SAIL's Strategic Expansion: Steel Giant Sets Sights on 2030 Capacity Goal

State-owned steel behemoth, SAIL, has announced an ambitious plan to invest Rs 7,500 crore in this fiscal year as part of its strategy to expand production capacities across its facilities. This investment represents a significant increase of 25% from previous fiscal targets, reflecting a focused drive towards future growth.

The company, which stands as India's largest public sector steel manufacturer, aims to bolster its overall production capacity to 35 million tonnes by 2030. This expansion would involve a substantial capital expenditure of approximately Rs 1 lakh crore across its five integrated plants located in Odisha, Jharkhand, Chhattisgarh, and West Bengal.

Despite the global steel industry's challenges, including overcapacity and competitive imports, particularly from China, SAIL remains optimistic. With a reported multi-fold increase in net profit in the first quarter and plans to reduce reliance on imported coking coal through the development of local mines, SAIL is positioned to maintain its growth trajectory. Demand for steel in India is projected to rise, driven by infrastructure and residential construction growth, supporting the industry's near-term outlook.

(With inputs from agencies.)