BMM Ispat acquisition to strengthen long products portfolio
The steelmaker said its acquisition of BMM Ispat in Karnataka is expected to complement its long products portfolio.
BMM Ispat currently has a production capacity of 0.9 million tonnes and is located around 50 km from the Vijayanagar steel plant. The company said the facility has expansion potential to 1.8 million tonnes with relatively low investment requirements.
The planned expansion would focus on engineering and specialised steel products, with the acquisition expected to be completed by the end of the current financial year.
Focus sharpens on raw material security
JSW Steel said it has significantly strengthened its raw material integration strategy during FY26.
The company completed the acquisition of high-grade coking coal mines in Mozambique and increased its effective interest in the Illawarra coking coal mine from 20% to 30%.
On the iron ore front, JSW Steel operationalised a new mine in Goa and secured another mining block recently.
Acharya said the company now expects to achieve 50% captive integration for both iron ore and coking coal by FY31, aided by the Mozambique acquisition.
Joint ventures aid deleveraging
The company highlighted strategic partnerships with JFE Steel and POSCO as key milestones during FY26.
JSW Steel announced a 50:50 joint venture with JFE Steel for its BPSL business in December 2025. The transaction is expected to result in deleveraging of approximately ₹37,000 crore, of which around ₹30,000 crore had been completed by March-end.
The company said its net debt stood at ₹54,000 crore as of March 31, while leverage reduced to 1.81x.
Last month, JSW Steel also signed a joint venture agreement with POSCO during the India-South Korea Summit in New Delhi for setting up a 6 million tonne greenfield integrated steel plant in Odisha.