Ranchi: Steel manufacturer BMW Industries Ltd is set to expand its footprint in Jharkhand with the establishment of a new downstream steel complex in Bokaro at an investment of Rs 803.47 crore. The project will be funded through a mix of internal accruals and debt and is expected to significantly strengthen the company’s position in the value-added steel market.
Project Highlights
The proposed facility will have an annual production capacity of:
- 300,000 TPA of cold rolled full hard coil/sheet
- 540,000 TPA of galvanised coil/sheet
- 2,000 TPA of colour-coated coils/sheets
BMW Industries has already acquired the required industrial land for this greenfield project, which will be completed in phases over two years. The first unit is scheduled to begin commercial production in FY26.
The company said that Bokaro’s proximity to raw material sources and ports like Haldia/Kolkata (around 300 km away) will provide a strong supply chain and enable access to global markets. Approval has also been secured from the Jharkhand State Pollution Control Board to proceed with the construction.
Part of PLI Scheme for Speciality Steel
According to Harsh Bansal, Managing Director, BMW Industries, the project is aligned with the Government of India’s Production-Linked Incentive (PLI) Scheme for Speciality Steel, launched in 2021 with an outlay of Rs 6,322 crore.
“Our expansion under the PLI scheme will enhance our capacity to 2.5 million tonnes (MnT) and allow us to manufacture colour-coated and advanced alloy/non-alloy coated products for industries such as infrastructure, construction, automobile, renewables, and defence,” Bansal told PTI.
The company expects to start production of colour-coated steel in the third quarter of FY26, with revenue contribution from the fourth quarter. Production of advanced non-alloy coated products is expected to commence in FY27.
Financials and Employment Impact
The Rs 803 crore investment includes about Rs 500 crore in debt, while the remaining will be financed through internal accruals. BMW Industries said the expansion will generate substantial direct and indirect employment opportunities, driving socio-economic growth in the region.
Currently, the company manufactures TMT rebars, pipes and tubes, and cold rolled and galvanised products. With the new facility, BMW Industries aims to move further up the value chain and supply high-end made-in-India steel products.
Trade and Policy Context
Bansal also welcomed the government’s recent move to impose a 12% safeguard duty on certain flat steel imports. “This will check nearly 0.7 MnT of dumped products that were hurting the domestic industry, which has been running at only 70% capacity,” he said.
The safeguard duty, recommended by the Directorate General of Trade Remedies (DGTR) under the Ministry of Commerce, is expected to be in place for three years to protect domestic manufacturers.
“Our expansion is aligned with Make in India, and we are committed to providing high-quality domestic alternatives to imported steel products,” Bansal added.
Key Takeaways
- BMW Industries to set up Rs 803.47 crore downstream steel complex in Bokaro.
- Part of the PLI Scheme for Speciality Steel.
- Plant to produce colour-coated and advanced alloy steel for auto, infra, renewables, and defence sectors.
- Commercial production to start in FY26, with advanced alloy production from FY27.
- Expansion will raise total manufacturing capacity to 2.5 MnT.
