CHAPTER 1

1.1 INTRODUCTION

India is the world’s second-largest producer of crude steel. The growth in the
Indian steel sector has been driven by domestic availability of raw materials such as
iron ore and cost- effective labour. Consequently, the steel sector has been a major
contributor to India’s manufacturing output.The Indian steel industry is very modern
with state-of-the-art steel mills. It has always strived for continuous modernisation
and up-gradation of older plants and higher energy efficiency levels. The Ministry of
Steel is facilitating setting up of an industry driven Steel Research and Technology
Mission of India (SRTMI) in association with the public and private sector steel
companies to spearhead research and development activities in the iron and steel
industry at an initial corpus of Rs 200 crore (US$ 31.67 million).India is expected to
become the world's second largest producer of crude steel in the next.10 years, moving
up from the third position, as its capacity is projected to increase to about 300
MT by 2025. Huge scope for growth is offered by India’s comparatively low per
capita steel consumption and the expected rise in consumption due to increased
infrastructure construction and the thriving automobile and railways sectors.

1.2 INDUSTRIAL SCENARIO

1.2.1 Macro Scenario

In January-Oct 2019, the world crude steel production reached 1541.77 million
tonnes (mt) and showed a growth of 3.2% over January-Oct 2018. China remained
world’s largest crude steel producer in same period (829.21 mt) followed by India
(93.31 mt), Japan (83.79 mt) and the USA (74.07 mt). World Steel Association has
projected Indian steel demand to grow by 5% in 2019 while globally, steel demand has
been projected to grow by 3.9% in 2019. Chinese steel use is projected to show 7.8%
growth in 2019. Per capita finished steel consumption in 2018 was 224.5 kg for world
and 590.1 kg for China,The same for India was 74.1 kg in 2018.

 IMF revises global GDP forecast for 2019

to 3.5% from 3.7%
 US growth underpinned by tight labour
markets, fiscal impulse from tax cuts and
Fed’s stance to complete balance sheet

(Source: Eurostat, METI Japan, Federal normalization based on economic and

Reserve, NBS China, IMF ( Jan 2019))
financial developments
Fig 1.2.1
 Euro area growth has softened on back of weak industrial growth and soft private
consumption Rising political uncertainty and trade fears pose further risks
 Japan’s growth outlook remains firm aided by fiscal support expectations and
tailwinds from infrastructure spend and healthy private consumption
 Chinese growth has moderated, but calibrated fiscal and monetary policy measures
underway
 Escalating trade tensions continue to pose risks to growth outlook.

1.2.2 Micro Scenario

The Indian steel industry has entered into a new development stage, post de-regulation,
riding high on the resurgent economy and rising demand for steel. Rapid rise in
production has resulted in India becoming the 2nd largest producer of crude steel
during 2018, from its 3rd largest status in 2017. The country is also the largest producer
of Sponge Iron or DRI in the world and the 3rd largest finished steel consumer in the
world after China & USA. In a de-regulated, liberalized economic/market scenario like
India the Government’s role is that of a facilitator which lays down the policy
guidelines and establishes the institutional mechanism/structure for creating conducive
environment for improving efficiency and performance of the steel sector. In this role,
the Government has released the National Steel Policy 2017, which has laid down the
broad roadmap for encouraging long term growth for the Indian steel industry both on
demand and supply sides, by 2030-31. The Government has also announced a policy
 for providing preference to domestically manufactured Iron & Steel products in
Government procurement..

 Continued strong momentum in

government spending on infrastructure
driving an increase in Gross Fixed Capital
formation
 Additional budgetary allocation in the
Interim Budget towards infrastructure,
(Source: CSO, Bloomberg, SIAM)
railways and defence are key positives Fig 1.2.2
 Tax benefits for real estate developers as well as for the end users augurs well for the
real estate sector
 Announced outlays of INR 1 trillion in the Interim Budget via direct income support
scheme, pension benefits and tax rebates to spur rural spending and aid overall
consumer demand
 Tailwinds of recent decline in crude oil prices in late 2018 moderating inflation and
easing liquidity are visible
 International trade tensions remain headwinds to exports
 CHAPTER 2

2.1 COMPANY PROFILE

JSW Steel Ltd. is an Indian steel making company based

in Mumbai, Maharashtra. It is a subsidiary of JSW Group. Company Logo
Source
It is one of the fastest growing companies in India with a
Fig 2.1 (a)
footprint in over 140 countries.
JSW Steel is an Indian steel company owned by the JSW Group based in
Mumbai, Maharashtra, India. JSW Steel, after merger of ISPAT steel, has become
India's second largest private sector steel company. The current installed capacity is 18
MTPA. A $13 billion conglomerate, with presence across India, USA, South America
& Africa, the JSW Group is a part of the O.P. Jindal Group with strong footprints across
core economic sectors, namely, Steel, Energy, Infrastructure, Cement, Ventures and
Sports.

JSW's history can be traced back to 1982, when

JSW Group, in Mumbai, Maharashtra
Fig 2.1 (b) Source
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).

The Group set up its first steel plant in 1982 at Vasind near Mumbai. Soon after,
it acquired Piramal Steel Ltd., which operated a mini steel mill at Tarapur in
Maharashtra. The Jindals, who had wide experience in the steel industry, renamed it as
Jindal Iron and Steel Co. Ltd. (JISCO). Jindal Vijayanagar Steel Ltd. (JVSL) was set
up in 1994, with its plant located at Toranagallu in the Bellary-Hospet area of
Karnataka and External Areas of Andra Pradesh, the heart of the high-grade iron ore
belt and spread over 3,700 acres (15 km2) of land. It is just 340 kilometres (210 mi)
from Bangalore, and is well connected with both the Goa and Chennai Port. In 2005,
JISCO and JVSL merged to form JSW Steel Ltd.
 JSW Steel has also formed a joint venture for steel plant in Georgia. The
Company has also tied up with JFE Steel Corp, Japan for manufacturing the high grade
automotive steel. The Company has also acquired mining assets in Republic of Chile,
United States and Mozambique.

2.2 HISTORY

JSW Steel Ltd, the flagship company of the JSW Group, is an integrated steel
manufacturer in India with an installed steel-making capacity of 18 million tonnes per
annum (MTPA). JSW Steel is part of US $15 billion O.P.Jindal Group JSW Steel Ltd
was originally incorporated as Jindal Vijayanagar Steel Ltd on March 15, 1994. During
the year, the company entered into a technical arrangement with Voest Alpine
Industrieanlagenbau (VAI), for technical details with respect to productivity, iron ore
technical details etc. The company set up two joint venture companies namely Jindal
Tractebel Power Company Ltd and Jindal Praxair Oxygen Co (P) Ltd for supply of
power of 2 x 130 MW of power and supply of Oxygen respectively.

