Dear Shareholders,
With 2025 already well underway, it's a fitting moment to reflect on
the journey we've undertaken in 2024 and embrace the opportunities and challenges that lie
ahead. This past year has been a test of resilience, discipline, and collective effort. It
has also been a year of measured progress and foundational shifts that prepare us for the
path ahead. While we celebrate notable achievements, we must also candidly acknowledge the
obstacles faced and the work that remains to be done to secure sustainable growth and
profitability.
India's Steel Sector: Challenges, Opportunities, and the Path
Ahead
India, the world's second-largest steel producer, plays a crucial role
in driving global economic growth. The industry's expansion is vital for infrastructure,
manufacturing, and employment. However, achieving the ambitious 2030-31 targets presents
significant challenges, including sluggish demand, underutilized capacity, and cautious
investment trends. To overcome these hurdles and strengthen its global position, India
must embrace bold, transformative strategies.
A closer look at recent data underscores the urgency for reform.
According to the Ministry of Steel's December 2024 report, crude steel demand and per
capita consumption remain below their potential. At the same time, infrastructure projects
have struggled to keep pace with the nation's rapid development needs. This stagnation
highlights the necessity for innovative, forward-thinking policies that go beyond
incremental adjustments.
Adding to these challenges, the global steel industry has faced
profitability pressures in 2023 and 2024. Lingering supply chain disruptions, particularly
those stemming from COVID-19-related slowdowns in China, have tightened margins and
increased uncertainty. In India, private investment in new steel capacities has remained
cautious, as businesses navigate fluctuating market conditions and the substantial capital
demands of large-scale steel plants.
Compounding these industry-wide concerns, shifting global trade
policies have introduced new complexities. In February 2025, the Trump Administration
announced a 25% tariff on all foreign steel and aluminum imports, effective March 4, 2025.
This decision, which eliminates previously granted exemptions and raises duties on
aluminum, aims to curb "unfairly priced" imports, stimulate domestic production,
and bolster national security. However, it has also sparked fears of inflation, rising
costs for import-reliant industries, and potential retaliatory measures from affected
trading partners.
This latest policy builds upon earlier trade actions from March 2018,
when similar tariffs disrupted various industries, including automotive manufacturing, by
driving up material costs. While some tariffs were later revised or lifted, the recent
announcement reinstates and expands these measures, fuelling market uncertainty. Notably,
the reintroduction of tariffs has led to a surge in steel and aluminum company stocks,
reflecting investor optimism about increased domestic production. Yet, the broader
economic impact remains a subject of debate, with concerns about higher consumer prices
and job losses in industries dependent on imported materials. These developments highlight
the intricate and far-reaching consequences of global trade policies.
Amid these challenges, India is taking decisive action to fortify its
steel sector. Recognizing steel as a cornerstone of economic progress, the
Indian government's Budget 2025 introduces strategic measures designed
to enhance global competitiveness, drive sustainability, and strengthen domestic
production.
Key initiatives include:
• Infrastructure Investment Surge -
Increased funding for roads, railways, and urban development to drive
domestic steel demand.
• Expansion of the Production-Linked Incentive (PLI) Scheme -
Targeted support for advanced steel grades to encourage investment in
high-value and specialty steel manufacturing.
• Green Steel Initiatives - Incentives and subsidies promoting
green hydrogen-based steel production in line with India's decarbonization goals.
• Import Duty Reforms for Cost Competitiveness - Reduced customs
duties on key raw materials to stabilize prices, alongside anti-dumping measures to curb
low-cost imports.
• Strengthened R&D Support - Increased funding for
steel-related research, particularly in next-generation sustainable manufacturing
processes.
• Public-Sector Strengthening - Additional support for enterprises
like SAIL and RINL to expand capacity and improve operational efficiency.
Together, these measures set the foundation for a more resilient and
competitive steel industry, ensuring both domestic growth and a stronger presence in
global markets.
