AM/NS India has robust balance sheet, will ensure financial stability of biz'

AMINS India, a joint venture between ArcelorMittal and Nippon Steel, is in the middle of a major expansion. AMIT HARLALKA, chief financial officer of AM/NS India, in a video interview, told Ishita Ayan Dutt about plans for capital expenditure capex) and funding. Edited excerpts:

- AMIT HARLALKA

AM/NS India plans a major expansion of 40 million tonne (mt) capacity. How will it be funded?

We have improved our performance from 6.5 mt pre-formation of AM/NS India (in December 2019) to an upgrade of 8 mt. Over the four-year period, we have been able to generate a significant amount of cash flow for the business, and we continue to improve the profitability of the business.

For our expansion journey, we want to improve upstream capacity at our Hazira operation (in Gujarat) from 9 mt to 15 mt. We are also setting up a state-of-the art downstream facility at Hazira. So, the total outlay for the capex is around $7.4 billion. For this, we have tied up with our foreign banksmostly Japanese banks - for a facility of $5 billion which has been secured.

What about the funding for expansion beyond 15 mt?

Our ambition is to have 40 mt capacity by 2035. The Indian steel industry continues to remain very robust. The country's growth in terms of GDP (gross domestic product) and the focus on infrastructure would mean that we will continue to invest in steel capacity.

As we complete our expansion in 2026, we would start our next phase of expansion from 15 (mt) to 20 mt at Hazira. It can go up to 22 mtpa (million tonnes per annum), which would make it the largest single location manufacturing facility in the world.