BMW Industries Invests ₹803 Cr to Expand Steel Offerings for Auto, Infra Sectors

Steel maker BMW Industries Ltd is making a significant stride in India’s specialty steel segment by setting up a 0.5 million tonne cold rolling unit in Bokaro, Jharkhand. With an investment of ₹803 crore, the project aims to boost the company’s offerings in high-end steel products for industries such as automotive, infrastructure, construction, renewables, and defence. According to Managing Director Harsh Bansal, the expansion aligns with the Government of India’s PLI Scheme for Speciality Steel and supports the country’s “Make in India” initiative.

BMW Industries’ ₹803 Crore Investment Plan

BMW Industries is channeling ₹803 crore to build a new complex in Jharkhand. The plant, with a capacity of 0.5 million tonnes (MnT), will expand the company’s overall capacity to 2.5 MnT. Of the total investment, ₹500 crore will be funded through debt, while the remaining amount will come from internal accruals.

The expansion is expected to create significant direct and indirect employment in the region, supporting socio-economic growth in Jharkhand.

Part of Government’s PLI Scheme for Specialty Steel

The investment is being made under the Production-Linked Incentive (PLI) Scheme for Speciality Steel, which was launched in 2021 with a financial outlay of ₹6,322 crore by the Ministry of Steel.

This scheme promotes the manufacturing of value-added steel grades in India, reduces import dependence, and enables Indian steelmakers to upgrade technology and move up the value chain. BMW Industries’ project fits into this framework, focusing on advanced coated products and specialty steels.

High-End Steel Product Offerings

The new facility will manufacture colour-coated materials and advanced alloy and non-alloy coated products. These materials cater to a wide range of industries including:

• Infrastructure and construction

• Automobile manufacturing

• Renewable energy projects

• Defence applications

This diversification will enable BMW Industries to position itself as a key supplier of premium steel products within the domestic and global markets.

Production Timeline and Market Impact

• Colour-coated products: Production is expected to begin in the third quarter of FY 2025-26, with revenues flowing in from the fourth quarter.

• Advanced alloy/non-alloy coated products: Manufacturing is targeted to start from the first quarter of FY 2026-27 (FY27).

This phased production strategy ensures that BMW Industries can ramp up operations smoothly, while simultaneously building demand in key markets.

Employment and Economic Development

The new cold rolling unit in Bokaro is expected to generate large-scale employment opportunities, both directly and indirectly. This aligns with the government’s regional development goals and will contribute to the socio-economic growth of Jharkhand, which is fast emerging as an industrial hub.

Safeguard Duty and Industry Outlook

Speaking on the government’s decision to impose a 12% safeguard duty on certain flat steel imports, MD Harsh Bansal stated that the measure will help control the 0.7 MnT of products being dumped into India. This move will ensure domestic utilization levels improve, as current capacity utilization has been hovering around 70%.

Furthermore, the Directorate General of Trade Remedies (DGTR) has recommended the imposition of this safeguard duty for three years to protect local manufacturers and stabilize the domestic steel market.

Aligning with ‘Make in India’ Vision

BMW Industries’ expansion reflects its strong commitment to the Make in India initiative, aiming to reduce dependence on imported high-end steel products and boost indigenous production. By investing in advanced manufacturing technologies, the company seeks to strengthen India’s position in the global specialty steel market.

Conclusion

The ₹803 crore expansion in Jharkhand is a milestone project for BMW Industries, enabling it to diversify into premium coated steel products while strengthening India’s domestic steel ecosystem. Supported by the PLI Scheme, this initiative not only enhances the company’s market presence but also contributes to employment generation, import reduction, and economic growth in India.