JSW Steel — BrandWiki

JSW Steel

Overview

JSW Steel Limited

type	Public
traded as	bse: 500228 nse: JSWSTEEL NSE NIFTY 50 constituent
foundation	1982
founder	Sajjan Jindal (chairman)
location	Mumbai, Maharashtra, India
area served	Worldwide
key people	Sheshagiri Rao MVS, Jayant Acharya
isin	isin: INE019A01038
industry	Steel
products	Steel, flat steel products, long steel products, wire products, plates
subsid	Amba River Coke Asian Colour Coated Ispat Limited JSW Bhushan Power and Steel Ltd. Neotrex Steel Private Limited Hasuad Steel JSW Bengal Steel JSW Energy (Bengal) JSW Industrial Gases JSW Jharkhand Steel JSW Natural Resources Bengal JSW Utkal Steel Welspun Maxsteel Ltd JSW MI
parent	JSW Group
revenue	▲inr 1760100000000 (2024)‡R1R‡
operating income	inr 133800000000 (2024)‡R1R‡
net income	inr 89730000000 (2024)‡R1R‡
assets	▲inr 2281980000000 (2024)‡R1R‡
equity	inr 797760000000 (2024)‡R1R‡
num employees	38,446 (2024) (Including 25,145 contractual employees)‡R1R‡
rating	Carbon Disclosure Project A/Stable‡R2R‡ Fitch Ratings BB/Long Term Issuer Default Rating‡R3R‡
homepage	https://www.jswsteel.in/

JSW Steel Limited is an Indian multinational steel producer based in Mumbai and is a flagship company of the JSW Group.[4] After the merger of Bhushan Power & Steel, and Ispat Steel and Jindal Vijayanagar Steel Limited, JSW Steel became one of India's largest private sector steel companies.[5]

History

JSW Steel's history can be traced back to 1982, when the Jindal Group acquired Piramal Steel Limited, which operated a mini steel mill at Tarapur in Maharashtra and renamed it as Jindal Iron and Steel Company (JISCO).

Operations

As of July 2023, the installed with a production capacity of 29.7 MTPA in India and the United States.[9] The company is aiming to boost the total steel production capacity to 38.5 MTPA by the financial year 2025.[10]

As of April 2023, nearly 98% of JSW Steel's revenue comes from steel and related products — long rolled products (18%), galvanised coils/sheets (15%), CR coils/sheets (9%), plates/pipes (5%), other miscellaneous steel products (5%), and iron ore (2%), in that order. Overall, 70% of revenue is derived from India, and 30% is from overseas.[11] The company historical emphasis has primarily been on flat products, stemming from its origins in a cold rolling mill. As part of its corporate strategy, the company typically directs half of its flat products to downstream facilities for additional value-enhancing processes like galvanizing, coating, or tinning.[12]

JSW Steel plans to utilize energy from a forthcoming 3,800-tonne hydrogen plant at its Vijayanagar facility, aiming to provide green steel at a premium price. The company has established an agreement with its affiliate, JSW Energy, to procure green hydrogen and green oxygen for the production of sustainable steel.[13][14] Additionally, the company will earn carbon credits based on the amount of conventional thermal power that is substituted with green energy.[15] By 2030, the company plans to set up a green steel plant to comply with the European Union’s Carbon Border Adjustment Mechanism[16] and gradually reduce it use of blast furnaces throughout its value chain.[17]

Plants

JSW Vijaynagar Works (also known as Integrated Steel Plant, Vijaynagar): It is a flagship plant of the company, which also stands as the largest single-location steel manufacturing unit across India.[18] At present, the plant is in the midst of a brownfield expansion aimed at increasing its current capacity from 13 MTPA to 18 MTPA by FY24. This expansion will cover 600 acres and involve the addition of a 4.5 MTPA blast furnace, two steel melt shops of 350 tonnes each, a 5 MTPA hot strip mill, alongside various other related facilities.[19] In 2017-2018, a new ladle furnace slag recycling process was adopted at Vijayanagar Works as part of a new environmental and waste disposal strategy. The slag was stabilized using an alumina-based ladle-covering compound. The trials were conducted in two phases.[20] Firstly, to prevent the dusting phenomenon in Al-killed steel ladle slag and generate lump slag, a suitable ladle covering compound was selected, and the slag was chemically modified. Secondly, the lump slag was utilized as a 100% replacement for synthetic slag in Si-killed steel ladles, reducing specific consumption from 1.2 kg per ton of liquid steel to zero.[20]

