John Cockerill India Ltd (BSE: 500147) Q2 2025 Earnings Call dated Jul. 30, 2025
Corporate Participants:
Unidentified Speaker
Franois-David Martino — Chairman and Managing Director
Michael Kotas — Managing Director and Chief Executive Officer
Analysts:
Unidentified Participant
Anand Shah — Analyst
Kirtan Mehta — Analyst
Kush Gangar — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to the Q2 calendar year 2025 earnings conference call of John Cockerel India Limited. As a reminder, all participant lines will win the list in only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on a dashedone phone. Please note that this conference has been recorded. Kindly note that this conference call may contain forward looking statements about the company which are based on the beliefs, opinions and expectations of the company as on date of this call.
These statements are not the guarantees of future performance and involve risks and uncertainties that are difficult to predict. I now have the conference over to Mr. Francio David Martino, Chairman of John Cockrell India. Thank you and over to you sir.
Franois-David Martino — Chairman and Managing Director
Good evening everyone. Thank you for joining us today on the Q2 calendar year 2025 earnings call of John Cockrell India Limited. I’m pleased to welcome our Managing Director Mr. Michael Kotas and our CFO Mr. Mark Dumont who are both with us on the call. We are also joined by our Investor relations partner Strategic Growth Advisors. Our earnings results and investor presentation have been uploaded to the Stock Exchange on our website. We hope you have had a chance to review them before the call. I would like to take a moment to introduce the John Kohl Group, share an overview of the industry landscape and then walk you through GCIL’s performance for Q2 of calendar year 2025.
Headquartered in Belgium, the John Kirkwood Group is a global provider of large scale technological Solutions operating in 29 countries with an annual turnover of approximately 2 billion Euro. Our solutions span across key sectors such as defence, industry, environment, hydrogen and services. Our innovations play a critical role in enabling access to fossil free energy, supporting sustainable industrial development, advancing clean mobility, enhancing security and resilience, facilitating the development of critical infrastructure within the groups. Industry Vertical Our metals businesses serve steel manufacturers across three key segments. The first one processing and rolling. This segment delivers cutting edge technologies for downstream steel manufacturing including picking lines, annealing lines, galvanizing lines, acid regeneration plants and color coating lines.
We are also introducing jet vapor deposition technology into our offering. A next generation coating process that enables ultra thin high performance metallic coatings with superior adhesion and environmental benefits. JVD as it is called represents a significant leap forward, allowing our customers to achieve improved product quality while reducing environmental impact, strengthening our position as a technology leader in advanced steel processing solutions. The second segment, Service and Efficiency, is focused on enhancing plant performance. This segment provides maintenance upgrades, energy optimization, spare parts and repair services, ensuring sustained productivity and operational excellence. Iron is still making the newest and most transformative addition to our portfolio.
This segment is centered on enabling green primary steel production. It features Voltoron, a breakthrough zero emission iron electrolysis technology that redefines how iron is extracted by eliminating the need for traditional carbon intensive methods. Olseran represents a significant leap forward in decarbonizing upstream steelmaking and positions the group as a frontrunner in the global shift towards green steel. JCIL is a strategic center of excellence for the group’s cold rolling mill complexes. We we are a market leader in the design, manufacturing and commissioning of advanced steel processing technologies for reversible cold rolling mills to pickling, galvanizing and cutting lines.
We provide end to end solutions for some of India’s most prominent steel makers including Jindal, JSW, Tata and ArcelorMittal. Operating out of Mumbai, GCL has two manufacturing facilities in Maharashtra, our machining and assembly unit in Talosha and the fabrication facility in Hydarwoli. Before moving on to our long term strategies, let me talk you about recent initiatives that we have been undertaking at gcl. The last year or so have been one full of challenges. The headwinds that we have faced in this period has driven us to take a close look at ourselves internally. It has led us to examine all aspects of our operations in detail, to remove any inefficiencies and create a leaner and more agile organization capable of tackling such obstacles in a better way going forward.
