SAIL Modernisation, Expansion Project On Verge Of Completion

Steel Authority of India, which returned to profit in FY1 9 after posting losses for three consecutive years, is set to achieve another milestone by completion of its moderisation and expansion plan, chairman Anil Kumar Chaudhary has said.

“The 300 MTPA steel production capacity for India by 2030 as envisioned in National Steel Policy 2017 is commensurate with this growth projection. SAIL has also started its plans for increasing its capacity commensurate with the National growth,” the chairman said in his address to shareholders in the annual report of the company for FY19.

Turnaround initiatives

SAIL bounced back to profits in FY19 with net profit of 2,179 crore, after being in red for three consecutive years.

The company has been taking a number of strategic initiatives for its turnaround, growth and sustainance.

SAIL had launched a company-wide turnaround program ‘SAIL Uday’ in FY17 which laid the roadmap for improvement in the areas of raw materials, operations, sales and marketing, supply chain and logistics and Human Resource, has been developed and deployed culminating in the performance during FY19.

It adopted a multipronged approach that includes organic growth, brown-field projects, technology leadership through strategic alliances, ensuring raw material security by developing new mines, diversifying in allied areas.

Some of the strategic initiatives include MoUs for setting up of Pellet Plants, manufacturing of capital goods in the Country, setting up of hydro power plant, closure of in-operative and non-performing Joint Ventures and Subsidiary Companies.

The improvement in financial performance in FY19 was based upon the improved operational performance indicated by increase in saleable steel production (7 percent), increase in net sales realisation for 5 plants (16 percent), higher share of concast production, improved product-mix, reduction in Coke Rate, reduction in specific wage bill.