created date: 9/12/2017 5:57:15 pm

A N N U A L R E P O R T

T O W I N

T H E W I L L

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Shri O.P. Jindal | 7th August 1930 - 31st March 2005Founder and Visionary, O. P. Jindal Group

OUR SOURCE OF INSPIRATIONOUR PILLAR OF STRENGTH

A visionary with impeccable business excellence, who envisioned the dream of a self-reliant India.

His journey from humble beginnings to being amongst the most successful self-made industrialists of his times.

A philanthropist and a social change maker, will continue to be a source of inspiration for generations to come.

JSW Steel is India’s leading steel producer and is placed among the World’s most illustrious steel companies.

With decades of experience to its credit, the Company’s winning attitude stems from its dynamic culture.

Corporate Overview

2 The Will To Win

4 JSW Steel at a Glance

6 The Will To Evolve

8 Business Model

10 Key Performance Indicators

12 Product Portfolio

14 Message from the Chairman & Managing Director

16 Board of Directors

18 Facets of Strength and Agility

20 R&D

22 The Will To Perform

24 The Will To Be Prepared

26 The Will To Be Agile

28 The Will To Be Visible

30 The Will To Augment

32 Capex Plan

33 Risk Management

34 Financial Highlights

36 Sustainability at JSW Steel

Contents

Statutory Reports

40 Management Discussion and Analysis

66 Business Responsibility Report

82 Directors’ Report

132 Report on Corporate Governance

Financial Statements Standalone Financial

Statements

161 Independent Auditor’s Report

166 Balance Sheet

167 Statement of Profit & oss

168 Statement of Changes in Equity

169 Cash Flow Statements

170 Notes to Financial Statements

Consolidated Financial Statements

245 Independent Auditor’s Report

250 Balance Sheet

251 Statement of Profit & oss

252 Statement of Changes in Equity

253 Cash Flow Statements

255 Notes to Consolidated Financial Statements

Crude Steel Production26% Y-o-Y Growth

15.8 MnT

Saleable Steel Sales20% Y-o-Y Growth

14.7 MnT

Net Profit After TaxNegative to Positive

`3,467 Crores

Diluted EPS

`14.58

Revenue from Operations 32% Y-o-Y Growth

`60,536 Crores

Operating EBITDA90% Y-o-Y Growth

`12,174 Crores

Highest Ever Annual Performance

2

T H E W I L L T O W I N

Where there’s a will, there’s a way, they say!

For JSW Steel, this maxim has served as the bedrock of our corporate philosophy and actions. Across our journey, we have demonstrated what a strong will can do.

Growing from 1.6 MTPA of capacity in 2002 to 18 MTPA at present, and becoming a leading steel player in India.

It is refle ted in our commitment to value-creation while maintaining aggressive growth, without losing sight of the need to be responsible and inclusive. The year 2016-17 was a validation and outcome of this will, where JSW Steel reported a strong performance despite subdued demand and volatile import prices.

THE WILL TO WIN

Annual Report 2016 -17 3

FINANCIAL STATEMENTSCORPORATE OVERVIEW STATUTORY REPORTS

Th

e Will T

o Win

The lack of momentum in the global economy, lacklustre demand growth in India, and the liquidity crunch post demonetisation, all put severe pressure on our business. We responded by recalibrating our strategy and executing it with agility to straddle both domestic and export sales, at an industry-leading volume growth.

Our rapid capacity ramp-up together with smart management of raw materials helped us not just report sales, but generate significa tly higher margins and free cash fl ws. The investments in product development saw us increase the share of value-added products in our portfolio and investments in the retail channel in India have helped us reach our customers better.

Our balance sheet is stronger than ever, allowing us headroom to augment capacities faster and at a lower capital cost, in order to contribute more effectively to the building of a new India. A strong will is about never stopping. It is about a passion for excellence and a strong desire to win. At JSW Steel, we believe that our Will to Win, will continue to deliver superior results and help us grow together. With our country. With our stakeholders.

4


The flagship compa y of the JSW Group, JSW Steel is India’s leading steel producer with integrated, end-to-end steel manufacturing capabilities.

The Company has a global presence with strong technological competencies. Poised to lead the market, JSW Steel has achieved stellar growth and has maintained its winning streak through the years. Supported by our four core values, we strive for continued distinction in the industry.

Key Metrics

Global recognition for quality and efficienc while nurturing nature and society.

Supporting India’s growth in core economic sectors with speed and innovation.

TransparencyStrive for excellenceDynamismPassion for learning

JSW Steel at a Glance

Vision Mission Core Values

Installed capacity

18MnT

Crude Steel Production

15.8MTPA

Export footprint

100+Countries

Manufacturing facilities across India

7

Number of Employees

11,848

Retail Outlets (Exclusive + Non-exclusive)

7,300

MAHARASHTRA



JSW S

Teel aT a Glanc

e

Integrated Manufacturing ProcessFrom sourcing of raw material to manufacturing, further distributing of value added products, a fully integrated solution provider.

Global PresenceInternational mining and value-added facilities in the Americas and Africa.

Strong Distribution Network and Export PresencePresence in 5 continents and over 100 countries.

Strategic LocationsManufacturing plants strategically located to efficie tly service our customer’s needs.

Technological CompetenceBest-in-class steel making technologies such as Corex, DRI, Blast Furnace etc.

Diversified roduct PortfolioExtensive range of standard and value-added products including HR, CR, Coated, WR, TMT, Electrical Steel, Galvanised, Tin Plate, Color Coated etc.

Leading Steel Manufacturer in India18 MTPA installed capacity and 15.8 million tonnes of crude steel production, all from our 7 manufacturing plants across India.

Inclusive GrowthThe philosophy of inclusiveness is deeply ingrained in our operations. Its our constant effort to make sure all our stakeholders are empowered.

6

3

7

2

5

1

4

1. Vijayanagar WorksThe fi st integrated steel plant in India to reach 10 MTPA capacity at a single location. Also the first to use Corextechnology.

2. Dolvi WorksWith its own jetty with a 10 MTPA capacity, this plant is very strategically placed, capitalising on locational advantage. A capacity augmentation drive has been recently initiated.

3. Salav WorksLocated near Dolvi Works, Salav works is a DRI plant. It has a capacity of 0.90 MTPA.

4. Salem WorksThe largest plant producing special alloy steel in India. A zero efflue t plant, Salem Works caters to the needs of the auto sector.

5. Vasind WorksThe fi st plant of JSW Steel, commissioned in 1982. Lies close to ports in Mumbai.

6. Tarapur PlantLargest producer and exporter of Coated Products to Europe, Africa, North and South America and Middle East regions. Specialised in manufacturing ultra-thin coated products.

7. Kalmeshwar PlantThe fi st plant producing Galvanised and Colour Coated Steel in India.

Plant Distribution

India’s Leading Steel Producer

6


The Will To Evolve

Over the years, JSW Steel has evolved to become one of the largest steel making companies and at every step, we have established milestones marking our resolve to win.

2002 2004 2005 2006

Acquired Southern Iron and Steel Company (SISCOL)

Colour Coating Line Acquired EURO IKON

1.6MTPA

2.5MTPA

3.8MTPA

Iron Ore mines acquired in Chile

JSW-JFE Strategic Partnership

3.5 MTPA of HSM II

Coal mining concessions in US

7.8MTPA

4.8MTPA

2007 2008 2009 2010

Acquisition of 49.3% stake in Ispat

HSM II capacity expansion to 5 MTPA

New CRM2 — Phase I

4 MTPA — Pellet Plant

1 MTPA — Coke Oven Plant

Acquired 50% stake in Vallabh Tinplate

Acquired Welspun Maxsteel

14.3MTPAPost Ispat merger

2010-11 2012 2013 2014

New CRM2 — Phase 2

0.2 MTPA Electrical Steel Mill

74% stake in Praxair’s the industrial gases joint venture

Won 5 iron ore mines in Karnataka (111 million tonnes estimated resources)

Won Moitra coal mine in Jharkhand

18MTPA

2015 2016 2017



Th

e Will T

o evo

lve

Dolvi capacity expansion to 10 MTPA, 1.5 MTPA Coke Oven at Dolvi Coke Projects Limited

Vijaynagar: BF-3 revamp & upgradation, CRM-1 complex capacity expansion, Pipe Conveyor System for iron ore and new water reservoir

Salem: Capacity expansion to 1.2 MTPA

Vasind and Tarapur: Modernisation-cum-capacity enhancement to 2.7 MTPA of CRFH and 2.4 MTPA of Galvanising/Galvalume, 0.2 MTPA Tin plate mill

Capacity (MTPA)

Revenue (USD mn)

Production (MTPA)

EBITDA (USD mn)

2017

2017

2017

2017

18.0

9,336

15.80

1,878

2010

2010

2010

2010

7.8

3,006

6.0

641

2002

2002

2002

2002

1.6

268

1.3

43

81

EBITDA/ton (USD/ton)

Product Mix

Key projects by 2020

Market Cap (USD mn)

2017 2017

2017

128 7,016

2010 2010

2010

112 3,565

2002 2002

2002

34

FLATS

FLAT / LONG / SPECIAL STEEL / HIGH VALUE-ADDED / AUTO / ELECTRIC GRADE

FLATS / LONGS, SPECIAL STEEL / VALUE-ADDED

CAGR FY 2002-17: 18%

CAGR FY 2002-17: 26%

CAGR FY 2002-17: 9%

CONTINUOUSLY EXPANDING PRODUCT CANVAS

CAGR FY 2002-17: 28%

86X INCREASE IN VALUE

CAGR FY 2002-17: 18%

Calculated as consolidated EBITDA/ steel sales From 31st March, 2002 to 31st March, 2017 USD/ ` = 64.8386 (RBI reference rate as on 31st March, 2017)

8


Inputs

Total CashTotal Equity

Seven Manufacturing Sites

Vijaynagar / Dolvi / Salav / Salem / Vasind / Tarapur / Kalmeshwar

Key Relationships

Customers / Suppliers / Distributors & agents, Industrial partners for

secondary raw materials

11,848 Employees

Quantity of Raw Materials Iron ore 25.5 MnT / Coal Coke 13.1 MnT

Interest Bearing Liabilities

Business Activities

PROCESS KEY PRODUCTS

Planning

Raw material

Procurement

Product Development

Production Sales Retail Marketing

HOT ROLLED COLD ROLLED

COLOUR COATED GALVANISED

GALVALUME TMT BARS

WIRE RODS SPECIAL ALLOY STEEL

ELECTRICAL STEEL

Business Model



Bu

SineSS M

od

el

Outcomes Outputs

Strategic Focus Areas

Selective Growth

Maintain market share of >15% through selective organic and inorganic growth

Consider inorganic opportunities that are value accretive

Diversific tion

Increase proportion of value-added products

Diversify customer base, both within India and abroad

Multiple Industries including auto, infrastructure, engineering, OEM etc.

