Mumbai: Manaksia Steels Ltd plans to invest around ₹800 crore in two phases to significantly expand its production capacity for cold rolled (CR), coated and colour-coated steel products by FY34, as the company prepares to meet rising captive and market demand.
Under the first phase, the company plans to invest approximately ₹375 crore by FY30 to expand capacity across all three product categories.
The proposed Phase I expansion will increase cold rolled coil (CR) capacity by 95,000 tonnes per annum (TPA) to 1.75 lakh TPA from the existing 80,000 TPA.
Coated steel capacity, comprising galvanised (GL) and galvanised plain (GP) products, will rise by 31,000 TPA to 1.752 lakh TPA from 1.442 lakh TPA currently.
The company will also add 90,000 TPA of colour-coated steel capacity, taking the total capacity to 1.5 lakh TPA from the existing 60,000 TPA.
The Phase I investment of approximately ₹375 crore will be financed through a combination of debt and internal accruals. The company expects the proposed capacity additions to be completed by the financial year ending March 2030.
Phase II to take capacity higher
Manaksia Steels plans a second round of capacity expansion by FY34, involving an estimated investment of ₹425 crore, excluding land costs.
Under Phase II, the company plans to add another 1 lakh TPA of CR capacity, taking total capacity to 2.75 lakh TPA.
Coated steel capacity will also increase by 1 lakh TPA to 2.752 lakh TPA, while colour-coated steel capacity will rise by another 90,000 TPA to 2.4 lakh TPA.
The second phase will also be funded through a combination of debt and internal accruals.
Once both phases are completed, Manaksia Steels’ combined capacity across the three product categories will increase to approximately 7.92 lakh TPA, compared with around 3.84 lakh TPA currently.
| Product | Existing capacity | Capacity after Phase I | Capacity after Phase II |
| Cold Rolled Coil | 80,000 TPA | 1,75,000 TPA | 2,75,000 TPA |
| Coated (GL/GP) | 1,44,200 TPA | 1,75,200 TPA | 2,75,200 TPA |
| Colour Coated | 60,000 TPA | 1,50,000 TPA | 2,40,000 TPA |
| Total | 3,84,200 TPA | 5,00,200 TPA | 7,90,200 TPA |
Existing facilities operating at high utilisation
The proposed expansion comes as several of the company’s existing product lines are already operating at relatively high utilisation levels.
Manaksia Steels’ CR capacity of 80,000 TPA is currently being utilised at approximately 86%, while coated steel capacity of 1.442 lakh TPA has a utilisation rate of around 75%.
The company’s 60,000 TPA colour-coated steel capacity is operating at approximately 100% utilisation.
The company said the expansion is aimed at supporting its future growth plans and addressing increasing demand from both captive consumption and the external market.
The phased approach will allow Manaksia Steels to add capacity progressively through FY30 and FY34, while funding the investments through a combination of borrowings and internally generated funds.