BETTER EVERYDAY
BETTER EVERYDAY
The Indian economy is likely to be on a sustained growth path, as it takes confident strides to become a ‘developed’ one over the next two decades. Steel will remain the metal of choice to support infrastructure- and construction-led growth, aided by the growing share of manufacturing in the country’s GDP. Given steel’s versatility and recyclability, Indian steel is in a sweet spot with globally competitive prices to contribute towards building a sustainable future.
Significant growth headroom for domestic steel demand
Government’s infra push to boost demand
Steel for safer and efficient mobility
Green steel for a sustainable world
Smarter steel for a digital world
Significant growth headroom for domestic steel demand
India is the second-largest producer and consumer of crude steel globally with an installed capacity of ~160 MTPA at present. To meet the growing demand, the National Steel Policy (2017) envisages the country’s steel capacity to grow to ~300 MTPA by FY 2030-31. Further, India’s per capita finished steel consumption is significantly below the global average, which suggests a buoyant demand outlook. Near-term challenges exist especially in overseas markets, the long-term growth story of Indian steel remains intact with an estimated 8-10 MnT annual incremental growth in domestic consumption.
Our response
With a proven track record of efficient organic and in organic growth, JSW Steel is on track to enhance near-term capacity to 37 MTPA by FY 2024-25. We are targeting a 10% sales volume growth to 25 MnT in FY 2023-24 with the expanded capacities and high utilisations, along with a wide product portfolio with use cases across diverse user industries. Further, the recent decline in coking coal prices and strong iron ore linkage through captive mines are likely to deliver margin accretive volume growth.
Government’s infra push to boost demand
Infrastructure and construction account for 60-65% of steel consumption in India. The India government’s efforts to kickstart an investment cycle led by robust public CapEx, coupled with strong corporate and bank balance sheets, is likely to provide impetus to private investments and consumption. Projects like High-speed Rail, Dedicated Freight Corridor, PM Gati Shakti are also key drivers of domestic steel consumption. Further, the extended Credit-Linked Subsidy Scheme (CLSS) until 2027, will not only bridge the affordability gap in residential real estate, but also boost demand for structural steel.
Estimated steel consumption in Mumbai-Ahmedabad bullet train project; the highest ever in any infra project in India
Budgeted government outlay for infrastructure in FY 2023-24, accounting for 3.3% of GDP and up 33% y-o-y
Our response
Our steel is helping build key infrastructure projects in India, from high-speed rail to metro rail, airports to expressways, and for solar/wind and nuclear power.
The Mumbai-Ahmedabad High Speed Rail (MAHSR) Corridor is the first of the 12 lines planned by the government. It will cover more than 500km in 2 hours and 58 minutes with a top speed of 320km/hour. JSW Steel has emerged as one of the leading and preferred suppliers, providing high-strength TMT Bars, HR Plates and LRPC for the project, and accounting for 50% of the steel supplied.
Steel for safer and efficient mobility
The Indian automotive industry has evolved over the past decade to emerge as one of the fastest-growing markets in the world. With steel accounting for the majority of raw material content in vehicles and the highest safety ratings becoming a top consideration in buying decisions, demand for Advanced High-Strength Steel (AHSS) has been steadily rising in India. Further, with high-tensile strength and optimal formability, AHSS enables a low-cost solution, compared to aluminium and carbon fibre, to achieve 5-star safety ratings.
Our response
JSW Steel is one of the most preferred and leading suppliers to the Indian automotive industry. We are working closely with auto OEMs to make cars safer, lighter and fuel efficient. Further, all major crash and safety components–A&B pillars, crossbeams, door impact beams, among others-are being built using our AHSS. We have also developed steel for suspension parts, which require optimum fatigue life in addition to high strength. In addition, we are enhancing our readiness for EV applications.
Low-emission steel for a sustainable world
According to a NITI Aayog report, India is likely to be the world’s manufacturing hub for low-emission steel by 2030 and pave the way for wider adoption globally. Traditional coal-based production methods such as blast furnace/basic oxygen furnace and electric arc furnace (EAF) are being replaced with technologies like DRI and gas turbine generators.
Our response
In line with the Government of India’s decarbonisation goals, we at JSW Steel have also embarked on a journey to decarbonise steelmaking in a progressive manner. We have a WBCSD membership, are a part of Responsible Steel, and have also been Worldsteel champions five times in a row. We are deploying levers towards decrbonisation viz energy transition towards renewable energy, adoption and promotion of efficiency improvements in energy consumption, process optimisation, increased use of available scraps and support circularity through better resource management and adoption of best available technologies (BAT).
Digital evolution
The fourth industrial revolution, Industry 4.0 is underway, and the steel industry is also witnessing the increased deployment of artificial intelligence (AI), Industrial IoT, AR/VR, and machine learning, among others, into everyday practices to make manufacturing smarter, safer, and more efficient.
Our response
At JSW Steel, we are expanding and scaling digital to best-in-class across business functions with a special focus on safety and sustainability, as part of our Digital Vision 2026. We are also building a future-ready workforce, by providing digital education and undertaking strategic transformation projects.