S3

CAPITALS DEPLOYED

Manufactured Capital

Intellectual Capital

CAPITALS ENHANCED

Social and Relationship Capital

Financial Capital

61 %

Highest ever share of valueadded special products in consolidated sales

17,500+

Exclusive and none-xclusive retail outlets

469

Distributors

2,059

Branded stores

By broadening our product offerings to include value-added and special products (VASP) for the automotive, infrastructure, and renewable energy sectors, we aim to meet the evolving needs of a wider range of industries. This strategy is designed to reduce market risk, enhance resilience against economic fluctuations, and capture new growth opportunities in highmargin segments.

ENHANCE

Value added product portfolio
with innovation and R&D

Strategic response to market trends

Amidst rising consumer aspirations and increased infrastructure investments in India, we anticipate a surge in steel demand. To capitalise on these trends, we have expanded our portfolio with relevant value-added products, focusing on high-margin options to better manage price volatility and support import substitution. Valueadded and special products made up approximately 61% of our consolidated sales volume as of March 31, 2024, significantly enhancing our margins.

Our production emphasises medium and high carbon steel, high tensile and high strength low alloy steel for the automotive sector, and API grade steel for the oil and gas industry. In line with our strategy, we inaugurated a new 4.1 MTPA cold rolling mill and a 0.2 MTPA non-grain oriented electrical steel facility at Vijayanagar Works in 2015. This expansion is designed to meet domestic requirements for high-grade electrical steel, previously imported.

Additionally, we have bolstered our long product segment to cater to domestic infrastructure and construction demands with an additional 1.4 MTPA bar rod mill at Dolvi Works and 1.2 MTPA at Vijayanagar Works. We also entered the tinplate business with the acquisition of VTPL in April 2014 and established a 0.50 MTPA tinplate capacity at Tarapur Works to meet growing demand. The launch of ‘JSW Platina', a premium tinplate product line targeted at the packaging industry, marks our further diversification.

Overall, our downstream capacity in India stands at approximately 13.5 MTPA.

JSW Steel Coated Products Limited

In FY 2023-24, JSW Steel Coated Products Limited, along with its subsidiaries, achieved remarkable growth. The Company registered its highest-ever production and sales (GI/GL, Tin, CRCA & other saleable products) volumes. The production volume stood at 4.16 MnT (compared to 3.27 MnT in FY 2022-23) and a sales volume of 4.11 MnT (compared to 3.42 MnT in FY 2022-23).

A significant highlight was the acquisition of NSAIL through the Corporate Insolvency Resolution Process. The acquisition, completed on May 23, 2023, with an infusion of H621 crore, demonstrates the intent of JSW Steel Coated Products Limited to expand and strengthen its market position. In terms of infrastructure growth, a new 0.25 MTPA Colour Coated Line was commissioned at Rajpura, Punjab, in June 2023. Additionally, commissioning activities for a 0.12 MTPA Colour Coated Line in Jammu & Kashmir are slated to begin in Q2 FY 2024-25.

New product

Neotrex Steel Limited, a subsidiary of the Company is setting up a low relaxation pre-stressed concrete strand (LRPC) facility with state-of-the-art line and a capacity of 1.44 lakh tonnes per annum (LTPA) at Vijayanagar unit. LRPC strands find application in almost all types of heavy-duty industrial construction, high-rise buildings, and infrastructure projects. The demand for LRPC strands is expected to grow substantially owing to demand from construction and infrastructure sectors. The company had planned to enter the business of manufacture of LRPC as the product offers higher margins and widens the basket of value-added products compared to direct sale of wire rods, which is an input for manufacture of LRPC. NSL is currently operating 0.72 LTPA LRPC facility and the second phase of 0.72 lakh tonnes is expected to be commissioned in FY 2024-25.

Overseas operations

We have steelmaking assets consisting of a 1.5 MNTPA Electric Arc Furnace (EAF), a 2.8 MNTPA continuous slab caster and a 3.0 MNTPA hot strip mill at Mingo Junction, Ohio in USA. Further, the Baytown facility at USA has a 1.2 MNTPA plate mill and a 0.55 MNTPA pipe mill. The facility is located near a port and is close to key customers in the oil and gas industry. JSW Steel (USA) plate and pipe mill is in the process of modernising the existing facilities at Baytown, Texas. The first phase of modernisation was completed and commissioned in FY 2021-22.

JSW Piombino produces and distributes special long steel products. The company has a plant at Piombino in Italy, comprising a rail mill (0.32 MTPA), bar mill (0.4 MTPA), wire rod mill (0.6 MTPA) and a captive industrial port concession. PL manages the logistics infrastructure of Piombino’s port area. The port managed by PL has the capacity to handle ships up to 60,000 tonnes.

JSW JFE Electrical Steel Plant in Bellary

JFE Steel Corporation and JSW Steel have established JSW JFE Electrical Steel Private Limited, a joint venture company focused on producing grainoriented electrical steel in India. This collaboration aims to address the growing market demand for high-quality electrical steel, essential for various industrial applications. The new facility, located in Bellary, Karnataka, is slated to begin full production in FY 2026-27. As the market for grain-oriented electrical steel expands, this joint venture will leverage the combined expertise and resources of JFE Steel and JSW Steel.

