Electrosteel unveils ₹5,000-cr expansion plans

Electrosteel Steels Ltd (ESL) will invest around ₹5,000 crore to double the production capacity of its Bokaro plant to nearly 3 million tons (mt) in the next two years from the current 1.5 mt. revealed Deputy Chief Executive Officer, Pankaj Malhan. The company has appointed MN Dastur as consultant to prepare a feasibility report for the proposed expansion. The company will subsequently explore the possibility of setting up an additional 3-4 mt steel manufacturing unit and take the total capacity to 10 mt in the next 5-6 years, either by way of organic expansion or inorganic. For an inorganic expansion, the company might look at assets in West Bengal or in the southern markets. ESL, which is an integrated steel producer primarily in the long product segment, will focus on long products in the first phase of growth and will roll out more variants for specific geographies and niche customers. This apart, the company will also focus on flat products including hot-rolled, cold-rolled and galvanized products.