The industrial landscape of Paradip in Odisha’s Jagatsinghpur district is undergoing a significant transformation. Local communities, who had previously resisted large-scale projects, are now extending strong support to new investments. One notable example is the JSW Utkal Steel project, a Rs 65,000-crore initiative that has garnered widespread support from residents of nearby villages, including Dhinkia and its adjoining areas. Thousands of residents, including women, have come forward in favor of the project, marking a striking reversal from the days of opposition to the Posco Steel project.

The JSW Steel complex, with a planned capacity of 13.2 million tonnes per annum, will include a captive power plant, dedicated jetties, and allied infrastructure. The project is expected to drive economic growth, generate jobs, and strengthen human resources in the region. Local residents, who have traditionally relied on betel vine cultivation and subsistence agriculture, are now seeing the benefits of industrial development as a path to sustainable prosperity.

Women, in particular, are playing a crucial role in supporting the project. Many have benefited from JSW’s Sustainable Livelihood Project, which has provided them with training and employment opportunities. Minati Dalai, a young woman from Patana village, is one such example. She works as a security guard at the JSW Steel complex and has seen a significant change in her life. “I was sitting idle at home earlier, but now I’m able to support my family,” she said.

The company’s range of livelihood interventions has also helped families enhance their incomes and become self-reliant. These initiatives include training in paddy cultivation, seed and fertilizer support, livestock and horticulture development, and women’s empowerment through mushroom cultivation, tailoring, incense stick making, and spice processing. Local residents, such as Prabhat Rout of Patana village, are appreciative of these efforts. “These initiatives have helped families enhance their incomes and become self-reliant,” he said.

The shift in sentiment towards industrial development is a significant change from the past. According to Ranjan Bardhan of Gobindpur village, “At long last, people here see hope for lasting change. The establishment of JSW’s steel plant will not only drive economic growth but also generate jobs and strengthen our human resources.” Sisira Mohapatra, a septuagenarian from Dhinkia, also praised JSW’s efforts, noting that the company has been consistently investing in education, health, agriculture, transport, employment generation, women empowerment, environmental protection, and technological advancement. Overall, the support for the JSW Utkal Steel project is a testament to the changing attitudes towards industrial development in the region.

JSW Steel, a leading Indian steel manufacturer, has reported a significant surge in its net profit for the second quarter of FY26, with a four-fold increase to ₹1,646 crore. This substantial growth can be attributed to strong domestic demand and policy support, which have bolstered the company’s outlook for the second half of the fiscal year. The company’s sales have been robust, driving the profit increase.

According to the company’s Q2 results, the profit rise is primarily due to expanded margins, which have been a result of efficient operations and favorable market conditions. However, despite the impressive growth, the company’s profit fell short of estimates, with a 307% increase in Q2, lower than anticipated.

The management of JSW Steel has adopted a cautious stance for 2026, citing potential challenges and uncertainties in the market. Despite this, the company remains optimistic about its performance in the second half of the fiscal year, driven by strong domestic demand and supportive policies.

The Indian government’s initiatives to boost the steel sector, combined with increasing infrastructure development and construction activities, are expected to drive growth for JSW Steel in the coming months. The company’s ability to capitalize on these opportunities, while maintaining efficient operations and managing costs, will be crucial in determining its future performance.

Overall, JSW Steel’s Q2 results indicate a positive trend for the company, with strong sales and expanding margins. While the management’s cautious outlook for 2026 is understandable, given the uncertainties in the market, the company’s fundamentals and market conditions suggest a promising outlook for the second half of the fiscal year. As the Indian steel sector continues to grow, driven by government support and increasing demand, JSW Steel is well-positioned to benefit from these trends and deliver strong performance in the coming months.

The Supreme Court of India has reversed its earlier decision and upheld JSW Steel’s resolution plan for Bhushan Power and Steel (BPSL), restoring the company’s rights and securing its hold on the acquisition. The initial ruling on May 2 had quashed the five-year-old plan, directing liquidation and putting at risk over ₹34,000 crore in bank debt and ₹19,350 crore already paid by JSW Steel. The new ruling has relieved lenders and investors who feared the precedent could unravel other long-settled deals.

The case unfolded when a bench of justices struck down JSW Steel’s resolution plan, citing procedural lapses and violations of the Insolvency and Bankruptcy Code (IBC). However, after a review was sought and a new bench re-heard the case, the court approved JSW’s plan, concluding that interfering with the commercial wisdom of the Committee of Creditors (CoC) would undermine the spirit of the IBC.

A key factor in the reversal was the court’s view on the time-bound framework of the IBC. While the initial ruling faulted JSW for delays in payments, the new bench acknowledged that these delays were triggered by factors beyond the company’s control, such as steel price volatility and Enforcement Directorate attachment orders. The court held that the focus should be on the intent and bona fides of bidders rather than rigid adherence to timelines.

The ruling also reaffirmed the sanctity of the CoC’s commercial judgment, stating that courts must avoid second-guessing creditor decisions unless there is clear mala fide intent. The September bench noted that the CoC had monitored progress, approved extensions after deliberation, and acted in good faith under difficult circumstances.