Looking ahead, the future of India's steel sector will be defined by
its ability to innovate, invest, and embrace sustainability. As global demand for green
steel rises, eco-friendly production methods must take center stage to align with
environmental standards and maintain a competitive edge. Equally important is the need to
unlock private-sector investment, streamline regulatory frameworks, and advance
technological capabilities to support long-term growth.
Ultimately, achieving India's ambitious steel sector goals will require
close collaboration between the government, industry leaders, and investors. By embracing
transformative changes, India's steel industry can not only overcome current challenges
but also emerge as a global leader in sustainable, high-value steel production.
Reflecting on 2024: Achievements Amidst Challenges
The year 2024 brought significant milestones despite facing a
challenging business environment, including delays in investments, and slow
decision-making processes. These factors contributed to tighter financial conditions and
slower order inflows. However, we navigated these headwinds with determination, laying a
solid foundation for the future.
Here are the key highlights of the year:
Safety as a Cornerstone
Safety remains at the core of our operations: it reflects the respect
and care we uphold for everyone associated with our organization. A testament to this
commitment, our Taloja facility celebrated an exceptional milestone of 4,179 consecutive
safe working days as on December 31, 2024, which is more than 11 years of safe working
days. Following this good record are Hedavali with 2662, E&C Sites with 1756, Aurum
office with 127 and our Jamshedpur ARP site at 1708 safe working days. As we move forward,
this commitment to safety will remain non-negotiable. Our goal of zero incidents continues
to guide our efforts.
A Milestone in Collaboration
The signing of a Memorandum of Understanding (MoU) with Steel Authority
of India Limited (SAIL) during METEC India 2024 was a pivotal moment. This strategic
partnership signals a new phase of collaboration and opportunity. It reflects the trust
placed in our expertise and promises avenues for growth, innovation, and expanded industry
presence in the coming years.
Significant Wins
Despite a challenging external environment, we successfully secured
critical orders, demonstrating our resilience, competitiveness, and ability to deliver
value even under pressure
JCIL inked a significant supply agreement with Jindal (India) Limited
for the installation of a state-of-the-art Colour Coating Line (CCL) at their Ranihati
Works. This collaboration will enhance Jindal's production capacity and strengthen its
presence in the high-end steel market.
In addition, JCIL has been entrusted by its North American fellow
subsidiary, John Cockerill Industry North America Inc., with the detailed engineering,
supply of terminal equipment, pre-assembly of refractory, supply of an annealing furnace,
and associated hydraulic and lubrication systems for an Annealing and Pickling Line (APL),
underscoring the trust placed in our expertise for global projects.
At Tata Steel's Kalinganagar plant, the first hot coil was successfully
produced on the Continuous Annealing Line (CAL) supplied by John Cockerill. This
state-of-the-art CAL enables the production of high- quality automotive steel to meet the
growing market demand in India. Positioned among the top three benchmark CALs for
automotive steel, it has already delivered exceptional quality and consistency, delighting
our customer and affirming our strategic commitment to the evolving needs of the Indian
automotive sector.
The progress on two Continuous Galvanizing Lines (CGLs) at Tata Steel
remains strong, with the commissioning of CGL#1's entry side already initiated.
Similarly, implementation for AMNS is advancing steadily, with erection
activities underway and CGL#3's entry side commissioning progressing smoothly.
We also received the Final Acceptance Certificate for the CAL
commissioned at JSW Steel Coated Products Limited in Vasind, for final invoicing.
For JSOL, ARP#1 has been successfully commissioned, and trial
production is underway, while ARP#2 is in the erection phase. Regarding CGL#2, equipment
manufacturing and supply are progressing well, with erection activities set to begin upon
civil readiness.
Market Leadership & Recognition
Our participation in METEC India 2024 allowed us to showcase our
technologies, connect with key stakeholders, and solidify our position in the industry.
