JSW Steel’s new coated steel product to power renewable energy sector

JSW Magsure aims to achieve 50% domestic market share in FY25, Ashwani K Sharma, executive VP for JSW Steel Coated Business, said.

First Published30 May 2024

The company has an order book of approximately 35,000-40,000 metric tons scheduled until July. (Photo: Reuters)

New Delhi: JSW Steel is venturing into the production and sale of a new Zinc-Magnesium-Aluminium alloy coated steel product, JSW Magsure, with the aim to capture 50% of the domestic market share in FY25, Ashwani K Sharma, executive vice president of JSW Steel Coated Business, said in an interview.

The move is expected to help India become self-reliant in coated steel products, and is likely to spur demand from the domestic renewable energy sector and other allied sectors. In FY24, the entire demand of 120,000 metric tonnes was met through imports.

The company has an order book of 35,000-40,000 metric tonnes until July, out of which nearly 15,000 metric tonnes have already been fulfilled, including 5,000 metric tonnes supplied to Adani Green Energy.

“We aim to secure a domestic order book of more than 120,000 metric tonnes for this product, anticipating demand will double this fiscal year. In the first two months, we have delivered 15,000 metric tonnes to major solar clients, such as Adani Green Energy, Amplus Solar, Ayana Renewables, and Intech Solar,” Sharma said. “By FY26, we plan to achieve 70% market share in this category.”

Market Domination

By July, the company will supply an additional 5,000 metric tonnes of JSW Magsure to Adani Group’s green energy arm. Discussions are also underway with Reliance, NTPC, Whirlpool, LG, Samsung, and Haier. Sharma said the company currently has a 71% market share in the solar sector with its existing steel products.

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“JSW Magsure will help us capitalize on emerging opportunities in the Indian market while supporting the government’s 2030 renewable energy targets and Atmanirbhar Bharat mission,” said Jayant Acharya, joint managing director and chief executive, JSW Steel, in a statement.

Forging New Frontiers

JSW Steel is the first and only Indian steel company to manufacture and market the alloy coated steel product. This patented innovation, along with other value-added offerings, will be manufactured at its facilities in Karnataka and Maharashtra, with a total capacity of 0.9 million tonnes per annum (MTPA). It has invested around ₹500 crore to set up these facilities.

Since 2020, the Indian Zinc-Magnesium-Aluminium alloy coated steel market has expanded over sixfold from 15,000 metric tonnes to around 120,000 in FY24. JSW expects demand to double to 250,000 tonnes in FY25, reaching a market size of at ₹2,200 crore, primarily fuelled by the renewable energy sector.

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Galvanized steel undergoes a coating process with a Zinc, Magnesium, and Aluminium alloy, engineered to provide superior corrosion resistance in adverse conditions. This makes the product suitable for various applications, including steel structures in solar installations, silos, guardrails, AC components, and more, which require a higher level of protection against corrosion.

According to the company, India’s reliance on imports has been significantly limiting supplies. “JSW Magsure aims to address the supply limitation by offering an indigenous Made in India product with the shortest delivery timelines,” it said in the statement.

Export Markets

JSW Steel is also exploring export opportunities for JSW Magsure in Europe and the Middle East as the product is manufactured by a handful of global firms like ArcelorMittal, Nippon, and POSCO, using patented technologies. Currently, India imports a majority of the product from South Korean and Chinese firms.

It plans to export 30,000 metric tonnes of SW Magsure in the current fiscal year. “International market size is around 3 million tonnes and we have only sent a few small commercial lots of a few hundred tonnes to Europe for test marketing. We have not contacted any overseas players yet, but by the third quarter of FY25, we plan to export it. This is to be a global product for us.”