In the year l995, the company entered into a joint venture with Praxair to build
and operate world's largest cryogenic air separation plants for supply of oxygen,
nitrogen and argon to Jindal's integrated steel facility in Bellary in Karnataka. In the
year 1997, the company commissioned the BOF & CCP Units to synchronize with the
commissioning of the first unit of Corex. Also, they entered into a joint venture with
Mysore Minerals Ltd (A Government of Karnataka Undertaking) the Leaseholder of
Thimmappanagudi deposits, to form Jindal Mysore Minerals Mining Company Pvt
Ltd. In March 1997, JVSL commissioned the first phase of the roughing mill of their
hot strip mill. In the year 1999, the company entered into an agreement with the Steel
Authority of India (SAIL) for procuring slab. They acquired 60 per cent stake in a city-
based joint venture company, Chemicon. Also, they made an agreement with Saint-
Gobain Glass India to install an air separation plant for the supply of nitrogen and
hydrogen to Saint-Gobain's float glass unit at Chennai.
 In the year 2000, the company implemented a total integrated resource planning
solution for their business process, which was the first of its kind in India. The company
signed a Memorandum of Understanding (MoU) with miners in and around the
company's captive mines located in the Bellary Hospet region in Karnataka. The MoU
was signed for supplying iron ore fines for the company's pelletisation plant. JSW
group acquired the company and took over the Management from November 2004.
Salem Works is the only integrated steel plant in Tamil Nadu and is located at
Pottaneri/M. Kalipatti villages and at about 35 kms from Salem. In 2005, JSWSL
approved the merger of Euro Ikon Iron & Steel Pvt Ltd, Euro Coke & Energy Pvt Ltd,
and JSW Power Ltd. The company's name was changed to JSW Steel Limited on June
16, 2005. In January 2007, the company executed a Development Agreement with The
Government of West Bengal, West Bengal Industrial Development Corporation
Limited (WBIDC) West Bengal Mineral Development and Trading Corporation
Limited (WBMDTC) for setting up a 10 MTPA steel plant in suitable phases. JSW
steel has inaugurated two exclusive JSW Shoppe in Hubli, Karnataka on December 4,
2007, At JSW Shoppe, end consumer will also know about different application of
different steel products being manufactured by the company through actual
components and pictures from Automobile, White Goods Sectors, and Construction.

In March 28, 2008, the company incorporated a 100% subsidiary namely JSW
Building Systems Ltd to design, make, prepare, develop, create, alter, replace, repair
pre-fabricated building systems and technologies. In April 10, 2009, the 2.8 MTPA
Crude Steel Expansion Project at Vijayanagar Works commenced commercial
production enhancing the Crude Steel manufacturing capacity to 6.8 MTPA and scaling
up the overall steel manufacturing capacity of the Company to 7.8 MTPA. In November
19, 2009, the company signed a strategic collaboration agreement with JFE Steel
Corporation, the world renowned Japanese steel company at Mumbai. This
collaboration agreement provides an ideal platform for both the steel companies to
come together and leverage each others strength to their mutual benefit. In December
2009, the company commissioned the 30 MW Power Plant at Tarapur, equipped with
latest ESP system and designed for zero affluent discharge. Also, the company entered
into an agreement with Maharashtra State Electricity Distribution Co Ltd (MSEDCL)
for sale of the surplus power. Since December 2009, the company has been selling the
surplus power to MSEDCL. The state-of-the-art new Hot Strip Mill with a capacity of
5 MTPA is being implemented in two phases. The Phase-I with a capacity of 3.5 MTPA
has been successfully commissioned on March 28, 2010. After successful trial runs, the
Mill commenced commercial operations on April 10, 2010. In September 2010, they
commissioned the 300 MW captive power plant at Vijayanagar works. Also, they
commissioned the phase of the Blooming Mill with capacity of 0.25 mtpa in Salem
works. In December 2010, they commissioned the two of the four batteries (Battery
A&B) of coke oven 4 (1.95 mtpa capacity) in at Vijayanagar works.

By 2012-2013, JSW Steel became India's largest integrated private steel

manufacturer with a combined capacity of 14.3 MTPA. On 1 October 2013, JSW Steel
announced its plan to set up a second steel processing center in India's automotive hue
Pune (Maharashtra) with its joint venture partner Marubeni Itochu Steel Inc. Tokyo,
(MISI). The first phase of the project is expected to come on stream by FY 2014 with
an installed capacity of 1.8 lakh tonnes per annum and will be scaled up to 3.6 lakh
tonnes per annum in phase two. The project will be set up at a capital cost of Rs 204
crore and will be funded through 50% equity and 50% debt element.

On 5 October 2013, JSW Steel executed a Business Transfer Agreement with

Heidelberg Cement India Ltd. for the acquisition of its cement grinding facility at
Raigad, Maharashtra, as a going concern on slump sale basis. On 21 February 2014,
JSW Steel announced that it has executed a legally binding Share Purchase Agreement
and Shareholders Agreement with the shareholders of Vallabh Tinplate Pvt Ltd (VTPL)
and VTPL to acquire 26% equity in VTPL immediately and increase its equity stake in
VTPL to 50% in due course. The total investment to acquire 50% equity stake in VTPL
is estimated to be a maximum of Rs 46 crore depending upon financial performance of
VTPL. This acquisition marks JSW Steel's entry into growing tinplate business in
India. VTPL is currently operating a 60,000 MT per annum tinplate manufacturing
facility in Beopror Village, Rajpura, Patiala District in the State of Punjab in India.
VTPL is owned by Vardhaman Industries Ltd (VIL) along with its promoters.
 On 25 April 2014, JSW Steel announced the launch of its Cold Roll Mill 2
(CRM-2) facility at Vijaynagar Works, Karnataka. The new CRM-2 complex, with a
production capacity of 2.3 million tonnes per annum (MTPA), is the most sophisticated
plant by configuration with capacity to produce high strength and advanced high
strength steel, both in uncoated and coated categories and wider width up to 1870 mm.
The CRM-2 facility includes a Continuous Annealing Line, which is the first to start
operations in India. On 31 October 2014, JSW Steel announced that it has completed
the acquisition of the entire shareholding of Welspun Enterprises Limited (WEL) held
in Welspun Maxsteel Limited (WMSL). Earlier, on 18 August 2014, JSW Steel had
announced that it has entered into a definitive agreement with WEL, pursuant to which
the company shall acquire the entire equity shares held by WEL in WMSL for an
enterprise value of Rs 1000 crore plus net assets as of an agreed date of 31 August
2014. WMSL has installed capacity of 0.9 MTPA gas based DRI plant, with a captive
jetty and a captive railway siding. JSW Steel has surplus pellets in its subsidiary Amba
River Coke Limited which will be supplied to WMSL. On 24 November 2014, JSW
Steel informed stock exchanges that it has submitted a binding bid for takeover of
Rolling Mills of the Piombini Plant of Lucchini in Italy subject to certain terms and
conditions.

