Our rich history of giving back to our communities, has been inspired
by our late founder, Shri OP Jindal Ji. He believed in serving people with great humility
and believed in empowering them during his lifetime. We continue his legacy through our
CSR initiatives and programmes that look at empowering communities, reflecting our
commitment to societal and environmental impact beyond traditional business boundaries.
These initiatives underscore our role as a responsible corporate citizen and the
recognition of the need to contribute positively to the communities we operate within.
Jindal Stainless Foundation has been investing in CSR initiatives for
over 18 years in communities around our plant locations in Hisar, Jajpur and Delhi NCR. A
holistic approach has been taken while implementing programs to support communities in the
areas of rural development, environmental sustainability, women empowerment, skill
development, preventive healthcare and disaster risk reduction and response. We champion
the cause of the UN's
Sustainable Development Goals (SDGs) and are supporting 12 goals.
Women empowerment is an integral part of all our programmes, through
CSR we look at providing women full and effective participation and equal opportunities.
Our programmes look at creating decent job creation, entrepreneurship, and encourage the
growth of micro, small and medium sized enterprises, including through access to financial
services. Samparna Jeevika is a producer company that has been set-up to enhance the
entrepreneurial skills of rural women around our manufacturing locations and involve them
in skill building and income generation activities.
This programme is currently benefitting 27 villages in Jajpur district
of Odisha. Safe and readily available water is important for public health, whether it is
used for drinking, domestic use, food production or recreational purposes. Improved water
supply and sanitation, and better management of water resources, can boost countries'
economic growth and can contribute greatly to poverty reduction. Jindal Stainless
Foundation has supported drinking water facilities across various locations impacting over
10,000 people.
Health care services are provided to communities in Jajpur, Odisha.
Over 4,000 people have received free health care services in the form of consultations and
medicines to cure common ailments. Aligning to the government's Swachh Bharat Mission
we are also looking at reducing and eliminating the practice of mixed waste from our
townships and communities around the plant location in Jajpur and Hisar. To improve waste
management in communities, a multi-pronged approach is taken that features door-to-door
collection drives, community mobilisation and awareness, enabling the infrastructure
required for hazard-free segregation of waste, composting of wet waste, and further
co-processing. Through the program we have been able to impact over 6,000 people and 80
tonnes of waste has been diverted from landfills in a year.
Agriculture is the main source of livelihood in India.
The farmer development programme looks at working closely with farmers
in bringing down the input costs increasing productivity. The programme is currently being
implemented in Jajpur, Odisha and Nuh & Hisar in Haryana. Through the programme we
were able to impact over 5,000 farmers by providing them advisory services, relevant
training and market linkages that have helped in increasing their incomes. Restoration,
development, and maintenance of green public spaces gives the community in Hisar an open
space to enjoy nature. Over 6,000 people regularly use the 24 acre park in the city. The
entire park is equipped with energy-efficient lamps. There is easy accessibility for
disabled people, with ramps at the entry/exit points and accessible sanitation and
drinking water through the adjustments that have been made to the toilet and RO plant
infrastructure.
We believe in creating a legacy that strengthens individuals from door
to door, empowering them to achieve their dreams. We are committed to proactively
responding to the expectations of all those who have placed their faith in our endeavours.
As we move forward, we are confident that our social initiatives will continue to make a
positive impact on society.
Thank you for your continued support.
Smt Savitri Devi Jindal
Chairperson Emeritus
Letter from the Chairman
Dear Shareholders,
With increasing focus on sustainability, the world is quickly
transitioning towards circularity in production processes, and scrap-based manufacturing
methods are leading the way. I'm proud to share that Jindal Stainless Limited (JSL)
has already been following this process and is a front-runner in sustainable stainless
steel production. ogress made and challenges pr Aswereflect onthe overcome by your Company
over the previous financial year, there is so much worthy of note. Even though the
stainless steel industry was affected by a multitude of challenges globally and
nationally, JSL continued on its growth trajectory tirelessly. An actionable strategy
ensured success across major segments of the business. FY23 served as a testament to the
dedication and zeal of every individual in all our diverse teams across the country. It is
only befitting that after a gap of 15 years, the Company announced a dividend payment of
125% per equity share with a face value of Rs 2 each. This was done in the form of a
Special Interim Dividend payment @Re 1 and a Final Dividend payment @Re 1.50 for FY23 to
the shareholders on successful completion of the merger of Jindal Stainless (Hisar)
Limited into Jindal Stainless Limited and on account of improved financial performance
respectively. Post the merger, JSL now has a simplified capital structure, stronger
balance sheet and leverage ratios. This will improve financial flexibility and unlock
greater value for all the stakeholders of the Company.
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. 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 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, JSL 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
JSL's stainless steel operations and ushering in a sharper competitive advantage to
the Company in Indian and international markets.
JSL has also acquired the remaining 74% holding of Jindal United Steel
Limited (JUSL), and with that, JUSL's position as JSL'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 (JSL and JUSL) and a preferred governance structure, thereby enhancing value for
all stakeholders.
I'm proud to share that JSL 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. JSL'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, JSL's short-term 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. JSL 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 JSL's vision.
Together, we will shape a future that is prosperous, sustainable and socially responsible.
Mr Ratan Jindal
Chairman