NEW DELHI: Being bullish on growth in infrastructure development and the automobile sector, the ArcelorMittal Nippon Steel (AM-NS) joint venture will invest $30 billion (around Rs 2.6 lakh crore) in India over the next decade to grow its steel production capacity more than four-fold to around 40 million tonnes per annum (MTPA), a top official said on Wednesday.
The company said that at around 94 kg, per capita steel consumption in India remains significantly lower than in other markets, such as China (660-670 kg), the US (600-700 kg), Japan (800-900 kg), and South Korea (1,100 kg). “There is a strong headroom for growth here,” Ranjan Dhar, director & VP (sales & marketing), said when asked by TOI about reasons for expansion.
AM-NS, a 60:40 JV, started business in India in 2019 when it acquired the operations of Essar Steel India through the Insolvency and Bankruptcy Code (IBC) process in a Rs 42,000 crore deal. Dhar said prospects of the economy remain positive, despite some near-term challenges post the Donald Trump administration’s tariff decisions. The company, which currently has a steel production capacity of 9.6 MTPA, will expand this to 15.6 MTPA by the close of this fiscal at an investment of Rs 60,000 crore.“Govt is pushing for massive investments as part of the ‘Viksit Bharat’ programme targets of 2047, and we will need more steel.”
Asked about the impact from US tariffs and the subsequent flip-flops, he said the company will wait for clarity before giving a confirmed view. “We will have to assess the situation, though we have full faith in the Indian govt, which is in negotiations with the US administration… It’s a global reset and we will wait to see the impact on India.”
On the issue of dumping of steel in India, where the Directorate General of Trade Remedies (DGTR) has recommended imposing a 15% safeguard duty on select imports, he said the govt is seized of the matter.
The company said that at around 94 kg, per capita steel consumption in India remains significantly lower than in other markets, such as China (660-670 kg), the US (600-700 kg), Japan (800-900 kg), and South Korea (1,100 kg). “There is a strong headroom for growth here,” Ranjan Dhar, director & VP (sales & marketing), said when asked by TOI about reasons for expansion.
AM-NS, a 60:40 JV, started business in India in 2019 when it acquired the operations of Essar Steel India through the Insolvency and Bankruptcy Code (IBC) process in a Rs 42,000 crore deal. Dhar said prospects of the economy remain positive, despite some near-term challenges post the Donald Trump administration’s tariff decisions. The company, which currently has a steel production capacity of 9.6 MTPA, will expand this to 15.6 MTPA by the close of this fiscal at an investment of Rs 60,000 crore.“Govt is pushing for massive investments as part of the ‘Viksit Bharat’ programme targets of 2047, and we will need more steel.”
Asked about the impact from US tariffs and the subsequent flip-flops, he said the company will wait for clarity before giving a confirmed view. “We will have to assess the situation, though we have full faith in the Indian govt, which is in negotiations with the US administration… It’s a global reset and we will wait to see the impact on India.”
On the issue of dumping of steel in India, where the Directorate General of Trade Remedies (DGTR) has recommended imposing a 15% safeguard duty on select imports, he said the govt is seized of the matter.
