Faced with surging imports in the home market, Jindal Stainless is now looking at a bigger play overseas.
Exports currently account for about 20% of total sales, but Abhyuday Jindal, managing director, Jindal Stainless, said, given the dumping that is happening, the company is working towards increasing its share of exports to 30-35%.
Jindal Stainless has units at Jajpur in Odisha under Jindal Stainless Ltd and Hisar in Haryana under Jindal Stainless (Hisar). The companies are in the process of being merged and awaiting approval from the National Company Law Tribunal (NCLT).
The major competition for Jindal Stainless in the domestic market is from imports, particularly Indonesia and China. The suspension of countervailing duty (CVD) on stainless steel products from China and Indonesia in the Union Budget 2021-2022 led to an increase in imports.
In 2020-2021, imports from China had stood at 133,525 tonnes, while that in April-November 2021-2022 was at 213,512 tonnes; imports from Indonesia during the same time increased from 51,607 tonnes to 118,812 tonnes.
With imports eating into Jindal Stainless’ domestic market share, the company is planning to up its game in the export market.
Europe currently accounts for the major chunk of Jindal Stainless’ export basket with Italy, Germany, and France having a significant customer base.
With carbon taxes looming large in these countries, Jindal Stainless is gearing up to reduce emissions even as it expands capacity.
Jindal believes that there could be a requirement of close to 1,400-1,600 metro cars over the next 4-5 years amounting to 14,000-16,000 tonnes of stainless steel. Moreover, international players like Hitachi Rail, Siemens, Alstom are in discussions for the supply of stainless steel for their global projects.