While the external environment, although showing signs of improvement, continues to remain volatile, we have directed our energy within the organization to control and improve our preparedness, operational efficiency and capability. Our focus has been on driving strategic alignment, operational restructuring and optimization and maintaining financial discipline to create a resilient foundation for sustainable growth while continuing to maintain an exemplary safety and compliance record. Let me now walk you through our long term strategy anchored on four pillars, capitalizing on India’s growth story. We aim to harness the momentum of India’s infrastructure expansion and industrial growth supported by increased capital expenditure and proactive government initiatives.
These factors are expected to drive strong domestic demand for steel, prompting major steel producers to invest further in expanding their capacities and technological capabilities. As the fastest growing steel market globally, India remains a strategic priority and GCIL is poised to be a key growth engine for the Joan Cockrell Group’s metal business. The Indian government has reaffirmed its ambitious target of achieving a steel production capacity of 300 million metric tonnes annually by 2030, which will necessitate substantial investment from steel producers. As you can expect it, the second pillar is driving innovation in green steel solutions. In addition to capacity expansion, the government has also outlined a phased roadmap for reducing carbon emissions in the steel sector with the ultimate aim of achieving net zero emissions.
Priority areas include the adoption of green hydrogen in steel manufacturing and the deployment of carbon capture technologies. GCL is committed to developing and introducing cutting edge technologies that support the production of green steel. Our focus is on enabling steel manufacturers to reduce their carbon footprint, aligning with global sustainability goals and regulatory requirements. Expanding the revamped spare parts and service business is our third pillar. With a growing installed base and rising demand for maintenance upgrades and productivity enhancements, we see significant opportunity in expanding our revamps parts and services offering across India and on the international markets.
As customers increasingly focus on improving line performance and extending equipment life, our ability to support them through tailored service packages become a key differentiator. This is a recurring business that deepens long term customer engagement while offering consistent value delivery. It also enables us to optimize resource utilization, leverage our technical exercise and maintain a strong presence throughout the life cycle of our solutions. So beyond this strategic relevance, this high value recurring business also delivers attractive returns making it a strategic growth lever for us, making it an important pillar in our future growth plans. Fourth and last pillar is the new Roll Scouting facility we are enabling.
We are establishing a state of the art Roll coatings facility at our Talosia plant in collaboration with the Belgium company Advanced Coating which is a leader in thermal spray coating, grinding and finishing services in Western and Northern Europe. It is a trusted supplier of these services to players like Tata steel in Europe, Thiessenkrup and ArcelorMittal. This partnership with Advanced Coatings fuels a critical market gap and enhances GCL’s after sales value proposition. By combining wall scouting services with our established processing expertise, we are creating a valuable new capability within VCL1 Blue Ocean that opens the door to delivering comprehensive value added services to our Indian customers.
The availability of coated wall supplies in India is currently very limited with only a few players in the market. Given our extensive installed base and the rising demand for high end processing lines, this facility strategically positions us to better serve our customers while offering significant value at the group level. We remain focused on disruptive innovation technologies like Jetway for Depositions and Voltswald, a pioneering zero emission electrolysis process for Iran, position us at the forefront of steel decompression. These solutions are aligned with 3 megatrends, the global rise of green steel, the acceleration of the electrification across industries and increasing the demand for lighter and stronger materials in India.
These innovations support our efforts to modernize aging steel infrastructure and enable clean capacity addition. Thank you and before handing over the call, I would like to take a moment to extend our sincere gratitude to Michael Kotas who will be retiring from his role as Managing Director of GCIL effective 31st of July 2025. Michael has led the business through a particularly challenging period with resilience and commitment. On behalf of the entire JCL team, I want to thank him for his unwavering dedication and commendable contribution to the company. With that, I would like to hand over the call to Managing Director Michael Cottas to share his perspective on the current business environment and the road ahead.
