As India enters an intensive phase of infrastructure and urban development, the construction industry will need to rethink not just how much it builds, but how it builds. In a conversation with PRATAP PADODE, Editor-in-Chief, CW, Jayant Acharya, Joint Managing Director and CEO, JSW Steel, discusses the growing role of structural steel, prefabrication, advanced grades and technology in enabling faster, cleaner and safer construction.

India is preparing to consume substantially more steel. But how do you expect the construction sector’s steel requirement to change – not merely in tonnes, but in grade, form and performance?

That is a very interesting question. I think we will see construction increasingly falling in line with what is happening in the West. You will see more steel-based high-rise construction, which can be executed at a much faster pace. Typically, you can construct one floor a week. This will reduce the requirement for labour and sand while enabling neater and cleaner execution. As people become more conscious about the environment, I think this is the direction the industry will take. The future will involve greater use of high-tensile grades and steel-intensive construction.

We already have a JV, JSW Severfield Structures, which has been manufacturing high-rise steel structures, steel buildings and solutions for data centres and other applications in India for nearly 20 years. We are now seeing the pace of adoption pick up and are looking to substantially increase our capacities.

Do you believe structural steel construction remains underpenetrated in India? 

What needs to change for steel-intensive and composite construction to become mainstream?

India is in a nation-building phase. Whether it is commercial and residential development, factories, airports or ports, a large amount of infrastructure and construction will have to be completed in a relatively short period as we move towards Viksit Bharat. The pace of development will require architects and consultants to become increasingly familiar with steel construction. The traditional dependence on concrete is likely to reduce, with greater adoption of composite and steel structures. These systems can require less labour and sand and enable cleaner execution.

However, we will also need a stronger ecosystem. This includes standards, designs and codes, as well as changes in the education and curriculum system to build familiarity with steel construction. It is an important lever for the growth of any nation, and I am confident India will follow this path. The pace of this kind of construction has only begun to accelerate in recent years. Post-COVID, there has also been a significant change in the availability and expectations of construction labour, with more people preferring to remain closer to home. This has changed the labour mix available to the construction industry.

We are, therefore, looking to increase the capacity of our structural steel business fivefold over the next five years. But industry growth will also require collaboration between the Government, the Ministry of Education, architects and consultants to develop the designs, codes and capabilities needed for the ecosystem to flourish.

Construction technology is often perceived as expensive. Is that the right way to evaluate it?

We should reverse the question and ask what we lose by not using technology. If a project is not completed on time, the productive life of the asset does not begin until construction is finished. A data centre could lose out on a contract. If you build a hotel in two years instead of four or five, the difference to the return on investment can be substantial. Technology can, therefore, enable faster returns. Steel also allows buildings to be lighter, creating further possibilities in design and construction. The technology is changing, and we need to adopt it.

Can steel manufacturers move beyond being material suppliers and help industrialise construction through prefabricated systems, engineered solutions and installation support?

Absolutely. We believe that is possible. JSW Steel has laid out plans to more than double its capacities, including those of our JVs and we expect to be close to around 80 million tonne of capacity by 2032. But we 

also want to help build an ecosystem that moves towards solutions, whether engineering solutions or products, that provide greater value to customers and replace imported products. 

Safety and quality are fundamental to how we execute our own projects and customers increasingly expect the same standards when they use steel solutions. Steel can make a significant difference here. Much of the work can be prefabricated in a factory environment and then installed quickly, resulting in cleaner and safer construction with less impact on the surrounding environment. We are also exploring the possibility of providing more comprehensive solutions. Today, steel can be colour-coated and finished to replicate other materials, including wood-like appearances. We are looking at structural steel solutions that can be combined with prefabricated façades and interior applications.

The idea is to explore how we can provide a more complete solution to a customer. If someone wants a building, the objective should be to take the solution as close as possible from concept to completion, working alongside other specialised partners. 

I think India will increasingly move towards a solution-based approach rather than a purely supplier-based approach.

India is already one of the world’s largest steel producers but some sophisticated projects still depend on imported high-value and speciality grades. Where do you see the biggest localisation opportunities?

I would say that close to 98-99 per cent of the capability is already available in India. A very small percentage of products may still need to be imported because the required volumes may be too small to justify dedicated domestic capacities. 

There were, however, certain products where new capabilities were required, and JSW Steel has stepped forward to address some of these areas. One is steel used in transformers and another which is used in electric motors,both of which are becoming increasingly important with global electrification. We have acquired technology for CRGO transformer steel and are establishing capacities of 350,000 tonne, which is equivalent to the total quantity currently imported into the country. This can help India become self-reliant in transformer steel. Similarly, we are expanding our capabilities in CRNO electrical steel for motors and Tinplate for sustainable packaging solutions. 

