Sajjan Jindal controlled JSW Steel reported an all-time high capacity utilization of 93 per cent in FY2019, driven by improved utilization levels at Vijayangar and Salem steel units. The steel maker hopes to continue the high utilization levels and pursue a strong growth trajectory.
“With the Vijayangar capacity upgradation project, we will increase capacity from 12 MnT p.a to 13 MnT p.a. The expansion project in Dolvi which is also currently underway, will increase our capacity from 5.0 MnT p.a to 10.0 MnT p.a. These will result in an increase of our overall Steel Making Capacity from 18 MnT p.a to 24 MnT p.a, Jindal, CMD of JSW Steel said at the company’s 25th annual general meeting (AGM).
In FY2019, JSW reported an EBITDA (earnings before interest, taxes, amortization and depreciation) of Rs 18952 crore and cash & cash equivalents worth Rs 6269 crore.
“We are in the midst of a large organic growth program to expand capacity from 18 to 24 Mnt p.a between the period FY 18 and FY 21. Moreover, we are looking to increase our domestic capacity in India to 45 MnT by the year 2030, with a global capacity footprint of 10 MnT over the same time period”, the CMD said.
JSW’s market capitalisation has exceeded $10.2 billion (as on March 29, 2019). Over the past two years, JSW Steel has implemented over 100 digital technology projects across all the vectors of your company. This has generated Rs.180 crore in savings and we anticipate an additional cost saving of Rs 300 crore in the current year. Also, the company in the last one year has adopted various innovative technologies such as Machine Learning, Internet of Things and Artificial Intelligence. Minimizing human intervention, these initiatives are expected to drive efficiency and productivity gains across the value chain.
Commenting on the future outlook, Jindal said, “We continue to pursue inorganic growth opportunities as well. In the past financial year, we have emerged as a preferred bidder for Bhushan Power and Steel Limited, and await necessary approvals. We have a joint control with AION Capital in Monnet Ispat and Energy Limited through the Insolvency and Bankruptcy Code route. We also acquired facilities in USA and Italy.”
India has set a target of becoming a $5 trillion economy by FY 2025. To transform that number from a target to reality, the government is likely to spend heavily on developing social as well as economic infrastructure. Considering the per capita consumption increasing to 160 kg, JSW Steel sees huge opportunity to participate in the country’s growth by exploring various organic and inorganic opportunities.
Leave a Reply