The company notes that the European CBAM will not have a significant impact on them
Indian steelmaker JSW Steel expects to require minimal external capital to support its plans to double its capacity in India. The company’s co-managing director, Jayant Acharya, made this statement in an interview with The Economic Times.
According to him, this expansion is crucial for the company to maintain its share of the domestic steel market, which
Acharaya noted that over the past six years, demand for steel in India has grown from 100 million tons to approximately 160 million tons by the end of 2025. In his view, given the country’s current growth, supply will lag behind demand.
The co-managing director of JSW Steel explained that the company’s share of hot-rolled flat steel production in India is about 40%.
“If demand for flat steel increases by 50 million tons by 2032 and we want to maintain this share, we will have to add at least 20 million tons… If we don’t do this, or if Tata Steel, SAIL, or Jindal Steel don’t do it, we will fall behind much more than expected,” he noted.
Acharaya said that Covid has taught steelmakers to be more structurally prudent. The company has focused on costs, production, and efficiency that will stand the test of time.
By the middle of next year, JSW Steel will reach a capacity of 37 million tons.
The co-managing director of JSW Steel also expects a reduction in Chinese steel exports amid declining production in that country and the strengthening of protective measures worldwide.
Jayanath Acharya also noted that the European CBAM will not have a significant impact on the company. About 90% of JSW Steel’s sales are in India, and this ratio will not change significantly—growing domestic demand continues to absorb capacity.
“Europe will become increasingly less relevant to us as an export market. It is experiencing a structural decline—an uncompetitive industry, an aging population, high pension liabilities, and skyrocketing energy prices. Our overall cost base, including labor, which accounts for less than 2% of revenue compared to 15–20% in Europe, is fundamentally different. CBAM is more about protecting European producers than addressing any genuine environmental issue,” he noted.
As a reminder, JSW Steel plans to invest $2.5 billion in capacity expansion during the 2026/2027 fiscal year. By 2030, JSW Steel aims to increase its total capacity to 48.8 million tons per year (up from the current 31.9 million tons).
