Steel maker JSW Steel has started producing hot-rolled plates at Dolvi Works plant in Maharashtra, JSW Steel said in a BSE filing. “On March 31, 2021, JSW Steel has commenced production of hot-rolled plates from the new 5 million tonnes per annum (MTPA) hot strip mill facility at its Dolvi Works,” it said.
Located on the west coast of India at Dolvi in Maharashtra, Dolvi Works is JSW Steel’s integrated steel plant having current capacity of 5 MTPA. The company is in process to double its capacity to 10 MTPA with an investment of about Rs 15,000 crore.
Meanwhile international credit rating agency Moody’s has affirmed JSW Steel’s Ba2 corporate family credit rating, while the outlook for the company’s rating has changed to stable from negative.
The rating affirmation and outlook change to stable were driven by a solid recovery in JSW’s operating performance in the third quarter of the fiscal year ending 31 March this year. Moody’s stated that it believes JSW Steel will sustain the improvement over the next 12-18 months. The rating action also reflects JSW’s acquisition of financially stressed Indian steelmaker Bhushan Power and Steel Limited (BSPL). According to Moody’s, BPSL’s value added product offering and proximity to JSW’s iron ore mines will further strengthen the company’s business profile.
JSW Steel is targeting to achieve 29 million tonnes production capacity with the completion of the greenfield capacities and acquisition of Bhushan Power and Steel (BPSL).
The steelmaker is also planning to complete the downstream capacity expansion to 11 MT from 5 MT along with the Dolvi and Vijayanagar capacity construction. The company has 12 MT and 5 MT capacity in Vijayanagar and Dolvi, respectively. It also has a 1 MT plant in Salem.
JSW Steel will commence brown field expansion of JSW Ispat and BPSL once these projects are completed. Ispat, which JSW acquired through bankruptcy proceedings, has turned around with net profit of Rs 29 crore in third quarter.
The larger product mix, lower cost of production and higher volume are expected to give upside for JSW Steel during the next fiscal.