Technical collaboration with JFE Steel Corporation, Japan (JFE)

FY 2023-24 marks the 14^th year of JSW Steel's technical collaboration with JFE Steel Corporation, Japan, an agreement initiated in 2010. This partnership has enhanced product development, established robust quality systems, reduced waste, and improved energy efficiency. Over the years, the collaboration has matured, fostering a strong working relationship at both strategic and operational levels, with seamless knowledge sharing and best practices.

JFE Steel’s expertise has enabled JSW Steel to solidify its leadership in high-value segments such as Automotive and Electrical Steel, offering a diverse product mix, superior quality, shorter lead times, and expert application support. The collaboration reached new heights in FY 2023-24 with the formation of a joint venture to establish a grain-oriented electrical steel sheet manufacturing plant in Vijayanagar, involving an investment of US$670 million.

The collaboration extended to JSW's Anjar unit, where JFE conducted a detailed study and prepared a roadmap for enhancing production capacity. Key highlights of JFE's technical assistance include stabilising blast furnace operations, addressing blower issues, improving tuyere and blow pipe durability, and prolonging campaign life. JFE also provided comprehensive training on larger furnace operations and maintenance, conducted gap analyses, and suggested improvements for productivity and reliability across various operations.

Solar Module Mounting
Structure (Magsure – Coated)

Designed for the renewable energy sector, offering enhanced durability and resistance for long-term solar installations.

Reinforcement & Crash parts
for PVs (SPFC980DP – CR)

Cold-rolled steel for automotive structural and crash parts, providing excellent combination of strength and formability.

Long Members for CVs
(BSK46 – HR)

Hot-rolled steel for structural components in commercial vehicles, ensuring optimum strength and weldability.

Ammunition Shell Casing
for Artillery Guns

Special alloy steel for ammunition shell casings, meeting stringent defence specifications with high resistance to impact and stress.

Oil & Gas Valves
(SAE1524SI – Long & Special Alloy)

Alloy steel for manufacturing valves in the oil and gas industry, ensuring superior strength and corrosion resistance.

Railway Wagon
(E450BR CU – HR)

Hot-rolled steel for railway wagons, providing necessary strength and durability for demanding railway transportation conditions.

Appliances- AC
(IS15961/EDDGalvalume)

Introduced bare Galvalume Steel for air conditioner outdoor unit (AC-ODU) parts, offering enhanced durability and a longer lifespan.

Branding initiatives

Our branding initiatives are designed to amplify our market presence and fortify brand loyalty among consumers. By leveraging a blend of traditional and digital marketing strategies, we have successfully embedded our brand in the consumer consciousness. These initiatives are marked by targeted campaigns during regional festivals, innovative partnerships, and a strong digital presence that ensures maximum reach and engagement. Such well-rounded approaches increase the brand's visibility across diverse platforms and resonate with a broad demographic, enabling a deep, emotional connection with the brand.

High brand recall

Our brand initiatives, especially during cultural festivals like Onam and Pongal, have strengthened brand recall. The campaigns utilised local symbols and narratives that resonated deeply with the target audience, with a 47% increase in website traffic.

75 million+

Impressions during the Onam campaign

54 million+

Impressions during the Pongal campaign

Digital campaigns, particularly the #RoofToDream initiative, were extensively promoted across digital platforms. It accumulated over 67 million impressions and 26 million reach. This initiative promoted JSW Steel's products and highlighted its CSR activities, thereby enhancing the brand's image as socially responsible.

67 million+

Impressions

Partnerships and sponsorships, such as those during the ICC World Cup, contributed to the brand's visibility and recall. This campaign specifically targeted audiences aged 25-45 in metro cities, leveraging these insights for maximum impact.

170 million+

Impressions

50 million+

Reach

Retail initiatives

Project Kshitij, a transformation initiative by JSW Steel, focused on overhauling the sales and management functions, leading to enhanced engagement and performance across our channel networks. This project included repositioning the coated retail brand portfolio - initiated with a detailed consumer segmentation study - ensuring that the offerings were finely tuned to meet consumer needs.

Festive campaigns like the Ganeshotsav and Navratri saw innovative retail engagement with high-impact branding and distribution of sustainable productthemed hampers. These activities increased foot traffic and strengthened sales and customer interaction with the brand during key festive periods.

Moreover, the introduction of JSW Avante Steel Doors at prominent expos and the development of specialised marketing materials like the décor book for JSW Avante further enable the expansion of our retail footprint and adaptation to consumer preferences in real-time.

17,500+

Exclusive and non-exclusive retail outlets

469

Distributors

530

Presence across towns

Customer connect through branded stores

Our branded stores have become pivotal in enhancing customer connect, providing firsthand experience of the product range, and directly engaging consumers through influencer-driven events and IT enhancements that aid the sales force. Customised experiences at branded stores - including live demonstrations and customer education about product benefits - have created a stronger connection and trust between the brand and its customers.