The Supreme Court also ruled on the contentious issue of ₹6,155 crore in Ebitda generated by BPSL during its insolvency process, stating that it rightfully belongs to JSW Steel. The court stressed that once a resolution plan reaches finality, its terms cannot be reopened or renegotiated.

The verdict is a major reprieve for JSW Steel, which had acquired BPSL in 2021. The company can now move ahead with integrating BPSL’s assets, scaling expansion projects, and unlocking synergies across eastern India. The ruling is also seen as a strong endorsement of JSW’s IBC-led acquisition strategy, which is likely to boost investor confidence.

The implications of the ruling are significant for India’s insolvency framework. The verdict reaffirms the sanctity and finality of approved resolution plans, underscoring that insolvency is meant to resolve stress, not perpetuate litigation. The ruling draws sharper boundaries between insolvency law and other regulatory interventions, ensuring that once a plan is approved by the CoC and NCLT, its implementation cannot be derailed except in the rarest of cases.

The Supreme Court of India is set to deliver a verdict on Friday regarding the resolution plan of JSW Steel Ltd for bankrupt Bhushan Power and Steel Ltd (BPSL). The plan, worth ₹19,700 crore, has been a subject of one of India’s longest-running insolvency battles. The court’s decision will determine whether JSW Steel retains control of BPSL or if the company is pushed into liquidation, which could have significant implications for the Insolvency and Bankruptcy Code (IBC) framework.

The case has been ongoing since 2017, when BPSL was identified as one of the 12 large defaulters by the Reserve Bank of India, with debts of over ₹47,000 crore. JSW Steel emerged as the highest bidder in 2018, but the implementation of the plan was delayed due to litigation. The plan was cleared by lenders, approved by the National Company Law Tribunal (NCLT) in 2019, and upheld by the National Company Law Appellate Tribunal (NCLAT) in 2020. However, the Supreme Court’s ruling on May 2 quashed the plan, ordering the liquidation of BPSL and putting nearly ₹34,000 crore of bank debt at risk.

The Supreme Court later recalled its ruling on July 31, citing misapplication of IBC principles and factual inaccuracies. This paved the way for a fresh hearing, which was concluded on August 11. The court’s verdict on Friday will be the final word on the matter, and it will decide whether JSW Steel retains BPSL, if the company is sent into liquidation, or if a fresh round of bidding is ordered.

The outcome of the case is significant for the IBC framework, as it will set a precedent for the treatment of bankrupt companies and the rights of bidders. If JSW Steel retains control of BPSL, it will be a major victory for the company, which claims to have nearly doubled the production capacity of BPSL since taking charge in March 2021. On the other hand, if the company is pushed into liquidation, it could lead to significant losses for banks and other creditors.

The case has been closely watched by the industry, and the verdict is expected to have far-reaching implications for the Indian economy. The Supreme Court’s decision will provide clarity on the interpretation of the IBC and the treatment of bankrupt companies, which will help to boost investor confidence and promote economic growth. With the verdict scheduled to be delivered on Friday, all eyes are on the Supreme Court, as the fate of BPSL and the future of the IBC framework hang in the balance.

In a significant development for the mining sector in Odisha, over 15,000 tons of iron ore cargo (CLO) have received bids in an auction conducted by JSW, a leading steel manufacturer. The auction, which was highly anticipated, saw a substantial response from industry players, reflecting the strong demand for iron ore in the region.

According to reports, the auction witnessed participation from several major steel producers, including Tata Steel, ArcelorMittal, and JSW Steel, among others. The bids were received for a total quantity of 15,115 tons of iron ore CLO, with the highest bid price reaching Rs 6,500 per ton. The average bid price was reported to be around Rs 6,200 per ton, indicating a strong interest in the cargo.

The auction was conducted by JSW as part of its efforts to utilize its excess iron ore production from its mines in Odisha. The company had put up a total of 20,000 tons of iron ore CLO for auction, and the response was overwhelming, with over 75% of the quantity receiving bids. The successful bidders will be required to lift the cargo from JSW’s mine in Odisha within a specified timeframe.

Industry experts believe that the strong response to the auction reflects the growing demand for iron ore in the region, driven by the increasing production of steel by major manufacturers. The demand for iron ore is expected to remain strong in the coming months, driven by the government’s focus on infrastructure development and the resulting increase in steel consumption.

The auction has also highlighted the importance of Odisha as a major iron ore-producing state in India. The state is home to several major iron ore mines, including those operated by JSW, Tata Steel, and other leading players. The iron ore industry in Odisha is a significant contributor to the state’s economy, providing employment opportunities to thousands of people and generating substantial revenue for the government.

Overall, the successful auction of iron ore CLO by JSW is a positive development for the mining sector in Odisha, reflecting the strong demand for iron ore and the growing importance of the state as a major iron ore-producing hub. As the demand for steel continues to rise, driven by government initiatives and infrastructure development, the iron ore industry in Odisha is expected to play a critical role in meeting this demand.

