Mukand Sumi to Invest ₹2,345 Crore in Karnataka Steel Plant, Operations by 2028

Mukand Sumi Special Steel Limited, a joint venture of India and Japan of Bajaj Group and Sumitomo Corporation, has announced the establishment of an integrated greenfield steel manufacturing facility at Kanakapura in Koppal with an investment of ₹2,345 crore. At present, the project is awaiting environmental clearances.

The new plant will put in place a capacity of 0.35 MTPA, making it ready to commence operations in early 2028. The commissioning of the plant would raise total production capacity to 0.7 MTPA for MSSSL and enhance the position of MSSSL as one of India’s major players in the special steel segment.

The company’s current production is around 350,000 tonnes of special steel annually, and it commenced operations in 2018. The product mix from its more than 400 grades and specifications includes bars, wire rods, and secondary products, whose vast majority are directed towards the automobile and engineering industries. Critical segments targeted include automotive, railways, oil and gas, energy, and bearings.

Sustainability will be central to the design of the plant in the coming years. The facility will be based on a Zero Liquid, Solid, and Gaseous Discharge Model, thereby ensuring that the facility has the lowest possible burden on ecology. Energy usage will be powered by renewable energy sources for more than 95%, thus demonstrating the long-term commitment of MSSSL to net zero steel manufacturing by 2050.

The plant shall be equipped with future-ready facilities, including hydrogen-compatible infrastructure and carbon capture facilities. Iron making, steel making, and blooming mills will all be placed under one roof, operating as highly automated and digitally integrated processes for superior performance and productivity.

Eversource Energy was set up for this investment as a cornerstone of the MSSSL strategy toward realizing increasing demands for advanced-grade special steels, resulting from the fast-evolving manufacturing sector, mobility, and energy. This project will seal the status as a high-value supplier of steel on par with global decarbonization goals.