Intellectual Capital

STAYING AHEAD OF THE CURVE WITH ROBUST R&D INITIATIVES

Filed 16 patents across product and process categories in FY18

Innovating for a future that will be better everyday

Interlinked StrategiesS2, S4, S5, S6

Intellectual capital is critical to enhance the value proposition through development of unique and sustainable products and service solutions. The drive to better serve the growing infrastructure needs of India has spurred the adoption of new and improved technologies. The Company understands the importance of R&D and innovation and makes constant efforts to evolve and adapt to the changing needs. Resources to the tune of H41 crore are made available to a dedicated team of 155 persons constantly working to address these requirements. Intellectual capital helps the Company to realise its vision to 'Bring positive transformation to every life we touch'.

The Company believes that there is virtually no limit to becoming 'better' – be it related to products, processes, infrastructure or the surrounding world. Building on the core strength of efficiency, the Company is driven to achieve excellence through innovation, expertise, quality and operational efficiency. This is demonstrated by numerous improvement initiatives in the Company.

Intellectual capital also enables the Company to engage with the consumers, giving it an opportunity to learn about the evolving needs, as well as to communicate the advantages of using superior quality steel at manufacturing sites. The product, JSW Neosteel, helps achieve this objective.

The Company believes that it is important to deliver the product of choice to the consumer. Through JSW Shoppes and JSW Explore, the Company is combining sales and services for providing the desired product to the end consumer.

Key Outputs and Outcomes
14%

y-o-y increase in sales

  • The Company has initiated digitalisation and automation, thereby getting people involved in the digital agenda. In the reporting year, JSW Steel saved about H~46 crore as a result of the digitalisation efforts
  • The Company’s increasing focus on value added and special products like Galvalume and customised products catering to the passenger vehicle industry led to a 14% yoy increase in their sales, ultimately reducing imports, boosting local economy and saving foreign exchange for the nation
  • JSW Steel is the first iron and steel Company in India to get an Environment Product Declaration (EPD) label — for HR coils, in line with the principles of Life Cycle Assessment (LCA) as per ISO 14025
  • Throughout the year, the Company’s team of experts are engaged in various facets of new development initiatives, which are practically implementable on the shop floor and otherwise
  • Increased understanding of consumer needs has enabled JSW Steel to better communicate the Company’s point of view and the value that its products bring with them
  • JSW Colouron+ continued to be the leading Colour Coated Brand in the country with highest market share. The Company undertook a large-scale influencer awareness campaign to educate them on how to identify a genuine product
  • Continuing its endeavour to improve the customer value proposition of its products, the Company launched JSW Everglow in December 2017. It is a firstof- its-kind product in the steel roofing segment and offers 10-year paint which is a first in India
  • The Company implemented multiple cost optimisation initiatives under Project Deep Drive at various business critical departments (logistics, agglomeration and iron making, power and others). Following the signature 4i methodology of Identify-Ideate-Implement- Institutionalise, this initiative has led to substantial cost savings
  • The Company continues to collaborate with leading academic and research institutions such as National Metallurgical Laboratory - Jamshedpur, IIT Bombay, IIT Madras, IIT Kharagpur, IISc Bangalore, NIT Surathkal, NCCBM Ballabhgarh, IMMT Bhubaneswar and BITS Pilani. These collaborations have gone a long way in enriching the intellectual capital of JSW Steel through the development of new and improved products and processes

CASE STUDY – Digitalisation at JSW Steel

Digitalisation at JSW Steel

A DIGITAL CENTRE OF EXCELLENCE AND GOVERNANCE HAS HELPED IDENTIFY, PRIORITISE, MONITOR AND REVIEW PROJECTS THAT ARE CURRENTLY BEING IMPLEMENTED

The highly-competitive sector has begun witnessing a range of digitalisation efforts. JSW Steel is applying these to all critical areas of manufacturing operations, supply chain, and sales and marketing; and is collaborating with global firms to facilitate the journey. This process began with the identification of projects under Wave 1, and thereafter the implementation of the same. These helped the Company establish the power of analytics and automation, while simultaneously getting people involved in the digital agenda. Since the Company was able to identify the potential for value addition from these projects, several other new ones have been identified and are currently being implemented.

CASE STUDY - CoRe Programme

CoRe Programme

THE CoRe TEAM PARTICIPATED IN THE FROST & SULLIVAN PERP AWARD 2017 AND WAS RECOGNISED AS THE FIRST RUNNER UP IN THE CATEGORY OF COST LEADERSHIP

Continuous Optimisation to Realise Excellence or CoRe was launched in FY17 as a breakthrough improvement methodology focusing on cost management. The purpose of the initiative was to generate ideas by involving every employee in the plant, besides suppliers and functional experts who were working at the site in other functions. The initiative was a KPIbased improvement approach, applying concepts of compressible, semi-compressible and incompressible costs. The scope included generation of ideas, evaluation of ideas, preparation of an action plan for implementation along with responsibility and target dates, and handover of the file to the respective HODs for implementation. The programme yielded benefits of about `227 crore in the last two years.