Expanding capacity to tap into buoyant domestic steel demand

Aligned with India’s aspirations and the resultant increase in demand for steel to sustain the nation’s growth trajectory, JSW Steel is strategically augmenting its upstream and downstream capacities primarily through low-risk and capital-efficient brownfield expansions. Further, India’s low per capita steel consumption compared to global average provides significant headroom for growth. As the country’s leading and most diversified steel producer, we plan to take our installed capacity in India to 37 MTPA in the near term from 27.7 MTPA at present, with planned CapEx well below the global replacement cost benchmark of ~$1,000/tonne for BF-based capacities.

Strengthening cost leadership, improving efficiency

JSW Steel has established its leadership on the cost conversion curve in India and is one of the lowest globally. We are leveraging technology to further optimise costs and operational efficiencies. Further, we have established robust raw material linkage for iron ore for our integrated steelmaking facilities, which not only provides strategic long-term iron ore security, but also ensures grade consistency to enhance productivity. Iron ore integration allows us to also optimise logistics; we use pipe conveyor system to transport iron ore fines at Vijayanagar. The commissioning of the pellet plant and coke oven facilities in Vijayanagar and Dolvi have eliminated high cost external purchases of pellet and coke.

Increasing share of high-margin Value- Added and Special Products (VASP)

At JSW Steel, we focus on developing innovative steel products for diverse applications spanning the infrastructure and construction, consumer durables, general engineering, railways, defence and automotive sectors. Over the past few years, we have rapidly scaled up our downstream capacities to address the growing demand for specialty steel in India, which was being largely met through imports. Our continued focus on building specialty steel brands and on launching niche products that cater to the evolving requirements of our user industries enable us to enrich our portfolio and enhance margins.

Progressing on sustainability

At JSW Steel, we measure and disclose our progress on all key performance indicators against the set targets across all our focus areas of sustainability performance. We are not only improving the sustainability quotient of steel but are also making a meaningful contribution towards meeting India’s Nationally Determined Contributions (NDCs). During FY 2022-23, JSW Steel was upgraded to an 'A' rating by CDP. Moreover, we were recognised as the Worldsteel sustainability champion, for the 5th consecutive time in a row. We also joined Responsible Steel, the steel industry’s first global multistakeholder standard and certification initiative. We have also deployed a robust occupational health and management system and our goal is to achieve zero harm, zero major incidents, and zero injuries.

Being future-ready by scaling digital to best in class

At JSW Steel, we are undergoing an end-to-end digital transformation with automation, integration and intelligence across functions. These transformative initiatives are aimed at increasing sales, increasing cost competitiveness, improving efficiency, ensuring asset availability, reducing emissions and augmenting safety. Further, we launched 'Digitall' (Digital education for all), aimed at building a future-ready workforce.

Maintaining healthy balance sheet, ample liquidity

We have maintained our gearing and leverage below the stated caps, despite deploying significant annual capex in the past few years. This speaks volumes about our prudent capital allocation to projects that are immediately value accretive. Our robust operating cashflows provides ample liquidity and flexibility to deploy growth capital. Further, we enjoy strong ratings from domestic as well as international credit rating agencies, which enables us to tap the global capital markets on favourable terms. In addition, we have access to diversified funding sources, with strong relationships with domestic and international banks and financial institutions.

Delivering consistent shareholder returns

We have a strong track record of delivering consistent shareholder returns. With a healthy balance sheet, reduced debt levels, strong liquidity, and favourable credit ratings, we are well-positioned to deliver sustained, superior risk-adjusted returns through consistent dividend payments and share price appreciation.