AMNS India Bets Big on India’s Steel Demand with 25–26 MT Capacity Target by 2030

ArcelorMittal Nippon Steel India is preparing for a decisive expansion phase as it sharpens its long-term focus on India’s growing steel demand. The company plans to scale up its steelmaking capacity to 25–26 million tonnes by 2030, nearly three times its current output, signalling strong confidence in the country’s infrastructure and manufacturing growth trajectory.

The expansion strategy is built around two major projects. The first involves a phased expansion of the existing Hazira plant in Gujarat, which currently forms the backbone of the company’s operations. Capacity at Hazira is expected to rise from about 9 million tonnes to 15 million tonnes in the near term, followed by a further increase to 18 million tonnes. Parallelly, AMNS India is developing a large greenfield steel plant with a capacity of around 8.2 million tonnes per annum at Rajayyapeta in Andhra Pradesh’s Anakapalli district, which is expected to be commissioned around the end of the decade.

To support this growth, AMNS India is planning capital expenditure of approximately ₹55,000–60,000 crore between FY26 and FY28. The investment will not be limited to steelmaking alone, with a strong emphasis on strengthening raw material security and logistics infrastructure. The company is expanding pellet-making capacity in Odisha and Andhra Pradesh and investing in ports and mining assets to improve supply chain efficiency.

Sustainability also forms a key pillar of the expansion roadmap. AMNS India aims to develop nearly 7 gigawatts of renewable energy capacity by 2032, a move intended to lower energy costs while reducing the carbon footprint of its operations.

However, the expansion comes at a challenging time for the steel sector. Elevated iron ore costs and weak steel prices have compressed margins across the industry. While AMNS India benefits from captive iron ore sources, dependence on external supplies is expected to rise as capacity expands, adding to cost pressures.

Despite these headwinds, the company’s financial position remains relatively strong. In FY24, AMNS India reported a profit of ₹7,325 crore on revenues of ₹54,605 crore, offering a cushion to pursue long-term investments. By focusing exclusively on flat steel products used in automobiles, appliances and industrial manufacturing, AMNS India aims to position itself as a key supplier to India’s evolving manufacturing ecosystem.