Michael Kotas — Managing Director and Chief Executive Officer
Thank you Francois Good evening everyone. Thank you for joining us. The last year or so has undoubtedly been a challenging period for the domestic and global steel industry. Steel manufacturers had been challenged by dual frontier on the one hand, the combination of global geopolitical tensions, economic uncertainties and the election period in India led to volatility in demand. On the other hand, excess capacities led to an influx of low cost steel from China which helped profitability of domestic steel makers. Both these factors together drove the industry to to take a very cautious approach in terms of fresh investments in capacities.
There were temporary delays in project approvals and the Stomino effect was felt in our business as well. The pace of order inflows had slowed down for JCL over the past several quarters. However, we continue to maintain at the time that the slowdown was a cyclical downturn rather than a structural one and the slowing down of capacity addition was a mere deferment. The past couple of quarters have validated our belief. Over the past couple of quarters we’ve seen steady month on month improvement in the business environment. The early signs of stabilization we observed last quarter have only strengthened further this quarter.
Overall, the first half of calendar year 2025 has been marked by gradual but clear improvement in the operating landscape. We are encouraged by a noticeable uptick in customer inquiries over the last few months. We see this as a strong indicator of confidence returning to the sector. The level of confidence from customers has only improved compared to the previous quarter. From a structural point of view, India continues to stand out as a bright spot globally with a robust domestic consumption base and an increasing focus on infrastructure development. The fundamentals remain sound. Now with political policy clarity, we are seeing a pickup in the pace of infrastructure project approvals, unlocking fresh opportunities for capital expenditure.
More importantly, our customers remain committed to their long term expansion roadmaps which are aligned with the Government of India’s ambitious vision to achieve 300 million metric tons of steel making capacity by 2030. This reinforces our belief in a sustained demand environment over the medium to long term. Based on recent discussions with our customers, we anticipate a healthy pick up in order inflows going forward. As of 30th of June 2025, our order book offers good visibility for the upcoming quarters and we remain confident in our ability to capture future growth. Innovation continues to be a cornerstone of JCL’s strategy.
We are proud to lead this transformation of steel making with technologies that deliver efficiency, performance and sustainability. One such breakthrough is jet wapor deposition, the next generation alternative to conventional galvanization. JVD is a vacuum based zinc coating process that enables precise, uniform and customizable coatings at higher speeds. It not only enhances surface quality but also offers tremendous flexibility in coating thickness making it especially suitable for automotive and high end industrial applications. We have already successfully commercialized JVD with over 1 million tonnes of coated steel produced at ArcelorMittal facility in Belgium. Another transformative innovation is Voltaron.
Developed under the newly introduced iron and steel making segment of our group. Voltaron represents a revolutionary shift in upstream steel production. It uses low temperature electrolyzers to extract iron from ore, eliminating the need for coal based blast furnaces. The result is a dramatic reduction in carbon emissions paving the way for zero emission iron making. This technology is being developed in collaboration with Astrolometer and has the potential to play a pivotal role in decarbonizing primary steelmaking globally. We also have put stronger strategic focus on expansion of our revamps, spares and services business. Historically this area has remained under leveraged but now we see high potential to scale this vertical.
This strategic emphasis on the revamps, spares and services business continues to take shape. Our approach is to provide end to end life cycle support to customers from routine maintenance and plant upgrades to full scale modernization of older steel plants. As plants age and capacities added, the need for efficiency enhancement and performance optimization becomes critical. This segment not only helps us create recurring non cyclical revenue streams but also deepens our engagement with customers by becoming long term technology partners in the growth and transition journeys. To augment our after sales service capabilities, we have partnered with Belgian based entity Advanced Coatings wherein JCIEL will be able to leverage advanced coatings technology in thermal spray coating to cater the wide installed base of annealing and galvanizing lines.
In India. We are already seeing the results of our focus on increasing the share of the after sales services business. There has been a noticeable improvement in in the gross margin during the first half of 2025 compared to the first half of 2024 and we’re seeing a clear upward trend in our profitability and cash flows in the first half of 2025. This has been driven by operational efficiencies, disciplined execution and an increased contribution from the revamps and services business. We have reported positive EBITDA after four quarters. Our efforts on collecting of outstanding receivables and better inventory rotation have driven a significant improvement in our cash flow.
