A Resolution For Success
Over the past year, the global economic landscape has been characterised by changes and
uncertainties. The increase in prices of fuel and chemicals, which directly influences the cost of
manufacturing and transporting goods, affected various sectors. There was also volatility in the
prices of raw materials required for the production of stainless steel, such as nickel and
ferrochrome. Despite these challenges, there were positive indicators that pointed towards a gradual
recovery and growing demand for stainless steel products worldwide and at an even higher pace in
India. Over the past year, the global economic landscape has been characterised by changes and
uncertainties. The increase in prices of fuel and chemicals, which directly influences the cost of
manufacturing and transporting goods, affected various sectors. There was also volatility in the
prices of raw materials required for the production of stainless steel, such as nickel and
ferrochrome. Despite these challenges, there were positive indicators that pointed towards a gradual
recovery and growing demand for stainless steel products worldwide and at an even higher pace in
India. The application of stainless steel in the process, automotive, construction and power
generation industries as well as new-age applications like nuclear, green hydrogen and ethanol
continued to increase even amid inflation, supply chain concerns and fluctuating global demand. A
significant challenge that affected the stainless steel industry was the imposition of export duty
by the Government of India in May 2022. Roughly 70–80% of our export product portfolio, consisting
of specialised stainless steel products for high-end applications, was affected. The industry
welcomed the government’s decision to revoke it in November 2022, but recovery was gradual and slow.
In addition to that, the dumping of substandard and subsidised stainless steel imports from China
placed additional pressure on the domestic industry and created major roadblocks in the
implementation of the Make in India vision. We are hoping that the government introduces
anti-dumping and countervailing duties to create a level playing field for 22 Annual Report 2022-23
domestic companies, especially MSME manufacturers. With the government working on a dedicated
Stainless Steel policy that is targeting a 2× jump in capacity, the industry is hopeful of unlocking
and tapping into the immense growth potential of stainless steel in nation-building.
Redefining Resilience
To tackle aforementioned challenges, your company successfully crafted an agile product mix strategy
to mitigate risks. This approach allowed us to adapt and thrive in the ever-changing market
dynamics, with the inherent flexibility to adjust the product mix and target different geographies
as needed. Your company’s success is fuelled by a forward-thinking approach that embraces innovation
and new-age applications, advanced technology to optimise operations and a commitment towards
sustainability. By investing in high-quality infrastructure, we were able to double the capacity at
the Jajpur plant in Odisha with minimal investment. Not just this, Jindal Stainless Ltd is also
working to bring in the benefits of digitalisation for the entire ecosystem; from its vendors to its
customers, every step of the value chain is undergoing a digital transformation at your company. The
last financial year was also significant due to strategic product diversification and inorganic
growth of your company, in the form of acquisition of Rathi Super Steel Limited. This strategic
acquisition allowed for the expansion of our product portfolio to include SS long products and
augment our solution-oriented approach. Additionally, your company recently engaged in a
collaborative agreement with New Yaking Pte Ltd to acquire 49% ownership in their nickel pig iron
(NPI) smelter facility situated in Indonesia. This ground-breaking step towards backward
integration, which is the first of its kind involving an Indian entity, secures a stable and
sustained supply of NPI for the company in the long run. It is a step towards ensuring raw material
security for Jindal Stainless Ltd’s stainless steel operations and ushering in a sharper
competitive advantage to the company in Indian and international markets.
Jindal Stainless Ltd has also acquired the remaining 74% holding of Jindal United Steel
Limited (JUSL), and with that, JUSL's position as Jindal Stainless Ltd’s wholly-owned
subsidiary is solidified. JUSL has been operating the Hot Strip Mill (HSM) of 1.6 million
tons per annum (MTPA) capacity and Cold Rolling Mills of 0.2 MTPA capacity. It is also
undergoing capacity expansion up to 3.2 MTPA at Jajpur, Odisha.
This acquisition would result in improved synergies between both the companies (Jindal Stainless
Ltd and JUSL) and a preferred governance structure, thereby enhancing value for all
stakeholders. I’m proud to share that Jindal Stainless Ltd was chosen for the pilot of the
‘Make in India’ branding of steel and stainless steel products for exports from the country,
which is a matter of great pride for all of us. Your company has also received a noteworthy
rating upgrade from CRISIL Ratings, showcasing our exceptional performance. Jindal Stainless
Ltd’s long-term bank facilities have been assigned a prestigious CRISIL AA-/Positive rating,
an upgrade in the outlook from the previous CRISIL AA-/ Stable rating and outlook in FY22.
Additionally, Jindal Stainless Ltd’s shortterm bank facilities have been reaffirmed at CRISIL
A1+. Jindal Stainless (Hisar) Limited, now merged with Jindal Stainless Limited, continued to
showcase an unwavering commitment to safety, innovation and societal progress. The upholding of
the high standards of occupational safety was recognised with the prestigious International
Safety Award for three consecutive years.
With the objective of completely eliminating the damaging effects of corrosion in the country and
fostering a greater understanding of its consequences, Jindal Stainless took a significant step
forward by entering into a Memorandum of Understanding (MoU) with the Confederation of Indian
Industry (CII). This strategic alliance focuses on collaborating with the National Mission on
Corrosion Management to raise awareness about corrosion-related issues and implement effective
measures to combat them across various industries and sectors. For the country, combating corrosion
losses can lead to annual savings of around USD 100 billion!
Powering Sustainable Growth
Fostering a circular economy, ensuring resource conservation, and reducing energy consumption for a
greener future are just some of the ways in which stainless steel is crafting a sustainable future.
Jindal Stainless Ltd prioritises its ESG commitments, just like the metal it produces embodies
sustainability. Your company has made concerted efforts on the environment front and is committed to
power future growth through renewable sources of energy. On the social front, your company is
relentlessly working to empower communities around its areas of operations and bring better access
to healthcare, education and means of financial independence for the beneficiaries. Good governance
is the key to succeeding across all other fronts, and your company is determined to adopt the
best-in-class governance practices for the benefit of all its stakeholders.
Looking Ahead
As we move forward, we are meticulously committed to delivering value to our shareholders. Our
primary objective is to optimise our operations, improve efficiency and foster innovation across all
our business divisions. We firmly believe that by upholding the best-in-class practices of corporate
governance, transparency and ethical business conduct, we will continue to deliver value to all our
stakeholders. I express my deepest gratitude for your continued trust, support and belief in Jindal
Stainless Ltd’s vision. Together, we will shape a future that is prosperous, sustainable and
socially responsible.
