The financial year 2020-21 began with disruptions to economic activity owing to the curbs announced to contain the spread of COVID-19 in India. The initial phase of the nationwide lockdown impacted the industry and our business significantly. However, staying true to the JSW Steel ethos of agile response and top-class execution, we responded with a comprehensive mitigation plan. The core aim was to maintain overall well-being of employees, profitability, and protect stakeholder value.
Swift response
With the gradual easing of the nationwide lockdown, we resumed operations towards the end of April 2020, with permission from the local administration. We put in place comprehensive protocols on social distancing in all our plants and offices in compliance with MHA and other state specific guidelines.
Inititatives and outcomes
In order to ensure raw material security for our ambitious growth plans, we secured four iron ore mines in Odisha and acquired three new iron ore mines in Karnataka through the government’s auction process in FY 2019-20. We swiftly operationalised all our mines, which enabled us to operate all the plants close to the rated capacity. We achieved this at a time when the steel industry was suffering heavily in the latter part of FY 2020-21 due to supply shortage of iron ore in India.
Inititatives and outcomes
Given the unprecedented operating environment in the domestic market in Q1 FY 2020-21, we quickly adapted to the market situation and focused on export markets. We emerged as a large exporter of steel during the quarter. Gradually, as the domestic steel demand picked up in the second quarter, we concentrated on improving our market share. In the third quarter, backed by a strong momentum in the domestic economy, our domestic sales continued to grow. Towards the fourth quarter, when steel prices in the international market continued to improve, we focused on export markets.
Of total sales
Highest-ever quarterly quantity
Y-o-Y growth
Q-o-Q growth
2nd best quarterly sales on record
Y-o-Y
Q-o-Q
Of total sales
Y-o-Y
Q-o-Q
The global pandemic drove home the importance of creating a healthy and safe environment for employees and communities. In FY 2020-21, JSW Steel channeled an enhanced focus to create a digitally-enabled working ecosystem and reinforced safety protocols across all facilities. One of the most gratifying aspects of the business was when employees from the local facilities helped communities by creating awareness and distributing medical supplies and safety and hygiene kits.
Inititatives and outcomes
Maintain focus on strategic initiatives
We have one of the lowest conversion costs in the industry, primarily due to our efficient operations, high manpower productivity and the strategic location of our state-of-the-art manufacturing facilities. In FY 2020-21, we continued with our cost-reduction initiatives and improved efficiencies to consistently grow even in an uncertain business environment. Moreover, our ability to secure four working mining leases in Odisha helped us maintain significant cost competitiveness in terms of early production, assured feed grade for steelmaking, reduced logistics cost and value addition due to the possibility of long-term planning.
Cost saving and efficiency initiatives:
Our capacity expansion plan has been on track.
Dolvi
Vijayanagar
Vasind & Tarapur
With a target to reach a 45MTPA crude steel capacity by FY 2030-31, we undertook important acquisitions during the course of the year.
Completed acquisition of:
We embarked on strategies to achieve decarbonisation and reduce emissions with an emphasis on conservation initiatives, focus on circularity, and production of environmentally-friendly products by incorporating ethos of product sustainability. We have improved our social focus with increased community participation, and continue to work towards our zero harm goal through dedicated health and safety practices. Our overall operations and approach to sustainability is guarded and guided by our independent Board, which directs our corporate behaviour and governance.
Financial prudence
We maintained a robust financial profile and enhanced our liquidity position by diversifying the sources of funds. Our astute financial management and prudent capital allocation policy enabled a good Return on Capital Employed (RoCE) and high profitability.
Inititatives and outcomes