In summary, while the last year brought us its share of challenges, the internal restructuring and optimization of efforts have placed us in in a better position now to navigate the complexities of the external environment. With a strong order book, a healthier cash position, better optimized resource utilization and leaner and agile organizational structure. JCL is well placed to benefit from the next wave of growth in India’s steel sector. I now hand over to our CFO Mark Dimont to take you through the financial performance of the quarter. Over to you, Mark.
Unidentified Speaker
Thank you Michael. Good evening everyone. Let me now take you through the financial performance for quarter two of calendar year 2025. Our revenue for the quarter stood at 821 million ENR, representing a 12% decline year on year. As my colleagues have mentioned earlier, we have seen a steady improvement in customer sentiment over the past few months. With the pace of project execution picking up, our revenue has grown by 7.4% sequential quarter basis. We are seeing encouraging signs on the ground, particularly through a raise of customer inquiries. Our advanced discussion over the past few months with key customers point to strong order inflows reinforcing our beliefs that we are now on a steady upward territory.
After having navigated the challenges of last year, this is a tangible validation of the recovery underway. We remain cautiously optimistic about the road ahead. Over the past three quarters we have consistently improved both cash flows and financial results and our focus now is on sustaining this positive momentum. These developments are also reflected in our financial performance. Quarter on quarter we’ve recorded a 23% improvement in cash. We accumulated in Q2 a profit of 17 million. For H1 we are net profit positive at 5.9 million. Supported by the strong quarter, Q2 losses are steadily narrowed over the last three quarters.
This progress has been driven by targeted cost rationalization measures and improvement in manufacturing efficiency. We have recorded a notable improvement in both gross margin and EBITDA margin on a year. On year basis this quarter, Our EBITDA for Q2 2025 stands at 39 million, two times higher than the same quarter last year. This significant improvement is driven not only by our effort to streamline operation, optimize cost and improve operating leverage, but also by the growing momentum of our revamped spares and service business. This business, now a central pillar of our strategy. With its stable recurring nature, this business line is enhancing the quality and resilience of our earnings and positioning us for more predictable growth going forward.
With the order book in hand and the customer inquiries taking place, we expect the pace of revenue growth to keep getting better in the coming quarters. As of 30 June 2025, our order book stands at approximately 6.4 billion, providing considerable revenue availability for the quarters ahead. And we have a strong order book pipeline of 46 billion. We continue to focus on operational efficiency, cost management and expanding our pipeline to ensure a stronger performance going forward. We are investing in the expansion of our Talisia manufacturing facility to increase capacity and better serve our customers evolving needs.
We are setting up the roll coating line at Tallogia as well. With that, we would like to open the floor for questions. I request all the participants to please keep their questions brief and avoid repetition. A quick reminder that we will respond to your queries within the boundaries of our internal policies as required by law. We will restrict our responses to clarify on all matters which are available only in the public domain. So kindly ask your question accordingly. There could be granular aspect of our financials like product wise, margins, profitability, which are strictly confidential on which we will not be in a position to comment.
We also do not provide any future guidance. Thank you.
Questions and Answers:
operator
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask question may press N1 on the Dashtown telephone. If you wish to remove yourself from question Q, you may press star N2. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we’ll wait for a moment while the question queue assembles. First question is from the line of Manon from MKP securities. Please go ahead.
Unidentified Participant
Hello sir. Am I audible?
Franois-David Martino
Yes.
Unidentified Participant
First of all, sir, congratulations on the boot set and the partnership with Advanced Materials. My first question is on the Walter on side. My understanding is that plant is supposed to start in 2027, the one in Belgium and it’s supposed to produce between 40 and 80,000 tonnes a year. I just want to understand what do you believe the target market size in India is for the Walter on plant and how long would it take to execute something like this, which is the first plant is only starting next year. So that’s my first question. And so my second question is on the JVD side, how many plants in India currently are doing zinc coating? If you could just give us an idea of the target addressable market there, that would be great.