On 17 December 2014, JSW Steel announced that the company has decided to
put on hold the implementation of its proposed 10 MTPA Greenfield steel plant project
in West Bengal. Ban/restriction on iron ore mining in the country followed by
cancellation of coal blocks including coal mines earmarked for the project brought
severe uncertainty to the linkages of critical inputs for steel making. In this backdrop,
financing a capital-intensive Greenfield project will be very challenging. JSW Steel
will continue to work with the West Bengal state government to find alternatives to
establish raw material linkages for the project so as to take up implementation of the
Greenfield project in due course.

On 22 February 2016, JSW Steel announced that credit rating agency ICRA has
revised its long term rating on the back facilities and non-convertible debentures of the
company downward by one notch. The downward revision in the long term rating takes
into account the significant drop in steel prices due to downturn in the global steel
industry and continued imports into India at predatory prices negatively impacting the
company's profitability and cash accruals. On 17 August 2016, JSW Steel announced
that it has completed the acquisition of 74% shareholding of Praxair India Private
Limited in JSW Praxair Oxygen Private Limited (JPOPL) for a cash consideration of
Rs 240 crore. Post the acquisition, JPOPL has become a wholly owned subsidiary of
JSW Steel. Earlier, on 16 August 2016, JSW Steel executed a Share Purchase
Agreement with Praxair India Private Limited to acquire their entire shareholding of
74% in JSW Praxair Oxygen Private Limited (JPOPL) for a cash consideration of Rs
240 crore. JSW Steel said this acquisition is strategic in nature as it will provide the
company the benefit of backward integration. JPOPL is engaged in the business of
production and sale of industrial gases such as oxygen, nitrogen and argon and has set
up two air separation plants, each with a capacity of 2,500 tonnes per day, at
Toranagallu, Bellary District, Karnataka. JSW Steel sources industrial gases from
JPOPL amongst others at prices based on long term contracts.

The Board of Directors of JSW Steel at its meeting held on 27 October 2016 approved
the sub-division of each of the equity shares of the company having a face value of Rs
10 into 10 equity shares of a face value of Re 1 each. The Board also approved the
raising of funds not exceeding Rs 2000 crores in the aggregate, through the issuance of
Redeemable Non-Convertible Debentures either by way of a Public Issue or by way of
a Private Placement and has authorised a sub-committee of Directors to decide on all
matters relating to the proposed issuance of the Debentures including finalisation and
approval of the detailed terms of issue. The issue proceeds would be majorly used for
refinancing of expensive debt, to meet long term working capital requirements, to meet
requirements for Normal Capital Expenditure and for General Corporate purposes.

The Board of Directors of JSW Steel at its meeting held on 31 October 2017
approved to form a wholly owned subsidiary of the company in the name of JSW Utkal
Steel Limited or such other name as may be approved by the Registrar of Companies,
with an initial investment of up to Rs 150 crore to undertake preliminary studies and
for other costs. JSW Steel as a part of its growth strategy proposes to set up a steel plant
in Odisha. Odisha provides a wonderful opportunity to build one of the world's lowest
cost and port based pellet and steel producing facilities and could be the next
destination in the company's growth path to achieve its vision. On 20 December 2017,
JSW Steel announced that it has commenced the national roll-out of JSW Everglow, a
colour-coated steel product that aims to provide beautiful and innovative roofing and
wall solutions for modern India.On 12 February 2018, JSW Steel announced that it has
commenced iron ore mining operations in Tunga Mines which is of capacity 0.3
MTPA.

On 26 March 2018, JSW Steel announced that its US subsidiary JSW Steel (US)
Inc and the Office of Governor, Texas USA have signed a Memorandum of
Cooperation to develop and augment the steel industry in Texas. According to the
Memorandum, JSW Steel (USA) Inc has agreed to consider investment of up to USD
500 million in phases (subject to EPA approval) in developing its steel manufacturing
infrastructure in Baytown, Texas, USA. As part of the Memorandum, the Governor of
Texas Greg Abbott has approved USD 3.4 million grant from the Texas Enterprise
Fund to the company. The intended investment by JSW USA will be used to undertake
capability enhancement of its plate and pipe unit located in Baytown, Texas USA. The
company will invest USD 150 million (already underway) to augment the unit's
capabilities. This capex programme is expected to be completed by March 2020. JSW
USA intends to use the rest of the investment, up to 350 million, to set up a new hot
end facility to make their steel 'melt and manufacture'.

On 29 March 2018, JSW Steel announced that it has entered into a Stock
Purchase Agreement with JSM International Limited, Acero Junction Holdings Inc.
and Acero Junction Inc. for acquisition of 100% shares of Acero Junction Holdings
Inc., a Delaware Corporation, for a cash consideration of USD 80.85 million. The
transaction is subject to fulfilment of conditions precedent and other terms as per the
Stock Purchase Agreement, with a long stop date of 31 May 2018. Acero Junction
Holdings Inc. owns 100% of the shareholding of Acero Junction Inc., which is a steel
manufacturing mill that uses the electric arc furnace route to produce hot rolled coils.
The acquisition provides a unique opportunity for JSW Steel to establish its presence
in Ohio, United States and gain deeper access to the North American market. The total
Enterprise Value of the transaction is about USD 180.35 million, with equity value of
USD 80.85 million and liabilities of USD 99.5 million, subject to closing adjustments.
The acquisition shall be funded by way of a combination of internal accruals from JSW
Steel and debt to be raised at Acero Junction Inc.

On 2 April 2018, JSW Steel announced that the company in the capacity of an
investor jointed Nu Metal & Steel Pvt Ltd in submitting a binding bid for Essar Steel
Ltd, which is under the corporate insolvency resolution process as per the provisions
of The Insolvency and Bankruptcy Code, 2016 (IBC). On 4 April 2018, JSW Steel
announced that it has reported highest ever monthly crude steel production of 1.52
million tonnes for March 2018 with year on year growth of 5%. The company also
reported highest ever quarterly crude steel production of 4.31 million tonnes in Q4
March 2018 with year on year growth of 5%. The company also reported highes ever
annual crude steel production of 16.27 million tonnes with a growth of 3% over
previous year.

