BMW Industries expects its ₹803-crore downstream steel complex in Jharkhand to reach full-scale operations by FY28 and generate annual revenue of up to ₹4,500 crore by FY30. According to Managing Director Harsh Bansal, the company plans to commission the first phase of the project, comprising colour-coated steel products, before the end of the first quarter of FY27. The facility is positioned as the largest private-sector investment in the state's downstream coated steel segment. As per Business Standard, Bansal emphasized that "We see an annual revenue potential of almost ₹4,000-4,500 crore once the full plant is operational in FY28. We hope to achieve the same by FY30."
The Bokaro facility will manufacture galvanised, galvalume, zinc-aluminium-magnesium (ZAM)-coated and colour-coated steel products, targeting sectors such as housing, construction, solar, infrastructure and general engineering through a business-to-business sales model. According to the company, galvanised iron (GI) and ZAM-coated products are likely to be the most profitable segments within the new facility's product portfolio. Bansal explained that "Compared to the existing businesses, we estimate the realisations to be higher while the margins will be tempered due to higher financial involvement. We expect the GI and ZAM segments to contribute the highest margins." The company expects colour-coated products to reach full ramp-up by the fourth quarter of FY27, with utilisation of the entire complex improving as supporting downstream facilities are commissioned.
BMW Industries has tied up ₹500 crore of debt for the project, with loan repayments scheduled to begin in the third quarter of FY28 after cash flows stabilise. According to Bansal, the scheduled payback is by FY35, though the company aims to close it earlier. The project is expected to generate a return on capital employed (RoCE) of more than 15 per cent, while blended EBITDA margins for the overall business are expected to stabilise in the 12-14 per cent range once Bokaro operations mature. As reported by Business Standard, the phase-1, which is colour-coated materials, is expected to start production before the end of Q1 and ramp up in the coming quarters. We expect Q4 to be fully ramped up for colour-coated and galvalume coils.
Bansal indicated that rising domestic steel consumption and supportive regulations could help Indian producers replace imports of specialised coated steel products, including ZAM-coated steel. As reported by Business Standard, he expects domestic supplies to greatly replace imported materials as steel consumption grows alongside GDP. However, he emphasised that government and user authorities must move proactively to approve specifications and make the product acceptable to enable faster production ramp-up for domestic producers. "As steel consumption grows, along with GDP, I expect domestic supplies to greatly replace imported materials. For the same to happen effectively, it is essential that the government and user authorities move proactively to approve specifications and make the product acceptable. This will be a game changer for producers to ramp up faster," Bansal stated.
