JSW Steel Surpasses Global Rivals to Become the World's Most Valuable Steel Firm

JSW Steel, led by Sajjan Jindal, has achieved a significant milestone by becoming the most valuable steel company in the world by market capitalization. The company has surpassed global industry leaders like Nucor, ArcelorMittal, and Nippon Steel. A strong rally in metal stocks, coupled with favorable market conditions, has propelled JSW Steel to the top.

Market Capitalization and Stock Performance

On Tuesday, JSW Steel’s market capitalization reached ₹259,670 crore (approximately $30.5 billion). The company’s stock closed at ₹1,061.85, reflecting a marginal increase of 0.07% after reaching an all-time high of ₹1,074.15.

Over the past year, the stock has delivered an impressive return of 29.26%, significantly outperforming the benchmark Sensex 30, which recorded a 7.65% increase. Since the beginning of the year, JSW Steel’s stock has surged by 17.2%, far exceeding the broader indices, which edged up only 0.6%.

Promoter Shareholding and Key Investors

JSW Steel is primarily controlled by the Jindal family, with billionaire Sajjan Jindal and his family holding a 44.85% stake in the company. One of the significant external investors is Japan’s JFE Steel Corp, which owns 15% of JSW Steel.

JSW Steel vs. Global Competitors

While JSW Steel now leads in market capitalization, it still lags behind global steel giants like ArcelorMittal and China’s Baosteel and Anshan in production capacity. However, the company continues to expand and strengthen its position in the global steel industry.

Tata Steel is the only other Indian company in the top 10 steel producers by market capitalization, with a valuation of $22.9 billion.

Impact of Proposed Safeguard Duty on Steel Prices

The Indian steel sector has witnessed significant positive momentum recently, driven by policy changes. The Union Commerce Ministry has proposed a 12% safeguard duty on imported hot-rolled and cold-rolled coils. If implemented, this could lead to an increase in domestic steel prices by up to ₹5,000 per tonne.

This price hike is expected to boost the profitability of domestic steel manufacturers, including JSW Steel. However, the final decision on the safeguard duty is pending a formal notification from the Ministry of Finance.

JSW Steel’s Growth and Expansion Plans

JSW Steel has come a long way from its humble beginnings. Starting with a 1 million tonne capacity plant in Vijayanagar, Karnataka, the company now boasts an annual production capacity of 35.7 million tonnes.

The company has ambitious plans to increase its capacity to 43.5 million tonnes by FY27, ensuring expansion without overburdening its financial position. This steady growth reflects JSW Steel’s ability to balance expansion with financial discipline.

Reactions to JSW Steel’s Milestone

Parth Jindal, son of Sajjan Jindal, expressed his excitement over this achievement, stating,

“Extremely proud to share that JSW Steel has become the largest steel company by market capitalization. So proud of the hard work by papa Sajjan Jindal, ma Sangita Jindal, and the entire JSW Steel Group family. We are humbled and will not stop at this.”

JSW Steel’s Buyback Plan

To strengthen its financial position, JSW Steel’s subsidiary, Piombino Steel Ltd, has approved a buyback of 22.26 crore shares held by JSW Steel at ₹75.3 per share. The total buyback amount is estimated at ₹1,676.45 crore, which will enhance the company's balance sheet and improve shareholder value.

Conclusion

JSW Steel’s rise to become the world’s most valuable steel company is a testament to its strategic growth, financial discipline, and ability to navigate market challenges. With strong expansion plans and favorable policy support, the company is well-positioned to maintain its leadership in the global steel industry.