BETTER EVERYDAY

S4

FOCUS ON RESOURCE OPTIMISATION AND DIGITALISATION

We have embarked on a transformative digital journey driven by four key objectives, i.e., driving revenue and market share growth, increasing profitability, attaining excellence in Environmental, Social, and Governance (ESG) practices, and creating an exceptional workplace environment.

To accomplish these goals, we rely on three primary technology levers: Automation and digitalisation, integration and intelligence. These empower us to harness the power of technology, streamline processes, enhance operational efficiency, and make data-driven decisions. We are actively working towards realising our vision of becoming a leader in the industry, while simultaneously ensuring sustainable growth, exceptional performance, and a conducive work environment for our employees.

$149

Conversion cost per tonne of steel

90%

Capacity utilisation

Capitals deployed

INTELLECTUAL

MANUFACTURED

Capitals enhanced

FINANCIAL

NATURAL

Key risks

  • R1 - Raw material availability and cost–Iron ore and coking coal
  • R2 - Infrastructure and logistics
  • R7 - Utility–Water and electricity
  • R8 - Human resources
  • R10 - Cybersecurity

Material issues

  • Economic performance
  • Technology, product and process innovation

Key trends

  • Digitalisation
  • Steel cyclicality
  • Sourcing steel with low carbon footprint
  • Volatility in iron ore, coal prices leading to suppressed margins

Cost reduction

Vijayanagar

  • Commissioned the Coke Oven Battery A of capacity of 0.75 MTPA resulting in reduction of procurement of coke from third parties
  • Reduction in coal rate at Corex-1 and Corex-2 due to better operating performance
  • Increase in Pulverised Coal Injection (PCI) in Blast Furnace-1 and 4 thereby reducing the BF fuel rate
  • Improvement in Zero Power Furnace and EAF yield resulting in reduction in operating cost
  • Edge and Bar heater at HSM-2, to achieve uniform temperature across the width and length before rolling at finishing mill for improvement in quality of coils and reduce rejections
  • Transportation of 6.3 MnT of iron ore through pipe conveyor resulting in lower logistics cost and an environment friendly and efficient solution for transportation of iron ore to the plant
  • Usage of corex fines as a replacement of PCI coal resulting in lower hot metal costs
  • Debottlenecking of BP-2 to enable handling of 50,000 tpd of low-grade iron ore resulting in usage of iron ore with lower Fe quality and consequent reduction in operating costs
  • Produced in house LHF Slag Briquettes to replace the purchase of synthetic slag

Dolvi

  • The cost of production from the newly expanded capacity of 5 MTPA is lower due to better operating efficiencies, lower fuel rate at Blast Furnace 2, lower operating costs at SMS 2 and lower power costs as the power is generated by harnessing the waste heat.
  • Commissioned the 175 MW Waste Heat Recovery Boilers (WHRB) and a 60 MW captive power plant to harness flue gases and steam from CDQ. These power plants are catering to the power requirements of the Phase II expansion. These plants operate through the waste gases and heat generated from operations, an environmentally friendly and cost-efficient source
  • Cost efficiencies have been achieved with increase in PCI rate per tonne of steel, resulting in savings in solid fuel rate
  • Increased the use of pellets to sinter feed for better yield

Salem

  • Higher coal fines usage in BF by optimising the process parameters resulting in lower operating costs
  • Eliminating the delay in reversible mill manipulator resulting in increased productivity
  • Reducing the return fines generation in SP#2
  • Reducing fuel rate in BF#1 through process optimisation
  • Improving the WHRP#5 steam generation
  • Increasing PCI rate in BF through coal line modifications
  • Reducing coal handling loss in coke oven plant

Digitalisation

Our digital function is led by a Chief Digital Officer (CDO), supported by various Digital Centres of Excellence (CoEs), i.e., Data Sciences, Digital Vision Platform, Digital Supply Chain Management, Digital Sales & Marketing, Digital Human Resources, Digital Sustainability. Our objectives are:

  • Integrated technology approach through collaborative Digital-IT-OT functions
  • Integrated system landscape to minimise manual data entry inputs
  • Dynamic and paperless interaction with customers
  • Automated shop floor driven by Industry 4.0 principles and AI/ML
  • Reports Dashboards & Analytics (RDA) for each function

Digital technologies deployed

In addition to our robust core platform (encompassing SAP ERP, Salesforce CRM, Darwin Box HR Management system), we have deployed more technology and applications to harness the benefits. We have implemented and are further expanding the deployment of Industrial Internet of Things (IIoT), Robotics, Artificial Intelligence-Machine Learning (AI-ML), Dashboards and Analytics, Robotic Process Automation (RPA). We have leveraged large tech companies and the start-up ecosystem.


