JSW Steel

Exhilarating! This is the word that keeps coming back to me as I
 attempt to summarise our performance in 2007-08.  It was a landmark J5W
 year comprising significant achievements:
 
 - We established a strong presence in the global value-added steel
 segment with the acquisition of the US assets and UK service centre
 
 - We commissioned a new 1 MTPA cold rolled mill complex, which will
 catalyse the growth of the automobile and auto-component sector in
 South India
 
 - We entered the long-product segment through the SISCOL merger,
 de-risking our business model from cyclical troughs in any one segment
 
 - We accelerated the capacity expansion projects at Vijayanagar which
 are ahead of schedule by 6 months
 
 - We progressed towards raw material security through the acquisition
 of mining concessions in Chile (iron-ore) and Mozambique (coal)
 
 - We obtained an iron ore prospecting license in Jharkhand
 
 - We undertook significant initiatives in setting up integrated
 steel-manufacturing facilities across multiple locations
 
 The benefits of these initiatives, I am sure, will reflect in superior
 performance and sectoral leadership over the coming years.
 
 The global environment
 
 The demand for steel worldwide is expected to sustain over the coming
 years. This optimism is based on important factors.
 
 Sizeable global demand: The demand for steel is expected to rise
 significantly over the coming years largely due to the growing
 consumption pattern of emerging economies.
 
 China factor: The Chinese Government has mandated a closure of 100 MTPA
 iron-making and 55 MTPA steel- making capacity up to 2010 in a phased
 manner to be replaced with global standard facilities. The anomaly is
 that commissioning of new capacities has been faster than closure of
 operating units in China. As a result, the Chinese steel production
 capacity grew from 423 MnT in 2006 to 489 MnT in 2007 with the net
 capacity addition expected to taper off in the coming years.
 
 Emerging economies: In the BRIC economies, the CAGR of steel
 consumption has grown by 16% in 2006-2007 as against the world steel
 consumption growing at 7% CAGR. This has been driven by huge
 investments in infrastructure development activities.
 
 Regional imbalances: Steel is increasingly emerging as a regional play
 as the cost of logistics becomes prohibitive. This leads to significant
 regional imbalances, providing opportunities for low-cost steel
 manufacturers.
 
 Our growth optimising initiatives
 
 We have drawn a blueprint for capitalising on emerging global
 opportunities by getting closer to clients and
 
 strengthening our presence in profitable geographies.
 
 Asset acquisition in the US: This initiative will establish our
 presence in the high-end oil and gas industry in the US, one of the
 largest markets for this product, providing the maximum value addition.
 Our established credentials as a supplier of quality galvanised
 products will enable a faster entry in the sector.
 
 Asset acquisition in the UK: This inorganic initiative will help us
 service the European automobile and construction sectors. The UK
 facility has the capability to process products manufactured at our
 Indian plants. Hence, we will
 
 leverage the low-cost advantage of India in the manufacture of basic
 steel and strengthen our nearness to clients.