JSW Steel Vijayanagar Works Plant Capacity Expansion

Steel Manufacturing Capacity of 13MTPA by FY2020


JSW Steel to expand steel manufacturing capacity of Vijayanagar Works in Karnataka to 13MTPA by FY2020

JSW Steel, India’s leading steel company, has announced plans to increase the annual steel manufacturing capacity of JSW Vijayanagar Works to 13MTPA, which is likely to be completed by March 2020. The company has also launched various other upgradation and augmentation projects which are expected to result in substantial cost savings in operations over the long term. At 12 MTPA currently, JSW Vijayanagar Works is the largest state-of-the-art single location steel manufacturing unit in India.


  • JSW commences operations at Nandi & Tunga iron ore mines to reduce dependency on market sourcing of the raw material


  • Captive Iron Ore mines offer JSW Steel lower logistics cost advantage

The following projects are initiated as part of the steel manufacturing capacity expansion at JSW Vijayanagar Works unit:


  • The company’s current project to revamp and upgrade capacity of Blast Furnace-3 at JSW Vijayanagar Works is on track, which will improve hot metal availability.


  • The company will modify and enhance capacity of its Steel Melting Shop, the flat and long products mills, along with allied facilities to utilize this additional hot metal . With these projects targeted to be completed by March 2020, the crude steel capacity of JSW Vijayanagar Works unit will increase to 13MTPA.


  • The company will also set-up a 1.5MTPA coke oven plant at Vijayanagar to bridge the current and expected gaps in coke availability and is likely to be commissioned by March 2020. The coke oven unit is expected to provide significant cost savings for the company over the longer term.


  • These capacity expansion & upgrade projects being implemented at JSW Vijayanagar Works steel manufacturing unit will entail a capital investment of Rs 7,500 crore until March 2020.

The new capacity creation at JSW Vijayanagar Works steel manufacturing unit supports our company’s growth plans while further improving the efficiency of our manufacturing operations. With steel consumption in India expected to grow these capacity enhancement initiatives will ensure our readiness to promptly service emerging customer demand.

Dr Vinod Nowal, Deputy Managing Director - JSW Steel Ltd

JSW Steel commences operations at Tunga & Nandi Mines

JSW Steel has commenced operations at two iron ore mines (Tunga & Nandi Mines) in Karnataka for which it has already received statutory clearances. The cumulative capacity of these two iron ore mines is 0.71 MTPA. For the remaining three mines, JSW Steel expects statutory clearances and approvals during the current fiscal. The annual production capacity of the five mines acquired by JSW Steel, through 2017 auction, is approximately 4.66 MTPA. Once all five mines are operational, they are expected to fulfil approximately 20% of the Iron Ore requirement of JSW Vijayanagar Works steel manufacturing unit. All these five mines are located within 20 to 35 Km from the Vijayanagar unit giving it an advantage of lower logistics cost. Historically, JSW Steel was completely dependent on external market to meet its Iron Ore requirements.

Differentiated Portfolio Aiding Import Substitution

As part of its growth strategy, JSW Steel remains strategically focussed on enriching its product mix by increasing the share of value added & special steel products (VASP). Considering the growth potential of these products, the company is expanding the capacity of CRM-1 complex at Vijayanagar works from 0.8 MTPA to 1 MTPA as well as setting up a 0.3MTPA colour coated line. The company has already installed a new state-of-the-art cold rolling mill (CRM-2) at Vijayanagar Works to service various customer requirements, including various specialized requirements of the Automobile sector. The CRM-2 unit at Vijayanagar Works produces Ultra High Strength steel viz. DP 780, 980, etc, which are supplied commercially to car makers in India. These are High Strength grades of steel which facilitate light weighting of a Car. JSW Steel is the only steel manufacturer in India capable of supplying this product grade. These automotive grade steel products were earlier largely imported by the automobile companies in India but are now being procured domestically from JSW Steel. In addition to enabling import substitution of these products, this also conserves India’s foreign exchange outgo. Over the years, JSW Steel has been able to establish its position as a preferred supplier to the Indian automobile industry with a substantial market share across automobile majors.