Continue to focus on rural markets in India

Brand presence through nearly 200 JSW Shoppes in semi-urban and rural areas

Backward & Forward Integration

Evaluate raw material assets to secure key raw material supplies

To operationalise fi e iron ore

mines in Karnataka, secured

through auction

Focus on cost reduction and energy efficienc

Won Second Prize in the

National Energy Conservation Awards in the sector in FY17

Prudent Financial

Principles

Continuously seek to improve financial p ofil

Reduction of debt profile, achi ving free cash fl w, diversified sou ces of capital

Manage capacity expansion and debt profil

Committed to maintain our debt-to-

EBITDA ratio of 3.75 and net debt to

equity ratio of 1.75

Sustainable Business Development

Committed to sustainable and eco-friendly technologies Captive mines, zero efflue t plants, socially committed

Customers

• Product quality or product yield optimisation

• Process and energy efficienc

Society

• Less water and energy used in industrial processes

• More efficie t procurement and use of non-renewable resources

Shareholders

• Declared dividends of `654.6 Crores (including corporate tax on dividends)

Employees

• Total No. of Employees: 11,848• Employee Benefit Expenses:

1,168 Crores

Government (contribution to exchequer)• ` 5,198 Crores

• Revenue from Operations:` 60,536 crores

• Consolidated EBITDA:` 12,174 crores

• PAT: ` 3,467 crores

• Return on CapitalEmployed: 14.8%

• New Grades Developed /Customised: 79

10


Key Performance Indicators

Profit & oss Statements

38,763

48,527 49,658

40,354

56,244

FY 12-13 FY 13-14 FY 14-15 FY15-16 FY16-17

Gross Turnover (in ` crores)

The Gross Turnover increased because the Company explored opportunities in the export market, while maintaining sales in the domestic market.

6,309

8,783 8,872

6,369

11,543

FY 12-13 FY 13-14 FY 14-15 FY15-16 FY16-17

Operating EBITDA (in ` crores)

Operating EBITDA increased due to multiple performance improvement initiatives taken up during the year to focus on yields and productivity.

17.819.4 19.2

15.6

22.1

FY 12-13 FY 13-14 FY 14-15 FY15-16 FY16-17

Operating EBITDA Margin (%)

Operating Margin increased due to higher revenues from sales and better cost management.

3,828

4,508 4,5754,777

5,198

FY 12-13 FY 13-14 FY 14-15 FY15-16 FY16-17

Contribution to Government & Society (in ` crores)

12% 5-YEAR CAGR

Profit After Tax (in ` crores)

Increase is PAT due to sales volume growth and the introduction of various performance improvement initiatives.

FY 12-13 FY 13-14 FY 14-15

FY15-16

FY16-17

1,8011,335

2,166

(3,498)

3,577

FY 12-13 FY 13-14 FY 14-15

FY15-16

FY16-17

1,8011,335

2,166

(3,498)

3,577

In line with profitabilit

*Face value of equity shares were sub-divided from ` 10/share to ` 1/share.

Earnings Per Share (in `)

FY 12-13 FY 13-14 FY 14-15

FY15-16

FY16-17

79.3

53.9

88.2

(14.75)*

14.8*



Key P

erforM

ance in

dic

aTorS

Balance Sheet

Shareholder Metrics

0.82

1.101.02

1.71

1.53

FY 12-13 FY 13-14 FY 14-15 FY15-16 FY16-17

Adjusted Debt Equity Ratio (%)

37,607

49,70353,792

52,999 53,293

FY 12-13 FY 13-14 FY 14-15 FY15-16 FY16-17

Gross Fixed Assets (in ` crores)

Gross block increased during the year primarily on account of capitalisation of the Dolvi Phase 1 Expansion and augmentation of Vijayanagar BlastFurnace 2 capacity.

881973

1,033

844

997

FY 12-13 FY 13-14 FY 14-15 FY15-16 FY16-17

Book Value Per Share (in `)

8.52

12.17 12.63 12.56

15.80

FY 12-13 FY 13-14 FY 14-15 FY15-16 FY16-17

Crude Steel Production (MT)

16% 5-YEAR CAGR

8.87

11.86 12.03 12.13

14.77

FY 12-13 FY 13-14 FY 14-15 FY15-16 FY16-17

Saleable Steel Sales (MT)

14% 5-YEAR CAGR

10.011.0 11.0

7.5

22.5

FY 12-13 FY 13-14 FY 14-15 FY15-16 FY16-17

Dividend Per Share* (in `)

*Of `10 per share

12


Product Portfolio

We have a wide offering of Flat and Long products and we continuously work towards enhancing our value-added products to address growing demand for value-added steel.

Flat Products

HOT ROLLED

GALVALUME

COLD ROLLED

COLOUR COATED PRODUCTS

GALVANISED

ELECTRICAL STEEL

Application

Cold Rolling & Galvanising, Drawing & Press Forming, Electrical Stampings & Forming, Welded Tubes & Pipes, Line Pipes, Structural & General Engineering, High Tensile Structural Applications, Chequered Sheets & Plates for Structural Use, HSLA Grade for Automobile & Other Engineering Applications, LPG Cylinders, Boiler Tubes & Pressure Vessels, Medium Carbon Steel, Corrosion Resistant Steel

Application

Roofing and Cladding, Du ting, Boxes, Coolers, Furniture, Heat Plates, Solar Heating Panels, Electrical and Light Fittings, Agricultural Equipment, Sandwich Panels, Automotive

Application

Automobile, White goods, Cold formed sections, Drums & Barrels, Furniture

Application

White goods and construction

Application

Roofing and Cladding, Du ting, Boxes, Coolers, Furniture, Heat Plates, Solar Heating Panels, Electrical and Light Fittings, Agricultural Equipment, Sandwich panels, Automotive

Application

Electric Motors, Power Generation, Nuclear Power Stations, Domestic Appliances, Transformers & Automotive electricals



Pro

du

cT P

orTfo

lio

Long Products

Continuously Enriching Product MixWe continue to develop new products and capture niche markets.

Key OEM Customers

TMT BARS WIRE RODS SPECIAL ALLOY STEEL

Application

Construction and Infrastructure

Automotive Grade Steel

Enhanced focus on cold rolled, galvanised and galvanneal products for body panels of automobiles

Manufactured at a new CRM2 complex

Automotive

Bajaj Auto Ford Honda Hyundai John Deere M&M Maruti Suzuki Nissan Tafe

Tata Motors Toyota TVS Volvo Eicher Volkswagen Renault Toyota Motors Ashok Leyland

Consumer Durables

Haier LG Samsung Whirlpool

Bearings

FAG Koyo NRB Bearings SKF Timken

Colour Coated Products

Largest color coated facility to address construction, warehousing and roofing requirements

State-of-the-art colour coating line for appliance grade products used in consumer durables

Electrical Steel

Commissioned Cold Rolled Non-grain Oriented (CRNO) facility to address domestic demand by substituting imports of high grade electrical steel

Application

Automobile, General engineering, Cold drawing, Cold forming, Spring applications, Welding, Wire Ropes, Tools, Heat Treatment, Machining, Bearings, Office and Householdequipment

Application

Gears, Crank shafts and Bearings in the automotive sector

14


Message from the Chairman & Managing Director

An all-time high performance2016-17 saw JSW Steel achieve many benchmarks and report our best-ever results. At 15.8 million tonnes our crude steel production was the highest ever, and so were the total sales of 14.7 million tonnes. This included value-added steel sales of 5.06 million tonnes, that represents an increase of 17%.

Our production volume grew by 26%, vis- a-vis the domestic industry growth of 8.5% and global growth of 0.8%. Similarly our sales grew by 20% vis- a-vis the domestic industry consumption growth of 2.6% and global consumption growth of 1.0%.

We reported our best ever EBITDA at ` 12,174 crores which is almost double of the previous year’s figure. Standalone EBITDA Margin at ` 7800 per tonne reflects our healthy operational performance.

Sajjan Jindal, Chairman & Managing Director

Our Profit After Tax was also the highest ever, at ` 3,467 crores, a testimony to our efficient operations and robust cost management. As a result, our Board proposed a dividend of 225%, the highest ever payout.

A robust Balance SheetOur performance also helped us strengthen our balance sheet with significant improvement in our key ratios. Net debt to EBITDA improved to 3.41 times, from 6.39 times, and net debt to equity improved to 1.85 times from 2.18 times.

