A leading steel stock has attracted significant attention following its acquisition of Hindustan Copper Mines in Jharkhand. This strategic move marks the company’s expansion into the non-ferrous metals sector, diversifying its portfolio and strengthening its position in the broader metals industry.
Price Movement
In Friday’s trading session, JSW Steel Limited’s share price surged 1.3 percent, reaching an intraday high of Rs.926.50 per share from its previous close of Rs.914.45 apiece. The price has since retreated to Rs.919.10 per share. Over the past five years, the stock has delivered impressive returns of over 250 percent.
What happened
According to reports, the Sajjan Jindal-led JSW Group has expanded into the non-ferrous metals sector by adding copper to its metals business, opening up new opportunities in electronics, telecommunications, and healthcare.
The company has won a bid to acquire two copper mines in Jharkhand from state-owned Hindustan Copper, outbidding Hindalco Industries with a competitive revenue-sharing offer.
Under the agreement, JSW will develop the mines, handle capital expenditure, and manage operations, while Hindustan Copper will provide technical support and receive a share of the revenue.
Business Developments
According to reports, JSW Group’s entry into copper production is driven by rising demand in sectors like electric vehicles, renewable energy, and construction. As India remains a net importer, this move is seen as a key step.
The company plans to sell copper ore until its smelter is operational. The two acquired mines, managed by JSW subsidiary SouthWest Mining, will take at least two years to operationalize, as they are in the pre-MPPA phase.
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Green Steel Development
JSW Steel Ltd is advancing its commitment to sustainable steel production, aiming to position itself as a leader in green steel. The company, in collaboration with JSW Energy, is developing India’s largest commercial-scale green hydrogen project, with an initial annual output of 3,800 tonnes of green hydrogen, scaling up to 85,000-90,000 tonnes by 2030.
This initiative supports the production of green steel and contributes to significant carbon emission reductions. JSW Steel is also establishing a low-carbon steel manufacturing facility with a capacity of 4 million tonnes per year, with the first phase of 2 million tonnes set to commence by 2030.
Financial Performance
In its recent financial updates, the company’s revenue fell 11 percent to Rs.39,684 crore in Q2 FY25 compared to the same quarter a year ago and net profits fell 85 percent to Rs.404 crore in the same period.
Company Abouts
JSW Steel, headquartered in Mumbai, is a leading Indian multinational steel producer and the flagship company of the JSW Group. Known for its integrated manufacturing capabilities, the company produces a diverse range of steel products, including hot-rolled and cold-rolled coils, as well as specialized steel for industries such as construction and automotive.
Written by – Siddesh S Raskar
Disclaimer
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