In line with its strategic plan for 2021, Jindal Steel & Power aims to generate 50% of its revenue from the overseas markets in Africa and West Asia within the next eight years.
Currently, it generates only around 20% from these overseas markets. In order to scale up its share of revenue from overseas markets, JSPL will be scouting for assets in iron-ore and coal businesses in the Africa region, JSPL managing director and CEO Ravi Uppal told FE.
?Our aim is to not depend on one country. We will try to strike a balance between domestic and international revenues. At present, our international business contributes 20% of the revenues and we would like to take it up to around 50%,? Uppal said.
The JSPL strategy is based on the risks involved in infrastructure business in the country where proposals for land acquisitions and environment clearances takes a lot of time. The company has also faced similar problems on all its steel and power projects and sees an opportunity to expand global operations also to derisk its domestic operations.
As part of its strategy, JSPL is eying sourcing coking coal from Mozambique and Botswana and iron-ore from Mauritania. It has got a few offers from these countries and plans to start negotiations soon. Uppal said that as part of deals to acquire mining assets in these countries, the company would also set up small power plants 300-350 MW.
In Mozambique, where it has mining right in the coal-rich Moatize region, the company plans to set up a 10 million tonnes per annum coal mining operations which will produce semi-hard grade coking coal It also plans to set up 2640 MW thermal power plant in the Tete region.
In Oman, the company plans to commission a 2 million tonnes per annum (MTPA) capacity plant in October, which the company claims would be the largest steel plant in the Gulf region.
JSPL acquired 32.5% stake in Gujarat NRE Coke?s Australian subsidiary, and is looking to increase its stake further if the company get necessary approvals. The steelmaker also has a long-term coking coal supply agreement with the company.
Gujarat NRE Coking Coal has two producing coking coal mines in Australia, which are estimated to have reserves of 125 million tonnes (MT) and resources of 651 MT.
According to Uppal, in next two years, the company will be more than doubling its steel production and power generation capacities. The steel production capacity will go up from existing 3.5 MTPA to 7.5 MTPA, power generation capacity will increase to 5,000 MW from existing 2,500 MW.
JSPL during its first quarter reported an increase of 63% in net profit to R250.11 crore of the current fiscal, against R153 crore in the corresponding quarter last fiscal. Net sales rose 84% to R1,223.13 crore, against R666.19 crore.
It?s exports surged by 203% to R282.27 crore, against R93.03 crore in the last fiscal.