JSW Steel has set production and sales targets of 16mn mt and 15mn mt, respectively, for its Indian operations in FY 2021, a recent conference call with the company management revealed.
The company is claiming to meet its production target in rest of the fiscal year 2021 as they are increasing capacity utilization in Vijayanagar and Dolvi units that were running at a lower capacity since April owing to COVID-19 lockdown. The Vijayanagar unit is running at almost 90pc capacity utilization.
JSW is also hopeful of achieving its sales target owing to increasing demand in the domestic market largely from solar packaging, appliances, infrastructure and construction activities. It is also actively working with engineering industry, capital goods and automotive component industry as they are seeking large export orders of engineering products. Its dependence on overseas demand is likely to come down in Q2 (July-September).
Recovery of demand recovery is better in rural areas because COVID-19 related impact was seen more in cities and urban areas which affected business. Demand in Eastern and Northern part of India was better than Western and Southern regions.
Other developments:
JSW Steel has also started production at all four iron ore mines in Odisha on July 1 based on environmental clearance of 29mn mt and planning to produce around 1.2mn mt in July itself. It has started meeting the requirement of Dolvi and Salem units as dispatches have begun. It will also use the same period to finalize MDOs, mine development operators and transport.
The company is also expected to complete the delayed expansion at Dolvi units to 10mn mt of crude steel production along with doubling the downstream capacity in the upcoming quarter. Completion of the coke over plant, pellet plant and wire rod unit in Vijayanagar in the same period is also on cards.
The acquisition of Bhushan Power and Steel is expected to be completed as soon as the Supreme Court verdict comes.