Jindal Steel Ltd’s new managing director (MD), Vidya Rattan Sharma, acknowledged that frequent top-management exits at the Naveen Jindal-led company have become a cause of concern and reassured investors that the latest management overhaul will not derail strategic continuity.
In an investor call on Saturday, Sharma sought to shift the focus from the handful of top executives to what he described as the company’s “upper middle management force” of nearly 1,800-2,000 managers, vice presidents and general managers.
He credited these people for being the driving force behind the company’s operations. “We have a very strong upper middle and also senior management team, up to the vice president level. We don’t find any movement there,” he said.
“As far as the movement of senior persons, yes, it is always an area of concern. We must see why the people take a change or move,” he added, vowing to “put full effort” to ensure “people stay for a longer time”.
Old generals
To steady the ship, the listed company has fallen back on old hands, with at least half a dozen executives, including Sharma, returning to senior positions after stints at Jindal’s private steel business in Oman and the Czech Republic.
The other executives include the head of the rolling mills business at Raigarh, the head of steel melting at the company's Angul plant, the legal head, as well as mid- to senior-level executives in finance and taxation, according to an executive.
More executives are likely to be called upon in the coming days, this person said.
Roopali Mehra, the new head of sales and marketing, has also returned to the company, having left in 2016.
“The Jindal Group has people at various locations. If need be, we can call them. We also send people from India overseas. That's the beauty of a large group,” the executive said on condition of anonymity.
The board of India’s fourth-largest steelmaker has brought in half a dozen other senior executives as part of a management revamp, including new leaders for finance, operations and human resources, Sharma said in the investor call. The executives have been drawn from across the steel industry.
Among the key hires is Rajiv Kumar, who has joined as chief operating officer (COO) after a long stint at Tata Steel Ltd. He was most recently the chief executive officer (CEO) of Vedanta’s Aluminium business. Sandeep Modi has been appointed as the chief financial officer, having previously served as the chief financial officer (CFO) of Hindustan Zinc Ltd.
It has also brought in Biju Nair from ArcelorMittal, as well as senior leaders from its businesses in Oman and the Czech Republic.
The international business had most recently been involved in talks to acquire a stake in Thyssenkrupp Steel Europe, but the negotiations were mutually called off on 2 May after months of due diligence because of disagreements over pension liabilities, high European energy costs and the scale of future investments required.
Jindal Steel did not immediately respond to Mint's emailed queries.
Leadership rejig
The reshuffle marks one of the most significant management overhauls at Jindal Steel in recent years and follows a period of unusual churn at the top.
Since Sharma stepped down as managing director in 2022, none of his successors completed a full term, raising concerns among analysts about leadership stability at a time when the company is pursuing ambitious capacity expansion plans.
Sharma said Jindal Steel relies on an advisory board to provide guidance during leadership transitions and to support decision-making when key positions change hands.
The company’s attempt to project stability comes at a critical juncture. The country's steel sector is entering a phase of aggressive capacity additions, rising competition from integrated producers and heightened scrutiny from investors on execution and governance.
Analysts have increasingly viewed management continuity as a key factor in delivering large capital expenditure projects on time and maintaining operational discipline. Their concerns were heightened after former chief executive Gautam Malhotra quit within nine months of joining.
Ironically, one of the first things Malhotra told investors within 24 hours after taking charge in 2025 was that he tends to “stick around".
Sharma, taking over the helm of the Delhi-headquartered steelmaker, laid down three immediate priorities: fully utilize the installed 15.6 million tonnes crude steel capacity, reduce costs, and improve profitability through better product mix, like value-added products rather than expansion.
“We are not going to burden our balance sheet with the borrowings,” said Sharma, adding that their capital expenditure will be funded through their internal accruals, i.e., their own earnings.
Jindal Steel's consolidated revenue for the June quarter grew by a quarter year-on-year to ₹15,501 crore on the back of better steel prices and product mix. However, the net profit declined by 44% ₹844 crore due to higher raw material costs, interest costs on borrowings and higher depreciation as new capacities became operational.
Jindal Steel shares closed 0.40% lower on Friday, mirroring the benchmark index Sensex, which also settled 0.43% lower.