Value chain
Being better across the value chain
1
RAW MATERIALS
5 MTPA
Owned iron ore mine capacity
Activities
- Optimise mix and sourcing of key inputs such as iron ore and coal to weather a volatile pricing environment
- Explore various contract options such as long term/spot/indexing
- Undertake backward integration through acquisition of iron ore mines
- Action strategic tie-ups to bolster integration process with international and national entities
- Invest in upgraded technologies to transform low-grade iron ore into higher grade usable inputs
Being better in FY 2018-19
- Started iron ore production in three of six mines recently acquired in the open auctions and sourced 1.3 MnT iron ore during the year, benefitting Vijayanagar Works and Salem Works
- Diversified coal sourcing from different countries to reduce concentration risk
- Acquired one coal mine in Jharkhand during the year
- Continued leveraging in-house state-of-the-art blend management system
2
INBOUND LOGISTICS
24 km
World's largest pipe conveyor
Activities
- Centralised logistics cell to ensure end-to-end integration
- Optimised infrastructure spend
Being better in FY 2018-19
- Operationalised the slurry conveyor belt, the world’s largest of its kind, to transport raw material from mining site to the manufacturing unit. This is expected to bring significant benefits in terms of reduced inbound logistics costs, contained material losses, improved safety and minimised carbon footprint.
3
MANUFACTURING
16.69 MTPA
Crude steel produced in FY 2018-19
Activities
- Set up state-of-the-art manufacturing facilities
- Installed the latest technology to reduce consumption of water in operations
- Monitoring and conserving energy through waste heat and gas recovery
Being better in FY 2018-19
- Remained one of the most efficient steelmakers in India
- Installed Industry 4.0 technologies and commenced the journey towards digitalisation
- Manufacturing facilities expansion forms the major part of the `48,715 crore capex plan to be actioned through FY 2019-20 to FY 2021-22
4
PROCESSING
52
New grades developed/customised during the year
Activities
- Highly diversified portfolio
- Focus on innovation and new value-added product development
- Joint venture agreement with Marubeni-Itochu Steel Inc., Tokyo, to set up contemporary steel processing centres
Being better in FY 2018-19
- VASP accounted for ~50% of steel produced
- Expanded focus on value engineering and lightweight steel development
5
OUTBOUND LOGISTICS
19.3 MnT
Total outbound logistics handled in FY2018-19
Activities
- Centrally integrated
- Last-mile connectivity tracking using digital technologies
Being better in FY 2018-19
- Installed track and trace programme for dispatches. Upcoming phases of the programme to ensure proof of delivery and vendor online bill settlement
- Use of rubber saddles in all road dispatches to minimise product returns and improve customer satisfaction
- Initiated RFID-based finished goods yard management
- Logistics control room being set up at Vijayanagar Works to effectively monitor dispatches and loco movements within the plant
6
USE
53%
VASP share in sales portfolio in FY 2018-19
Activities
- HR steel: Construction and infrastructure, industrial and engineering, pipes and tubes, automotive and energy sectors
- CR steel: Automotive, industrial and engineering sectors
- Electrical steel: Electric motors, generators, nuclear power stations and power plants, among others
- GI steel: Construction and infrastructure, and consumer durables sectors
- Colour-coated steel: Construction and infrastructure, and consumer durables sectors
Being better in FY 2018-19
- Developed modern grades of steel to find applications in niche sub-segments under the auto, roofing and furniture sectors, among others
7
RECYCLING
4.5 MnT
Material recycled and reused
Activities
- Recycle steel scrap
- Increase recycling of water
- Supply recycled water for irrigation in water-starved regions around the operations
Being better in FY 2018-19
- Increased total volume of water recycled
- Increased the share of recycled steel in production