2.3 NATURE OF BUSINESS

JSW Steel Limited is a holding company. The Company is engaged in the business of
production and distribution of iron and steel products. Its segments include Steel;
Power (used mainly for captive consumption), and Others, which includes cement,
mining and construction activities. Its product portfolio in flat and long steel products
includes hot rolled (HR) coils, sheets and plates; cold rolled coils and sheets;
galvanized products; galvalume products; non-grain oriented electrical steel
(CRNGO); pre-painted galvanized products (color coated sheets/coils); pre-painted
galvalume products; wire rods; special steel bars/wires; rounds and blooms, and angles.
Its color coated products include JSW Pragati, JSW Colouron and JSW Colouron+. Its
galvanized products include JSW Vishwas and GALVOS. It has plants in over six
locations in India, including Vijayanagar in Karnataka, Salem in Tamil Nadu, and
Tarapur, Vasind, Kalmeshwar and Dolvi in Maharashtra.
2.4 AREAS OF OPERATIONS

JSW Steel has seven state-of-the-art manufacturing facilities in western and southern
parts of India, including three integrated iron and steel sites. The strategic location of
the Company’s facilities has provided significant logistics advantage and production
capacity. The Company has also announced a $500-million expansion plan for its Plate
and Pipe making steel mill in Texas, USA, to strengthen its global network. The
Company have recently acquired an integrated flat steelmaking facility in the US,
Acero Junction Holdings, with a potential capacity of 3 MTPA for an enterprise value
of US$182 million. JSW Steel propose to invest up to US$500 million cumulatively at
this location, in phases, to make it a fully integrated 3 MTPA steelmaking capacity.

Tarapur Kalmeshwar
GI/GL 0.76 MTPA Galvanised
India’s largest exporter of Coated (GI)/Galvalum(GL)0.58 MTPA
Products to Europe, Africa, North and India’s first Galvanised and colour
South Americas, and Middle East coated steel plant
regions

Dolvi
Crude Steel 5 MTPA
Strategically connected to a 15
MTPA capacity jetty

Salav
DRI/HBI 0.90 MTPA
Specialised in Direct Reduced Iron and
Hot Briquetted Iron Vijayanagar
Crude Steel 12 MTPA
 World’s sixth largest steel
plant
 India’s largest single location
steel plant
Vasind  India’s most productive steel
GI/GL 0.45 MTPA plant
India’s largest exporter of colour-
coated products for the appliance
industry Salem
Crude Steel 1 MTPA
India’s largest special alloy steel plant
(Source: JSW Steel Limited
Integrated Report 2017-18)
Fig 2.4
 JSW Steel also owns and operates steel manufacturing facilities in the US
and Europe, among others. The subsidiaries include JSW SCPL, JSW SPCL,
JSW ARCL, JSW Industrial Gases and JSW Salav.

2.5 VISION, MISSION AND VALUES

(Source: JSW Steel AR 2018-19 Report)

Fig 2.5

JSW Steel Limited (“JSW”) believes in creating sustainable growth while balancing
utilization of natural resources and social development in its business decisions. It also
believes in pursuing its business objectives ethically, transparently and with
accountability to its stakeholders across the value chain. JSW is committed to promote
integrated responsible behaviour and value for social and environmental well-being.
JSW’s commitment to do business responsibly is built into the core values of the
Company to conduct every aspect of business responsibly and sustainably.

It relies on:

 A dynamic leadership
  Adherences to core values

 A well-articulated Enterprise Risk Management framework.

 Practices that seek to sustain and enhance the long term competitive advantage
of JSW with care for the society and environment.

2.6 PRODUCT PROFILE

2.6.1 Products

JSW Steel is globally recognised as a manufacturer of high-end, value-added steel.

The Company has a large bouquet of flat and long products to meet diverse global
needs. The Company is also strengthening its value-added product portfolio to
address the rising demand for such types of steel.

There are two types of products.

a. Flats

b. Longs

2.6.1 (a) Flat Products

The term “flat” is used to describe steel, it refers to products that consist of both steel
sheets as well as steel plates. Since flat steel products are used in a wide range of
applications across all industry sectors, it’s important to understand exactly what they
are and what functions and applications they serve.

The flat products are as follows,

i. Hot Rolled (HR)

JSW Steel manufactures Hot Rolled (HR) coils, plates and sheets of the highest quality
at its state-of-the-art hot strip mills (HSM) in Vijayanagar, Karnataka and Dolvi,
Maharashtra.The focus is on the latest technology and manufacturing processes shows
in the quality of our hot rolled products. Equipped with sizing presses and an automatic
line inspection facility, Vijayanagar works has a capacity of 12 MTPA. The Dolvi unit,
which has a capacity of 5 MTPA, uses a combination of the advanced Conarc process
and thin slab casting technology to produce hot rolled coils. Due to their thinner gauges
and finer surface quality, these coils are often superior to commercial grade cold rolled
(CR) coils, and may serve as better alternatives to them in certain applications. Along
with the assurance of quality, comes convenience too. Thanks to the coastal location
of Dolvi, import and export of raw materials as well as finished goods is both easy and
cost-effective.

Hot Rolled Products

HR Coil HR Sheet HRPO / HRSPO

(Source:

Features

 The widest range of hot rolled products, with thickness up to 25.4 mm, width
up to 2050 mm and coil weight up to 36 mt.
 The widest Hot Strip Mill (HSM) in India, capable of rolling up to 2150 mm.
 A rare product portfolio, perfect for line pipe applications, with the capability
to produce X70 grade up to 20mm thickness.
 Ultra-low carbon for IF & IFHS grade.
 Made from dual phase steel requiring divide quench cooling, which makes it
ideal for critical automobile applications.
  Desired cooling patterns and rates of control of microstructure achieved with
our level 2 coiling temperature control.
 A higher reduction in finishing stands, with transfer bar thickness up to 55 mm.

ii. Cold Rolled (CR)

JSW cold rolled closed annealed (CRCA) coils and sheets are produced at state-of-the-
art cold rolling mills (CRMs) in Vijayanagar. With cutting-edge facilities, advanced
operational technologies, rigorous inspection processes and integrated quality control,
ensure that everything made at o CRMs is of the highest standard.

By establishing India's first Continuous Annealing Line (CAL) in technological

collaboration with JFE Steel Corp., Japan, we manufacture high-strength and advanced
high-strength steel for the automobile sector at the widest CRM in the country. Our
CRCA products are manufactured in deep drawing, extra deep drawing, interstitial free
steels and high strength grades conforming to JIS, EN, ASTMA and IS standards.
Dimensional accuracy is guaranteed by an automatic thickness control system using
advanced numerical models.

CRCA steel has easy formability and a high-quality surface finish. Moreover, it has a
consistent surface texture, with just the right balance between texture (for paint keying)
and smoothness (for image distinction). All these factors make our cold rolled products
the preferred choice for automobiles, appliances, furniture and other applications.