We are also offering advanced high-strength steel for automotive lightweighting, with grades of up to 1,500 mpa that were previously imported.

In speciality alloy steel as well, including applications for automotive components, fasteners and bearings, India already has significant manufacturing capability and we are continuing to add to our portfolio.

Does India’s procurement system focus too much on the initial cost of steel rather than installation costs and lifecycle value?

Lifecycle cost analysis is extremely important and the Government has also issued guidelines in this area. However, more stakeholders need to look beyond the initial construction cost. The upfront cost may appear marginally higher but the returns and benefits over the life of the 

asset can be significantly greater. Steel is also a 100-per-cent recyclable material. At the end of a building’s useful life, the scrap itself retains value. Therefore, we need to place greater emphasis on lifecycle cost analysis. The Government and industry should work together to identify areas where steel could be preferred or mandated, particularly for projects of national importance.

That said, the private sector is already beginning to recognise these benefits. Structural steel is gaining momentum partly because of lower labour availability and constraints around sand. Once developers explore alternatives, they find that steel can enable faster, cleaner and safer construction through prefabrication. While it may cost marginally a little more today,over the life of the project,it will be much more cost effective and sustainable.

What has JSW Steel learnt from executing its own large industrial construction programmes?

We are seeing clear benefits from modularisation and offsite fabrication. We use a significant amount of steel in our own construction and try to complete as much fabrication as possible offsite. This helps decongest the construction area and can save time. We are also increasingly using technology and digital tools to monitor projects. Drone-based computer vision tools, for example, can provide better visibility into project progress. Another important learning is the need to retain skilled talent. We are looking at the overall environment provided to construction teams, including recreation, food, transport and incentives for workers who stay on projects for longer periods. This can help ensure continuity and reduce the need to repeatedly mobilise new teams. The combination of technology, automation, digital monitoring, offsite fabrication and better workforce management can make projects safer and improve quality of construction.

Are Indian projects increasingly specifying the right grades of steel for environmental and lifecycle performance?

More people are beginning to understand the importance of specifying the right steel for the right application. For example, corrosion-resistant steel has been available for many years but there are still instances where conventional construction steel is epoxy-coated and used in applications where inherently corrosion-resistant steel may be a more appropriate solution. Bridges and structures located near shores or in coastal belts and other corrosive environments require different grades of steel. Consultants and architects are increasingly specifying these grades but we still have some distance to travel. There may also be a role for government in defining the grades required in regions with higher corrosivity. If a project is located in a particular environmental zone, there should be clarity on the grades that need to be used. The same applies to earthquake-prone regions. Earthquake-resistant steel grades are available and it is important to use steel that have better elasticity alongwith right strength which can perform under the required loading conditions. Proper refining, processing and grade selection are critical to ensuring structural performance.

What will create a viable market for low-carbon or green steel in construction?

The Government will have to play an important role in creating demand for low-carbon steel. There needs to be a mechanism or mandate for its procurement, similar to the approach adopted for renewable energy. A certain percentage of steel used in specific projects could be required to have a lower carbon footprint. 

Once such a mandate is introduced, developers and project executors will incorporate these requirements into their projects.

The important consideration is not the label of ‘green steel’ but the use of steel with lower carbon emissions and greater sustainability. Initially, customers may have to pay a slightly higher value but the experience with renewable energy shows how scale and policy support can help build capabilities and reduce costs over time. Private capital can also create demand. 

As more international investors invest in green buildings and assets, requirements relating to embodied carbon and low-carbon materials can influence material specifications.

Looking towards 2035, what would you like a developer, architect, structural engineer or contractor to say that JSW Steel enabled them to do?

It is a combination of all those things – build faster, build taller, span further, reduce carbon, improve durability and lower lifecycle costs. Steel buildings can be designed to use space more efficiently. Long spans 

reduce the need for multiple columns and pillars, creating more usable space within a building. Structures can also be designed to be taller and executed more cleanly and efficiently. 

When it comes to speed, steel offers a clear advantage, particularly for high-rise construction. It can also improve returns on investment by enabling assets to become operational faster. In congested cities and constrained sites, prefabricated and pre-engineered construction can become particularly important. If you look at cities such as Manhattan, high-rise development on narrow plots is made possible through steel construction.

I think that is the path India will take. We have seen these technologies work elsewhere in the world and I am confident that India will increasingly adopt them as well.