JSW Steel Ltd. has taken a significant step forward in enhancing its steel production capabilities with the issuance of a Final Acceptance Certificate to SMS group for a second 350-ton RH-TOP plant. This new plant, located at the Dolvi steelmaking facility in Maharashtra, marks a substantial expansion of JSW’s capacity to produce high-purity steels tailored for global markets. The commissioning of the first unit in 2023 set the stage for this latest development, underscoring the company’s commitment to advancing its technological and production capabilities.

The collaboration between SMS group and JSW Steel is pivotal in the context of the Dolvi facility’s expansions. The partnership encompasses several key projects aimed at bolstering JSW’s steel production infrastructure. One of the highlights of this collaboration is the development of one of India’s largest basic oxygen furnace converters, which is expected to significantly enhance the facility’s steelmaking capacities. Additionally, a twin ladle furnace is being installed, further contributing to the facility’s ability to produce high-quality steel efficiently.

Furthermore, SMS group is slated to supply a new blast furnace to the Dolvi facility, representing a critical component in JSW’s strategy to modernize and expand its production capabilities. Perhaps most notably, the revolutionary CSP (Compact Strip Production) Nexus system is being integrated into the facility. This system, designed for thin slab casting and rolling, is anticipated to be the world’s most productive upon its commissioning, which is scheduled for 2026. The CSP Nexus system embodies the cutting-edge technology that JSW is embracing to stay at the forefront of the global steel industry.

The implementation of these advanced technologies and the expansion of production capacities underscore JSW Steel’s ambition to reinforce its position in both domestic and international markets. By focusing on the production of high-purity steels, the company is well-positioned to cater to the demanding standards of global customers, particularly in sectors requiring high-performance materials such as automotive, construction, and consumer goods. The strategic partnership with SMS group plays a crucial role in this endeavor, bringing together technological expertise and industry experience to drive JSW’s growth and competitiveness. As the steel industry continues to evolve, JSW Steel’s proactive approach to innovation and expansion is set to make a significant impact, both in India and worldwide.

India’s growing steel production and consumption are attracting Japanese steel companies to expand their businesses in the country through joint ventures. According to Kazuo Mike Fujisawa, Representative of the Japan Iron & Steel Federation, many Japanese steel companies are showing interest in India due to its high steel production growth and increasing population, which leads to high steel consumption per capita. India and Japan have a long history of trade partnership in the steel industry, with several joint ventures already established.

One notable joint venture is between JFE Steel Corporation and JSW Steel Limited, which established a joint venture company, JSW JFE Electrical Steel Private Limited, to produce grain-oriented electrical steel in India. The joint venture aims to start full production by fiscal 2027 and expand production to meet the growing market demand. Another joint venture between Nippon Steel and ArcelorMittal, known as AM/NS India, is also planning to expand its capacity. AM/NS India is an integrated flat steel manufacturer in India, offering a range of steel products for industries like automotive and infrastructure.

However, Fujisawa noted that doing business in India can be challenging, and Japanese companies need to partner with well-established domestic players to succeed. Meanwhile, the US has recently signed an executive order slashing import tariffs on Japanese cars from 27.5% to 15%. This move is expected to benefit the Japanese auto industry, which exports around 1.3 million units of cars to the US annually. Major car producing companies in Japan, such as Toyota, Honda, Nissan, and Suzuki, are likely to benefit from the tariff reduction.

The reduced tariff is also expected to reduce uncertainty around vehicle pricing, residual value forecasting, and leasing volumes for motor finance providers. However, Fujisawa cautioned that the current 15% tariff may still impact the industry to some extent. Japan is working to find a middle ground, and the tariff rollback is seen as a positive move for the Japanese industry. Overall, the growing steel demand in India and the reduced tariffs on Japanese cars in the US are expected to boost trade and investment between Japan and these countries.

The Indian Supreme Court has made a significant reversal in a high-profile insolvency case involving Bhushan Power & Steel Ltd (BPSL) and JSW Steel. Initially, on May 2, 2025, the Court ordered the liquidation of BPSL and scrapped JSW Steel’s Rs. 19,350-crore resolution plan, which had been approved by the Committee of Creditors (CoC) and the National Company Law Tribunal (NCLT) in 2018 and 2019, respectively. However, after a review petition, the Court has now recalled its earlier verdict and reserved its judgment, indicating a willingness to reconsider its decision.

The case revolves around several key contentions, including who owns the EBITDA (Earnings before Interest, Tax, Depreciation, and Amortisation) generated during the Corporate Insolvency Resolution Process (CIRP) and implementation of the resolution plan. JSW Steel argues that the EBITDA is an operational attribute of the corporate debtor and not a distributable profit owed to lenders. On the other hand, the former promoters of BPSL contend that JSW Steel failed to fulfill its working capital commitment and instead routed funds via compulsorily convertible debentures (CCDs) of a subsidiary, which they term as “illegality” and “fraud”.

The Court has also heard arguments on the authority of the CoC after plan approval, with the Solicitor General arguing that the CoC’s authority persists until proceedings conclude. Additionally, the Court has criticized the actions of the Enforcement Directorate (ED), which had attached assets of BPSL, causing delays in the implementation of the resolution plan.

