JSW Steel eyes $400-mn cost saving through digitisation
JSW Steel is eyeing cost savings of $300-$400 million in the short-term through its digitisation initiatives — a journey that started in 2017.
Senior executives at the company said the short-term savings accrued from digitisation projects will be in the range of $300-$400 million. The timeframe by which the company is likely to achieve this is 2-3 years.
Dubbed “Project Athena”, JSW Steel embarked on its digitisation drive in 2017. The Ebitda impact since then has been to the tune of ~1,200 crore. The first phase of the project was about how digital could help directly and indirectly across the board. The second phase entailed taking on smaller projects using machine learning, AI, and automation.
“A year and a half ago, we embarked on phase three of Athena that we are now in. In this phase, we are looking at much more transformational projects,” Siddharth Patel, head of Digital Centre of Excellence (DCOE) at JSW Group, said. Technological interventions will enable JSW Steel to create a network of digitally connected smart steel factories in India by FY25.
As part of its digitally connected smart steel factory roadmap, JSW Steel’s first smart factory to go operational will be Vijayanagar Works in FY23. Dolvi Works in Maharashtra, Salem Works in Tamil Nadu, and downstream facilities and companies under joint control, will follow.