Thank you sir. Those are my questions.
Franois-David Martino
Thank you for your questions. I will start with the Voltairon question. So the development of Voltairon has been accelerated in the last 12 to 18 months. And we have started a new pilot plant in France 5 months ago who is giving extremely good results in helping us to define the opex. So the operational expenses and capital expenses linked to the technology, this will allow us to launch, we believe next year. The first construction of a plant of 40,000 tons of now 40,000 tonnes is not the size of a normal Voltaren plant as it will be expected during the full industrialization phase.
So the minimum we expect for Voltaire 1 plant is 800,000 tonnes per year. So the capex cost of Vaulter 1 plant of 800,000 tonnes is more or less equivalent to the investment of one blast furnace with a capacity of 1 million tonnes. So this 40,000 tonnes will be a semi industrial plant. But due to the modularity of the technology, the first acquirer of this 40,000 tonnes plant will be able to increase and grow the capacity of this plant to bring it to a certain size. We believe that investors will be interested to buy this Volterrand technology and to have a minimum capacity of 400,000 tons so that the OPEX cost and the product cost are attractive to the market.
Volterone will be sold at a price which is the payer of any scrap or HBI or DI because the carbon emission linked with the Voltaren production as long as you use green electricity is zero. So that means the greenest steel possible will be only produced with Volterone plates which will be produced by the Volterran plants. These plates will be used directly in electrical arcanas which are already largely expanded all around and especially in India. India is right now producing around about 160 million tonnes per year. We believe that the conversion to green steel will take 30 to 40 years.
So the market development of Voltairone will be extremely important and very long. So the market will start as soon as we will have built the first 40,000 ton plant, but could accelerate on a very high pace. Especially in India where the government has shown strong willingness to switch the seal industry into a decarbonized green production of steel. Regarding jbd, JBD is a new way of galvanizing steel. And to give you a perception of what volume is produced and galvanized in India, as I said, you have a market of 160 million tonnes. 1/3 of this material or 30%.
Sorry, 30% of this material is cold rolled. And mostly 2/3 of what is called rolled will be coated mostly with 80% with galvanizing coating. So I’ll let you make the calculation. 30% of 160 is round about 48 million tons which is cold walled. And as I said, 80% of that which gives you 35 million tonnes is produced through galvanizing coating. Now a galvanizing line can be between let’s say 300,000 tons to maybe 1 million tons. So that means my assessment is that there is Roundabout, roughly 100 galvanizing lines in India currently operating. Hope this is answering your question.
Unidentified Participant
Great. Thank you so much for your answers.
operator
Thank you. The next question is from the line of Nitiksh from Amble. Please go ahead.
Unidentified Participant
Hello. Am I audible? Yes. Yes, ma’. Am. Yeah. Hello. Good evening, sir. I just wanted to understand what about the jv, I mean about the MOU that we have with sari. So I wanted to know what are the terms of the JV and what would be our investment. Thank you.
Franois-David Martino
So at this point of time we will not disclose too much into detail the content of the MoU, which is highly confidential. And we are pursuing deep dive discussion with SAIL currently on putting in place different partnerships with them. The MoU is basically about helping Sail to decarbonize their industrial complexes and developing high quality products. So we will be able to declare in due time the opportunities which will arise from these partnerships and we will communicate under what form this is going to materialize as soon as we will be able to do so.
operator
Okay. Thank you sir. Thank you. A reminder to all the participants. You may press star and band to ask question. The next question is from the line of Anand Shah from J Anand Securities. Please go ahead.
Anand Shah
Hello.
Franois-David Martino
Yes, sir.
Anand Shah
Yeah. Firstly, congratulations on significant improvement in measures for communication with investor and analyst fraternity. I would like to wish all the best to the outgoing MD, Mr. Michael Kotas for his new assignment. I would like to welcome the incoming MD, Mr. Frederick Martin, who seems to be one of the most senior persons within the metals business of the Group hope that he would be able to successfully drive the company in multifold scale up of the business in the coming years. Now my questions from my end can you give some color on the order pipeline? What I Understood was roughly 46 billion rupees.