The case has significant implications for India’s insolvency resolution framework, particularly in relation to the permanence of resolution approvals, the legitimacy of review petitions, and the boundaries of CoC oversight. The Supreme Court’s decision could clarify these issues and potentially recalibrate expectations across India’s insolvency ecosystem, impacting how future resolution plans are structured, reviewed, and defended.

The key legal hinge points in the case include the tension between finality and correctness, the ownership of value accretion during resolution, and the friction between state action and IBC timelines. The Court’s decision is eagerly awaited, and its outcome will determine not only the fate of JSW Steel’s resolution plan but also have far-reaching implications for India’s insolvency landscape.

India’s steel industry is expected to experience a strong first quarter in the current fiscal year, driven by high domestic steel prices and the continued protection of safeguard duties. The stability of coking coal prices, a key raw material, is expected to remain stable during this period, providing a predictable foundation for production costs. Although a temporary slowdown is anticipated in the second quarter due to monsoon-related disruptions in construction activity, this is a normal cyclical fluctuation and not a cause for concern.

Major steel producers, such as JSW Steel Ltd. and Steel Authority of India Ltd., are optimistic about their prospects, citing robust domestic demand fueled by infrastructure projects and economic growth. These companies are focusing on strategic planning and execution of their capital expenditure plans, aiming to increase efficiency and expand capacity, which should further boost their profitability.

The Indian steel industry is also relatively insulated from recent global trade developments, such as the US tariff hike on steel and aluminum. Since India’s direct steel exports to the US account for a small fraction of its total exports, the impact of this tariff hike is expected to be limited. In fact, India’s combined steel and aluminum exports to the US stood at just $4.56 billion in the previous fiscal year, a relatively minor proportion of its total exports.

Overall, the outlook for the Indian steel industry remains positive, driven by strong domestic demand, stable raw material costs, and limited exposure to global trade tensions. As the industry continues to grow and expand, major players are well-positioned to capitalize on emerging opportunities and drive long-term profitability. With a focus on strategic planning, efficiency, and capacity expansion, Indian steel-makers are poised for a robust performance in the coming quarters.

According to a report by Investec, steel mills are expected to continue their expansion in the first quarter of the financial year 2026, driven by higher steel prices and lower coking coal prices. This trend is likely to persist, having already contributed to growth in the fourth quarter. The non-ferrous segment, which includes companies such as Vedanta Ltd. and Hindalco Industries, is expected to experience mixed growth in the coming period.

Vedanta Ltd. is seen as a key player in this segment, with multiple triggers that could drive growth. These include a potential pay-out, demerger, and cost per volume tailwinds, which could have a positive impact on the company’s performance. In contrast, Hindalco Industries is expected to face a capital expenditure bump, which could negatively impact its growth, and is not expected to benefit from cost per volume tailwinds.

Another factor that could impact the non-ferrous segment is the LME-Scrap spreads, which refers to the difference in price between scrap metal and primary metal on the London Metal Exchange. The full impact of tariffs on this spread is likely to be felt by Novelis, a leading producer of aluminum rolled products. As a result, Vedanta appears to be well-placed to take advantage of the current market conditions.

However, Investec has cautioned that there are potential risks to Vedanta’s growth, including the evolving situation with regards to Guinea bauxite licenses and alumina pricing. Bauxite is a key input for aluminum production, and any changes to licensing regulations or pricing could have a significant impact on Vedanta’s operations. As such, investors are advised to keep a close eye on these developments and their potential impact on Vedanta’s performance. Overall, the outlook for the non-ferrous segment is mixed, with Vedanta appearing to be well-placed to take advantage of current market conditions, but with potential risks on the horizon.

The Supreme Court (SC) of India has annulled the takeover of Bhushan Power and Steel Ltd (BPSL) by JSW Steel Ltd, citing irregularities in the insolvency resolution process. The SC found that JSW Steel had altered the terms of its bid, delayed payments, and reneged on its commitment to pay off operational creditors. The Committee of Creditors (CoC) and the Resolution Professional (RP) were also criticized for their handling of the case. The SC’s decision has raised questions about the effectiveness of the Insolvency and Bankruptcy Code (IBC) and the role of the Insolvency and Bankruptcy Board of India (IBBI) in regulating the resolution process.

The BPSL case began in 2017, when the Reserve Bank of India forced banks to subject 12 big defaulting corporate borrowers to the IBC pathway. Eight years later, several cases remain unresolved, and the BPSL case has joined their ranks. The SC’s decision has been criticized for its apparent disregard of alternative remedies that could have penalized offenders without causing significant harm to economic value and the reputation of India’s insolvency resolution process.

The IBBI, the relevant regulator, was not held accountable for its ineffective oversight of the resolution process. The SC’s decision has raised questions about whether the IBC process needs to be overhauled to prevent such setbacks. Some have suggested that the IBBI should be strengthened to become a true regulator, rather than just a framer of bylaws. Others have proposed adopting a US-style model, where the incumbent management is given a chance to revive the company under court supervision.

The SC’s decision has also highlighted the need for integrity and efficiency in the insolvency resolution process. The case has shown that poorly used assets need to be shuffled into more capable hands quickly, and that the judiciary should prioritize penalizing fraudsters rather than ripping up already built assets. The answers to these questions are not straightforward, but it is clear that the IBC process needs to be reformed to prevent such setbacks and ensure that insolvency resolution is done speedily and efficiently.

