Jindal Steel Ltd (JSL) aims to increase production from 9 million tonnes to 12-15 million tonnes by 2027-28, according to newly appointed managing director V R Sharma. Speaking to Business Standard, Sharma outlined the company's focus on volume growth by utilising existing 15.6 million tonnes of crude steel capacity. The ₹54,000 crore steel giant is prioritising profitability through value-added and engineered steel products rather than commodity steel, with plans to achieve more than 60% of production as value-added products in the future.
The company is targeting at least 1.5 million tonnes of exports annually, representing 10-12% of sales, with potential to reach 15% under favourable market conditions. According to Sharma's statements to Business Standard, Jindal Steel is focusing on the UK, Oman, and the UAE as key export markets, while also considering the European Union, Iran, and Ukraine for post-war reconstruction opportunities. The company is particularly interested in markets where India has free trade agreements to enhance competitiveness.
The ongoing West Asia crisis has more than doubled freight costs, creating significant challenges for Indian steel companies. As reported by Business Standard, freight costs to Europe have risen from $40-45 to $80-90 per tonne, with some routes reaching $100-120 per tonne. Sharma identified Red Sea, Houthi and Hormuz-related disruptions as key factors increasing vessel and insurance costs, making Indian steel uncompetitive globally compared to China's stronger shipping network. Domestically, transporting steel to the Northeast remains difficult due to infrastructure challenges.
To address freight challenges, Sharma suggested Indian Railways should provide a heavy freight subsidy of 50% for goods going to the Northeast by rail. According to Business Standard, the company is also exploring a high-speed corridor through Bangladesh connecting West Bengal with the Northeast to substantially reduce freight costs. For raw materials, Jindal Steel is increasing sourcing from Odisha Mining Corporation (OMC) and NMDC for coking coal, while the group's coking coal mines in Mozambique are expected to meet domestic requirements as Russian supplies increase post-war.
Commerce Minister Piyush Goyal has urged Japanese firms to source steel from India while questioning trade protection for companies not supporting domestic producers. As reported by The Economic Times, Goyal highlighted that India has imposed a 12% safeguard duty on lower grades of steel to protect domestic manufacturers from dumping, with higher grades available freely. In December 2025, India extended these safeguard duties for three years to curb dumping from countries like China. Goyal emphasised that "India, even today, is a net importer of steel. So we have enough scope to expand our capacity, in fact double our capacity" while advocating for fair trade practices.
