BMW Industries Ltd, a major home-grown steel processing firm, has announced that it has achieved financial closure for its proposed greenfield downstream steel project in Bokaro, Jharkhand, after securing ₹500 crore in debt funding from a consortium of banks led by State Bank of India (SBI), the company said in a regulatory filing on Wednesday.

The lending consortium also includes HDFC Bank and Yes Bank. The funding will be used to support the company’s planned capital expenditure programme aimed at expanding its downstream steel processing capacity.

Capacity augmentation of the Bokaro project

The Bokaro project is expected to commence phased operations in early FY27. BMW Industries already owns the land required for the facility, which will house a downstream steel complex with an annual 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.

The company said the project forms a key part of its long-term capacity expansion strategy, as demand visibility in downstream steel products remains stable across infrastructure, manufacturing and construction-linked segments.

Commenting on the development, managing director Harsh Bansal said the financial closure marks an important step in executing the Bokaro project. “Steel and downstream processing are capital-intensive businesses, and a structured funding framework is critical to ensure timely execution while maintaining balance sheet discipline,” he noted.

Bansal added that the consortium arrangement provides clarity on long-term project financing and allows the company to align capital deployment with execution timelines. He also pointed to Bokaro’s strategic importance due to the company’s existing operational presence and proximity to raw material sources.

BMW Industries’ long-term objectives

BMW Industries, established in 1981 and based in West Bengal, operates across multiple segments of the downstream steel value chain and manufactures products such as HRPO coils, CR coils, galvanised products, pipes and TMT bars. The company also has a joint venture with Steel Authority of India Ltd (SAIL) at Bokaro.

Located about 300 km from Haldia and Kolkata ports, the Bokaro facility is expected to offer logistical advantages for both domestic distribution and exports, improving access to overseas markets once operations begin.

The disclosure was made under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.