Source:
Technical Specifications

 The widest cold rolling mill for automotive steel in India (Up to 1870 mm.)
 A cutting-edge continuous galvanizing line with dual pot system for GI and GA
production.
 Higher strength products (up to TS 980 MPa), meeting the SEDDQ Grade.
 A seamless, automatic material storage, tracking, retrieval and transfer system.
 Proven global technology from SMS Siemag for PLTCM and JP Steel Plantech
for CAL and CGL
 Continuous pickling line with 1.3 MTPA capacity; the supplier: Flat Products
India Ltd.
 Twin stand 6-high reversing mill, with a 0.850 MTPA capacity; the supplier:
SMS Demag, Germany
 Electrolytic cleaning line with a 0.6 MTPA capacity; the supplier: Flat Products
India Ltd., India Automation by ABB
 Batch Annealing Furnaces; the supplier: Ebner, Austria
 4-high single stand skin pass with a 0.875 MTPA capacity; the supplier: SMS
Demag, Germany
 A higher reduction in finishing stands, with transfer bar thickness up to 55 mm.

iii. Colour Coated

JSW is the largest producer of coated products in India. Their products bring together
the strength of steel, the beauty of paint and enhanced corrosion resistance in an
unbeatable package. The pre-painted corrugated sheets and profiles are branded as JSW
Colouron (Colour coated galvanised sheets) and JSW Colouron Plus (55% aluminum-
zinc alloy colour coated steel sheets) Our pre-painted products are available in a variety
of paint systems, including Regular Modified Polyester (RMP), Silicon Modified
Polyester (SMP), Super Durable Polyester (SDP), Poly Vinyldene Fluoride (PVDF)
and Vinyl Coated Metal (VCM). By employing state-of-the-art technology, including
the first appliance grade manufacturing line for colour coated products in India, we
ensure a product that’s superior in every way. The base metal has the first layer of
primer coating on the top and the bottom surface for superior adhesion with the paint
system, which is toxin-free. The final paint coating provides additional protection
against harsh weather conditions and other factors that impact its longevity. The
superior coating technology is designed to resist cracking and peeling, even during
heavy forming operations. Thanks to all these factors, JSW Colouron and JSW
Colouron Plus have a long life and are recyclable if eventually replaced.

Colour Coated Products

Pre-painted Galvalume Pre-painted AL-ZN Sheets & Pre-painted GI & GL Coils

Corrugated Sheets & Profile Profile

Features

 A wide range of thicknesses, widths, colours and profiles

 A precision finish that is uniform in colour, gloss, texture and film thickness

iv. GALVANIZED

JSW Steel is the largest manufacturer and exporter of galvanised steel in India, and the
first supplier of products with higher coating (550 gsm) to the solar sector in the
country. Manufactured in state-of-the-art plants in Vasind, Tarapur and Kalmeshwar in
Maharashtra, our products are trusted the world over for their unparalleled quality. .The
galvanised steel is not just high in strength, but also corrosion-resistant, eco-friendly,
durable and lightweight. The zinc-iron alloy layers formed during the process of
galvanising create a protective coat around the steel, keeping moisture out and
preventing corrosion. Galvanizing also imparts excellent adhesion and abrasion
resistance, giving our products unmatched protection against the elements. These
features make our galvanised corrugated sheets, branded JSW VISHWAS, the most
sought-after in the market.

Galvanized Products

Galvanised Coils Galvanised Corrugated Sheet & Profile

Features

 A wide thickness range for varied applications.

 Manufactured in commercial, forming, drawing and structural grades.
 Customised hardness rendered thanks to continuous annealing at the
galvanizing line.
 Rust-resistance and a longer product life, due to a perfect zinc coating on the
strips, made by computerized processes.
 A wide range of surface finishes, including bright, dull and matte. Plus, a choice
of regular or minimum spangles, so you can customise these your way.
 Sheets can be subjected to bending and forming without the flaking of zinc

v. GALVALUME

JSW Steel is the first Licensee Galvalume producer in India that uses technology from
BIEC International Inc., USA. The technology license qualifies us to continually access
the latest product innovations and process refinements through BIEC and the ZAC
Association, which enable us to manufacture products of the highest quality. The alloy-
coated product contains 55% aluminum, 43.5% zinc and 1.5% silicon by weight.
Applied by the traditional hot-dipping process, Galvalume is perfect for applications
that call for high corrosion resistance and heat reflectivity. It is typically used in
construction, appliances, agricultural equipment and several non-exposed automotive
components.Thanks to its shiny spangled appearance, Galvalume can be used even
without a layer of paint over it. The JSW Galvalume sheet, branded JSW Vishwas+, is
a unique product that is suitable for heating and ventilation applications. It has better
resistance to oxidation and can withstand temperatures up to 315°C without
discolouration.

Galvalume Products

AL-ZN Coated Coils & Sheets for Solar Structures AL-ZN Coated Corrugated Sheets & Profiles

Features

 Smooth surface and uniform spangled appearance.

 A superior anti-fingerprint coating that looks better, and lasts longer.
 Surface treatment as per ROHS (Restriction On Hazardous Substance) norms
 A wider thickness range with tighter tolerances to ensure precision in end
applications.
 High corrosion resistance and heat reflectivity
 High temperature resistance and formability
 Easy paint application
 vi. Avante Steel Doors

This smart door by JSW is German-engineered and

is tested for 200,000 swing cycles.JSW Steel door
is a unique combination of the strength of steel and
the warmth of wood. It stands out by exuding not
only style and panache but also durability and
Source:
longevity. This smart door is designed to overcome
all the common threats that are associated with
wooden doors like seasonaldoor jams, fear of fire,

termites and heavy-handed installation process. It is not just a conventional door; it is

a statement of strength and elegance that is here to ring in a new era of worry-free doors
for your home.

vii. Light Steel Building Solution

The Light Steel Building process begins with

detailed computer model of your building, which
is engineered and virtually framed with cutting-
edge design software.The steel framing is
designed and manufactured into large simplified
sections, each with pre-punched holes for

Source: mechanical and electrical runs, precise window

and door openings, integrated structural supports and specified sub-sheathing systems.
The entire framing package is assembled within a controlled indoor production facility,
delivered directly to the site.The installation crew installs the complete frame work on
site. Appropriate cladding, weather proofing and finishing is done at site as per
specifications and finish of your choice. They offer unparalleled design flexibility and
a wide range of cladding, roofing and glazing options.Our experts assess your needs
and workout the most cost-effective design solutions that meets your need.The Light
Steel Buildings thus finished look no different from brick and mortar buildings.

