After the turnaround of the Dolvi plant, JSW Steel plans to focus on expansion of the unit. With an opportunity to expand capacity up to 15 million tonnes a year at a much lower cost, the company has decided to enhance capacity initially to 5 million tonnes from the current 3.3 million tones, for a Rs 3,300 Crore investment. Having acquired the Dolvi unit in Maharashtra from debt-laden Ispat Steel for Rs 2,157 Crore in 2010, JSW inherited a total liability of Rs 9,500 crore, the annual interest of which was Rs 1,200 Crore.
Within a year of acquisition, JSW refinanced the entire debt to reduce borrowing cost by 2-3 per cent. Besides, it invested Rs 2,140 Crore to install a coke oven and pellet plants, and also a cold rolling mill to secure backward integration and reduce production cost. It commissioned a 55-MW plant, which would use waste gas generated by the blast furnace.