Merger and acquisitions

In 2007, JSW Steel formed a joint venture for a steel plant in Georgia.[29] Any by 2020, it sold of 39 percent stake which it held in JV to Georgian Steel Group Holdings Limited.[30]

In 2009, Japan's JFE Steel, entered into a strategic partnership with JSW Steel to produce automotive steel products.[31]

In 2014, it acquired Welspun Maxsteel Limited in a deal valued at around INR 1,000 Crores.[32][33]

In 2018, JSW Steel Italy acquired 100% shares of Aferpi S.p.A, Piombino Logistics, and 69.27% of GSI Lucchini S.p.A's share capital from Cevitaly S.r.l for €55 million.[34]

In 2019, JSW Steel acquired Bhushan Power & Steel. This resulted in the absorption of an integrated steel plant in Rengali, Sambalpur, with a capacity of 2.5 million tonnes annually.[35]

in 2020, JSW Ispat Steel was acquired by JSW Steel, 20 months after the latter acquired a controlling stake in Monnet Ispat Industries.[36]

In April 2021, the company acquired Plate and Coil Mill Division (PCMD) of Welspun Corp for a sum of ₹848.5 cr.[37][38]

In October 2021, JSW Steel acquired 51% stake in Neotrex Steel from JSW Group promoters and entered into an under-construction project to manufacture Low Relaxation Prestressed Concrete (LRPC).[39]

In October 2022, JSW Steel initiated a process to acquire Central-India based National Steel & Agro (NSAIL) through resolution plan submitted under the corporate insolvency resolution process. The company makes flat steel products such as cold-rolled coil, galvanised corrugated sheets, colour coil and pre-painted profile sheets and owes lenders over Rs 1,600 crore.[40][41] In May 2023, the company got the final nod from National Company Law Tribunal for the acquisition.[42]

In January 2023, JSW Steel entered into an agreement via one of its subsidiary to acquire 31 percent stake in startup Ayena Innovation which deals in home furnishings and interior decoration sector.[43][44]

In May 2023, JSW Steel reached an in-principle agreement with JFE Steel to establish a 50:50 joint venture to manufacture cold-rolled grain-oriented (CRGO) electrical steel in India.[45][46]

In March 2024, JSW Steel Italy SRL inked an MoU with the Government of Italy to invest €140 million in restarting production at the Piombino plant.[47] JSW Steel's fate in Italy hinged largely on contracts from Italian railway authorities. Faced with this uncertainty and rising costs due to geopolitical issues like the Russo-Ukrainian War, the company explored disinvestment.[48] However, this new agreement aims to double rail-making capacity to 600,000 tonnes per year in Piombino, enhancing local employment and reducing imports. Investments will modernize the rail mill with a tandem mill, head hardening facility, and longer rails (from 108 to 120 meters).[47]

Mining acquisitions

JSW Steel currently possesses a total of 13 iron ore mines, with nine located in Karnataka and four in Odisha. Additionally, they have obtained three coking coal mines. During the fiscal year 2022, the company fulfilled 43% of its iron ore needs from its own mines.[49]

In May 2023, JSW Steel bagged iron ore blocks in the Surjagarh area of Maoist-affected Gadchiroli district in Maharashtra after bidding for a composite license through government auctions.[50]

As of 2023, discussions are underway between the company and BHP regarding the potential acquisition of the latter's Daunia and Faunus coking coal mines in Queensland. These mines possess a capacity of 20 million metric tons per annum (MTPA).[51] In the past, JSW Steel has additionally acquired mining assets in the United States,[52]