New Delhi Aug 22 Steel maker BMW Industries is setting up a 0.5 million tonne cold rolling unit in Jharkhand at an investment of Rs 803 crore to increase high-end steel products offerings, the company's MD Harsh Bansal said.
The investment is being made as part of the government's PLI Scheme for Speciality Steel, the company official told PTI in an interaction.
Launched at an outlay of Rs 6,322 crore in 2021 by the steel ministry, the first round of the PLI Scheme aims to promote the manufacturing of value-added steel grades in the country and help the Indian steel industry mature in terms of technology and move up the value chain.
The complex is being set up at Bokaro.
It will produce colour-coated materials and advanced alloy/non-alloy coated products, which find applications in industries like infrastructure, construction, automobile, renewables and defence, Bansal said.
The company aims to start the production of colour-coated production from the third quarter of the ongoing 2025-26 financial year, he said, adding that revenues from this segment will start from the fourth quarter.
For advanced non-alloy coated products, Bansal said its production is expected to begin from the first quarter of FY27.
When asked about the financial details of the expansion plan, the official said an investment of around Rs 803 crore is being made to set up the 0.5 million tonne (MnT) complex, which will scale up the company's overall manufacturing capacity to 2.5 MnT.
BMW Industries currently manufactures TMT rebars, pipes and tubes, and cold rolled and galvanised products.
"Around Rs 500 crore is the debt part, and while the rest is being funded through internal accruals," Bansal said, adding that the brownfield expansion will generate significant direct and indirect employment and contribute to the socio-economic development of the region.
On the government's move to impose a 12 percent safeguard duty, Bansal said it will also help control around 0.7 MnT quantity of these products being dumped into the country, affecting domestic capacity, which remained utilised at around the level of 70 percent.
"Our expansion is aligned with Make In India. We aim to make available made-in-India high-end steel products," he said.
Recently, the Directorate General of Trade Remedies (DGTR), under the Ministry of Commerce, recommended final imposition of a safeguard duty on imports of certain flat steel products for three years to protect domestic manufacturers from a sudden jump in inbound shipments.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
Find the best of Al News in one place, specially curated for you every weekend.
Stay on top of the latest tech trends and biggest startup news.
