Arcelor Mittal Nippon Steel plans a massive Rs 2.6 lakh crore investment in India. The joint venture aims to boost steel production capacity to 40 MTPA in the next decade. 

In a major move that signals long-term commitment to India’s steel industry, Arcelor Mittal Nippon Steel (AM-NS) has announced plans to invest Rs 2.6 lakh crore (approximately $30 billion) over the next ten years. This strategic investment aims to increase the company’s steel production capacity more than fourfold, reaching around 40 million tonnes per annum (MTPA), as per a report in the Times of India. This move reflects Arcelor Mittal’s bullish outlook on India’s growing steel demand.

The ambitious expansion is anchored in a positive outlook for India’s infrastructure and automobile sectors, which are expected to be key drivers of steel demand in the coming years. According to Ranjan Dhar, Director and VP of Sales and Marketing at AM-NS, India’s current per capita steel consumption is only about 94 kg—significantly lower than global counterparts. In comparison, China consumes between 660 and 670 kg, the US 600 to 700 kg, Japan 800 to 900 kg and South Korea leads with over 1,100 kg.

Dhar emphasised that this consumption gap presents a vast opportunity for growth in India, reinforcing the company’s decision to scale up operations significantly.

Arcelor Mittal Nippon Steel, a 60:40 joint venture, began its India journey in 2019 after acquiring Essar Steel India for Rs 42,000 crore through the Insolvency and Bankruptcy Code (IBC) process. Since then, the JV has steadily expanded its footprint in the Indian market, and this new investment plan is poised to make AM-NS one of the leading steel producers in the country.

This development marks a pivotal moment not only for Arcelor Mittal but also for the broader Indian steel ecosystem, aligning with the government’s vision of self-reliance and industrial growth.