Overall, the SC’s decision in the BPSL case has significant implications for India’s insolvency resolution process and highlights the need for reform. The case has shown that the IBC process is not foolproof and that there are gaps that need to be addressed. The government and regulatory bodies need to take steps to strengthen the IBBI and ensure that the insolvency resolution process is transparent, efficient, and effective. This is essential for maintaining investor confidence and ensuring that India’s economy remains dynamic and competitive.

Nikita Saxena has been appointed as the Head of Digital Marketing at JSW Steel, a significant development in her career. Prior to this appointment, Saxena spent seven years at Mindshare, where she held the position of Senior Media Director. The announcement was made by Saxena herself on LinkedIn, a professional networking platform.

With over a decade of experience in the industry, Saxena brings a wealth of knowledge and expertise to her new role. Her areas of specialization include digital strategy, media planning and buying, and e-commerce. Throughout her career, she has had the opportunity to work with a range of reputable organizations, including Neo@Ogilvy, Interactive Avenues, Starcom Mediavest Group, and Impetus Infotech India.

Saxena’s appointment as Head of Digital Marketing at JSW Steel marks a significant milestone in her career, and it is likely that she will play a key role in shaping the company’s digital marketing strategy. With her extensive experience and expertise in digital marketing, she is well-equipped to drive business growth and success in the industry.

As a seasoned professional, Saxena has developed a strong understanding of the digital landscape and has a proven track record of delivering successful digital marketing campaigns. Her expertise in media planning and buying, as well as e-commerce, will be invaluable to JSW Steel as the company looks to expand its digital presence and reach new customers.

Overall, Nikita Saxena’s appointment as Head of Digital Marketing at JSW Steel is a significant development in the industry, and it will be interesting to see the impact she makes in her new role. With her wealth of experience and expertise, she is well-positioned to drive business success and growth in the digital marketing space. As she begins her new role, Saxena is likely to be focused on developing and implementing a comprehensive digital marketing strategy that aligns with JSW Steel’s business objectives and drives long-term success.

POSCO Group, a South Korean steelmaking giant, aims to enhance its competitiveness in the global steel market and energy value chains through collaborations with international peers, according to its chairman. During a three-day visit to Australia, POSCO Group Chairman Chang In-hwa met with Jayant Acharya, CEO of India’s JSW Steel, and Liu Jian, chairman of China’s HBIS Group, to discuss joint venture opportunities and technological collaborations. The meetings focused on accelerating the development of low-carbon production processes and expanding demand.

Notably, Chang and Acharya discussed their ongoing project to build an integrated steel mill in India, which was announced last October. The facility will have an annual capacity of 5 million tons. The World Steel Association named POSCO as one of 14 Steel Sustainability Champions for its work in 2024, acknowledging its efforts to reduce carbon emissions and improve sustainability.

Chang also toured Senex Energy’s gas fields in Queensland, Australia, which POSCO International Corp., the company’s general trading and energy exploration unit, acquired in 2022. Senex Energy is focused on gas and oil exploration, crude oil production, and oil pipeline transportation. The company aims to triple its natural gas production by 2026, which will supply approximately 10% of eastern Australia’s domestic demand.

The chairman’s visit to Australia highlights POSCO’s commitment to strengthening partnerships and exploring new opportunities to drive growth and sustainability in the steel and energy sectors. By working with international partners, POSCO seeks to expand its global footprint and reduce its environmental impact.

Fitch Ratings has downgraded the rating headroom for India’s steel giants, JSW Steel Limited and Tata Steel Limited, due to the challenges posed by cheap steel imports from China and the potential impact of aggressive tariff policies from various economies, including the US. The agency expects domestic steel prices to come under pressure in the financial year ending March 2026. JSW Steel’s current rating stands at BBB-/Negative, while Tata Steel’s is at BB/Stable.

Fitch expects both companies to breach their negative sensitivity thresholds for EBITDA leverage in FY25, with JSW surpassing 3.7x and Tata exceeding 3.0x. The outlook for FY26 remains bleak, with expectations of continued margin pressures. However, Fitch expects some recovery due to sustained domestic demand growth, a decline in key input costs, and China’s efforts to cut steel production.

To mitigate these challenges, Fitch notes that both companies have the flexibility to defer certain capital expenditures, creating financial buffers. The agency forecasts that both companies may return to mid-cycle margin levels by FY27, contingent upon the resolution of current pressures. However, sustained margin weakness is a key risk to the ratings. Tata Steel is also grappling with execution risks linked to the restructuring of its European operations, making it more vulnerable to state mining taxes.

A potential lifeline for the steel giants is the possibility of Indian government measures to shield domestic steelmakers from cheaper imports, such as imposing anti-dumping duties, which could positively affect their margin projections. The agency notes that the timing and scale of such measures remain uncertain and will depend on the government’s efforts to balance the interests of steelmakers and consumers. India’s steel demand is expected to grow by around 10% in FY26, driven by robust public spending and demand from the construction, infrastructure, and manufacturing sectors.

