Jindal Steel Targets 21 MT Capacity by 2032 as New CEO Focuses on Stability and Specialised Steel

Jindal Steel Targets 21 MT Capacity by 2032

Jindal Steel is planning to expand its steelmaking capacity to around 20–21 million tonnes (MT) by 2032, as newly appointed Managing Director and CEO V.R. Sharma focuses on measured expansion and greater leadership stability.

The company, led by billionaire Naveen Jindal, currently has total steelmaking capacity of around 15.6 million tonnes per annum, of which approximately 12 million tonnes is currently operational.

Rather than pursuing capacity purely for scale, the company plans to use future expansion to strengthen its presence in specialised steel products.

Jindal Steel's 2032 Capacity Plan

V.R. Sharma said the company is targeting around 20–21 MT of capacity, but intends to pursue the expansion in a measured and sustainable manner.

The pace of expansion will depend on several factors, including

• Availability of iron ore and coal
• Logistics
• Market conditions
• Operational considerations
• Economics of future investments

Sharma said the company does not want to chase volumes simply for the sake of becoming larger.

The focus will instead remain on profitable, sustainable and responsible growth.

Focus Shifts Towards Specialised Steel

One of the key elements of Jindal Steel's expansion strategy is the development of specialised steel.

The company is looking at specialised grades that can be used in sectors such as:

• Nuclear power
• Shipping
• Other specialised industrial applications

According to the source, Jindal Steel has already been working on developing these grades for around a year.

The company has been engaging with IITs, research scientists and overseas professionals to build the capabilities required for specialised steel production.

The specialised steel capacity is expected to come up at the company's Angul plant in Odisha.

Leadership Stability Becomes a Priority

Alongside capacity expansion, Sharma is also focusing on creating a more stable leadership pipeline at Jindal Steel.

The company has experienced several senior-level leadership changes in recent years.

Instead of depending heavily on external hiring, the company plans to develop leadership talent internally.

Jindal Steel has identified around 2,000 employees from AGM to vice-president level as its core leadership pool.

From this group, the company plans to develop

• Around 20 people for top leadership positions
• Around 200 people for middle-management roles

Sharma said the company intends to give long-serving employees an opportunity to move into leadership positions.

Cautious Approach to Captive Mines

Jindal Steel is also taking a cautious approach towards acquiring captive mines amid high auction premiums.

Currently, around 70% of the company's raw materials come from state-run Odisha Mining Corporation (OMC) and National Mineral Development Corporation (NMDC).

The remaining 30% comes from the company's own mines.

Sharma indicated that the company would avoid aggressive bidding if the economics do not make sense.

The company could potentially source a larger share of its iron ore from the open market if required.

Focus on Internal Funding

Jindal Steel also intends to maintain discipline in funding its future expansion.

Sharma said the company does not want to place excessive debt on its balance sheet.

The company's approach is based on generating earnings, building internal accruals and using those funds for future expansion.

This strategy could allow the company to balance capacity growth with financial discipline.

EU Carbon Tax and Green Steel

Sharma also discussed the potential impact of the European Union's Carbon Border Adjustment Mechanism (CBAM) on Jindal Steel's exports.

According to Sharma, the company is not overly concerned about the impact because of its electric arc furnace operations.

Jindal Steel uses four electric arc furnaces, including three in Gajapati and one in Angul, Odisha.

These facilities use electricity to melt recycled scrap or direct-reduced iron (DRI), helping reduce carbon emissions.

The company estimates emissions from these operations at around 1 tonne of CO₂ per tonne of steel, compared with an EU benchmark of around 1.3 tonnes cited by Sharma.

New Export Opportunities

While Europe remains an important market, Jindal Steel is also looking at opportunities in other international markets.

The company sees potential in Latin America, particularly Mexico and Brazil.

The expansion of specialised steel capabilities could help the company serve a wider range of international customers and industrial applications.

Jindal Brothers' Steel Expansion

The broader Jindal group is also pursuing significant capacity expansion.

According to the source, Naveen Jindal and Sajjan Jindal currently have combined installed capacity of around 51 million tonnes.

The two groups are targeting combined capacity of at least 100 million tonnes by 2030.

JSW Steel, led by Sajjan Jindal, is targeting around 80 MT, while Jindal Steel is looking at a more measured expansion towards approximately 20–21 MT.

Jindal Steel Shares

Jindal Steel shares have gained around 2.95% year-to-date, according to the information cited in the source.

The stock has outperformed the Nifty 50, which has declined around 6.90% over the same period.

However, stock market performance can change depending on steel prices, commodity costs, demand conditions, company earnings and broader market sentiment.

Key Takeaways

• Jindal Steel is targeting 20–21 MT capacity by 2032.
• Current total steelmaking capacity stands at around 15.6 MT.
• Around 12 MT of capacity is currently operational.
• The company is focusing on specialised steel rather than volume alone.
• Specialised steel development is planned at the Angul plant in Odisha.
• Around 2,000 employees have been identified as the company's core leadership pool.
• The company plans to develop around 20 senior leaders and 200 middle managers internally.
• Around 70% of raw materials currently come from OMC and NMDC.
• Jindal Steel is taking a cautious approach towards acquiring additional captive mines.
• The company is also focusing on green steel production and international markets such as Mexico and Brazil.

Outlook

Jindal Steel's strategy under V.R. Sharma appears focused on measured capacity expansion, specialised products, internal leadership development and financial discipline.

The company's ability to execute its expansion plans, secure raw materials and successfully develop specialised steel products will remain important factors for its longer-term growth.

The company is also positioning its electric arc furnace capacity as an advantage as global markets increasingly focus on carbon emissions and lower-carbon steel production.

Disclaimer

This article is published solely for educational and informational purposes and should not be considered financial, investment, legal or tax advice.

TrendRipperX is not registered with the Securities and Exchange Board of India (SEBI) as an Investment Adviser or Research Analyst. The information presented in this article is based on publicly available information and is intended only for general awareness.

This article does not constitute a recommendation to buy, sell or hold any security. Stock prices and market conditions can change rapidly.

Readers should conduct their own research and consult a SEBI-registered financial professional before making any investment decisions.