JSW Steel, under the leadership of Chairman Sajjan Jindal, plans to significantly increase its production capacity in the next three years. The company, headquartered in India, aims to nearly double its current capacity of 28 million tonnes to 50 million tonnes. Jindal also emphasized the company’s commitment to sustainability by transitioning to renewable sources of power for its entire production output.
According to Jindal, JSW Steel is set to reach 37 million tonnes of capacity next year and achieve the ambitious target of 50 million tonnes in three years. Additionally, the company plans to become the first steel manufacturer worldwide to operate at this scale entirely on renewable energy.
The shift towards renewable power is part of JSW Steel’s broader strategy as it expands its capacity. Departing from traditional reliance on fossil fuels like coal, the company is investing in renewable power generation. This transition reflects the changing landscape of the Indian steel manufacturing sector, which Jindal believes has the potential to become a major global supplier.
Jindal drew a comparison between the Indian and Chinese steel industries, highlighting the differences in operating profit margins. While Chinese companies currently maintain profit margins of 2-3%, Indian companies enjoy a more favorable range of 15-25%. Jindal attributed this disparity to India’s advantage in raw materials, with abundant iron ore reserves, compared to China’s dominance in coking coal.
Despite the positive growth prospects, JSW Steel faces challenges in sourcing skilled talent to support its expansion plans. Jindal noted the need to offer higher wages, exceeding the prescribed minimum floor, to attract qualified professionals for plant construction and operations.
Jindal emphasized the significance of corporate governance and its role in sustainable growth. He stated that adherence to this principle may slow down the pace of expansion but is essential for long-term success. JSW Group, the parent company of JSW Steel, has prioritized corporate governance and is now poised to accelerate its growth trajectory.