One of the key reasons for our strong balance sheet is our ability to set up capacities, both greenfield and brownfield, or make acquisitions at globally competitive investment costs of around $550 per tonne. This has resulted in lesser

Dear Shareholders,The ‘Will to Win’ is a relentless pursuit of excellence and of doing better each day. At JSW Steel, we have built our business on this principle, which enables us to overcome any challenges or constraints that come our way, just like we did in 2016-17.

I am delighted to share with you that JSW Steel delivered strong operational performance in FY 2016-17 and recorded its highest ever production, sales, consolidated EBITDA and profit after tax.



MeSSaG

e froM Th

e ch

airMan &

Man

aGinG d

irecTo

r

interest & depreciation to service and provide adequate cash accrual to sustain our growth plans, without diluting financial policies of the Company to maintain net debt to EBITDA at 3.75 & net debt to Equity at 1.75 times. That explains why, at 14.8% our Return on Capital Employed (ROCE) is one among the top 5 steel companies globally.

A promising futureOur numbers for 2016-17 set the stage for an even better performance in the current year. We have provided a crude steel volume guidance 16.5 million tonnes, at a 4% growth, while the growth in sales volume is guided 5% higher, at 15.5 million tonnes. We will continue to focus on increasing the share of the value-added products basket in our overall top line. JSW Steel will also scout for organic and inorganic growth opportunities to expand its footprint.

Integrating backward. Innovating forward.The Government has put in place a transparent mechanism for allocation of mineral resources through auction. We participated in auctions of iron ore mines in Karnataka and won 5 mines in October, 2016, which have estimated reserves of ~111 million tonnes, which meets approximately 20% of the total requirement at Vijayanagar. The Company also secured one coking coal mine in auction in the State of Jharkhand. We are striving to commence mining at the earliest, while we continue to bid for more mines, both iron ore & coal.

We continue our efforts to preserve our investments in Plate & Pipe Mill in USA, Coal Mines in USA & Mozambique and Iron ore Mines in Chile.

We are investing in people and sustainable practices to remain among the world’s best run steel companies. To make ourselves future proof, we have recently embarked on a digitisation journey, to do a full digital makeover plan and improve efficiency in the manufacturing processes and reduce costs.

Global steel industryGlobal economy is projected to grow by 3.5% in CY17. The overall macroeconomic situation looks far better than previous year. While Global steel industry continue to grapple with over capacity, weak demand growth, dumping of steel at predatory prices by some countries & volatile input prices; improving growth momentum in advanced & key emerging markets & broad-basing of trade remedial measures will provide stability to steel industry.

Aligned to India’s aspirationsIndia with its stable government, strong reforms, rising infrastructure spend & robust consumption demand will provide a platform to reach per capita steel consumption of 160 kg & total steel capacity of 300 million tonnes by

2030 as envisaged by National Steel Policy 2017. Also trade remedial measures taken by the Government of India will provide level playing field to this strategic industry to revive investment cycle & create employment opportunities.

The budgetary allocation of ` 4 trillion for infrastructure, water and gas pipelines, renewable energy and road sector should fuel enhanced economic activity, and as a result, steel demand. Together with this, a normal monsoon will also augur well for the economy. Therefore, we expect the steel industry to grow at 5-6% over the medium-term.

At JSW Steel, we will play a key role in supporting the above policy initiatives including the `Make in India’ initiative. We have already outlined a capex programme of ~ ` 26,800 crores to expand overall steelmaking capacity to 23 MTPA by March 2020, increase our downstream flat steel capacity ~7 MTPA by September 2019, along with a few other strategic projects. These key projects will be set-up at a very competitive capital cost and will improve our return ratios. We have embarked on these expansion plans considering the growth in domestic demand and the likely steel deficit in the domestic market as no major investments in steel sector is contemplated. These capital expenditure plans have been outlined to achieve backward and forward integration, capacity expansion and cost reduction. We remain committed to maintain our net debt to EBITDA of 3.75 and net debt to equity of 1.75 while these capex programmes are executed over the next three years.

In ConclusionOur Will to Win has sustained across cycles, and I am confident that it will serve us well at this time of great optimism. I am grateful to our team for their sustained efforts in making JSW Steel a leading steel company in the world. I would also like to thank all our stakeholders, Board, Bankers and the Government for the support and assistance provided throughout our journey.

I solicit your continued cooperation.

Sincerely,Sajjan Jindal

16


Board of Directors

Sajjan JindalChairman & Managing Director, Non-Independent Executive Director Mr. Jindal holds a bachelor’s degree in mechanical engineering from the Bangalore University. He is also the principal promoter of the Company. Under his leadership, JSW Group over the years has expanded in other core sectors of the economy, such as Steel, Power, infrastructure building and Cement. Mr. Jindal also serves as council member of the Indian Institute of Metals and is also a member of the Executive Committee and Chairman of the Sustainability Committee of World Steel Association, as well as the former President of Institute of Steel Development and Growth. In 2007, he was named the Ernst and Young ‘Entrepreneur of the Year’ in the manufacturing category. In 2009, he was honoured with the Willy Korf Ken Iverson Steel Vision Award by the American Metal Market & World Steel Dynamics.

Mrs. Savitri Devi JindalChairperson Emeritus

Seshagiri Rao M.V.S.Joint Managing Director & Group CFO, Non-Independent Executive Director Mr. Seshagiri Rao M.V.S. is the Joint Managing Director & Group CFO of JSW Steel, responsible for overall operations of JSW Steel including Strategy formulations related to business development, expansion of existing businesses, joint ventures, mergers and acquisitions and cost management. He possesses rich experience spanning over three decades in Steel Sector and in the areas of Corporate Finance and Banking. He joined JSW Group in 1997 as Chief Financial Officer and has played active role in growth strategies of JSW Group since then. He has been actively involved in all strategic decision-making within the group and has over the years grown with JSW Steel progressively shouldering higher responsibilities. Prior to joining JSW Steel he has worked with various reputed organisations in various capacities. Mr. Rao is a member of the Institute of Cost and Works Accountants of India and a licentiate member of the Institute of Company Secretaries of India. He is also a Certified Associate of the Indian Institute of Bankers and a diploma holder in Business Finance awarded by the Institute of Chartered Financial Analysts of India.

Dr. Vinod NowalDeputy Managing Director, Non-Independent Executive Director Dr. Vinod Nowal, Deputy Managing Director, JSW Steel Ltd., was appointed as Director (Commercial) in April 2007 and re-designated as Director & Chief Executive Officer in April 2009. He was subsequently re-designated as the Deputy Managing Director of JSW Steel Ltd. in May 2013. He has been associated with the Group since 1984 and has previously served in various positions. He currently serves as the President of Karnataka Iron and Steel Manufacturers’ Association. Dr. Nowal holds a master’s degree in Business Administration and a Doctorate in Inventory Management. He has also acquired Advanced Management Program (AMP) – a comprehensive executive leadership programme from the prestigious Harvard Business School, Boston, USA.

Jayant AcharyaDirector (Commercial & Marketing), Non-Independent Executive Director Mr. Jayant Acharya, Director (Commercial & Marketing), was appointed as Director (Sales & Marketing) in May 2009 and was re-designated as Director (Commercial & Marketing) in April 2010. He is also the Co-Chair of the Committee on Steel & Non-Ferrous Metals for Federation of Indian Chamber of Commerce and Industry. Mr. Acharya holds a bachelor’s degree in Chemical Engineering and a master’s degree in Physics from Birla Institute of Technology & Science, Pilani. He also holds a master’s in Business Administration from Indore University. He has over two decades of experience in the steel industry spanning the entire range of fl t and long steel products.

P. Hemalatha, IASNominee Director, KSIIDC A Graduate from Madurai Kamaraj University joined Indian Administrative Service (IAS) in the year 2000. She has rich experience of working with the State Government and various Corporate Bodies. She is presently working as the Managing Director of Karnataka State Industrial & Infrastructure Development Corporation Limited [KSIIDC]. She is responsible for spearheading implementation of infrastructure projects including projects on Public Private Partnership [PPP] basis. She is also working as Managing Director of Mysore Minerals Limited and Karnataka Mining Environment Restoration Corporation Limited.



Dr. Vijay KelkarIndependent Non-Executive Director Dr. Vijay Kelkar was appointed on the Board of Directors in January 2010. He has held several key posts in the Government of India, including as Advisor to the Minister of Finance, Finance Secretary, Secretary of Ministry of Petroleum & Natural Gas, Chairman of 13th Finance Commission, India, and Chairman of India Development Foundation, in the rank of a Union Cabinet Minister. He has also previously served on several Government Task Forces including as Chairman of the Tariff Commission, Chairman of the Implementation of the Fiscal Responsibility and Budget Management Act. Dr. Kelkar holds a B.S. degree from the University of Pune and M.S. Degree from the University of Minnesota (USA). He also holds a Doctorate of Philosophy in Development Economics from the University of California at Berkeley, U.S. He is the recipient of the prestigious ‘Padma Vibhushan’ award in 2011 for his exemplary service to India.

Haigreve KhaitanIndependent Non-Executive Director Mr. Haigreve Khaitan, LLB is a Partner at Khaitan & Co. since 1995 and heads the Firm’s M&A and Private Equity practice. Haigreve started his career in Litigation and then moved on to specialise in Corporate Law. Mr. Haigreve Khaitan has rich experience in all aspects of Mergers & Acquisitions - due diligence, structuring, documentation involving listed companies, cross border transactions, medium and small businesses etc., in restructuring – such as advice and documentation involving creditors restructuring, sick companies, de-mergers spin-offs, sale of assets etc. and Foreign Investment, Joint Ventures and Foreign Collaborations. He advises a range of large Indian Conglomerates and multinational clients in various business sectors including infrastructure, power, telecom, automobiles, steel, software and information technology, retail etc.

