AM/NS India targets import substitution with new value-added steel for appliances

MUMBAI: ArcelorMittal Nippon Steel India (AM/NS India) is broadening its value-added steel portfolio with two new products aimed at the consumer appliance sector, aiming to reduce imports.

Value-added steel refers to regular steel that has been further processed or treated to enhance strength, durability, or suitability for specific applications. This move aligns with AM/NS India’s strategy to focus on downstream steel – higher-value products or components used in industries such as automobiles, appliances, and construction.

“Today our value-added portfolio contributes about 60-65% to the revenue. We would ideally want this portfolio to be in excess of 70-75% in the next two-three years with all the new launches that we are having,” said Ranjan Dhar, director and vice president – sales and marketing, ArcelorMittal Nippon Steel India told Mint.

India imports nearly 1 lakh tonnes of this steel for appliances each year, as per the company's estimates.

Existing customers include LG Electronics, Samsung Electronics, Whirlpool Corporation, Blue Star Ltd, and Voltas Ltd. Dhar said the new products would provide added value for these clients.

The steelmaker launched two products: AM/NS Vibrance is a premium colour-coated steel solution used in refrigerators, washing machines, microwave ovens, and water dispensers, while AM/NS Optima is non-colour-coated galvanized steel used in AC outdoor units, panels, and cleanroom installations.

Currently, India relies on imports to meet the appliance industry's steel demand. AM/NS India plans to substitute these imports at a lower cost, Dhar added.

The Indian consumer durables market is projected to become the world’s fourth largest by FY27, driven by rising demand for appliances with premium finishes and modern designs. India consumes around 11.1 million tonnes of coated steel annually, with demand expected to grow 8-10% per year.

In the appliance segment, coated steel demand is growing faster, at roughly 10% annually, supported by higher consumer aspirations, rapid urbanisation, premiumisation, and government initiatives such as the Production-Linked Incentive (PLI) scheme.

These products are “premium branded steel solutions engineered to meet the increasingly design-led needs of original equipment manufacturers (OEMs) across appliance and industrial manufacturing ecosystems,” according to a company statement.

The launch follows AM/NS India’s July 2025 inauguration of a 0.5 million tonne-per-annum continuous galvanizing line for the automotive industry at its Hazira, Gujarat plant, aimed at substituting imports.