MUMBAI: JSW Steel intends to set aside 1.5 per cent of its annual profit for corporate social responsibility activities. The company recorded a net profit of Rs 1,626 crore in FY12. It will announce its June quarter results on Thursday.
Speaking at the company’s annual general meeting, Sajjan Jindal, Chairman, said the company is committed to allocating 1.5 per cent of profit after tax for CSR activities. JSW Foundation has touched the lives of over nine lakh people through its CSR activities, he added.
Going forward, he said, the company would focus on cost optimisation and value addition. The greenfield projects in Jharkhand and West Bengal are expected to significantly optimise production costs.
Strategic collaboration with JFE Steel Corp, especially in technological know-how, has opened up new avenues of growth and helped the firm move up the value chain in steel products.
India possesses the world’s fifth largest iron ore reserves; it is the fourth largest iron ore producer in the world. Yet India cannot supply adequate quality iron ore to steel producers as 35 per cent of its production is exported, Mr Jindal said.
“When other nations restrict exports of valuable natural resources, India must refrain too. Transforming India’s natural resources into finished products must be given priority,” said Jindal.
Policies considering this will go a long way in protecting and enhancing the Indian steel industry. A transparent process of allocating natural resources through auctions is also necessary and the government must seriously consider and implement such measures, the chairman added.
JSW Steel expects to turn around its loss-making subsidiary JSW Ispat in the next 18 to 24 months. JSW acquired Ispat Industries in 2010. “The process of operational integration between both the companies is expected to be complete by September next year,” said Mr Jindal.
JSW Steel is also considering merger of Ispat Steel with itself once the latter turns profitable, he added.