46 billion rupees. Second, is any likely, any likely timeline by when the group expects to receive maiden commercial orders based on JVD and Voltairon Technologies. Third, request to throw light on the tie up with advanced coating essays for how this tie up will operate. And lastly can you give some ideas on capex plan and investments planned in the next couple of years? Thanks.
Michael Kotas
Okay, thank you very much Mr. Shah, this is Michael. I thank you for your kind words and I would like to start responding on questions number one and three. So the first, the first question was on the expected order entries correct. Order pipeline. Order pipeline maybe what I understood was yeah. Yeah it’s still growing as of today. It’s a very significant pipeline of several 10 thousands of crores that we are working on now there’s always one uncertainty as you all know is when clients get the final approvals from their boards for the final investment decision. But as we said in the speech already we see that a lot of these decisions have made sure within all these clients to a stage when 2025 should see a lot of final investment decisions going to contract signing and to order award first of all and then contract signing. So it’s a very significant pipeline.
We are supporting with increasing even our sales and proposal teams especially for the value services. So it’s a very healthy order pipeline as of today. Hope this answered your question then on the Rolt coating. So what we are doing is that we are going to set this facility up in our existing workshop in Talosia. One part of that plan will be rededicated. So this Rolf coating and you understood it’s a thermal spray process for which we are currently in final negotiation stages to purchase the required machinery. And the idea is to be operating let’s say by end of December, early January.
So towards end of the year we are confident that we will be able to process the first roads for which we already have first orders in hand from Indian customers for refurbishment.
Franois-David Martino
Mr. Shah, I would like to answer your question number two and the question number four regarding the Voltaren and JVD contract. So as we mentioned we expect the first pre industrialized contract plans to be sold hopefully 2026. And regarding JVD we are in very deep discussion currently with customers and it could be that we register the first JVD Order this year. Regarding the last question which was about the capex in workshops and manufacturing we see manufacturing as a core part of the strategy because this is allowing to differentiate from competitors by providing own manufacturing premium quality products but at the same time ensuring a recurring business through spare parts and revamping of machines we have manufactured ourselves and where we know exactly how they are made.
So this is going to be for us a key driver for expansion and we believe that JVD as well as voltairon these new technologies will require John Cockreal India to produce in India for competitiveness reason but also for IP protection reason in our own facilities. So this will require further expansion investment in workshop to increase these differentiation this competitiveness and the protection of our know how for the next decades to come because these two technologies will have a market time of several decades.
Anand Shah
Sir, any, any, can you give any idea in terms of numbers, in terms of what kind of capex or investment that you would be looking at to significantly scale up your business?
Franois-David Martino
We are not in the position currently to release this information but the investment the capex necessary will be of course in line with the potential of revenue and profitability they can bring. We will make sure the board of directors and the management team will make sure that any investment in workshop will be done on a competitive return on investment.
Anand Shah
Thanks sir. Thank you Lauren.
operator
Thank you. The next question is from the line of Kirtan Mehta from Reruda BNP Paribas. Please go ahead.
Kirtan Mehta
Thank you sir for your presentation and sharing the information. I have a question about the India market size for your products. Could you be able to highlight what is the India market size over past three years for your products and what was our market share? And looking forward, how do you see this market size evolving over next three years? And if you could do this at various product group level it would be even more helpful.
Michael Kotas
Yes, this is Michael Kotas again thank you for your question. So let me, let me give you a glimpse of and maybe also apologies if we repeat what Mr. Martino already tried to explain. There is no such thing as a complete repository of every line installed. So we have a fairly good view on all the installed equipments at all major integrated steel plants. But there’s a market of rerolls of service centers that is less accessible, they are smaller in capacity, usually more localized. But you know today the installed capacity 2025 has crossed 200 million tons already.