Digitalisation: Focus functions

Our objective is to support the digitalisation needs of every plant and function. We have mapped digital initiatives for mine-to-plant-to-customer value chain.

Mine-to-plant-to-customer: Technology-led JSW Steel

However, there are some high-priority functional areas where digital initiatives are of utmost importance. These are:

01 Mining

02 Manufacturing

03 Supply chain

04 Sales and marketing

05 Human resources

06 Sustainability, safety and security

07 Finance

With digital-led transformation progressing, we are continuously working towards the following benefits:

01 Increased sales

02 Asset availability

03 Great Place To Work (GPTW) certification

04 Cost optimisation

05 Emissions reduction

06 Improvement in safety and security

7,100+

Hours of digital training in FY 2022-23

DigiTall: A PROGRAMME TO DEVELOP A 'FUTURE-READY DIGITAL WORKFORCE'

To upskill our employees and prepare them to lead the organisation digitally, we have created a comprehensive multi-tier digital learning and development programme. Through this initiative, we aim to build a future-ready workforce.

A Future-Ready Digital Workforce
Targeting 9,000 hours of Digital and Data Science Training in FY 2023-24

INDUSTRY 4.0 FOR STEEL PLANTS AND THEIR VALUE CHAIN

Leveraging the principles of Industry 4.0, we have carried out several projects to make our manufacturing processes optimised and intelligent. Some of the projects are enlisted below to provide you with a glimpse into the digital work being done and planned at JSW Steel.

Process Automation

  • Level-2 Automation (Vijaynagar, Dolvi, Salem, Coated Steel plants like Vasind Tarapur Kalmeshwar (VTK) etc.)
  • Two-dimensional Yard Management System (Vijaynagar, Dolvi, VTK)
  • Digital Logistics Management System (DLMS) (Odisha Mines, Vijaynagar, Dolvi)
  • Stores Process Transformation (Coated steel plants like VTK)
  • Auto positioning of battery machines at coke ovens

Machine Learning

  • Increase throughput and reducing set-up time using camera vision in SMS (Dolvi)
  • Online Surface Inspection System (Vijaynagar, VTK)
  • Optimisation models (Ex. Cost, Raw Materials)
  • Computer Vision Machine Learning (CVML) at SMS
  • Advanced analytics-driven slab bulging effect reduction and modelling driven caster pull optimisation
  • Dynachem–An ML-based model to optimise Ferro-alloys quantity (and hence cost)

Simulation

  • Barge optimisation (Dolvi)
  • Virtual reality (VR)-based fire-safety training for an immersive learning experience, combining high fidelity virtual fire environments with real-time physical interfaces in a safe and cost-effective manner, helping prepare emergency personnel for mitigating fire hazards (Vijaynagar)

Advanced Robotics

  • Zinc dross removal (Vijaynagar, VTK)
  • Robotics for sleeve loading (VTK)

Dashboards and Analytics

  • Data lake based on Data Historians (Dolvi, Salem)
  • Prediction of Sheet Mechanical Properties (VJNR)
  • Data analytics-driven Super Heat and LF lifting temperature optimisation

Industrial Internet of Things (IIoT) and AI-ML

  • Predictive Maintenance and Predictive Quality (Vijaynagar, Dolvi, Kalmeshwar)
  • Al Enabled Security Surveillance System (Salem)

Geospatial Tracking

  • Track and trace of Outbound Logistics (Odisha Mines)
  • Mobile app-based truck receipt using QR code/geofencing

OUTLOOK

Near-term

Digitalisation: Our journey and future roadmap

  • Wave 1: Accelerated the implementation of select use cases across the value chain
  • Wave 2: Digitalised procurement and projects and implemented E2E digitalisation within a single manufacturing shop
  • Wave 3: Achieved E2E plant digitalisation, extended digital to sales and marketing initiatives and implemented integrated control tower (ICT) in manufacturing

Under the ongoing Wave 4, our vision is to scale digital to best-in-class to:

  • Enhance sales, marketing and e-commerce
  • Continue digital projects in existing plants
  • Implement digitalisation in newer/acquired plants such as JSW BPSL, JSW Ispat (JISPL), Coated
  • Extend digitalisation to support functions such as HR, Finance, Logistics, Commercial and others
  • Implement sustainability projects in every function

Long term

  • Target to achieve and sustain first quartile conversion cost
  • Continue to focus on improving resource efficiency of processes and manpower productivity
  • Focus on end-to-end digital transformation of high priority business functions like bulk raw material procurement, outbound supply chain management, sustainability, employee hiring and retention etc
  • Sustainability KPIs, data analysis and management led by digitalisation across smart power consumption management, intelligent water control and quality management to reduce water blowdown, and manufacturing control tower to manage stack emissions