Vedanta Aims To Be Among Top 3 Steel Firms In India
Anil Agarwal-controlled Vedanta Ltd. is targeting to be among the top three steel players in the country with plans to enhance the production capacity to 10 million tonne over the next 5-6 years.
Vedanta had forayed into steel with takeover of Electrosteel Steels Ltd. from the National Company Law Tribunal last year.
“We are aiming to be one of the top three players in the steel sector in India. We are also targeting to enhance production capacity to 10 million tonne in the next 5-6 years,” Electrosteel Steels deputy CEO Pankaj Malhan said on Wednesday. In the next two years, the current capacity of 1.5 million tonnes will be doubled with a capex of Rs 4,000-5,000 crore, Malhan said.
Malhan was unveiling Vedanta’s first set of steel brands in India with V-Xega for TMT bars, V-Ducpipe for DI pipes and V-Wirro for steel wires. Vedanta will increase the capacity at Bokaro (the site of ESL) to 6 million tonne and the remaining 4 million tonne could be from greenfield or acquisitions, Malhan said.
The first phase of expansion till 3 million tonnes will be on long products and the 2nd phase—from 3 to 6 million tonnes—will be focused at flat products. Asked about the possibility of Vedanta having a greenfield steel plant in West Bengal, company officials said, “Why not? It is possible.” Vedanta seeks to make ESL a more vibrant, quality conscious and environmentally friendly company view corporate branding possibly in the next few months.