JSW Steel Invests ₹500 Crore to Establish 9 Lakh Tonne Magsure Capacity

JSW Steel has announced a substantial investment of ₹500 crore to set up nine lakh tonnes of highly corrosion-resistant specialty steel, JSW Magsure, produced from its factories at Vasind and Vijayanagar in Maharashtra and Karnataka, respectively.

The company aims to capture a 50 per cent market share of steel supplied to roof-mounted solar projects within the first year of operations, primarily targeting solar projects in India. Currently, JSW Steel already holds a 70 per cent market share of steel supplied to ground-mounted solar projects.

Ashwani K Sharma, Executive VP of JSW Steel Coated Business, emphasized the significant demand for JSW Magsure across sectors prone to corrosion, including green energy, infrastructure, white goods, and grain silos.

The company has already initiated supplies to Adani Green Energy and is in talks with leading fabricators such as Reliance Industries, Green Tech Solar, Amplify Solar, NTPC, and Sterling Wilson. Initial supplies totaling 5,000 tonnes have been provided to Adani Green Energy, with negotiations ongoing for similar quantities in the next three months.

JSW Steel is also exploring discussions with government agencies regarding the use of JSW Magsure for establishing warehouses and silos.

The company anticipates a ₹4,000-5,000 per tonne higher realization at ₹79,000 compared to the imported price of $800 per tonne, with a landed cost of ₹74,000 per tonne, including an import duty of 8 per cent.

JSW Steel plans to source the raw material Zinc-Magnesium-Aluminium from the domestic market while keeping the option of import available in case of price variation.

The technology used for mixing the alloy for coating is patented, after three years of research and development by JSW Steel. This positions JSW Magsure with significant entry barriers for other players in the market.

JSW Steel has obtained validation for exporting Magsure to Europe and has already shipped 100 tonnes. Approval for selling in West Asia is pending.

HBL