2.6.1 (b) Long Products

In steel industry terminology long steel products or long products refers to steel
products including wire, rod, rail, and bars as well as types of steel structural sections
and girders.The Long products are as follows,

i. TMT bars

JSW Steel TMT Bars, branded as JSW Neosteel, are

the finest HYQST (High Yield Quenched and Self
Tempered) TMT Bars in India. What sets JSW
Neosteel apart is the manufacturing process that
ensures a product of unmatched quality. For starters, Source:

it is made from virgin iron ore, which gives it highest grade of purity. Then, there’s
the state-of-the-art rolling process, which imparts uniform

properties across the bar. Complete control on the heat treatment also gives it a
combination of higher strength and ductility, and makes it highly resistant to
earthquakes. Proof of its superiority, is the fact that it conforms to Indian, American,
British and Australian Standards. It is also environment-friendly, having been made in
a zero-effluent discharge plant. Most importantly, JSW Neosteel meets the specific
demands of clients through a host of customised products, and comes with expert
services in application and end use. Little wonder, then, that it has been chosen for
building the most prestigious infrastructure projects across the country, including the
Mumbai, Delhi, Jaipur, Hyderabad, Bengaluru and Chennai Metro Rail, the Yamuna
Expressway, and the international airports in Delhi and Mumbai.

Features
  It is highly pure, which gives it enhanced strength and durability.
 It bonds perfectly with cement, thanks to its best-in-class rib pattern with the
highest AR value. That means more resilience to any kind of load.
 It is highly resistant to earthquakes, due to a combination of higher strength and
ductility. A high UTS/YS ratio of 1.15 minimum raises its capacity to absorb
energy.
 It is easily weldable, due to its low carbon content. It can be easily butt-welded,
lap-welded and manual arc-welded, without any pre-heating.
 It is highly anti-corrosive, due to its unique, uniform microstructure and the
absence of residual stresses.
 It is also easily bendable, due to its inherent microstructure with a soft ferrite
and pearlite core.
 It has higher fatigue resistance, due to its uniform, thoughtfully designed rib
pattern. This makes it ideal for cyclic load situations.
ii. Wire Rods

Manufactured in state-of-the-art wire rods

mills (WRMs) at Vijayanagar, wire rods have a
wide range of applications across industries.
The low, medium and high carbon grades,
electrode grade and CHQ grade are produced at
Vijayanagar, while Salem Works produces
alloy and special grade wire rods. By
Source:
employing the latest technology, we ensure all
our products are of superior quality, with consistent properties and dimensional
accuracy.
Features

• High-speed wire rod mills (120 mtr/sec)

• Excellent mechanical and consistent chemical properties
• Low Sulphur and Phosphorous content (0.005%-0.035%)
• Low tramp elements
 • Dimensional accuracy guaranteed by an automated thickness control system
using advanced numerical models

iii. Special Alloy Steel

Produced at JSW Salem Works, the largest primary integrated special alloy steel plant
in India, our advanced special steel, flats and bars are of the highest quality and can be
used in a wide range of applications.
Over the years, we have built a reputation for
consistently superior products, effortless
customization and on-time delivery, which makes us
the preferred manufacturers for companies across
sectors. Strategically located in Tamil Nadu, our
plant supplies special steel to several leading auto
Source:
industries in Hosur and Chennai, as well as the rest of the country.
Features

• Customised products for specific needs

• Minimum lead-time from order to delivery
• Lower transportation costs and faster delivery, thanks to Salem being well
connected to highways and stockyards across India.
2.6.2 Brands

Soruce:
2.7 COMPETITORS PROFILE

Below are the top 4 JSW Steel competitors.

2.7.1 Tata Steels

Tata Steel Limited, formerly Tata Iron and Steel

Company Limited (TISCO), is an Indian multinational
steel-making company headquartered in Kolkata, West Company Logo
(Source: )
Bengal, India, and a subsidiary of the Tata Group.
Fig 2.7.1 (a)

It is one of the top steel producing companies

globally with annual crude steel deliveries of
27.5 million tonnes (in FY17), and the second
largest steel company in India (measured by
domestic production) with an annual capacity of
Headquarters in Kolkata
(Source: )
13 million tonnes after SAIL.
Fig 2.7.1 (b)

Tata Steel operates in 26 countries with key operations in India, Netherlands and
United Kingdom, and employs around 80,500 people. Its largest plant (10 MTPA
capacity) is located in Jamshedpur, Jharkhand. In 2007, Tata Steel acquired the UK-
based steel maker Corus. It was ranked 486th in the 2014 Fortune Global 500 ranking
of the world's biggest corporations. It was the seventh most valuable Indian brand of
2013 as per Brand Finance.

2.7.2 Steel Authority of India

Steel Authority of India Limited (SAIL) is an Indian

state-owned steel making company based in New Delhi,
India. It is a public sector undertaking, owned and
operated by the Government of India with an annual
turnover of INR 66,267 Crore (US$9.32 Billion) for Company Logo
(Source: )
fiscal year 2018-19. Fig 2.7.2 (a)
Incorporated on 24 January 1974, SAIL has 71,021 employees (as of 01-Oct-2019).
With an annual production of 16.30 million metric tons, SAIL is the 20th largest steel
producer in the world and the 3rd largest in India. The Hot Metal production capacity
of the company will further increase and is expected to reach a level of 50 million
tonnes per annum by 2025. Sri Anil Kumar Chaudhary is the current Chairman of
SAIL.

SAIL operates and owns 5 integrated steel plants

at Bhilai, Rourkela, Durgapur, Bokaro and
Burnpur(Asansol) and 3 special steel plants at
Salem, Durgapur and Bhadravathi. It also owns

Ferro Alloy plant at Chandrapur

a Ferro Alloy plant at Chandrapur.
(Source: )
Fig 2.7.2 (b) As a part of its global ambition, the company is
undergoing a massive expansion and modernization programme involving upgrading
and building new facilities with emphasis on state of the art green technology.
According to a recent survey, SAIL is one of India's fastest growing Public Sector
Units. Besides, it has R&D centre for Iron & Steel (RDCIS), centre for Engineering in
Ranchi, Jharkhand.

2.7.3 ArcelorMittal

ArcelorMittal S.A. is a multinational steel

manufacturing corporation headquartered in
Luxembourg City. It was formed in 2006 from the
takeover and merger of Arcelor by Indian-owned
Mittal Steel. ArcelorMittal is the world's largest steel
Company Logo
producer, with an annual crude steel production of (Source: )
Fig 2.7. (a)
92.5 million metric tonnes as of 2018.

It is ranked 123rd in the 2017 Fortune Global 500 ranking of the world's largest
corporations. ArcelorMittal S.A. (ArcelorMittal), incorporated on June 21, 2001, is a
holding company. The Company, together with its subsidiaries, owns and operates steel
manufacturing and mining facilities in Europe, North and South America, Asia and
Africa. ArcelorMittal operates through five segments: NAFTA; Europe; Brazil; Africa
and Commonwealth of Independent States (ACIS), and Mining.

