Davis Index: Market Intelligence for the Global Metals and Recycled Materials Markets

The pandemic has severely affected timelines of several of JSW Steel’s expansion plans, as labor and raw material scarcities are the result of government-induced lockdowns to curb the spread of COVID-19, according to the company’s annual report for 2019-2020.


According to the report, at Dolvi Works, the company received permission to resume activities, which enabled it to ramp up operations. Progress on the 5 MTPA expansion project was hampered, though, as several workers employed by contractors were sent home.


The expansion of crude steel capacity at Dolvi Works from 5 MTPA to 10 MTPA, is likely to get delayed in the second half of FY2021. The 8 MTPA pellet plant and the wire rod mill at Vijayanagar should be commissioned by mid-FY2021. The downstream modernisation and capacity enhancement projects in Vasind and Tarapur and the colour-coating plant at Kalmeshwar, which are now expected to be commissioned in the second half of FY2021.


According to company officials, it’s taking a number of steps like the adoption of technological tools and digital initiatives with the aim of cutting fixed costs by 10-15pc.

The pandemic has led to a drop in sales and a subsequent inventory build-up, which has kept the company’s net debt at elevated levels of about Rs 53,000 crore at the end of March 2020.


In FY2020, the company achieved raw material security of iron ore. It emerged as a preferred bidder for four iron ore mines in Odisha and an additional three mines in Karnataka, with aggregate reserves of close to 1.2bn mt.

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