Mr. Seturaman MahalingamIndependent Non-Executive DirectorMr. Seturaman Mahalingam, a chartered accountant by qualific tion, began his career as an IT consultant and thereafter played a major role in marketing Tata Consultancy Services (TCS) services across the globe, developing processes and creating large software development centres for the Company. He has held key positions such as Executive Director and Chief Financial Officer of TCS. Mr. Mahalingam retired from TCS in February 2013 after serving the company for over 42 years. Mr. Mahalingam is the Chairman of CII National Council Task Force on Sector Skills Councils & Employment and was a member of the Tax Administration Reform Commission(TARC) set up by the Government of India under the chairmanship of Dr. Parthasarathi Shome. Mr. Mahalingam was chosen as the best ‘CFO’ in various years by Business Today, International Market Assessment (IMA), CNBC TV18, CFO Innovation, Finance Asia and Institutional Investors. In 2012, Treasury & Risk, a US based magazine named him as one of the 16 globally most influe tial CFOs.

Malay MukherjeeIndependent Non-Executive DirectorMr. Malay Mukherjee has over 40 years of experience in a range of technical, commercial and managerial roles in the mining and steel industry. Between October 2009 to 2011, Mr. Mukherjee served as the CEO of the Essar Steel Global, a large integrated steel company in India. Prior to joining Essar Steel, Mr. Mukherjee was a member of the Board of Directors at Arcelor Mittal between 2008 and 2009. Between 2006 and 2008, Mr. Malay Mukherjee served as the Senior Executive Vice President at Arcelor Mittal and a Member of the Group Management Board. Mr. Mukherjee holds a Master’s degree in mining from the USSR State Commission in Moscow and a Bachelor of Science degree from the Indian Institute of Technology in Kharagpur, India. Mr. Mukherjee is a Member of Academy of Natural Sciences Kazakhstan and Life Member in the Indian Institute of Metals. He was awarded a letter of appreciation from the President of Kazakhstan for work rendered in Kazakhstan from 1995 to 1999.

Dr. Mrs. Punita Kumar SinhaIndependent Non-Executive DirectorDr. (Mrs.) Punita Kumar Sinha was appointed on the Board of Directors in October 2012. She is the Founder and Managing Partner, Pacific Paradigm Advisors, an independent investment advisory and management firm. Prior to founding Pacific Paradigm Advisors in 2012, she was Senior Managing Director of Blackstone Group, leading Blackstone Asia Advisors as the business unit head and Chief Investment Office . Mrs. Punita Kumar Sinha has a Ph.D. and a Masters in Finance from the Wharton School, University of Pennsylvania. She received her bachelor’s degree in chemical engineering with distinction from the Indian Institute of Technology, New Delhi. She also has an MBA and is also a CFA Charter holder. Mrs. Punita Kumar Sinha is a member of the Boston Security Analysts Society and the Council on Foreign Relations. She is a Charter Member and Board Member of TIE-Boston.

Kannan VijayaragavanIndependent Non-Executive Director Kannan Vijayaraghavan, is a Fellow Member of the Institute of Chartered Accountants of India, Certified Management Consultant and Fellow of the Institute of Management Consultants. He is the chairman and founder of Sathguru Management Consultants Pvt. Ltd., Hyderabad, a large consultancy and policy advisory firm founded in the year 1985. He is also Partner of DFK International, a worldwide firm of accountants and business advisors, a Visiting Fellow and Faculty, Executive Education, Cornell University, Ithaca, NY and a Regional Coordinator for Cornell University Research Programs in South Asia and South East Asian Region. He is a member of the International Advisory Committee of AUTM and Honorary President of the Society for Technology Management (STEM), the Indian Association of Technology Management Professionals.

Hiroyuki OgawaNominee Director, JFE Steel Corpn, Japan Mr. Hiroyuki Ogawa holds a Master’s Degree in Engineering from the Department of Mechanical Engineering, Graduate School of Engineering, The University of Tokyo. Mr. Hiroyuki Ogama is Senior Vice President, Corporate Planning Department, Vietnam FHS Project Team, Mexico CGL Project Team, Technical Cooperation Dept. Prior to that he was Vice President, General Superintendent, West Japan Works, Fukuyama, Assistant General Superintendent, West Japan Works- Kurashiki. He joined Kawasaki Steel Corporation in 1985.

Bo

ard of d

irecTo

rS

18


Facets of Strength and Agility

With the Government of India pushing reforms for formalisation and introducing tax reforms, the whole industrial landscape is changing. The country is also poised to grow well in the near and long terms, and sectors such as infrastructure are expected to get a boost. JSW Steel is set to capitalise on this opportunity with the following capabilities.

01Multiple Manufacturing Facilities in India

The seven strategically located manufacturing facilities of JSW Steel gives us a huge logistical advantage and production capacity. Well connected with ports, cost efficiencies a e maintained while transporting goods to and from our plants.

02Diversified roduct Profil

With a constant drive to move up the value chain, our emphasis to increase the Value-Added products helps us to offer a wider variety and range of products across segments. We have complementing facilities for producing innovative products like Electrical Steel and CRCA, Colour Coated and Galvalume. The value-added products fetch better margins and cater to niche markets.

03Domestic Market Leader with Strong Export Presence:

The largest exporter of steel products in the country, we also have a wide network of exclusive and non-exclusive retailers who deliver our products nationally, to almost every town. Our export presence in over 100 countries demonstrate our global footprint in a large way.



fac

eTS of S

TrenGTh an

d aG

iliTy

04Strong Financials

A very strong balance sheet with free cash fl w is an indicator of our robust financial pe formance, over the years. Our cost of debt is low, and our capacity addition per tonne can be done in a very cost-efficie t manner.

05Focus on Operational Efficienc

High labour productivity coupled with state-of-the-art technology has led to process and cost efficienc in the company. Our various performance improvement initiatives have helped in bringing down the cost, thereby increasing our profits

06Strategic and Quick Expansion

Our record-time ramp up at two of our facilities (Dolvi and Vijayanagar) is a clear indication of our ability to augment capacity. With a total of 18 MTPA crude steel production capacity at present, we are aiming at ramping the figu e to 23 MTPA in the near term.

07Agility to Shift Markets

Our agility to quickly toggle between markets at the time of uncertainties gives us an edge in the industry. When domestic markets present a challenge, we are able to shift our foot to the global market which helps in de-risking of business.

20


R&D



r&d

The advent of the new millennium calls for increased attention to light weighing, reliability in product performance and passenger safety in the automotive segment. The upcoming Indian BS VI norms coming in year 2020 has caused the automakers to expedite programmes to reduce vehicle weight for better environmental performance. To cater to the automotive industry’s challenge for lightweight car solutions, steelmakers worldwide are responding with the development of Advanced High-Strength Steels (AHSS). AHSS enables automakers to reduce vehicle weight up to 35% compared to conventional steel as per world auto steel FSV study.

To align with global benchmarks, and to reduce import of steel in India, JSW had setup India’s fi st and largest continuous annealing and galvanising line with the capacity of 2.3 MT steel in June 2014 at Vijayanagar Works. JSW’s state-of-the-art cold rolling mill is capable of producing a width up to 1,870 mm with its thickness ranging from 0.3 mm to 2.3 mm. It is India’s widest cold rolling mill with state of art automation control. It enables automotive manufacturers to localise the procurement of skin panel and AHSS material in spite of difficult SK .

Despite a late entrance in the automotive steel market, JSW boasts its achievement of developing of high strength automotive steel grades. The strategic collaboration of JSW with JFE Steel Ltd. – Japan steered JSW ahead of its competitors in AHSS development. Automotive steel grades up to 980 MPa strength and

Developments of Advance High Strength Automotive Grades at JSW Steel

galvanised GA/GI products up to 590 MPa strength have been successfully developed and approved by key auto OEM’s. Cold rolled hot forming grades having strength up to 1,500 MPA post hot forming has also been developed for auto structural application. These high-end grades come in response to market requirements for stronger and lighter automotive steels. Furthermore, the grades were developed in short lead time coupled with focussed approval of automotive grades.

JSW developed AHSS steels meet compulsion of the property requirements like phosphatability, excellent bendability, weldability, fatigue resistance, bake harden ability and hole expansion. For the coated grades, the iron percentage in the coating layer and the phases formed after galvannealing are critically controlled. It results in good formability and anti - powdering property, essential for automotive applications.

AHSS product development for automotive market has been the key focus area in the strategy of JSW. Combining with the requirements on light weighing of auto body, safety and environmental regulation, JSW steel lead the development of AHSS in India. These grades are in commercial production and are approved by various automakers like Honda, Toyota, Nissan, Ford, Maruti, Tata Motors etc.

JSW’s high end steel development is a crucial step towards import substitution and accomplishing the Government’s ‘Make in India’ vision.

As a testimony, JSW steel has received the Steelie Innovation Award-2016 from World Steel Association for ‘Development of AHSS with Speed and Innovation’.

22


THE WILL TO PERFORM

Winning is an attitude, more than an action. As a Company with a winning attitude, we have registered stellar growth across indicators. Our inherent financial st ength is a cornerstone of our sustainable growth.



Th

e Will To P

erforMJSW Steel’s financial p ofile, di ersified sou ces of capital, and

free cash fl w are major indicators of our robust balance sheet. In terms of Return on Capital Employed (ROCE), we have been placed among the top fi e steel manufacturing companies of the world.

