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JSW Steel to Invest over 19,000 Cr to Expand Manufacturing at Dolvi

JSW Group logo

JSW Steel Ltd., a major Indian steel manufacturer, has earmarked Rs. 19,125 Cr. to be invested in the expansion of its facility in Dolvi, Maharashtra. The company shared this information in its corporate presentation dated 17th May 2024.

Dolvi Expansion to be Complete by September 2027, 5 MMTPA Augmentation Targeted

JSW Steel expects its capacity addition at Dolvi to be complete by September 2027. Currently, the plant has a production capacity of 10 Million Metric Tonne Per Annum (MMTPA), which will be augmented to 15 MMTPA through this expansion.

The company refers to this brownfield capacity addition project as Dolvi Phase III.

Components of the Dolvi Phase III Project

JSW Steel factory

JSW Steel will be installing a 5 MMTPA blast furnace at Dolvi. Additionally, a new convertor will be added to the Steel Melt Shop (SMS) in the plant. For the production of plates and coils, a Hybrid Continuous Caster will be installed at the plant, which would be capable of producing these products in widths up to 2,600 mm. Lastly, a 175 MW power plant which would draw heat from Blast Furnace gases will be developed at Dolvi.

Proximity to Western India’s Markets, Low CapEx Per Tonne

JSW Steel’s Dolvi Plant is located on the west coast of Maharashtra and is connected to a 15 MMTPA jetty which enables access to major industrial markets in Western India. The company also mentioned in its presentation that Dolvi Phase III expansion is a ‘Value-accretive project’, and is economical with ‘low CapEx per tonne’.

Brief Background of JSW Steel’s Dolvi Plant

JSW acquired the Dolvi plant as an asset of Ispat Industries Ltd., which was in turn acquired in 2010. The production capacity of this plant was subsequently increased to 5 MMTPA in FY-17 from the earlier 3.3 MMTPA, and then further to 10 MMTPA in FY-22. Therefore the current expansion at Dolvi marks the third phase of expansion at the plant by JSW.

JSW’s Dolvi Expansion to Realise 42 MMTPA Steel Capacity by September 2027

As of now, the company has an operational capacity of about 28.2 MMTPA in India, while 6.5 MMTPA production capacity is currently ‘under commissioning’.

JSW Steel expects its manufacturing capacity to reach 42 MMTPA in India by September 2027 after the completion of Dolvi Phase III expansion. Apart from the expansion at Dolvi, JSW Steel is also expanding its manufacturing capacity at Vijayanagar by 2 MMTPA, which is expected to be complete during FY-25. Further, another 0.3 MMTPA capacity addition by September 2027 will be done through JSW Ispat Special Products Ltd. (JISPL), a subsidiary of JSW Steel which deals in sponge Iron, steel and Ferro alloys manufacturing.

By FY-31, subject to board approval, the company expects to add another 8 MMTPA capacity to take its total manufacturing capacity in India to 50 MMTPA.

About JSW Steel Ltd.: JSW Steel Ltd. is the flagship company of the JSW Group. The company has its manufacturing facilities in India and the US. In FY-24, the company reported a consolidated top line of Rs. 1,75,006 crore.