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JSW Steel has commenced development activities for its integrated steel project in the Rayalaseema region

ICICIdirect Research 06 Jul 2026 DISCLAIMER

News: As per filing on stock exchanges, JSW Steel has commenced development activities for its integrated steel project in the Rayalaseema region of Andhra Pradesh. The project will be developed in phases through its wholly-owned subsidiary, JSW Rayalaseema Steel, with a planned capacity of 2 MTPA. Phase I involves setting up a 1 MTPA integrated steel plant with an investment of ₹4,500 crore, while the total project investment is expected to reach ₹16,350 crore upon completion. The project will leverage advanced EAF technology using recycled scrap and high-grade Direct Reduced Iron (DRI) as raw material inputs, to manufacture State-of-the-art Structural Steel.

View: This strengthens the company's long-term capacity expansion strategy and supports its target of becoming a 62 MTPA steel producer by FY32. The project will also enhance its presence in southern India and increase the share of low-carbon steel products in its portfolio. We remain positive on JSW Steel, supported by its strategic capacity additions, increasing focus on value-added products, favourable domestic steel demand. Given its EAF manufacturing technology, this is also positive for domestic graphite electrode players namely HEG and Graphite India (opportunity size pegged at 2,000-4,000 tonne).

Impact: Positive

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