/
•
•
Context is everything.
Detailed stories on technology startups, business and economic current affairs.
Detailed stories on technology startups, business and economic current affairs.
A sharper growth push from Tata Steel is reshaping a long-running contest with JSW Steel and shifting the market’s loyalties. But can it keep its expansion-hungry rival at bay?
Financial markets have always had a soft spot for the aggressive entrepreneur chasing market share. Think Sajjan Jindal. Under him, JSW Steel expanded at a furious clip. From 7.8 million tonnes of annual capacity in 2010, it now produces 34.2 million tonnes of steel a year—the highest in the country. Tata Steel, which was pushed into second place in 2009, produces 26.6 million tonnes.
Investors cheered that aggression. Since its 2005 listing, JSW Steel’s shares on the NSE have surged more than 3,000%. Over the same period, Tata Steel’s stock has risen a far more sedate 500%.
But the trend …
While the Rs 9,000 crore promoter investment in Q1 brings a measure of reassurance, investors will still have to wait for Jio and retail to work through their challenges.
The department store chain’s only growth engine is powered by distribution, not stores—raising questions about sustainability and profitability.
The JSW Steel founder is embarking on an unprecedented expansion, betting on Japan’s JFE and Korea’s POSCO to share the load. But rivalries, debt and market risks could complicate the plan.