Our fiscal prudence and judicious cost outl y are at the roots of our strong topline and bottomline figu es. A few contributing factors are:

Our Focus on Cost-Effective Operations

JSW Steel constantly invests in process and people improvement initiatives to achieve cost efficienc . Cross-functional integration and technological expertise lead to reduced production cost and time. Our experiments with the usage of low grade iron ore to produce quality steel have borne fruit and are helping to further enhance our margins.

There are only a handful of companies in the world, that can claim around 20% of EBITDA to net sales and JSW Steel has secured a place in this distinguished league. For the last 10 years, we have been rated among the top-10 companies by the WSA (World Steel Association). Our focus on reducing conversion cost, and continuously expanding our steel making value-added capacities is the main reason for this rating.

Free Cash Flow

Last year, the Company turned free cash fl w positive. This will enable us to add capacity in future. Our free cash fl w will also help us in adding capacity at a reduced cost of ~$534 per tonne, as against the industry average of $1000 per tonne.

A Diversified and Co trolled Debt Profil

With a highly regulated debt funding, JSW Steel remains liquid and is able to maintain a good balance between debt and equity. The overall debt to EBITDA ratio of the firm has come d wn further to 3.5.

A unique fact regarding our financial mix is th t 37% of our debt is in the form of foreign currencies. We also maintain rooted relationships with over 50 banks and financial institutions f om where capital can be easily raised. This is in addition to our access to ECBs and international bonds market.

With such a robust financial p ofile, JS Steel is all set to expand and scale newer heights. With a winning attitude, we are here to raise our bar, time and again.

EBITDA to net sales

20%

Net Debt to EBITDA

3.5

Capacity Addition Cost

~$534PER TONNE

24


THE WILL TO BE PREPARED

The Steel industry is powered by two core raw materials - Iron ore and coal. For uninterrupted operations, a company must diversify its raw material sources and thus ensure steady availability. This is key to its sustained operations.



Th

e Will To Be P

rePared

Iron ore and coal prices have witnessed disruptive volatility in recent times. The demand for raw materials correlates closely with the steel market. Raw material prices generally flu tuate according to steel supply and demand dynamics. However, any raw material-specific suppl shock can also lead to temporary volatility in prices.

A Turbulent Global Scenario

Globally, iron ore prices tend to keep flu tuating. In the past year, price volatilities spiked uncertainties in the market. This has had a direct impact on steel manufacturers.

Between August and November 2016, the spot prices of coking coal shot up globally. This was caused by curbs on coal production in China. Supply disruptions from Australia and China added to this spike. The demand for this raw material grew substantially as steel manufacturers around the world rushed to get spot supplies. As a result, there was a 2.5 times hike in the coking coal prices (sub $120/tonne in August 2016 to above $300/tonne in November 2016).

The JSW Steel Edge

Focus on incessant supply of raw materials – iron ore and coal, has always been elemental to our operations. Cost-efficienc is also integrated in our long-term raw material procurement strategy, which is characterised by some distinct features.

IRON ORE

In-House Benefici tion Our in-house iron ore benefici tion technology has been instrumental in achieving cost-efficienc . The technology helps in transforming low-grade iron ore into higher grade usable inputs. This substitution results in cost reduction. We adhere to multiple sourcing policy, to make sure that supplies are steady.

COKING COAL

Sourcing From Varied Suppliers and Areas As in the case of iron ore, we broad-base our coal procurement sources purchasing from multiple suppliers. These are geographically diverse sources, which helps in overcoming climatic, natural and man-made problems in any particular area, by switching to supplies from other sources. This strategy has garnered desired results without compromising on the production schedules.

Continuous Procurement We engage in continuous buying of commodities, across troughs and peaks of a business cycle. This actively assists us in reducing the impact of volatility in the business.

Hedging Commodity Prices We have taken measures to partially hedge our raw material import prices, which cushions pricing volatility.

Backward Integration In a strategic backward move, we have acquired 5 iron ore mines in Karnataka to generate captive raw material capacities through auctions. These mines will help the Company to be self-sufficie t upto 15-20%, in sourcing this vital raw material. These mines are expected to be operational during FY 2017-18.

Securing Coal Blocks In order to further enhance its raw material sufficienc , the Company has secured the ‘Moitra’ coking coal block through auction process. It will be an opencast mine and is in an advanced stage of development. The acquisition of this mine will leverage integrated and efficie t operations.

26


THE WILL TO BE AGILE

Business environments are inherently challenge and risk-prone. However, enterprises with an undying passion to excel do not accept any conditionality to success. They turn every challenge into an opportunity. Wading through many a storm, they keep winning and registering record performances.



Th

e Will To Be a

Gile

Last year, the steel industry was surrounded with adversities. It was impacted by an overall demand crunch. Even the four core sectors of capital goods, infrastructure, construction, and oil and gas that drive steel demand were in a dampened state. The second half of the year further slowed demand due to demonetisation. Lastly, flu tuating raw material prices impacted margins of the industry.

Winning Against All Odds

These adversities brought the best out of JSW Steel. Our agile systems helped us shift feet between geographies, and this produced remarkable results.

JSW Steel reported the highest ever operating EBITDA in FY 2016-17.

On the domestic front, trade measures such as Minimum Import Duty (MIP) eased the pressure of imports and there was incremental growth. This was however narrowed by demonetisation in the latter half.

When all the market drivers of the steel industry went down due to liquidity crisis, JSW Steel remained resilient and registered a 20% y-o-y consolidated sales growth.

In this otherwise difficult year, agility has been our mainstay. Against our plan of 12% exports in the previous year, we registered 26% export sales in FY 2016-17.

Value-added products with good margins formed a significa t part of the increase in exports. Our nimble-footed marketing team achieved this export growth, quickly sensing and catering to global opportunities.

With agility, we lead the markets, be it global or domestic.

Operating EBITDA in FY 2016-17

HIGHEST EVER

Y-o-Y Consolidated Sales Growth

20%Export sales in FY 2016-17 Over 12% in FY 2015-16

26%

28


THE WILL TO BE VISIBLE

Steel is a commodity product, mainly sold in bulk. It is important for commodities to be omnipresent across home and host geographies and establish their foothold with quality and reliability.



Th

e Will To Be viSiBle

We at JSW Steel have established presence in diverse markets with highly visible channels that offer our comprehensive range of products. Consumers, both at retail and wholesale levels, relate to JSW Steel because of our wide presence, proximity and ease of availability of JSW products to our customers, wherever they are.

A Truly Global Footprint

JSW Steel is present across fi e continents, in over 100 countries. This presence contributes 26% of the Company’s sales in FY2016-17. Since value-added products are integrated in our export portfolio, these markets also fetch us better margins. And strategically, multi-market presence allows us to tackle headwinds more efficie tly than regional companies.

JSW Shoppe and JSW Explore – Retail Revolutions In Steel

To win the battle, one has to win many wars. For JSW, winning on multiple platforms of retail is as pertinent as leading big-ticket, industrial markets.

Establishing and maintaining pan-India retail presence requires deep inroads in the country, at district level. Understanding this need, JSW decided to establish its presence in each district with a retail model, ‘JSW Shoppe’. This highly innovative initiative was started in 2007, and has been so successful that global business schools have incorporated it in their curricula as a case study.

Managed by our franchisees, JSW Shoppes are aimed at increasing our market presence in semi-urban and rural areas. The format is based on 1-stop shop model, where consumers can avail all the details on our products and brands, and their application methods. The JSW Shoppe innovation has been highly successful because it also offers end-to-end finance solutions, and thus ta es care of the entire purchase cycle.

The Company has also introduced retail outlets in the interior rural markets. JSW Shoppe Connect, as these outlets are called, are the last-mile outreach for the Company. Including the JSW Shoppes and its sub-formats, the Company now has over 7,300 exclusive and non-exclusive retail outlets across India. This translates into having presence in 575 districts of the country.

JSW Explore is the Company’s urban retail model, which offers a comprehensive brand portfolio and related services.

With an extensive fi st-mile and last-mile coverage in India, JSW continues to maintain an impressive PAN-India presence.

JSW Presence

5CONTINENTS

JSW Presence

100+COUNTRIES

Exclusive and Non-Exclusive Retail Outlets Across India

7,900

30


THE WILL TO AUGMENT

One of the biggest strengths of a steel company is its manufacturing capacity. To cater to the existing demand, to grow in proportion to the economy and to be competitive in its own industry, companies in the sector need to have plentiful production capacity.



Th

e Will To a

uG

Men

T

The Need For Capacity Augmentation

Capacity augmentation is a continuous process at JSW Steel. In the previous year, we produced a whopping 15.8 million tonnes of crude steel, operating at about 90% capacity. This means that nearly 90% of our capacity of production is being utilised with a reasonable expectation of more in the coming years. This was done with the help of a rapid addition of capacity in two of our plants (Dolvi and Vijayanagar) in record time.

The Augmentation Story

JSW Steel is known for its ability to quickly add capacities. From the current 18 MTPA, we envisage our crude steel production capacity to rise to 23 MTPA by 2020. With this objective, we have planned an investment of nearly ` 27,000 crores for capacity augmentation, through the brownfield oute.

Our plan to reach the 23 MTPA crude steel capacity and further increase in downstream capacities milestone will be

materialised via capacity expansions at the Dolvi and Vijaynagar plants.

