The Kolkata-based company, which operates across carbon steel, stainless steel, ferro-alloys and aluminium foil, is targeting more than a two-fold increase in revenue to over Rs 42,000 crore by 2031.
It plans to invest about Rs 10,000 crore over the next three-four years to expand capacity across its businesses.
“We have been growing at a CAGR (compounded annual growth rate) of more than 20% in the last four years, and our growth plan is to continue at a CAGR close to 20% for the next four years in terms of both revenue and Ebitda,” Agarwal told ET.
The company expects three businesses to contribute almost equally to revenue over the long term—carbon steel flat products, specialty steel, and aluminium and stainless steel combined.
Its stainless steel business, which currently generates monthly revenue of about 130-140 crore, is expected to increase to Rs 600-700 crore after the expansion is completed by 2028.
“We are focusing heavily on downstream value because more than 80% of the ingredients required for making stainless steel will be captive, and this will enhance our margins,” Agarwal said.For aluminium, the company will source ingots from primary producers such as Hindalco Industries and Vedanta Aluminium Metal to focus on value addition.
Of the planned Rs 10,000 crore capital expenditure, about half will be invested in flat carbon steel products, 40% in stainless steel and the remaining 10% in other businesses.
“Once we fully capitalise on these projects, I expect an IRR (internal rate of return) of around 16-18% across all of our businesses,” he said.
A Vedanta-style demerger is not part of the company’s current strategy, Agarwal said.
“Perhaps in four to five years, if individual sectors have generated massive value and it is in our investors’ best interests, we might consider it. However, right now, we are focused on integration,” he said.