The event was not merely an exhibition of our capabilities but also a platform to
demonstrate our readiness to tackle the challenges facing our sector through our
innovative technologies.
The Autodesk Award 2024 was another noteworthy acknowledgment of our
efforts in leveraging technology to deliver superior outcomes. Such recognitions reinforce
our credibility and underscore our ability to set benchmarks in operational and technical
excellence.
Organizational Progress
The expansion of manufacturing capacity at our workshops has been
successfully completed on schedule, equipping us with advanced production and assembly
capabilities. These upgrades position both facilities as state-of-the-art centers of
excellence for CRM and processing lines. With these enhanced operations, we are not only
ready to meet the growing demands of our customers but also to serve as a reliable partner
in their expansion journeys. This strategic investment reinforces our commitment to
delivering superior service, supporting customer growth, and maintaining our leadership
position in the industry.
Our move to a new office space was more than just a change of
location—it represented a transformative shift towards cultivating a culture of
collaboration and innovation. The modern workspace is purposefully designed to inspire
teamwork, enhance communication, and foster problem-solving—key drivers of our
long-term success. This new environment also strengthens our ability to serve customers,
enabling us to create better solutions, increase responsiveness, and deliver exceptional
value.
Corporate Governance
As a fully Board-governed entity, we are committed to upholding the
highest standards of governance to safeguard the interests of our shareholders, employees,
and other stakeholders. Our unwavering focus is on creating sustained value while
embracing our core values: Human, Innovative, Committed, Responsible, and
Customer-Oriented, all while fostering an entrepreneurial culture. These principles guide
our daily operations and underpin our dedication to robust corporate governance. We
prioritize accountability, transparency, responsibility, and timely disclosure to ensure
trust and integrity remain at the heart of everything we do.
Leadership Changes
I would like to take this opportunity to express our sincere
appreciation for Roma Balwani's exceptional dedication and service as an Independent
Director and long-serving Chairperson of the CSR and ESG Committee at JCIL. The Board is
deeply grateful for the impact of her contributions. Roma's mentorship, expertise, and
guidance have been pivotal in steering JCIL's efforts in CSR and ESG. We wish her
continued success in all her future endeavours.
I am also pleased to welcome Anand Sen to the company's Board of
Directors as Independent Director, bringing rich experience and expertise to our team.
Anand, a Metallurgical & Minerals Engineering graduate from IIT Kharagpur, holds a
Postgraduate Diploma in Business Management from IIM Kolkata and an Executive MBA from
INSEAD, France. With over four decades of experience, primarily within the Tata Group,
Anand is a strategic leader known for driving growth, innovation, and operational
excellence. His expertise spans Marketing, Sales, Strategy, Operations, Technology, Supply
Chain, and Projects. He has led several Tata companies, including Tata Steel Processing
& Distribution, Tayo Rolls, NatSteel, and served as Managing Director of Tata
International Limited. He has also been on the boards of Tata Bluescope, Tinplate Company
of India, and Bhushan Steel.
Social Value Creation and BRSR
Economic and financial wellbeing of society is what every responsible
company should aspire for. Our commitment to this principle is underscored in our CSR
programme. Our core focus areas are Health and Wellness, Education, and Environment.
John Cockerill India's commitment to societal progress reaches far
beyond traditional philanthropy. Recently, we provided healthcare to over 3,896
individuals through medical camps and awareness, highlighting our continued dedication to
community well-being. Our employees also organized clothes drive to support those in need,
providing essential clothing to underprivileged communities.
Additionally, we spearheaded a tree plantation initiative with our
employees, planting 1,166 native saplings across 45 species. This effort is set to
sequester approximately 25,652 kg of CO2 annually after four years, reinforcing our strong
commitment to environmental sustainability.
As an organisation, we understand the need to align with the country's
strategy towards decarbonisation. The Board of your company increased oversight on ESG
keeping abreast with evolving regulatory frameworks and ensuring to disclose the BRSR for
2024.
