Letter from the MD’s Desk

The surge in private and public investments in infrastructure and residential housing will give additional impetus to the demand for stainless steel. Furthermore, process industries, infra applications like foot over bridges and rail over bridges, redevelopment of railway infra and construction of new airports, as well as new-age applications like ethanol and green hydrogen production are all set to give thrust to the demand for stainless steel. Even as major supply-chain challenges – due to geopolitical tensions, high inflation and tight fiscal policies – continued to weigh down on the global economy at large, your company moved forward with a clear sense of purpose. On the domestic front, there was a consistent demand from various segments. Your company responded to this demand by adapting the sales planning strategies to suit the surrounding environment and placing greater emphasis on domestic sales. Due to strategic changes in operations and supply chain planning, your company will be able to deliver excellence and continue to adapt as per the ever-changing macro-economic landscape

Triumphant Pursuits

For the fiscal year 2023, the revenue surpassed INR 35,000 crore, showing an 8% increase compared to the previous year. We successfully achieved a 6% increase in volume over the course of the last year, despite the impact of export duty in the first three quarters, the onslaught of imports from China and sluggish demand in major economies like the EU and the US. Your company mitigated these challenges by adapting its product mix with the changes in customer requirements and market dynamics. While inflationary pressures continued in large economies, we actively explored new sectors, segments and markets in different geographical regions. Backed by this recovery, it is noteworthy that your company attained the highest-ever quarterly sales in the fourth quarter, marking a notable 14% Y-O-Y growth. I am delighted to share that in March 2023, we successfully expanded the annual melt capacity of the Jajpur unit by over one million tonnes, along with undertaking the expansion of necessary downstream operations. The project was completed From the MD’s Desk 24 Annual Report 2022-23 Abhyuday Jindal Managing Director within the planned timeline as a result of which our combined annual melt capacity has now reached 3 million tonnes. This achievement has propelled us into the ranks of the top five stainless steel producers globally, excluding China. You will be delighted to know that your company worked with the RDSO to come up with the most cost-effective and high quality stainless steel for structural applications, Jindal Durasafe. It has a service life of 100+ years and offers more aesthetic and stronger designs, superior weldability, and high strength, with little or no maintenance in such applications. Foot-over-bridges in Andhra Pradesh and Maharashtra stand as examples for the prowess of stainless steel in shaping a sustainable tomorrow and your company has been the proud supplier for these projects. Coming to the logistics management front, your company is not only digitalising every step of the process but also strategically optimising every step of the value chain. To combat challenges in exports, Jindal Stainless Ltd enhanced focus on domestic dispatches. The company introduced bulk dispatches through domestic container, increasing safety and cutting costs by 20% versus rail dispatches. The company also adopted break-bulk for exports and scrap imports to enhance cost savings. Through enhanced rail efficiency and fewer road dispatches, the company is able to reduce emissions by 4596 t CO2e. Digitalised interactions between all stakeholders (the company’s vendors as well as customers) and live tracking of transported orders have improved communication turnaround times and brought in higher efficiencies in decision-makingermined to adopt the best-in-class governance practices for the benefit of all its stakeholders.

Unveiling New Horizons

Your company is gearing up to meet the increasing demand for stainless steel both in India and globally, capitalizing on the government's emphasis on infrastructure development. The architecture, building and construction (ABC) sector saw a substantial budget allocation of Rs 10 lakh crore in the 2023-24 budget – a threefold increase since 2019 – which shows that the government is resolute in constructing durable, corrosionresistant, and sustainable infrastructure. Stainless steel is the apt material for this growth, given its added advantages of low lifecycle costs and minimal emissions. The automobile, railways, and transport (ART) sector will also remain a significant driver of stainless steel demand in India. Creating and sustaining an ecosystem that recognizes the importance of stainless steel in charting our nation’s growth story is not only important for your company but for the entire domestic stainless steel industry. Further cementing its commitment on this front, your company is planning extensive infrastructure development in Odisha in the form of the Jindal Stainless Park, which will be a more than 250-acre greenfield park serving over 100 downstream MSME industries. Continuing thrust on the Stainless Academy, you company is dedicated to advocate and popularize the usage and benefits of stainless steel across the entire gamut of stakeholders. Right from academia and future decision makers up to fabricators and other stakeholders in the ecosystem, and even end consumers, we are working on every front to ensure category recognition and skill development to increase usage of stainless steel.

Safeguarding The Workforce And The Environment

Jindal Stainless Ltd places great importance on the occupational and Jindal Stainless Ltd places great importance on the occupational and personal safety and well-being of its employees. During the past year, we took several measures to enhance emergency management facilities, such as expanding fire hydrant lines and installing gas flooding systems in critical areas. We also aim to foster a strong safety culture by actively involving employees in safety awareness campaigns, mock drills and training programmes. Our efforts resulted in Jindal Stainless Ltd recording a commendably low Lost Time Injury Frequency Rate per 1 million hours, of 0.37. In the era of climate change, the protection of the environment has been at the forefront of our operations and Jindal Stainless Ltd has consistently demonstrated its commitment to operational excellence and environmental sustainability.

Our utilisation of renewable energy currently stands to the tune of 33,401 MWh at our plants. Our partnership with Hygenco India for a green hydrogen plant highlights the pioneering role we are playing in adopting sustainable practices and becoming India's first stainless steel company to implement such a facility. Along with that, water management is a top priority for your Company, as we target to achieve zero liquid discharge and ensure 100% water recycling across all our plants. Green fleets, i.e. EVs have been introduced in the Jajpur plant as a step towards sustainable transportation. As a unique initiative, your Company organised a plastic waste collection drive on the World Environment Day 2022 in its corporate office and collected over 100 kgs of plastic waste. This year, the initiative was extended to the plants as well and nearly 1500 employees participated in the collection of over 2200 kgs of plastic waste! This collected plastic is getting converted into useful products like benches, chairs and bins. All these efforts will further strengthen the Company’s mission to achieve net-zero emissions by 2050.