It produces a range of finished and semi-finished

steel products (semis). ArcelorMittal produces
flat steel products, including sheet and plate, and
long steel products, including bars, rods and
structural shapes. In addition, ArcelorMittal
produces pipes and tubes for various
Headquarter in Luxembourg City
(Source: ) applications.
Fig 2.7.3 (b)

The Company has steel-making operations in approximately 20 countries on four

continents, including over 50 integrated and mini-mill steel-making facilities.

ArcelorMittal sells its steel products primarily in local markets and through its
centralized marketing organization to a range of customers in approximately 160
countries, including the automotive, appliance, engineering, construction and
machinery industries. The Company also produces various types of mining products,
including iron ore lump, fines, concentrate and sinter feed, as well as coking, pulverized
coal injection (PCI) and thermal coal. In addition, ArcelorMittal produces direct
reduced iron (DRI), which is a scrap substitute used in its mini-mill facilities to
supplement external metallics purchases. ArcelorMittal is also a producer of coke,
which is produced from metallurgical coal and is a raw material for steel-making.

2.7.4 Essar Steel

Essar Steel India Private Limited is a fully

integrated flat carbon steel manufacturer based
in India– from iron ore to ready-to-market
products – with a current capacity of 10 million Company Logo
(Source: )
tonnes per annum (MTPA). Fig 2.7.4 (a)
Essar Steel’s manufacturing facility comprises ore beneficiation, pellet making, iron
making, steel making, and downstream facilities including cold rolling mill,
galvanising, pre-coated facility, steel processing facility, extra wide plate mill and a
pipe mill. Currently Essar Steel is owned and operated by ArcelorMittal Nippon Steel
India Limited. Mr. Aditya Mittal, is the Chairman of ArcelorMittal Nippon Steel and
Mr. Dilip Oommen is the CEO.

2.8 MARKET SHARE

2.9 AWARDS RECEIVED

 Golden Peacock Eco-Innovation Award for the year 2013 by the National
Jury on July 19, 2013.

 Industry Leadership Award at Platts Global Metals Awards which recognises

achievements in steel, metals and mining ,on June 3, 2013.

 Prime Minister's Trophy by Ministry of Steel for the year 2012-13.

 Steel Minister's Trophy for 2nd Best Integrated Steel plant in India 2013-14.

 CII-ITC Sustainability Award 2014: Awarded Commendation Certificate for

Significant Achievement.

 CII-ITC Sustainability Award 2014: Awarded Outstanding Accomplishment

in category F.

 CII-EXIM Bank Business Excellence Award 2015 awarded by

Confederation Indian Industries (CII): Commendation Certificate for
Significant Achievement.

 Porter Prize of Leveraging Unique Activities - Weathering the Iron Ore crisis.

 National Sustainability Award-2016: Second Prize amongst the Integrated

Steel Plants Category by Indian Institute of Metals.
2.10 CORPORATE SOCIAL RESPONSIBILITY

JSW Steel’s commitment to nation-building is also reflected in its CSR policy which is
led by the philosophy of working closely with communities living contiguous to the
Company’s operations and beyond. All the activities in the seven priority areas are
carried out by the JSW Foundation on behalf of JSW Steel, and have benefitted over
650,000 persons. The financial year registered the best-ever performance for the
Company, and the expenditure for CSR was `61 crore.

2.10.1 Skill Development

JSW Skills School, an initiative of JSW Foundation,

aims to improve the employability of the youth and
women by offering industry-centric courses for
vocational skill enhancement. This is achieved through
facilitation of infrastructure and development and up-
gradation of teaching tools of Governments’ Industrial
Training Institutes (ITI), across India. Source:

Key Initiatives

 Six JSW Skill Schools providing short-term and long-term coursesPartnered

with Father Agnel Technical College at Vasind and Nettur Technical Training
Foundation, Vijaynagar
 Member of Institute Development Committee of 21 government-aided it is
across India
 Organised self-help groups where rural women are trained in basic financial
management to help set up a business.
 Partnered with National Skill Development Corporation (NSDC) and got
permanent empanelment with Maharashtra State Skill Development Society
(MSSDS)
2.10.2 Health & Nutrition

JSW is committed towards strengthening health

and nutrition services at community and health
facility level impacting women, children, elderly
and other vulnerable groups by forging strategic
partnerships with government and international
public health organizations.

Source:
The focus is on strengthening of preventive and curative health care services by
improving public health facilities, setting up multi-specialty hospitals, conducting
outreach health camps and supporting supplementary nutrition at Anganwadi centers.

Key Initiatives

 Malnutrition management at Maharashtra and Karnataka

 Special Newborn Care Unit at Vidyasagar Institute of Medical Sciences,
Bellary (Karnataka)
 GPS-enabled solution for real time growth monitoring of children at Palghar,
Maharashtra
 Outreach initiative to address preventable blindness due to cataract
 Counseling on HIV/AIDS to truckers
 Upgrading Primary Health Centres (PHC) located in the vicinity of
manufacturing locations

2.10.3 Agri-initiatives

JSW closely works with 6000+ farmers covering

5,800 acres of cultivable land through participatory
approach striving to align to local, national and
global goals (Sustainable Development Goals) while
aiming to increase farm and off-farm incomes.
Source:
This is achieved through capacity building of the farmers, promoting an improved
package of practices, advocating less water-intensive farming techniques and forging
strategic partnerships. The emphasis is on the market-led sustainable enhancement of
profits to make agri-livelihoods a preferred mode of occupation.

Key Initiatives

 Partnered with the International Crop Research Institute for the Semi-Arid
Tropics (ICRISAT) for improving livelihood through Integrated Watershed
Management to enhance water availability and use efficiency for increasing
crop productivity among farmers, enhancing food security and also
strengthening value chains for specific crop systems

 Improving farmer’s livelihood by introducing them to high-yielding variety

horticulture crops, precision farming methods.

 Partnering with market players to connect the produce to the market for fast
moving high-value crops.

 Institution building by organizing farmers’ groups and strengthening farmer

producer organizations to achieve economies of scale while also aiming to
achieve convergence with government programs

2.10.4 Sports

The JSW has assumed the responsibility of

promoting sports and making it mainstream,
ensuring a holistic growth of the country and its
sportspersons. The objective is to make India one of
the top 10 sporting nations by 2024. With the
progress and results that our initiatives have
achieved, the goal to become a sporting powerhouse
Source: is clearly within sight.
Key Initiatives

 JSW Sports Excellence Programme (SEP) allows athletes to access high-class

training, equipment and regular exposure to international tournaments

2.10.5 Environment, Water & Sanitation

The JSW is steadfast to work towards mitigating

adverse effects of climate change by bringing in
innovative technology-based solutions to ensure
clean villages, conserving and augmenting water,
promoting biodiversity, sanitary living conditions &
sustainable livelihoods. Source:

The key drivers to achieve this are strategic partnerships, promotion of effective water
management practices and strengthening of community-level institutions.