Acknowledging the Challenges
While these achievements are encouraging, they do not overshadow the
realities of the hurdles we faced in 2024. The year was defined by a tough steel market,
with investment delays slowing industry progress and affecting overall growth. A slowdown
in order inflows tested our financial resilience, while tighter margins demanded stricter
cost management and operational efficiency. These challenges highlighted areas where we
must improve to remain competitive and ensure sustainability.
Financial Performance
The financial year 2024 has been a period of both achievements and
challenges for our company. On the positive side, we secured new orders worth '308.8
crores, reflecting the trust our customers continue to place in us. As a result, our
closing order book stood at over '680.8 crores as of December 2024.
However, we also faced significant headwinds during the year, which
impacted our financial performance. Revenue from operations declined by 42%, falling from
'666.61 crores in the nine-month period (April to December 2023) to '388.73 crores for the
full year ended December 2024. This downturn was driven by multiple factors, including
market uncertainties, project execution challenges, and external economic conditions that
affected demand and operational efficiency
Similarly, our operating profit (PBDIT) saw a sharp contraction,
decreasing by 97% from '32.25 crores in the nine-month period (April to December 2023) to
'1.09 crores for the year ended December 2024. This decline underscores the difficult
operating environment we navigated, including increased input costs, supply chain
constraints, and competitive pressures that impacted our margins.
While these figures highlight the challenges of the past year, we
remain resolute in our commitment to strengthening our business fundamentals. Our focus
remains on optimizing operations, enhancing efficiencies, and leveraging our strong order
book to drive long-term, sustainable growth.
Strategic Priorities for 2025: Powering Change
Looking ahead, 2025 will be a year of focused action and deliberate
change. It is not enough to aspire to grow; we must lay down the building blocks to
achieve it through concrete initiatives and accountability.
Our strategic priorities for the year include:
Strengthening Customer Connections
Rebuilding and enhancing customer relationships is critical, and we
must dedicate time and effort to deeply understand their evolving needs, ensuring our
solutions align with their expectations. Our renewed focus on being "Closer to
Customer" involves enhancing responsiveness and engagement, strengthening trust
through consistent delivery and quality, and offering tailored solutions that address the
specific challenges our clients face.
Driving Operational Excellence
At John Cockerill, we are steadfast in our commitment to Powering
Change by advancing technologies that pave the way toward a more sustainable future. Our
innovative solutions are designed to reduce energy consumption and minimize environmental
impact across the steelmaking industry.
A central pillar of our mission is the decarbonization of steel
production. Leveraging cutting-edge technologies such as Direct Reduced Iron (DRI),
Electric Arc Furnaces (EAF), and hydrogen integration, we are leading efforts to make
steel manufacturing cleaner and more efficient. In partnership with ArcelorMittal, we are
co-developing Volteron™—a groundbreaking iron reduction and steel processing
technology based on direct cold electrolysis. This revolutionary approach enables CO2-
free steelmaking, delivering tangible reduction in energy consumption and decrease in
greenhouse gas emissions compared to conventional methods.
As global demand for electrical steel rises—projected to reach
$45.8 billion by 2026—our advanced technologies are meeting the growing need for
high-grade, non-grain-oriented steel, particularly for e-mobility and energy transition
applications. Amid shifting geopolitical and trade dynamics, we remain committed to
supporting local manufacturing ecosystems and enabling customers to produce
high-performance electrical steel in line with regional policies and market needs. With
innovations spanning Annealing and Pickling Lines (APL), Cold Rolling Mills (CRM), and
Annealing and Coating Lines (ACL), our E-Si™ technologies are redefining industry
standards.
Our collaboration with ArcelorMittal has also produced another
breakthrough: Jet Vapor Deposition (JVD). This state-of-the-art steel coating technology
is setting new benchmarks for efficiency, sustainability, and performance, and is now
being commercialized globally.
