BMW Industries Bags ₹500 Cr Debt for New Bokaro Steel Plant
Overview
BMW Industries Ltd. has secured ₹500 crore in debt financing from a consortium led by the State Bank of India (SBI) to fund its greenfield downstream steel project in Bokaro, Jharkhand. The company expects phased operations to commence in early fiscal year 2027, significantly boosting its steel processing capacity for coils and sheets.
Stocks Mentioned
Funding Closure for Bokaro Steel Project
BMW Industries Ltd. announced on Wednesday that it has achieved financial closure for its upcoming greenfield downstream steel project in Bokaro, Jharkhand. The company secured ₹500 crore in debt funding from a banking consortium. State Bank of India (SBI) led the syndicate, which also includes HDFC Bank and Yes Bank.
Expansion of Processing Capacity
The substantial debt facility will fuel BMW Industries' capital expenditure program aimed at expanding its downstream steel processing capabilities. The Bokaro facility is designed to have an annual production capacity of 300,000 tonnes of cold-rolled full hard coils and sheets, 540,000 tonnes of galvanised coils and sheets, and 200,000 tonnes of colour-coated coils and sheets.
Strategic Growth and Demand Outlook
Managing Director Harsh Bansal stated that the financial closure is a crucial step in executing the Bokaro project. He emphasized the capital-intensive nature of the steel industry and the necessity of a structured funding framework for timely project completion and balance sheet health. The company sees stable demand visibility for downstream steel products across infrastructure, manufacturing, and construction sectors.
Project Advantages
The new plant is slated for phased operations beginning in early fiscal year 2027. BMW Industries already possesses the land required for the facility. Bansal highlighted Bokaro's strategic significance due to existing operational presence and proximity to raw material sources. The location also offers logistical benefits for domestic distribution and potential exports, being about 300 km from Haldia and Kolkata ports.