According to a recent HDFC Securities report, India’s steel sector has been experiencing significant growth, outperforming other major economies in the world. The sector has consistently demonstrated double-digit growth in recent years, a stark contrast to the demand contraction seen in most global markets. This growth has been driven by various factors, including rapid economic expansion, infrastructure development, and urbanization, among others.

The report highlights India’s steel sector as one of the fastest-growing in the world, with production and consumption levels increasing significantly. Furthermore, the sector’s growth has been driven by both domestic and foreign investments, with global majors such as POSCO and JSW Steel setting up facilities in the country.

Despite this growth, the report notes that falling steel prices have not been favorable for the sector’s profitability. The price slump has stemmed from a global oversupply of steel, leading to a decline in prices and profit margins for Indian steel producers. This has resulted in a decrease in the sector’s profitability, making it challenging for companies to maintain their earnings.

The HDFC Securities report attributes the price drop to various factors, including overcapacity in the global market, high inventory levels, and the impact of trade tensions and tariffs. The report warns that this trend may continue in the short term, making it crucial for steel companies to adapt and diversify their operations to stay competitive.

To mitigate the impact of falling prices, Indian steel companies are focusing on increasing their domestic capacities, improving efficiencies, and diversifying their product offerings. Additionally, the government’s initiatives to promote the use of domestically produced steel in infrastructure projects are expected to benefit the sector in the long run.

In conclusion, while the Indian steel sector has been growing rapidly, the current price slump poses a significant challenge for the industry. To maintain their competitiveness, steel companies must focus on increasing domestic production, improving efficiency, and diversifying their product lines. Additionally, the government’s support for the sector will be crucial in promoting domestic production and reducing reliance on imports, ultimately driving growth and creating more opportunities for the Indian steel sector.

A court in New Delhi has discharged JSW Steel Ltd, formerly known as Monnet Ispat, in a case related to alleged irregularities in the allocation and running of two coal blocks in Chhattisgarh. The court’s decision comes after JSW filed a discharge plea, citing immunity granted under the law, as the company took over Monnet Ispat under the Insolvency and Bankruptcy Code (IBC).

The case dates back to September 2012, when the Central Bureau of Investigation (CBI) filed a case against JSW and others related to the alleged irregular allocation of coal blocks between 1993 and 2005. The coal blocks in question, Gare Palma and Rajgamar Dipside, were allegedly allocated to JSW’s predecessor, Monnet Ispat, without a transparent bidding process.

However, under the IBC, JSW was able to take over Monnet Ispat through a resolution process, which granted the company immunity from prosecution. The adjudicating authority approved JSW’s application to take over Monnet Ispat, and the court has now discharged JSW from the case.

This decision is significant, as it marks another instance of a company being able to escape criminal prosecution under the IBC. The IBC has been criticized for providing an easy exit route for companies involved in financial wrongdoing, and cases like this one have raised concerns about the lack of accountability in the country’s corporate sector.

The discharge of JSW also raises questions about the effectiveness of the CBI’s investigation into the coal block allocation scam. The CBI had filed multiple cases against various companies and individuals involved in the scam, but many of these cases have since been closed or discharged due to various reasons.

Overall, the discharge of JSW Steel Ltd in the coal block allocation case highlights the challenges in holding companies accountable for financial wrongdoing in India, and the need for a more robust regulatory framework to prevent such cases in the future.

JSW Steel has reported its crude steel production for May 2024, posting a production of 20.98 lakh tonnes, which is a 4% year-on-year (YoY) decline. This figure is lower compared to the 21.67 lakh tonnes produced in May 2023. Despite the decline, the production volume for the month is still relatively stable compared to the previous month, when the company produced 20.85 lakh tonnes. The YoY decline is likely due to various factors such as raw material supply chain disruptions and fluctuations in demand. However, JSW Steel has been working to optimize its operations and improve productivity, which has helped the company maintain its production levels overall. The company’s production figures for May 2024 are in line with market expectations, and investors will be monitoring the company’s performance closely as it looks to increase its steel production and profitability in the coming months.

Tata Steel and JSW Steel, two of India’s largest steel companies, are facing a challenge from rising Chinese imports. The COVID-19 pandemic had led to a surge in demand for steel in India, resulting in a significant increase in prices and profits for the steel industry. However, with the pandemic under control, demand has slowed down, and prices have fallen. Meanwhile, Chinese steel exports have increased, posing a threat to Indian steel companies.

According to data, China’s steel exports to India have risen by 34% in the first quarter of 2022 compared to the same period last year. This has led to a decline in Tata Steel’s and JSW Steel’s profits, with the companies’ cash piles shrinking. Tata Steel’s cash and cash equivalents stood at Rs 22,300 crore in the first quarter of 2022, down from Rs 31,400 crore in the same period last year. JSW Steel’s cash and cash equivalents declined to Rs 14,300 crore from Rs 18,400 crore over the same period.

The rise in Chinese imports is expected to continue, posing a challenge to Indian steel companies. The companies are likely to face pricing pressure and may need to reduce production to maintain profitability.

