The Indian business has significant value creation potential, especially given the recent expansion of the business and the political, commercial, social and technological changes made in India over recent years.
Value creation in India:
Our aim is to develop and build value in the business whilst the market continues its conversion from concrete to steel.
Achievements in 2020
- Strong performance by JSSL in the year resulting in the Group’s share of profit after tax of £2.2m (2019: £1.2m).
- Improved JSSL operating margin of 8.5 per cent (2019: 6.4 per cent) reflects an increased mix of commercial work compared to the higher levels of industrial work which were delivered in 2019.
- Completion of the Bellary factory expansion, which has increased factory capacity from c.60,000 tonnes to c.90,000 tonnes, positioning us well to continue to take advantage of future growth opportunities.
- Further investment in the management team, technical and operational staff to further drive efficiency improvements.
Objectives for 2021
- Respond to the challenges of COVID-19.
- Continued order book development and leveraging the increased factory capacity to build on the improved mix of higher margin commercial work to benefit operating margins.
- Continue to service industrial projects, including those for JSW Steel and improve our design and build and value engineering proposition.
- Invest in and grow the capability of the local team, and continue to develop succession and management developed initiatives.