The demand is less because we are, we were, the sea makers were operating at 75, 80% capacity utilization. But let’s say 200 million tons installed was confirmed by the Ministry of steel. That means 100 million tonnes short of the 300 million tonne target by 2030. That means approximately 30% of that will be cold rolled and coated products. That means 30 million tons addition in cold rolled and coated in flat products. Sorry. And most of that will be then cold water and coated eventually. There’s a rule of thumb and we must be careful because we are in a project driven business.
These type of investments have no price tag. It depends highly on what type of line it is. An automotive galvanizing line requires a significantly higher capex than let’s say a standard galvanizing line for roofing and cladding applications. But you know the rule of thumb in India we believe and you know many people share this view if you say 5 to 600 million USD to produce or to create one extra 1 million ton of capacity and downstream is a fairly reasonable approach. And again some investments may be north of that, some south but as an average you will not be so far off.
And then you can easily calculate what is the total market potential then in terms of looking to market shares. I believe that was the second part of your question. We need to differentiate indeed because there is a submarket in let’s take an example of galvanizing lines. All the last year’s additions that are coming to the market now of high end galvanizing lines for automotive are from John Cockrell. So our market share for this subsegment is actually very very high. It’s less in, you know, let’s take the other example galvanizing line for roofing and cladding construction grade galvanizing lines there the amount of competitors is higher and the market share lower.
And as we have explained also in previous AGM and in the last investor call we are ramping up our market share and we will regain market share based on the visibility of our sales pipeline in the cold hauling mats it.
Kirtan Mehta
Has been a segment on the global market size. The global engineering market for steel is more than 20 billion euro per year. The addressable market for downstream products which is basically the scope of supply of Jungkook oil India is 3 billion. So we have currently a market share roundabout of between 8 to 10%.
Michael Kotas
Thank you for the bird’s eye view on the market to sort of give some more information in terms of is it possible to sort of share your assessment of the orders actually executed within the last three years and how much market it would amount to in terms of either a million ton capacity or the sort of the rupees billion potential and in your assessment how many of the orders would actually get executed over the next three years and what will be the cumulative market size over next three years? Would it be possible to share your assessment of both past three years in the next three years?
Franois-David Martino
Again, thank you for your, for your question. So let me, let me answer the first part of your question if you follow the press. There has been various announcements by our customers in the last weeks and months of successful commissioning of lines. So there was two lines. A CAL or a continuous annealing line and a continuous galvanizing line in Entata Steel and Kalinganagar and a CGS or galvanizing line for automotive in AMNS India and Gujarat. The galvanizing line in Gujarat is half a million tonnes of annual capacity. The galvanizing line in Tata has a similar amount.
And typically a cow can be anywhere between 7, 800,000 tonnes per year. So hopefully that gives you a good feeling. And yeah, these are the orders. We have other orders that we are working on with all major integrated steel makers in India. All export orders that we have been working on, there were a few are at this moment completed. So right now execution is focused to a large part for Indian customers and everyone is having a share in the order book. All the major steel makers.
Kirtan Mehta
Sure. Thank you. There was a second question, so please go ahead. Sorry to interrupt.
operator
Mr. Mehta is it answer your question?
Kirtan Mehta
Yes. Second part of the question was about basically the assessment of your how much more capacity would get added over the next three years in India either by you or by your competitors.
Michael Kotas
Well, okay. Of course we would like to have a lot of that to be executed and awarded to us. So see if you. And of course we can give you a glimpse of what we know because a lot of that is public knowledge at this moment. All major integrated steelmaker have announced various expansion plans across India. So JSW announcing a major mega plant in Gachiroli in Maharashtra. And they also confirmed last week that 20,000 crore will be reserved for the expansion of their Dolby plant. We know that Tata Steel at this moment is focusing on completion of the phase two of the project in Kalinganagar and has smaller investments in Odisha and in Punjab. AMNS similar story. Hazira will continue with the next phase.
