Indian Steel Producers In A Race To Capture The Indian Steel Market: Yes Securities

"BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Yes Securities Report.In a bid to reach 300 million tonnes per annum of capacity by 2030, the Indian steel makers are in a race to capture the Indian steel industry market share. We have a look at the current pipeline of the major steel makers and how big of a market share would they be able to have by 2030. Out of the 300 mtpa capacity, 60-65% or 180-195 mtpa capacity will be through the traditional blast furnace-basic oxygen furnace route. Indian steel makers are currently focused on investing in carbon capture technologies in order to curb the pollution by the steel industry. India has a substantial amount of iron ore reserves which gives the country and its steel makers a competitive advantage on the cost curve and profit margins as compared to the global competitors. We take a look at the biggest steelmakers in India and how are they placed in achieving the goals set by the Ministry of Steel for 2030-31..JSW Steel JSW Steel Ltd. is the largest Indian steel manufacturer in terms of capacities. The company has operations in India as well in the USA however, the company is much more focused on the Indian markets and are taking aggressive expansions in the country over the course of next two years as well as till 2030. JSW Steel’s total steelmaking capacity is 29.70 mtpa. The firm’s total steel capacity in India currently is 28.20 mtpa. JSW Steel plans to add ~8.0 mtpa of capacity over the next two years and maintain its position as the largest steel maker in India. The company plans to incur capex in the range of Rs. 18,000-20,000 crores on an annual basis till FY25E in order to complete its capex pipeline. The brownfield expansion at the Vijayanagar plant is expected to be completed by the end of FY24..Tata Steel Tata Steel Group is one of the largest steel producers globally with operations in India, Europe (Netherlands and UK) and South-East Asia. The group has a total steelmaking capacity of ~35 mtpa across geographies where India accounts for 21.7 mtpa of the total. Tata Steel is scaling up to capitalise on the Indian growth opportunity which will be on the backbone of the steel industry. The company is looking to nearly double its steel making capacities in India from ~21 mtpa in 2023 to 40 mtpa by 2030..SAIL Steel Authority of India Ltd. is a government steel manufacturer focused on operations in India. The company produces flat and long products of steel and has a total steelmaking capacity of 20.20 mtpa. Over the next few years, the company aims to incur maintenance capex at its plants and debottlenecking activities. The company plans to expense around Rs 6,800 crores for its capex activities, out of which Rs 1,500-2,000 crores would be towards the maintenance capex. In terms of new projects, the company got in-principle approvals for IISCO and Bokaro steel plants by 4.50 mt and 3.00 mt respectively for capacity expansions. IISCO Steel plant expansion plans would be finalized during the Q3 and Q4 of this financial year. The capex for these expansions would start from the second half of the financial year. However, the company hasn’t declared a timeline for any of the projects..JSPLJindal Steel and Power Ltd. is an integrated steel player with operations running from mining of iron ore to production of finished steel products. The company currently has a liquid/crude steel capacity of 9.60 mtpa and a finished steel capacity 6.70 mtpa..Click on the attachment to read the full report:.Auto Ancillaries Check - Options Galore; Which Ones To Choose From The Lot: ICICI Securities.DISCLAIMERThis report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner."

Indian Steel Producers In A Race To Capture The Indian Steel Market: Yes Securities

In order for India to nearly double its capacities, Govt believes that an investment of about Rs 10 lakh crore would be required.

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Indian Steel Producers In A Race To Capture The Indian Steel Market: Yes Securities

In order for India to nearly double its capacities, Govt believes that an investment of about Rs 10 lakh crore would be required.

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