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India Drives Global Steel Demand

13.5% jump in steel consumption

Published

11 months ago

December 2, 2024

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India remains the only major economy witnessing robust double-digit growth in steel consumption, registering a 13.5% increase in the first half of FY 2024-25, according to the Ministry of Steel. This strong demand aligns with India’s infrastructural ambitions but raises challenges regarding domestic production and imports.

Key Insights on Steel Demand and Production
Projected Demand by 2030:

India will require 300 million tonnes of steel production capacity to meet an estimated 265 million tonnes of demand.
Current capacity stands at 180 million tonnes, necessitating an additional 120 million tonnes of capacity.
Investment needed: $120 billion (?10 lakh crore).
National Steel Policy Goal:

Achieve 300 million tonnes capacity by 2030 to avoid dependency on imports.
Challenges: Imports and Price Depression
Surging Imports:

41.3% increase in steel imports in H1 2024-25 (4.73 million tonnes vs. 3.32 million tonnes in H1 2023-24).
Cheaper imported steel threatens domestic price stability, impacting both large and small producers.
Domestic Production:

Of the 144.3 million tonnes of steel produced in FY 2023-24:
59.16% by integrated producers.
40.84% by over 1,002 small producers across clusters, highlighting their vulnerability to low-price imports.
Quality Assurance and Policy Measures
To ensure high standards, the Bureau of Indian Standards (BIS), in collaboration with the Ministry of Steel, has:

Notified 51 BIS Standards covering 1,376 grades of steel.
Introduced Quality Control Orders to ensure that domestically produced or imported steel adheres to these standards, preventing low-quality imports.
Outlook and Strategic Importance
India’s steel demand growth underscores its rapid development trajectory, driven by urbanization and infrastructure projects. However, for sustained growth:

Domestic capacity expansion must be prioritized.
Protective policies against price dumping are essential to safeguard small and large producers.
Continued quality assurance ensures global competitiveness.
India’s trajectory positions it as a critical player in global steel markets, balancing production, consumption, and import regulation.

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Ambuja Cements Delivers Strong Q2 FY26 Performance Driven by R&D and Efficiency

Company raises FY28 capacity target to 155 MTPA with focus on cost optimisation and AI integration

Published

2 days ago

November 10, 2025

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Ambuja Cements, part of the diversified Adani Portfolio and the world’s ninth-largest building materials solutions company, has reported a robust performance for Q2 FY26. The company’s strong results were driven by market share gains, R&D-led premium cement products, and continued efficiency improvements.

Vinod Bahety, Whole-Time Director and CEO, Ambuja Cements, said, “This quarter has been noteworthy for the cement industry. Despite headwinds from prolonged monsoons, the sector stands to benefit from several favourable developments, including GST 2.0 reforms, the Carbon Credit Trading Scheme (CCTS), and the withdrawal of coal cess. Our capacity expansion is well timed to capitalise on this positive momentum.”

Ambuja has increased its FY28 capacity target by 15 MTPA — from 140 MTPA to 155 MTPA — through debottlenecking initiatives that will come at a lower capital expenditure of USD 48 per metric tonne. The company also plans to enhance utilisation of its existing 107 MTPA capacity by 3 per cent through logistics infrastructure improvements.

To strengthen its product mix, Ambuja will install 13 blenders across its plants over the next 12 months to optimise production and increase the share of premium cement, improving realisations. These operational enhancements have already contributed to a 5 per cent reduction in cost of sales year-on-year, resulting in an EBITDA of Rs 1,060 per metric tonne and a PMT EBITDA of approximately Rs 1,189.

Looking ahead, the company remains optimistic about achieving double-digit revenue growth and maintaining four-digit PMT EBITDA through FY26. Ambuja aims to reduce total cost to Rs 4,000 per metric tonne by the end of FY26 and further by 5 per cent annually to reach Rs 3,650 per metric tonne by FY28.

Bahety added, “Our Cement Intelligent Network Operations Centre (CiNOC) will bring a paradigm shift to our business operations. Artificial Intelligence will run deep within our enterprise, driving efficiency, productivity, and enhanced stakeholder engagement across the value chain.”