Indian steel giant, JSW Steel, has seen its $151 million coal deal in Mozambique frozen due to a legal dispute. The deal, closed in 2017, was to acquire coal from Riversdale Mining, a Mozambican company, to fuel its Indian operations. However, the Mozambican government has been challenged in court by a local company, Montepuez Ressureição, which claims the deal was illegal. The local company alleges that the government did not follow proper procedures when selling the blocks of coal and that the deal was not transparent. The court has suspended the deal, citing irregularities. JSW Steel has denied any wrongdoing and is seeking to resolve the issue. The dispute has left the Indian steel giant in a precarious position, as it needs the coal to meet its production needs. The row highlights the challenges faced by foreign investors in Mozambique, where corruption and poor governance can make deals vulnerable to legal challenges.

India’s largest steelmaker, JSW Steel, has been sidelined by a legal dispute over a coal concession in Mozambique. The company had agreed to buy Minas de Revuboè (MdR) in May, but the Mozambican government revoked the license and awarded it to Stonecoal SA, which is directed by four employees of JSW Steel’s rival company, JSPL. The dispute has led to a legal battle between MdR and Mozambique’s government, with MdR seeking to have the original concession reinstated. The issue is significant for Mozambique, which is facing civil unrest and a deepening economic crisis. The deal was valued at $50 billion and would have provided a major boost to Mozambique’s economy. The dispute has also impacted India’s steel industry, as JSW Steel is one of the country’s largest steelmakers and needs to source large volumes of coking coal and iron ore for its operations. The dispute is set to continue, with MdR seeking to have its concession restored and JSW Steel trying to salvage the deal.

India’s largest steelmaker, JSW Steel Ltd, has been affected by a legal dispute over a coal concession in Mozambique. The company agreed to buy Minas de Revuboè (MdR) from the estate of Ken Talbot, an Australian mining tycoon, in May. However, the Mozambican government revoked MdR’s lease, citing a lack of exploration works. The government then offered the concession to Stonecoal SA, which has four directors employed at JSW’s sister company, JSPL. The dispute has triggered a legal battle between MdR and the Mozambican government, with MdR seeking to have the original concession reinstated. The company has also initiated arbitration proceedings in Geneva. The dispute comes at a critical time for Mozambique, which is facing civil unrest and disputed elections. The outcome of the dispute will impact JSW’s plans to mine more coking coal and iron ore, which are essential for its steel operations. The company has spent $300 million on the project and is seeking to complete the sale to JSW.

JSW Steel Limited has received a notice from the Office of Assistant Commissioner of Central Tax, Hosapete Division, demanding a tax amount of ₹1,29,36,981 along with interest and penalty of ₹1,24,72,581 and ₹1,29,36,891, respectively. The matter dates back to FY 2017-18, when the company suo-moto reversed Input Tax Credit (ITC) on a monthly basis and then reclaimed excess ITC in July 2019. However, the reclaim was disallowed due to being made beyond the allowed time limit under Rule 42 (2) (b) of the CGST Rules, 2017. The company plans to challenge the order by filing an appeal. This information was disclosed under Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.

ICICI Securities has upgraded Tata Steel and JSW Steel to a “Buy” rating, citing improvement in the profitability and cash flow of the steel industry. The brokerage firm has also kept its overweight call on the metal sector, citing factors such as demand revival, production cuts, and consolidation in the industry. ICICI Securities expects the sector to continue its upward momentum, driven by increased demand, cost control measures, and improving corporate profitability. The top picks in the sector, according to ICICI Securities, are Tata Steel, JSW Steel, and Hindalco Industries. The firm has also listed top avoided stocks as Steel Authority of India (SAIL) and Nippon Denro Opco (formerly known as NMDC). Overall, ICICI Securities is optimistic about the metal sector’s prospects, citing expectations of a metal price uptick, reduction in inventory levels, and improvement in realizations.

Sajjan Jindal, Managing Director of JSW Steel, is leading the company’s efforts to expand in the electric vehicle (EV) market. JSW is in talks with multiple auto majors, including Chinese company Geely, to form joint ventures for EV production. The company is also working on launching its own EV lineup, including passenger and commercial vehicles. The partnership with SAIC, the parent company of MG Motor, is not exclusive, and JSW is free to explore other partnerships to expand its presence in the auto sector. The lack of majority stake in MG Motor India could be a sticking point, as SAIC holds 49% of the company, while JSW owns 35%. JSW has been in discussions with other companies, including Ford and Volkswagen, but no deals have been confirmed. The company is betting big on the Indian EV market and is aggressively pursuing multiple opportunities to gain a strong foothold.

JSW Steel has completed a restructuring process in the US, merging two subsidiaries, Purest Energy LLC and Caretta Minerals LLC, into their respective holding companies, Periama Holdings LLC and Planck Holdings LLC. This move aims to simplify operations, reduce complexity, and strengthen the company’s market presence in the US. The restructuring process does not involve the sale of any overseas assets or changes to the shareholding pattern, as the affected subsidiaries were wholly owned.