DOLVI PLANT

Total capacity will be increased from 5 MTPA to 10 MTPATotal project cost – `15,000 crore

Major facilities to be set-up under the expansion project:

4.5 MTPA Blast furnace with 5 MTPA Steel Melt Shop

5.75 MTPA Sinter plant, 4 MTPA Pellet plant, and 4 Kilns of 600 TPD LCPs

5 MTPA Hot Strip Mill

Commissioning: by March 2020

VASIND AND TARAPUR

Modernisation-cum-capacity enhancement Total project cost – `1,200 crore

Major facilities to be set-up under the expansion project:

Increase in cold rolling capacity from 1.76 MTPA to 2.72 MTPA by replacing existing CR mills with two Batch Tandem CR mills, one each at Vasind and Tarapur.

Increase in GI/GL capacity by 0.63 MTPA

Increase in colour coating capacity by 0.08 MTPA

Commissioning: by April 2019

VIJAYANAGAR PLANT

Blast Furnace #3to be revamped and upgraded Total project cost – `1,000 crore

Blast Furnace-3 capacity will be increased from 3 MTPA to 4.5 MTPA after the revamp and up-gradation.

Commissioning: 20 months from zero date.

CRM-1 Complex Capacity ExpansionTotal project cost – `2,000 crore

CRM1 complex capacity will be increased from 0.85 MTPA to 1.80 MTPA along with two Continuous Galvanising Line of 0.45 MTPA each, a new 1.2 MTPA Continuous Pickling Line for HRPO products, and a new 0.80 MTPA HR Skin Pass Mill for HR Black & HRSPO products.

Commissioning: by September 2019

With the above augmentations, JSW Steel will embark on a major capacity expansion drive. The Company has also incorporated in its long-term plans, further augmentations pursuant to the vision outlined in the National Steel Policy (NSP) 2017.

With its augmented capacities, JSW aims to be future-ready in terms of demand-supply parity.

Crude Steel Produced

15.8MnT

Production Capacity by 2020

23MTPA

Planned Investment for Capacity Augmentation

` 27,000CRORES

32


Capex PlanOur Capex strategy is directly linked with our overall growth plan for the future. To cater to our growing market demand, we undertake regular capacity expansions at a lower cost per additional tonne.

ROLLING

CAPEX

FY17-FY18

CAPEX

FY18

CAPEX

OUTFLOW

FY17

CAPEX

FY19-FY21

CAPEX

CARRIED

FORWARD

IND-AS

IMPACT OF

1.5 MTPA

COKE OVEN

AT DCPL

MINING

CAPEX

EXPANSION/

UPGRADATION

PROJECTS

OTHER COST

SAVING

PROJECTS

ROLLING

CAPEX

FY18-FY21

7,000

8,000

18,815

1,050530

26,815

FY18

2,700

EQUITY

3,000

EQUITY

8,815

4,200

19,200

3,235

18,815

8,000

2,800FY17

4,300

DEPT

5,000

DEPT

10,000



caPex P

lan | riSK M

anaG

eMen

T

Risk ManagementJSW Steel follows globally recognised framework ‘COSO’ for risk management.

COMPANY TRACK RISKS AND OPPORTUNITIES RELATED TO FOLLOWING OBJECTIVES:

Risk Management Framework Risk perspective is embedded in business management as under.

01Financial

Profitabilit and Growth

02Non-financia

S - System, Compliance & GovernanceP - PeopleI - Innovation C - ComplianceE - Energy, Environment & Safety

BO

AR

D O

F D

IRE

CT

OR

S

RIS

K O

WN

ER

S O

WN

AN

D M

AN

AG

E R

ISK

S A

ND

O

PP

OR

TU

NIT

IES

IN

EX

EC

UT

ION

Committees of Directors

STRATEGY, BUSINESS PLANNING & STAKEHOLDER ENGAGEMENT

TO MATCH BUSINESS CAPABILITIES WITH MARKET NEEDS, RISKS

AND OPPORTUNITIES

CROSS FUNCTIONAL CENTRES OF EXCELLENCE FOR

TRANSFORMATIONAL INITIATIVES

MANAGEMENT CONTROL FOR EFFECTIVE RISK ADJUSTED

PERFORMANCE

POLICY FRAMEWORK TO DEFINE ROLES, RESPONSIBILITIES & TO

SET LIMITS ON RISK EXPOSURES

BUSINESS INTELLIGENCE TO KEEP TRACK OF MACROECONOMIC,

INDUSTRY, GEOPOLITICAL & SOCIAL TRENDS AND RISKS/

OPPORTUNITIES ARISING

COMPETENCY BUILDING TO BE FUTURE PREPARED SO AS TO

PROACTIVELY DE-RISK

SYSTEM & PROCESS TO ENABLE EFFECTIVENESS & CONTROL

RISK MANAGEMENT CELL TO FACILITATE DISCUSSION ON

EMERGING RISKS AND OPPORTUNITIES

SUSTAINABILITY CELL TO TRACK CONFORMANCE TO GRI

STANDARDS FOR ENVIRONMENT, RESOURCE CONSERVATION,

SOCIAL IMPACT ETC.

AUDIT CELL TO CONTROL THROUGH RISK BASED AUDIT

VIBRANT CULTURE TO EVOLVE IN LINE WITH CHANGING BUSINESS

SCENARIO

RISK MANAGEMENT

HEDGING POLICY

REVIEW

BUSINESS

RESPONSIBILITY /

SUSTAINABILITY

AUDIT

PROJECT REVIEW

34


(` in crores)

REVENUE ACCOUNTS2012-13(IGAAP)

2012-13(IGAAP)

2014-15(IGAAP)

2015-16(Ind AS)

2016-17(Ind AS)

Gross Turnover 38,763.41 48,527.18 49,657.51 40,354.48 56,243.97

Net Turnover 35,387.63 44,529.47 45,351.52 36,202.44 51,620.83

Operating EBIDTA 6,308.82 8,782.59 8,871.64 6,368.85 11,543.21

Depreciation and Amortization 1,973.89 2,725.88 2,784.50 2,847.24 3,024.61

Finance Costs 1,724.48 2,740.13 2,908.69 3,218.73 3,642.79

Exceptional Items 367.21 1,692.30 396.30 5,860.45 -

Profit Before Taxes 2,504.12 1,955.33 3,248.92 (5,239.28) 5,131.28

Provision for Taxation 702.90 620.82 1,082.44 (1,709.60) 1,554.74

Profit after Taxes 1,801.22 1,334.51 2,166.48 (3,529.68) 3,576.54

(` in crores)

CAPITAL ACCOUNTS2012-13 (IGAAP)

2012-13 (IGAAP)

2012-13 (IGAAP)

2015-16(Ind AS)

2016-17 (Ind AS)

Net Fixed Asset 27,638.79 37,295.08 38,569.39 46,559.93 50,266.24

Debt* 17,908.36 27,184.43 28,134.11 35,657.57 38,274.42

Net Debt 16,366.12 26,651.01 26,339.05 35,059.03 36,947.31

Equity Capital 223.12 241.72 241.72 239.87 240.30

Other Equity (Reserve & Surplus) 19,374.19 23,216.99 24,657.41 20,109.35 23,796.77

Shareholders' Funds 19,937.37 24,284.18 25,724.61 20,410.25 24,098.10

RATIOS2012-13 (IGAAP)

2012-13 (IGAAP)

2012-13 (IGAAP)

2015-16(Ind AS)

2016-17 (Ind AS)

Book Value Per Share (`) 88.11 97.30 103.26 84.44 99.69

Market price Per Share (`) 67.24 103.61 90.66 128.33 188.20

Earning per Share (Diluted) (`) 7.93 5.39 8.82 (14.75) 14.80

Market Capitalisation (` in crores) 15,001.28 25,043.61 21,913.31 31,018.98 45,492.09

Equity Dividend per Share (`)* 1.00 1.10 1.10 0.75 2.25

Fixed Assets Turnover Ratio 1.28 1.19 1.18 0.78 1.03

Operating EBIDTA Margin 17.8% 19.4% 19.2% 17.4% 22.1%

Interest Service Coverage Ratio 2.93 2.47 3.40 2.17 3.36

Net Debt Equity Ratio 0.82 1.10 1.02 1.71 1.53

Net Debt to EBIDTA 2.59 3.03 2.97 5.50 3.20

Financial Highlights (Standalone)

*Excluding Acceptance



fin

ancial h

iGh

liGh

TS

(` in crores)

REVENUE ACCOUNTS2012-13(IGAAP)

2012-13(IGAAP)

2014-15(IGAAP)

2015-16(Ind AS)

2016-17(Ind AS)

Gross Turnover 41,463.15 54,620.76 56,571.86 45,288.10 59,559.87

Net Turnover 38,094.96 50,408.87 52,050.57 40,857.54 54,628.21

Operating EBIDTA 6,503.92 9,165.46 9,402.29 6,401.01 12,174.22

Depreciation and Amortization 2,237.48 3,182.61 3,434.49 3,322.56 3,429.87

Finance Costs 1,967.46 3,047.86 3,493.03 3,601.18 3,768.12

Exceptional Items 369.37 1,712.75 47.10 2,125.41 -

Profit Before Taxes 1,999.34 1,308.05 2,539.11 (2,467.66) 5,128.36

Provision for Taxation 845.25 920.08 819.41 (1,966.21) 1,674.31

Profit after Taxes 963.11 451.95 1,796.57 (480.63) 3,467.24

(` in crores)

CAPITAL ACCOUNTS 2012-13 (IGAAP)

2012-13 (IGAAP)

2012-13 (IGAAP)

2015-16(Ind AS)

2016-17 (Ind AS)