Through these advancements, we are empowering industries to reduce
energy losses, cut operational costs, and lower their environmental footprint. At John
Cockerill, we believe innovation is the catalyst for meaningful progress—and we
remain dedicated to shaping the future of steelmaking for a cleaner, greener world.
Prioritizing Safety and Sustainability
Safety remains at the forefront of our priorities, and it is imperative
that we continue embedding a culture of vigilance and accountability at every level of the
organization. Our ultimate goal of achieving Zero Accidents will be sustained through
regularly updating safety protocols, conducting rigorous audits, reinforcing training and
awareness programs to instil a safety-first mindset, and enhancing workplace safety
metrics.
At the same time, we remain deeply committed to sustainability. With an
expanded technology portfolio that includes solutions for reducing CO2 emissions, we aim
to empower our customers to meet their environmental goals while maintaining
competitiveness. Sustainability is not merely a goal but a critical component of our
long-term strategy.
Fostering a Collaborative Culture
Our people are at the heart of our organization and unlocking their
potential while aligning efforts toward common objectives is essential. We will focus on
strengthening communication channels to ensure transparency and clarity, investing in
professional development and upskilling to prepare our workforce for future challenges,
and creating an environment that fosters innovation, accountability, and teamwork.
A Balanced Outlook for 2025
We approach 2025 with a balanced perspective—acknowledging the
realities of the external environment while maintaining confidence in our ability to adapt
and deliver. Our focus is not on unchecked optimism but on measured, actionable steps that
will enable us to navigate uncertainties and capitalize on opportunities.
The launch of key projects, including the first Jet Vapor Deposition
(JVD) installation and major technological advancements for Volteron™, positions John
Cockerill to make meaningful contributions to the steel industry. These milestones will
not only strengthen our market presence but also validate our commitment to innovation and
leadership.
Further reinforcing our long-term vision, we have signed a Memorandum
of Understanding (MoU) with Steel Authority of India Limited (SAIL) to collaborate on the
production of electrical steel in India—an important step toward supporting the
country's self-reliance in strategic materials. In parallel, our MoU with the Indian
Institute of Technology, Mumbai (IIT Bombay) will foster advanced research and
co-development of sustainable steelmaking technologies. These strategic partnerships
reflect our belief in collaborative progress and our ongoing investment in the future of
clean, efficient steel production.
Simultaneously, we recognize the need for disciplined execution.
Success will depend on our ability to remain agile, streamline operations, and make
data-driven decisions that maximize value for all stakeholders.
Closing Thoughts
The journey ahead will require unwavering focus, discipline, and
collaboration. While the challenges we face are significant, so too are the opportunities
to differentiate ourselves and create lasting value. By staying true to our principles and
executing our strategy with precision, I am confident that we can achieve sustainable
growth and reinforce our position as an industry leader.
Looking ahead, John Cockerill India is committed to fostering social
and economic growth in the regions where we operate. Our approach places a strong emphasis
on the well-being of our employees and the satisfaction of our clients.
With a robust portfolio of innovative and sustainable solutions,
coupled with a team of emerging global leaders, we are poised to play an active role in
India's development. Our mission is to enhance everyday life and support local industries
in producing sustainable products that serve the greater good of society.
As we continue to move forward, our focus remains on contributing to a
promising future for both India and the world, working closely with our partners and
stakeholders to build a better tomorrow.
On behalf of the Board and leadership team, I extend my sincere
gratitude to our employees, partners, and stakeholders for their continued trust and
support. Your trust, efforts and commitment are the foundation of our success.
Let us move into 2025 with determination, clarity, and a shared sense
of purpose. I am confident that JCIL will continue to tackle challenges and seize
opportunities, driving sustainable growth and value for all stakeholders. Thank you for
your unwavering support, and I look forward to witnessing JCIL's continued success in the
years to come.
Yours Sincerely,
Francois-David Martino
Chairman