And there was a large announcement of a green steel plant that eventually could go up to 17, 18 million ton in Andhra Pradesh. Jindash Steel, formerly Jindash Steel and Power Ltd. Of course is focusing on Angul in no Disha Possibly according to the sources, 20 million tonnes extra. And then of course Sail also got an approval for 100,000 crore expansion across their existing sites. Whether it’s ISCO and Bernpur Roquela or Doga Pool. So all in all, all these announcements that are there already account for more than 100 million ton of extra addition. And we believe, and it’s I think a fair assessment to believe that this 30% rule of flat products will also apply here.
Okay, sure.
Kirtan Mehta
Thank you. Just one last question. On your order book of 6.4 billion, how much of that can be executed over next six months and over next one and a half years?
Michael Kotas
So the existing or. One second. One second please. So sorry for the short pause. The projects that are currently in execution are mostly in a rather advanced stage with two orders right in the middle of the procurement and manufacturing phase. As we said before, Tata Steel Amns are already partially commissioned and the final commissioning task will be completed by end of this year or early next year. Then let’s not forget Value Services growing quarter by quarter. These have much shorter cycle times, six to eight, sometimes 10 months, you know, as a long project. So these are typically executed within these time frames.
So yes, most of that by end of the year, beginning of next year we will see majority of these projects completed. But we already said we are optimistic on new order entries which, you know, those will not be executed. Those will be starting the manufacturing process maybe by end of the year.
Kirtan Mehta
Thanks. And is it possible to bifurcate your order book in terms of the stores components? How much of that comes from your pillar three? Sorry, pillar three is Value Services.
Michael Kotas
Yeah. Is that what you mean with pillar three?
Kirtan Mehta
Yeah.
Michael Kotas
So right now we are already well advanced into seeing value services 20, 25% of the overall order book. And I think this is also a percentage that we like to continue to see if not growing up to maybe 30%, 35% if possible. But that’s, you know, these are typically benchmarks from the industry that are not unrealistic at all. And there is demand. We see the inquiry activity is very high. So hopefully that gives you a good picture.
Kirtan Mehta
Thank you sir. Thank you. Detailed answers.
operator
Thank you. Ladies and gentlemen, in order to ensure that management is able to address questions from all the participants in the conference, please limit your question to two questions per participant. Do you have a follow up question? We request you to rejoin the queue. The next question is from the line of Kush from Care pms. Please go ahead.
Kush Gangar
Sir, you mentioned someone mentioned in the opening remarks with regards to order book. Pipeline, the figure was 26 billion or 46 billion. What was the figure? I just wanted to confirm that.
Michael Kotas
The. The number is north, so bigger of them than 40, 40,000 cr. So there is a. There’s a very big pipeline at this moment.
Kush Gangar
50,000 cr. Okay, okay. And with regards to service value added services segment, if you can just share some details of the market size and you mentioned it is 20, 25% of order book. Right. So for whom the market size of the value added services segment.
Michael Kotas
Yes, Michael Kotas again. So it’s very complicated to determine the exact market size and revamping what we know and for me this is a much more relevant indicator is that we track separately the order pipe or the inquiry pipeline for value services. And also there we see at least 9 to 10,000 cr of inquiries at the moment that we are working on. And that can be spare parts, that can be larger revampings. So it’s a very healthy pipeline. But again there is no such study to evaluate exactly how big is that market. Sorry for that.
Kush Gangar
Got it, got it. This was very interesting. Thank you sir.
operator
Thank you. Ladies and gentlemen, due to the time constraint we will take this as the last question. I would hand the conference over to the management for closing comments. Over to you sir.
Franois-David Martino
Thank you. Ladies and gentlemen, on behalf of John Cockerill India, we would like to thank you for joining us today for our earnings call. We appreciate your continued interest and support. We hope the discussion has addressed your queries and provided meaningful insight into our business and strategic direction. We remain committed to maintaining transparent and regular communication with the investor and analyst community. Should you have any further questions or require additional information, please feel free to reach out to us directly or connect with our investor relations partner sga. Thank you to all investors for the support during my tenure as MD and once again, thank you for your time and participation.
operator
Thank you on behalf of John Cockrell India limited that concludes this conference. Thank you for joining us and you may now disconnect your lines. Thank.