The implementation of digital tools and customer relationship management systems in these stores have streamlined operations and improved customer service, leading to better customer satisfaction and retention rates.

2,059

Branded store network

Influencer engagement

Our flagship influencer connect programme, JSW Privilege Club, is one of the biggest loyalty projects in the steel industry. With a vast and varied target group - spanning influencers and channel partners such as fabricators, masons, contractors, engineers, distributors sales representatives – the programme has a total of 92,035 members. The programme enables the creation of an emotional connect with the members/ influencers in the target group. This helps attract members to the loyalty programme.

JSW Privilege programme also serves as the purpose of tracking purchases made by various stakeholders across the ecosystem. Once a purchase is tracked within the system and integrated with the programme, the member is benefitted with a quick and hassle-free reward distribution, thus increasing the overall attraction quotient.

90,000+

Total members

74,000+

Members who are part of various loyalty schemes

30,000+

Active members

~10,000

Influencers trained through Eklavya Skill Academy

3.92 lakh MT

Registered purchase through influencers

JSW One Platforms Limited (JOPL) is redefining the B2B landscape with its comprehensive and integrated solutions tailored for MSMEs, individual house builders, and influencers. JSW One is one of the core investment strategy of JSW Steel to build distribution in the market. Since its inception, JOPL has seen exponential growth in user registrations and active users, particularly among MSMEs and individual house builders. This market penetration across key regions in India highlights the platform's expanding reach, which is set to gain further momentum in FY 2024-25.

User growth and engagement

JOPL has experienced a remarkable increase in the number and value of transactions processed through its platform, reflecting higher adoption rates and trust among users. A significant proportion of these transactions are from repeat customers, indicating high levels of customer satisfaction and retention. The platform’s multibrand catalogue has expanded to include a diverse range of products such as steel, cement, bitumen, and allied products, ensuring comprehensive availability across all key markets.

Financial services and credit financing

The expansion of credit offerings by JSW One has seen robust uptake, with many MSMEs and individual customers utilising the digital lending ecosystem for their purchases. With the Reserve Bank of India's approval for JSW One Finance Limited (JOFL) to operate as a Non-Banking Financial Company (NBFC), the platform is expected to enhance its principal lending capabilities, further facilitating customer and supplier financing.

Enhancements for user experience and transaction efficiency

JOPL has integrated advanced digital ecosystems and technology to streamline user experience. The enhanced digital catalogue discovery makes it easier for users to find and order products, with detailed information and seamless navigation. Streamlined order processing and realtime order visibility ensure transparency and efficiency, reducing lead times and improving customer satisfaction.

Logistics and fulfillment

Integration of third-party logistics services through JSW One Distribution Limited (JODL) ensures reliable and timely delivery, enhancing the overall fulfillment process. The introduction of private brands within the TMT category, tailored to the needs of retailers and large projects, further enhances brand recognition and customer loyalty.

51,000

Registered customers

2,97,000

Visits on platform¹

70%

Repeat customers¹

`9,400 crore

Annualised exit GMV²

1: For Q4 FY 2023-24;

2: Based on March 2024 exit GMV run rate

3.7x y-o-y

7,05,000 MT

Steel Volume

7.8x y-o-y

81,000 MT

Cement Volume

Future prospects

In FY 2024-25, JOPL and its subsidiaries plan to build a multi-brand catalogue across multiple categories, ensuring availability across all key markets in India. The creation of a digital ecosystem for lending to end customers and MSMEs will be facilitated by JOFL’s new NBFC status. Additionally, JOPL aims to build private brands, strengthen the digital ecosystem of project management, and improve customer delight in the homes business.

These growth initiatives are expected to enhance JOPL's brand recall, expand its geographic presence, and boost customer conversion and retention through improved supply and credit availability. By leveraging these strategic initiatives, JOPL aims to strengthen its market presence and create valuable connections with its target audience.

Outlook

Near-term

Commissioning of the colour coated line of 0.12 MTPA in Jammu & Kashmir by Q2 of FY 2024-25.
Commissioning of the second phase of 0.72 LTPA LRPC facility at Vijayanagar in FY 2024-25.
For effective influencer management, we aim for >10% increase in base of masons, contractors, architects and engineers in the Privilege Club Loyalty programme.
Enrich product mix by addition of value-added products such as seismic resistant steel and binding wires.

Long-term

Maintain ~50% contribution from VASP in the overall product portfolio.
Continued focus on increasing share of VASP in the portfolio to enhance margins and improve profitability.
Penetrating new markets and reinforcing our presence in existing ones.
Expanding our range of renewable energy products, including those used in solar and wind energy applications.
Building on the momentum of JSW One by expanding the platform’s reach.
Enhancing our digital marketplace to streamline the buying process for our customers. This includes integrating advanced logistics, inventory management, and credit solutions to offer a seamless experience.
Support India in achieving import substitution in value-added steel products.
Leverage reach through international acquisitions.