Net Fixed Asset 33,402.48 45,484.08 50,590.92 55,184.62 57,858.38

Debt* 21,345.98 34,762.10 37,989.81 42,204.03 43,334.04

Net Debt 19,533.07 34,013.62 35,808.11 41,183.63 41,548.82

Equity Capital 223.12 241.72 241.72 239.87 240.30

Other Equity (Reserve & Surplus) 16,780.55 20,871.15 21,986.89 18,664.55 22,346.30

Shareholders' Funds 17,343.73 21,938.34 23,054.08 18,770.65 22,401.91

RATIOS2012-13 (IGAAP)

2012-13 (IGAAP)

2012-13 (IGAAP)

2015-16(Ind AS)

2016-17 (Ind AS)

Book Value Per Share (`) 76.48 87.60 92.21 77.65 92.68

Market price Per Share (`) 67.24 103.61 90.66 128.33 188.20

Earning per Share (Diluted) (`) 4.17 1.74 7.29 (1.40) 14.58

Market Capitalisation (` in crores) 15,001.28 25,043.61 21,913.31 31,018.98 45,492.09

Equity Dividend per Share (`) 1.00 1.10 1.10 0.75 2.25

Fixed Assets Turnover Ratio 1.14 1.11 1.03 0.74 0.94

Operating EBIDTA Margin 17.0% 17.9% 17.8% 15.4% 21.9%

Interest Service Coverage Ratio 2.24 2.01 1.75 1.84 3.34

Net Debt Equity Ratio 1.11 1.54 1.55 2.18 1.85

Net Debt to EBIDTA 3.00 3.71 3.81 6.39 3.41

Financial Highlights (Consolidated)

*Excluding Acceptance

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Sustainability at JSW Steel

Regular engagement with different stakeholder groups forms an integral part of the business strategy. With best of efforts, the Company is striving towards transforming its stakeholder engagement into a dynamic and continuous dialogue.

JSW Steel is committed to:

Continue allocating at least 2 percent of Profit Before Tax (PBT) towards special corpus for Corporate Social Responsibility as per the categories of the Companies Act, 2013.

Transparent and accountable systems for social development and impact assessments through an external agency.

Concentrate on community needs and perceptions through social processes and related infrastructure development.

Provide special thrust towards empowerment of women through a process of social inclusion.

Promote arts, culture and sports; and conserve cultural heritage.

Spread the culture of volunteerism through the process of social engagement.

Utilisation of Waste Heat

873,635 GJ

Material Recycled

Coastal shipment for Iron Ore and Coal

Reduction in GHG Emissions (Tons) Due to New Projects/Initiatives

Undertaken

4.12MnT

3.89MnT

442,096 Tonnes



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Investor Interest in Non-financial Disclosu es

In 2016, JSW Steel was invited for the fi st time to participate in the RobecoSAM Corporate Sustainability Assessment (CSA) as a fi st step towards inclusion in the Dow Jones Sustainability Indices (DJSI).

Improvement in Safety Performance

In FY 2016-17, 88.82% of the employees at the plants - including associate employees - were trained in various internal safety standards to inculcate good practices.

Community Development

The JSW Foundation administers the planning and implementation of all our CSR interventions. All the CSR initiatives are approved by a board-appointed committee and the same are reviewed periodically.

Developing Innovative Products

1st Iron & Steel Company in India to get an Environmental Product Declaration (EPD) label in line with ISO 14025 for Hot Rolled Steel Strip

Nutrition & Healthcare

55,000+ beneficiaries f access to safe drinking water

21,000+children covered across 114 schools through digital education programme

15,500+school children covered under the prevention of blindness programme

Arts, Culture & Sports

Restoration of Talur temple in Karnataka

Inbound and Outbound Logistics by Rail

80%

Decrease in lost time injury frequency rate since FY 2015-16

28%

Recycled and Reused Wastewater

35%

Reduction of Specific Energy Consumption from FY 2015-16

18%

Support for National and International Coaching and Nutrition

42Athletes

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Achievements for 2016-17

Improving Living Conditions

Health, nutrition, access to safe drinking water and quality of life enhancement of communities around continue to remain as one of the most important priority for JSW Steel Ltd. This year in particular has been a key milestone in this direction. The initiative for malnutrition elimination has received co-ownership by the government. Through real-time GPS-based nutrition surveillance system, nearly 50,000 children, mothers and adolescent girls have been facilitated access to health and nutrition to reduce child malnutrition.

Facility enhancement of 14 Primary Health Centres (PHC) and associated sub-centres for reducing maternal and child death around plant locations was taken up in the last financial year. Supported by community outreach activities that include health camps, vision screening, institutional delivery and non-communicable disease, the CSR initiative is touching lives of nearly 2.5 lakh people.

We feel happy to share that the targeted intervention programme with truckers to reduce the incidence of HIV/AIDS has a cumulative outreach of nearly 2 lakhs till date.

In line with the ‘Kushal Bharat Kaushal Bharat’ vision of our Honourable Prime Minister, our CSR interventions have a vision of skilling 2 Lakh people over fi e years, of which 6000 have been already skilled. Through an ISO certified ural BPO, nearly 280 women have started enjoying financial emp werment, motivating many others.

Promoting Social Development

The strengthening of facilities to enhance the quality of education is one of the most important interventions under CSR and we are proud to share that nearly 45,000 children avail these facilities. Besides managing 7 Jindal Vidya Mandirs (JVMs), nearly 280 schools (Primary, Secondary and Higher Secondary) have been equipped with modern facilities and curriculum. We promote digital education, promotion of scientific emper, infrastructure upgradation and solar lights for studying at home.

The early childhood education programme across 750+ anganwadi centres (AWC) has facilitated a process of strengthening of government AWCs. There is a platform being created for other stakeholders to participate and join hands for large scale replication.

Addressing Social Inequalities

Through a strong force of 700 + women Self Help Groups (SHGs), more than 10000 women are now able to lead a life of dignity.

Through the work at the Dongri Observation Home, nearly 12000 children have been extended legal, emotional and development support. Government of Maharashtra has invited JSW to help with the development of blueprint on the management of observation homes.

Our modest initiative of the battery operated car facility at Salem railway station helps the elderly, differently abled and people requiring assistance while travelling.



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Promotion of Sports

JSW Sports Excellence Programme is training 40 athletes in various disciplines to bring accolades and medals to the country. At the Commonwealth and Asian Games, 20 medals were won by these athletes, making India proud. Sakshi Mallik, the wrestler, won Silver medal for India at the Rio Olympics 2016 motivating many young women in India to aspire for similar achievement.

Swachh Bharat

Aligning with the national vision of ‘Swacch Bharat’, JSW has committed to make all the schools with toilet in its Direct Influence ones (DIZ) besides promoting the construction of individual toilets.

Solid waste management is being upgraded to recycling for energy efficienc . The toilets are being combined with Bio-Gas units to bring about both hygiene and the health of community.

Addressing Environment and Sustainability

Commitment to safe environment has been strengthened through tree plantations that promote bio-diversity and pollution control. The Hillock plantation at Vijaynagar in particular is important as over a period of time with variety of plantation, it would facilitate ecological balance in the area.

In addition to the above, we also undertake water conservation to the tune of nearly 200,000 cubic meters thereby preserving the environment and facilitating ecological balance.

Management Discussion and Analysis

1. JSW Steel - An Overview

JSW Steel is India’s leading integrated manufacturer of carbon steel products, with an export presence in over 100 countries across five continents. In 2016, the Company was ranked tenth among the top thirty-seven world-class steelmakers according to World Steel Dynamics, based on a variety of factors. In particular, the Company achieved the full rating (10/10) on the following criterias: conversion costs & yields, expanding capacity, location in high-growth markets and labour costs. This ranking puts the Company ahead of all other steelmakers based in India.

The Company has significantly expanded its steelmaking capacity in India. It has increased from 1.6 MTPA in 2002 to an installed crude steel capacity of 18.0 MTPA in 2016, through organic and inorganic growth strategies. Its current operations in India comprises 12.50 MTPA (around 70% of the capacity) of flat products and 5.50 MTPA (around 30% of the capacity) of long products. JSW Steel’s extensive portfolio of flat and long products includes hot rolled coils, sheets and plates, cold rolled coils and sheets, galvanised and galvalume products, pre-painted galvanised and galvalume products, thermo mechanically treated (‘TMT’) bars, wire rods and special steel bars, rounds and blooms, plates and pipes of various sizes

and cold rolled non-grain oriented products. The Company is also one of India’s largest producers and exporters of coated flat steel products.

The primary factors that affect JSW’s Steel operations comprise: a) sales volume and prices, and b) production costs. The Companyderives its revenue primarily from the sale of finished steel products, and the steel market is substantially driven by changes in supply and demand nationally and internationally. The Company’s sales revenue also depends on the price of steel in the international markets. The global steel price, in turn, depends upon a combination of factors, including the availability and cost of raw material inputs, fluctuations in the volume of steel imports, transportation costs, protective trade measures and various social and political factors other than the worldwide steel production, capacity and demand.

In the recent years, the steel industry, and the key raw material (iron ore and coal mining) industries have seen significant volatility. It happened largely due to a sharp fall in demand, an outcome of the global economic crisis. While the global economy showed signs of recovery in 2010, subsequent years have been volatile primarily due to the sovereign debt crisis in certain European countries, such as Greece, Portugal and Cyprus. At present, the improving macroeconomic environment may help revive the demand cycle for steel.

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Despite lack of momentum in the global economy, uninspiring demand growth in India and liquidity crunch following the Government’s demonetisation initiative, JSW Steel reported a strong performance. This is the outcome of its global and domestic strategies that validate the Company’s Will to Win.