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JSW Paints to Raise Rs 33 Billion for Akzo Nobel India Deal

Funds to part-finance Rs 129.15 billion acquisition of 74.76 per cent stake.

Published

5 days ago

November 7, 2025

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JSW Paints Limited (JSWPL) plans to raise Rs 33 billion through non-convertible debentures (NCDs) to partly fund the Rs 129.15 billion acquisition of a 74.76 per cent stake in Akzo Nobel India Ltd, according to an exchange filing. The deal, which will trigger an open offer for the remaining shares, forms part of the JSW Group’s Rs 65 billion capital infusion plan.

The bonds, to be issued on Friday, are rated ‘AA– (Stable)’ by ICRA, which noted that the NCDs will carry a five-year bullet repayment, with a call/put option after three years. Only a portion of the coupon will be paid annually, with the balance payable upon redemption.

ICRA said JSW Paints’ debt servicing obligations can be comfortably met through operating profits and dividends expected from Akzo Nobel India until maturity. However, it cautioned that the company’s leverage will remain elevated at over four times in the medium term.

JSW Paints, part of the JSW Group promoted by Sajjan Jindal and led by Managing Director Parth Jindal, plays a strategic role in supplying industrial coatings to JSW Steel. To date, JSW Steel has infused Rs 7.5 billion, while South West Mining Ltd has contributed Rs 1.5 billion towards capital expenditure, debt repayment, and working capital needs.

ICRA expects continued promoter support for the acquisition, which will be financed through a mix of borrowings and equity infusion at the JSW Paints level.

Post-acquisition, JSW Paints’ business profile is expected to strengthen significantly, benefiting from operational synergies, an expanded dealer network, and access to advanced coating technologies. The merger will position the combined entity — JSW Paints and Akzo Nobel India — as India’s fourth-largest decorative paint company and second-largest in the industrial segment. The acquisition will also give JSW access to premium brands like Dulux and new segments such as vehicle refinishes and marine coatings.

In FY25, JSW Paints recorded revenues of Rs 21.55 billion. The company expects a sharp rise in FY26 and beyond, supported by synergies in manufacturing, logistics, and marketing. ICRA projects healthy double-digit operating margins by FY27, marking a strong turnaround from operating losses in FY25.

The acquisition, initially announced in June 2025, valued the 74.76 per cent stake at Rs 94 billion and received Competition Commission of India (CCI) approval on 16 September 2025. The deal is expected to close within the current financial year.

Following the transaction, the Dutch parent company of Akzo Nobel India will retain the powder coatings business and R&D centre, while JSW Paints will integrate the rest of the operations.

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SAIL Bokaro Develops New Electrical Steel Grade

BSL produces 1,100 tonnes of energy-efficient special steel.

Published

5 days ago

November 7, 2025

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Steel Authority of India Limited (SAIL) has announced that its Bokaro Steel Plant (BSL) has developed a special grade of electrical steel for the first time, marking a significant milestone in the company’s efforts to expand its portfolio of high-value and advanced steel products.

The newly developed steel is designed for use in electric motors, generators, small power transformers, electrical appliances, and rotors for hybrid and electric vehicles, contributing to enhanced energy efficiency and supporting India’s growing green mobility and energy infrastructure sectors.

In a statement, SAIL said, “The Bokaro Steel Plant has achieved a major milestone in product development by successfully producing about 1,100 tonnes of 0.5 mm thick IS 18316 LS Grade Non-Grain Oriented (NGO) Electrical Steel for the first time.”

The innovation is expected to position SAIL as a key domestic supplier of specialised electrical steel, reducing dependence on imports for critical industrial applications. It also aligns with the company’s broader strategy to move up the value chain and contribute to India’s self-reliance in advanced materials manufacturing.

The Bokaro Steel Plant’s success in developing this new grade of steel underscores SAIL’s focus on technology-driven production, quality enhancement, and sustainable industrial growth.