The merger is expected to improve operational efficiency, financial consolidations, and regulatory compliance, while reducing redundancies and overhead costs. The two merged companies operated in coal mining and met coal production in West Virginia, with Caretta Minerals reporting a revenue of approximately Rs 72 crores in FY23. JSW Steel plans to focus on simplification and streamlining its group structure to improve business operations and drive growth.

The company intends to expand its operations further, aiming to reach a production capacity of 50 million tonnes by FY31. With strong growth expectations, JSW Steel is optimistic about its future performance. The restructuring is an important step in the company’s efforts to strengthen its US market presence and build a more efficient and robust business model.

According to Nuvama Research, Vedanta will be severely impacted by future volumes from Karnataka mines. The company will need to pay a 3x royalty rate of 15% as well as a Rs 100 per tonne tax on iron ore. In contrast, NMDC will only need to pay a Rs 100 per tonne tax and an additional 22.5% tax on the Indian Bureau of Mines (IBM) price of iron ore. Nuvama suggests that Vedanta may struggle to pass on the entire increase in costs to customers. JSW Steel, which operates captive mines, will only need to pay a low Rs 100 per tonne tax. However, the company may still be indirectly affected by higher prices from NMDC and other miners. Overall, the new taxes and royalty rates are likely to have a significant impact on Vedanta’s profits and operations.

India is likely to impose a “safeguard duty” or temporary tax of up to 25% on steel imports to curb cheap imports from China, according to industry and government sources. The decision was made following a meeting chaired by Commerce Minister Piyush Goyal, where small industries dropped their opposition after being assured they would not be hit by higher steel prices. Small manufacturers, who consume around 1 million metric tons of steel annually, are expected to benefit from the arrangement, with prices around 20% lower than market rates. Major steel producers such as JSW Steel, Tata Steel, and ArcelorMittal Nippon Steel India have raised concerns about cheaper imports from China. The import of steel has surged to a record high in the current financial year, with India becoming a net importer of the alloy. The government is investigating whether cheap imports from China have harmed domestic steelmakers and will impose the temporary tax once the investigation is complete.

JSW Steel, an Indian steel giant, has formed a strategic partnership with South Korea’s POSCO (Pohang Iron and Steel Company) to collaborate on various business areas. As part of the partnership, the companies will jointly operate a 6 million tons per annum steel plant in India. Additionally, JSW Steel will supply automotive-grade steel to POSCO’s affiliates in South Korea and Europe. The duo will also work together in the development of electric vehicle (EV) batteries and renewable energy projects.

The Enforcement Directorate (ED) attached Bhushan Power’s assets under the Prevention of Money Laundering Act (PMLA) due to alleged fraud and money laundering by the company’s promoters. The Committee of Creditors (CoC) challenged the attachment during the corporate insolvency resolution process (CIRP) under the Insolvency and Bankruptcy Code (IBC), claiming it violated IBC protections. The National Company Law Tribunal (NCLT) and National Company Law Appellate Tribunal (NCLAT) approved JSW Steel’s resolution plan, vacating the ED’s attachment. The ED appealed to the Supreme Court, opposing the plan and claiming that the benefit of Section 32A of the IBC would not apply. In December, the ED filed an affidavit stating that, without prejudice to its rights, it would allow JSW Steel to take control of the attached properties. The Supreme Court granted permission, directing the ED to hand over control of the properties to JSW Steel. The case involves a complex interplay between insolvency proceedings under the IBC and asset attachment under the PMLA.

Lancy Varghese, Company Secretary and Compliance Officer of JSW Steel Limited, has resigned from his position effective December 23, 2024. He will be pursuing an alternative career opportunity outside the JSW group. The company has acknowledged his dedication and commitment over his 25-year tenure and wishes him well in his future endeavors. Lancy expressed gratitude to the Board of Directors, management, colleagues, and stakeholders for their support and cooperation during his time at the company. His resignation is disclosed under the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

The Competition Commission of India (CCI) approved four deals in a row, including JSW Steel’s subsidiary buying Thyssenkrupp Electrical Steel India for ₹4,051 crore and Abu Dhabi National Oil Company acquiring the entire stake of chemical company Covestro AG. Further, Blackstone’s associate acquired stakes in Bagmane Developers and Bagmane Rio, and purchased a chemical facility. There were also clearance for joint ventures of foreign companies participating in various deals across different jurisdictions. These acquisition deals valued at multiple million dollars include JSW and JEF Steel acquisition.

JSW Steel’s performance is expected to be impacted in Q2 FY25, with its Profit After Tax (PAT) likely to decline by 35.2% YoY to Rs. 1,550 crore, according to a report by PL Capital. Despite this, the company’s crude steel production has seen a rise, with a 6-7% year-on-year (YoY) increase in Q2 FY25, reportedly led by strong demand and more efficient production. The company’s production stood at 6.77 million tonne (MT) in Q2 FY25. While the production numbers are a positive sign, the PAT decline is attributed to various factors, including pricing pressure, raw material cost inflation, and a higher tax outgo. The company’s stock has traded positively on the basis of its forecasted production growth, indicating investor optimism about its future performance. However, the 35.2% YoY decline in PAT is a concern, and the company’s actual performance will be closely watched by the market.

Source: https://www.moneycontrol.com/