Manufactured Capital

ENSURING SUSTAINABLE RAW MATERIAL SUPPLY

All five iron ore mines won in the auctions to be operationalised in H1 FY19

Retaining market leadership by being better everyday

Interlinked StrategiesS1, S2, S3, S6

Manufactured capital is part of the fabric of JSW Steel. It supports productivity, stimulates research and development, and guarantees investment for the future. Significant investments have been made in establishing efficient facilities at different locations across the country. Manufactured capital of the Company has the crucial role of an investor as well as a beneficiary of the Government of India's flagship 'Make in India' campaign.

Steel is the backbone of a developing economy like India and JSW Steel is a leading supplier to a variety of sectors: construction, infrastructure, automotive, industrial, engineering, energy and pipes and tubes. The Company can fulfil the requirements of the country with its dedicated investments under manufactured capital. Manufactured in the hotstrip mills of its Vijayanagar (Karnataka) and Dolvi (Maharashtra) plants, a wide range of hot-rolled products are offered by JSW Steel essential for the manufacture of several white goods, the Company’s cold-rolled steel products are made in Vijayanagar plant.

Electrical steel products are manufactured in the modern facility at Vijayanagar Works. This steel has use across multiple sectors such as electric motors, generators, nuclear power stations, power generation plants and equipment, domestic appliances, transformers and automotive electricals.

Key Outputs and Outcomes
91%

Capacity Utilisation

16.27 MTPA

Highest Ever Crude Steel Production

15.55 MTPA

Sales Volume

  • Capacity utilisation: 91%
  • Tunga Iron Ore Mines (Karnataka) made operational; another four iron ore mines to be made operational in FY19
  • Highest ever crude steel production: 16.27 MnT
  • Diverse product portfolio in the market (top 5):
    • Hot rolled coils and sheets: 6.53 MnT
    • Cold rolled coils and sheets: 2.07 MnT (up 6% y-o-y)
    • Long rolled products: 3.55 MnT (up 16% y-o-y)
    • Galvanised coils and sheets: 1.72 MnT (up 4% y-o-y)
    • Prepainted Galvanised sheets: 0.62 MnT (up 3% y-o-y)
  • Sales volume: 15.55 MnT (up 6% y-o-y)
    • Value added and special products: 9 MnT (up 13% y-o-y)
  • Pan-India reach through 8,600+ retail outlets and an export presence in over 100 countries, ensuring that the Company’s products enable people to lead a better quality of life
  • Has one of the lowest conversion costs and low per tonne capacity addition cost, thereby ensuring maximum value creation for all stakeholders
  • Reduction in energy consumption: 3.053 million GJ

Energy Consumption (Million GJ), JSW SL

Share of Products in Total Sales (JSW SL)

Specific Energy Consumption (GJ/Tonne), JSW SL

Capacity Utilisation (JSW SL) (%)

JSW SCPL JSW SPCL JSW ARCL JSW
INDUSTRIAL
GASES
JSW SALAV
DIRECT ENERGY CONSUMPTION (IN '000 GJ) 2,202.9 0.4 46,742.7 175.0 9,507.1
INDIRECT ENERGY CONSUMPTION (IN '000 GJ) 1,009.9 15.1 952.5 2,389.0 0
SPECIFIC ENERGY CONSUMPTION (IN GJ/TONNES) 8.39 0.03 9.13 1,676
(GJ/MnNM3)
14.25

Note: This unit of measure is needed since the product is gases

CASE STUDY – Debottlenecking SMS at Dolvi Works

Debottlenecking SMS at Dolvi Works

OVERALL, THIS DEBOTTLENECKING EXERCISE HAS RESULTED IN IMPROVED EFFICIENCY IN ASSET UTILISATION, REDUCED TIME CONSUMPTION AND LOWERED THE UNEXPECTED PROCESS DELAY RATES

In line with the Company’s ‘Better Everyday’ vision, the multiple manufacturing facilities of JSW Steel undergo continuous efficiency improvement drives. The case in point pertains to the debottlenecking exercise at the Steel Melting Shop (SMS) of JSW Steel Dolvi Works during the fourth quarter of FY18.

The process improvements taken up and the resulting benefits at the site were in four particular areas as elucidated below.

Improved launder utilisation for hot metal pouring

Benefits

  • Reduction in refractory delays (Eccentric Bottom Tap-hole, i.e. EBT Jam, Flapper Jamming, etc.)
  • Increase in shell life
  • Reduction in setup time by 6.3 minutes

Increase in oxygen blowing rate

Benefits

  • Oxygen blowing flow increased by 15 Nm3/hr
  • This has resulted in a decrease in blowing time by 2 min/heat

Preventive maintenance during EBT change and shell change

Benefits

  • Proactive and preventive maintenance in the change process
  • Reduction in delays caused earlier

Maximum hot metal usage

Benefits

  • Hot metal usage was increased by 2.9%
  • The arcing time has reduced by 3.2 min/heat

CASE STUDY - Low Conversion and Capacity Addition Cost

Low Conversion and Capacity Addition Cost

WITH ADDITIONAL CAPACITIES IN PLACE, JSW STEEL IS AT THE FOREFRONT OF TAPPING INTO THE INCREMENTAL DEMAND IN THE DOMESTIC MARKET

JSW Steel is constantly ranked among the top 3 lowest-cost steel producers in the world. It is known to undertake sizeable capacity expansions at lower cost, with conversion costs that are among the best in the industry. For the last 10 years, the Company has been rated among the top 10 companies by World Steel Association. Guided by the philosophy of becoming 'Better Everyday', this is an outcome of the relentless efforts to improve performance, including those to bring down conversion costs.

CAPACITY ADDITION COST

$580 per tonne

CONVERSION COST

$116 per tonne

The agility of operations at JSW Steel has been the key source of strength and has helped it sail through numerous headwinds faced by the industry. It strives to be aware of the ground realities of the external environment and responds to them in a prompt and efficient manner. Owing to this proactiveness, the Company has been able to spot the power demand turnaround in the domestic market far ahead of its peers. Consequently, the Company embarked on a capacity expansion programme a few years ago and is now realising its potential.