Jindal Steel & Power (JSPL) on Sunday said it has set a target of reducing its net debt by more than Rs 10,000 crore to below Rs 30,000 crore in the next two years.
"JSPL has set target to reduce its net debt by more than Rs 10,000 crore to below Rs 30,000 crore and take EBITDA (earnings before interest, tax, depreciation and amortization) to more than Rs 12,000 crore on a consolidated yearly basis over the next two years," a company statement said.
JSPl chairman Naveen Jindal disclosed his plans at the company's 40th AGM in Hisar on September 27, 2019.
Jindal said, though there is slowdown, the company is comfortably placed in the market with value added and niche products. The company would be more aggressive in marketing its products and would continue to look to divest the non-core assets, to reduce debt to the target level, he added.
"The company has successfully reduced its net debt by more than Rs 4,000 crore in the last fiscal and will continue to work towards doubling the EBITDA in the next 2-3 years," he added.
The JSPL chairman appreciated the efforts by the government to focus on coal gasification, a clean coal technology.
JSPL has a coal gasification based DRI plant at Angul and with increase in steel demand, we shall restart production from it.
He also said, "JSPL is ready to support the govt in this endeavour. India is having the 3rd largest coal reserves, and we believe that our country can change the energy scenario world over with such innovative clean coal and environment friendly technologies."
Detailing the contribution of JSPL to the nation in last 30 years, he said the company has done a cumulative turnover to the tune of Rs 3 lakh crore with investments of over Rs 80,000 crore, generated livelihood for over 1 lakh families and paid more than Rs 39,000 crore as tax apart from benefitting lakhs of families with its CSR activities.
Appreciating the government plan for investing Rs 100 lakh crore in infrastructure sector, he said, JSPL is delivering rails well before stipulated time. "We have supplied more than 1.26 lakh tonnes of rails so far and are supplying more. RVNL has also ordered for rails worth Rs 750 crore and our team is looking to fulfil the commitment before deadline. We can meet the Rail needs of India and there would never be any need for imports," Jindal said.
Focusing on government's priority for housing for all, Jindal said, JSPL innovative products including Jindal Panther 550D TMT Rebar and prefabricated structures could help in not only building faster but with greater strength too, which could prove to be a game changer for sustainable housing.
Jindal said, availability of coal, iron ore and other material are still a concern but the efforts of the govt to ensure raw material to every sector are appreciable. Talking about the recent corporate tax cuts, Jindal complemented the efforts of the government to bolster the manufacturing sector and believes this could generate more employment.Future uncertain for Forever 21 in India as company files for bankruptcy