Manufacturing Facilities

Locations Capacities Products

Vijayanagar, Karnataka 12 MTPA

Slabs, Billets, HR coils and sheets, Cold Rolled Close Annealed (CRCA) coils and sheets, Galvanised products, Non-grain Oriented Electrical Steel, Wire Rods, Bar Rods and Angles

Dolvi, Maharashtra 5 MTPAHot Rolled coils (HRC) and Bar Rods

Salem, Tamil Nadu 1 MTPA Special steel long products

Salav, Maharashtra** 0.9 MTPADirect Reduced Iron (DRI) and Hot Briquetted Iron (HBI)

Vasind, Maharashtra* 0.42 MTPA Galvanised, Galvalume and Colour Coated products

Tarapur, Maharashtra* 0.76 MTPAGalvanised, Galvalume and Colour Coated products

Kalmeshwar, Maharashtra*

0.58 MTPAGalvanised, Galvalume and Colour Coated products

* Belongs to JSW Steel Coated Products Limited, a wholly owned subsidiary. (Capacity

w.r.t GI / GL)

** Belongs to JSW Steel (Salav) Limited, a subsidiary

2. Economic Review

2.1 Global EconomyGlobal economic activity improved in the second half of CY2016, especially in advanced economies. Growth picked up in the US as firms grew more confident about future demand. The economy also recorded a lower rate of unemployment and buoyant consumer demand. In the aftermath of the Brexit vote, the Euro area growth was also resilient on the back of strong domestic demand and continued easing; the growth in the United Kingdom remained robust on the back of resilient spending. Japan’s performance has also been on the upside with strong exports.

However, the global economic growth, at 3.1% on a y-o-y basis, fell short of expectations in CY2016 as deceleration in key emerging markets and developing economies (EMDEs) overshadowed the modest recovery in major developed countries. The EMDEs contribute to more than half of the global economic growth rate. Their deceleration was accompanied by a modest increase in commodity prices, subdued global trade, financial market volatility and weakening capital flows. Although China’s growth turned out to be better than expected on the back of policy stimulus, it was lower than CY2015. India fared better than the world in terms of growth, even though the demonetisation exercise temporarily threw a challenge. Brazil, on the other hand, remained mired in a deep recession. Activity remained weak in fuel and nonfuel commodity exporters more generally, while geopolitical factors held back growth in parts of the Middle East and Turkey.

Global economy is expected to grow at 3.5% in 2017 and 3.6% in 2018 mainly driven by EMDEs.


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IMF’s World Economic Outlook (Update)

Actual (%) Projection (%)Year 2015 2016 2017 2018World Output 3.4 3.1 3.5 3.6Advanced Economies 2.1 1.7 2.0 2.0Emerging Market and Developing Economies

4.2 4.1 4.5 4.8

World Trade Volume (Goods and Services)

2.7 2.2 3.8 3.9

Advanced Economies 3.7 2.1 3.5 3.2Emerging Market and Developing Economies

1.4 2.5 3.6 4.3

Commodity Prices (US$)Oil -47.2 -15.7 28.9 -0.3Nonfuel (average based on world commodity export weights)

-17.4 -1.9 8.5 -1.3

Consumer PricesAdvanced Economies 0.3 0.8 2.0 1.9Emerging Market and Developing Economies

4.7 4.4 4.7 4.4

Global economic challenges• Recent political developments highlight a fraying consensus

about the benefits of cross-border economic integration. Themajor policy shifts might further intensify protectionism andwiden global imbalances.

• Stumbling oil prices triggered a global economic volatility, whoseeffect spilled over to other sectors. The prices of Brent Crudedeclined as low as USD 27.67 per barrel.

• The US economy is expected to run into the limits of fullemployment, and push inflation higher as a result of additionalgrowth. However, this is expected to unfold in 2018 onwards.

• Tax reforms, such as an amnesty for multinational companiesthat repatriate foreign profits, is expected to come to effect.These reforms will create even bigger budget deficits, which inturn will stimulate more growth and inflation.

OutlookThere has been an acceleration in growth in advanced economies, primarily owing to reduced inventories and marginal recovery in manufacturing output. Stronger activity and expectations of more robust global demand, coupled with agreed restrictions on oil supply, have helped commodity prices recover from their troughs in early 2016. Oil prices increased consequent to an agreement among major producers to trim supply. Activity is projected to pick up in emerging market and developing economies, because conditions in commodity exporters experiencing macroeconomic strains are gradually expected to improve. This improvement is likely to be supported by a partial recovery in commodity prices and reduced deflationary pressures. With strong infrastructure and real estate investment in China as well as expectations of probable lower outlay in infrastructure supplies in the US, prices for base metals have also strengthened. Although core inflation rates have remained broadly unchanged and generally below inflation targets. Besides, headline inflation rates have recovered in advanced economies in recent months with the bottoming out of commodity prices.

However, multiple geopolitical changes still create some concern. As per the World Steel Association, the US policy uncertainties, Brexit, the rising populist wave in current European elections and the potential retreat from globalisation and free trade under the pressure of rising nationalism add a new dimension of uncertainty in the investment environment.

According to the International Monetary Fund (IMF), the global economic activity is picking up with a long awaited cyclical recovery in investment, manufacturing, and trade. It has projected economic

India’s economic growth to bounce back and hit 7.2%. Mainly driven by the Government’s policy initiatives in areas such as taxation (GST), foreign direct investments (FDI) and ease of doing business.

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activities to improve in both advanced economies as well as EMDEs in CY2017 and CY2018, with global growth projections at 3.5% and 3.6%, respectively.

2.2 Indian EconomyIndia’s economic growth is gradually improving since 2014. The favourable policy as well as executive reforms by the Government to support strong and sustainable growth, prudent fiscal regime and calibrated monetary easing that reigned in inflation have helped to strengthen macroeconomic stability. The lower crude oil prices have also helped to reduce current account deficit, improve fiscal positions, and lower inflation. This, in turn, has helped boost economic activities in India. Driven by these positive developments, the country has emerged as the world’s fastest growing major economy.

However, according to estimates by the Central Statistics Office (CSO), India’s GDP growth has moderated in FY2016-17 to 7.1% from 7.9% recorded in the previous financial year. This happened largely owing to the demonetisation initiative that led to temporary de-circulation of money. The situation has largely normalised, following the Government’s re-monetisation process.

Snapshot• India’s economy is the third largest in the world (in PPP terms),

with the GDP at USD 8 trillion (Source: World Bank)

• In FY2016-17, the agricultural sector recorded an encouraginggrowth of 4.1% on a y-o-y basis, thanks to a normal monsoon.

• In contrast, the industrial sector grew by 5.2%, whereas theservice sector growth was 8.8%.

• The performance of the external sector has shown signsof improvement from the 3rd quarter of FY2016-17. Thisimprovement can be attributed to economic normalisation ofthe global economy.

• The total FDI investments in India received during FY2016-17rose 18% on a y-o-y basis to USD 46.4 billion, indicating that theGovernment’s effort to improve the ease of doing business andrelaxation in FDI norms are yielding positive outcomes.

OutlookThe growth momentum should rise, driven by the Government’s policy initiatives in areas such as taxation (GST), foreign direct investment (FDI), and the ease of doing business, among others Other major factors helping India stay as a bright spot in the global economic landscape include the lower global oil price, with positive impact on the country’s import bill, a well-regulated monetary policy by the Reserve Bank to stabilise prices, and improving fiscal condition. The Government’s endeavour to drive a bigger as well as a cleaner GDP is expected to augur well for the economy in the medium and long terms.

The growth recovery has primarily happened due to discretionary spending, public investment and FDI reforms. The introduction of GST and higher outlays in the Budget 2017 are expected to drive growth as well.

Goods and Services Tax (GST)

Single national market will improve the efficiency of goods movement between states

Tax compliance and governance are expected to improve

Significant boost to investment and growth

Seen as a tool to drive India’s GDP growth rate to 8% and above

Budgetary Inputs

Accelerating rural road construction to 133 kilometres per day from 73 kilometres per day

Increasing the fund allocation of ‘Pradhan Mantri Awas Yojana’ to 53% (` 23,000 crores) to complete building one crore houses by 2019

Promise to achieve 100% village electrification by 2018

Transport sector allocation has been raised to ` 2,41,387 crores (for rail, road & water channels together)

Projections for FY2017-18

Growth rate to bounce back and hit 7.2%

Lower cash-GDP ratio and increased deposits due to demonetisation

Inflation is projected to rise, especially due to the 7th Pay Commission announcements

Interest cuts may not happen, despite reduced liquidity due to inflationary tendencies in the economy


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3. Steel Sector

3.1 Global Steel SectorThe global steel consumption grew by just 1% on a y-o-y basis to 1.52 billion tonnes in CY2016. Although the figure declined in 1Q CY2016, it started improving from 2Q CY2016 and accelerated during 4Q CY2016. This happened mainly due to an improving apparent consumption in China where the Government’s mini stimulus measures drove buoyancy in infrastructure investment and the housing market. The apparent consumption in China appeared in the green than the largely expected negative 4%. However, the statistic remained depressed in CIS, Middle East, Africa and Americas.

The global crude steel production grew marginally at 0.8% y-o-y to 1.63 billion tonnes in CY2016. China, India, Turkey and Ukraine

were the only four countries among the top 10 steel-producing nations to witness growth in steel production in CY2016. During the year, China recorded a 1.2% y-o-y increase in production, as the world’s largest producer reversed the decline, it witnessed in Jan-Feb 2016. Crude steel production d

created date: 9/12/2017 5:57:15 pm

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