SAIL to Invest Rs 6,500 Crore in Capital Expenditure for FY25

SAIL CMD Amarendu Prakash said on Friday that they are going to invest 6500 crore for this fiscal year 2025 in capital expenditure. In the past update, the Sail management has already informed us that in the coming 3–4 years they are going to invest a total of 1 lakh crore across all their plants for greenfield and brownfield expansion by maintaining a debt-to-equity ratio of 1:1.The Steel Authority of India is going to replace the cheap metal from China, which is a major concern for the government of India. For the steel industry, SAIL is going to increase its production. The largest capex expansion, Rs. 1 lakh crore by 2030, will start flying in FY26. In the first phase of the capacity, they are going to increase production from 20 million to 35 million tons per year by 2031, and in the second phase, they are planning for 50 million tons of steel per year, which will be a huge number for the SAIL, and it will boost the make-in-India plan in the steel industry too.

8% CAGR growth in the next 10 years:

SAIL CMD Amarendu Prakash spoke to the media and gave an idea that right now the steel industry is growing at a pace of 0.5% all over the world, but in India, it is at 13% in the first year, and in the next 10 years we can see 8% growth with a compound annual growth rate (CAGR).

Trade measures on importing steel:

On importing cheap steel from China, many countries all over the world are increasing the import tax, and India is also working towards the one said by Mr. Prakash to the media. India needs to check the quality of the steel and the prices for which steel is imported in India.

As per the report, last year India imposed an anti-dumping duty on some of the Chinese steel companies for another 5 years.

The stock price jumped 3% on Friday.

The stock price of SAIL increased 3.01% to Rs. 155.50 per share after SAIL CMD Amarendu Prakash updated the plan of action, while the highest traded price is currently at 158.

Conclusion: This growth path will not just enhance India’s economy but also generate various job prospects and contribute to the country’s overall progress. Focusing strongly on innovation, technology, and sustainability, SAIL is poised to lead the steel industry’s transformation. SAIL can become a global leader in steel production by leveraging its strengths and staying committed to its goals, thereby reinforcing India’s position in the global market.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.