Key Initiatives

 Conserving mangroves along the shores of Kokan

 Established ‘Nature Interpretation Centre’ at Daroji bear Sanctuary, in

partnership with the Government of Karnataka.

 Restoration of conventional water sources to revive natural water bodies to

facilitate effective soil and water conservation.

 Partnered with the Government of Maharashtra in its ‘Jalyukt Shivar Abhiyan’

to build water conservation structures across villages in the Konkan region.

 Working towards achieving ‘ZERO waste dumping’ status at all locations

2.10.6 Education & Learning

Overall enhancement of the quality of education has

been the thrust area of the JSW Foundation. The
focus has been on holistic improvement of available
physical facilities, strengthening of enablers &
teachers’ capacities and promotion of continuation
of higher education while working to mitigate the
limiting factors.
Source:
The Foundation has also pioneered to make enabling learning environment available
to the children with varied learning abilities.

Key Initiatives

 Creating a holistic platform for learning with digital classrooms, science labs,
and rural libraries
 Setting up model Anganwadis operating under the Government’s Integrated
Child Development Scheme
 Organizing vocational training for first-generation learners from rural India to
increase employability through Magic Bus Programme
 Facilitating scholarships for the meritorious students through National
Securities Depository Limited (NSDL)
 Facilitating capacity strengthening for teachers and introducing innovative
pedagogical tools
 Facilitating the distribution of mid-day meals at rural schools through Akshaya
Patra and ISKCON
 Infrastructure development including construction of classrooms, toilets/water
stations and provisioning of furniture and study material
 Promotion of engagement in sports by the distribution of equipment and
organizing trainings
 Remedial classes for lagging students
2.10.7 Art, Culture & Heritage

Recognising the significant contribution of the

culture in bringing forth the traditions and the
gradual evolution of the communities and society,
JSW Foundation actively supports organisations and
initiatives that preserve and promote art, culture, and
heritage of India.
Source:

This is achieved through setting up art precinct, restoring the heritage structures and
preserving legacy by establishing museums.

Key Initiatives

 Renovation of SNDT Kanyashala (Jindal Centre for the Arts) in Mumbai.

 Restoration of Chandramouleshwara Temple in Hampi, Karnataka
 Restoration of Keneseth Eliyahoo Synagogue in Mumbai
 Restoration of A 13th century village ‘kuldhara’ in Jaisalmer, Rajasthan
 Restoration of Krishna temple complex in Hampi – A UNESCO World
Heritage Site
 Preserving performing art form ‘Manganiyar’, Rajasthan
 Kaladham, an art and culture precinct at Torangallu, Karnataka
 Restoration of JJ school of art, Mumbai

2.10.8 Rural BPO

The JSW Foundation has been helping the women to

become self-aware of their true potential by
bequeathing them with the clout to make decisions
for their own good so they find their rightful place in
the society and at the same time, contribute to the
GDP fueling the economic growth of the nation.
(Source )
Christened as JSW Shakti, five BPO centres have been setup in rural Karnataka,
Maharashtra and West Bengal through this initiative with an aim to use IT-enabled
services to provide localised employment to rural women above 18 years of age.

Key Initiatives
 5 ISO certified rural BPO (operational) and 500+ women engaged.
 Empowered women with the knowledge and skills required to work in the IT-
BPO industry, across rural Karnataka and Maharashtra.
 Offering services in the areas of banking, healthcare, accounts payable services,
e-publishing, etc. through non-voice BPO centres.

2.11 SWOC ASSESSMENT

Strengths Weakness

1. Strong presence in domestic market 1. Very low capacity utilization

2. Reduced labor costs 2. Less number of mines under its hood
3. Experienced business units affects availability of raw materials
4. First steel producer in the world to
use Corex Technology for
producing hot metals

Opportunities Challenges

1. Growing economy therefor 1. Government changes to auction rules

increasing demand of mining
2. R&D in steel industry is underdone 2. Rising cost of coal
and can be a good opportunity for
cost reduction
3. Government regulations and rules
2.11.1 Strengths

1. Strong presence in domestic market – A 5.8% market share in India . Set up

in 1982 at Vasind near Mumbai, the group diversified and finally has a very
strong presence in India with plants in six locations in India – Vijayanagar in
Karnataka, Salem in Tamil Nadu, and Tarapur, Vasind, Kalmeshwar and
Dolvi in Maharashtra.
2. Reduced labor costs – According to a study , In 2014-15, SAIL spent seven
times more on employees for producing each tonne of steel as compared to JSW
Steel. JSW has the lowest employee costs among the major players in the
industry.
3. Experienced business units - JSW Steel is testimony of years of experience
and a self-motivated culture that has concluded in the company becoming the
top manufacturer of value added and high end steel in India.
4. First steel producer in the world to use Corex Technology for producing
hot metals- JSW Steel is the first Indian Company to use the Corex technology
to produce hot metal. They went for this technology although it was untested in
Indian conditions due to its benefits to the environment.

2.11.2 Weakness

1. Very low capacity utilization- It has an aggregate capacity utilization of only

76% whereas competitors like tata have 103%.
2. Less number of mines under its hood affects availability of raw materials -
Only 5 mines available for raw material acquisition

2.11.3 Opportunities

1. Growing economy therefore increasing demand- Indian steel consumption

of 65kg per capita is well below world average of 235kg per capita leaving
plenty of room for market growth in 2015
 2. R&D in steel industry is underdone and can be a good opportunity for
cost reduction- Using Corex technology, JSW has already pioneered in R&D
in the industry. It needs to maintain its zeal and keep investing in R&D in
order to reduce manufacturing costs.
3. Government Rules and Regulations - The government has recently imposed
minimum import price on steel imports for six months that can benefit JSW
having strong presence in trade segment.

2.11.4 Challenges

1. Government changes to auction rules of mining - The government changed

rules protecting tribal rights, forests and environment to ensure that more than
130 mines do not face fresh auctions and are retained by the miners
concerned. This might hinder new acquisition of mines by JSW.
2. Rising prices of Coal - The cost of power generation in the state had firmed
up by 5% to 7% after the public sector giant Coal India Ltd (CIL) raised coal
prices by 6.3% few months back and the ministry of railways started levying
coal terminal charge for loading and unloading of coal. This will thus increase
the cost of raw material and controlling the cost of manufacturing will be a
threat.
 CHAPTER 3

ORGANIZATIONAL STRUCTURE
\\
CHAPTER 4