JSL witnesses rebound, export orders approach pre Covid-19 levels

The country’s largest maker of stainless steel, Jindal Stainless Ltd (JSL), is witnessing rebound in export orders.

Even though the country is yet to lift the lockdown completely, JSL is recapturing its share in export markets and is ramping up domestic production volumes. In May, JSL despatched 12,000 tonnes of export shipments, representing 40 per cent of its overall despatches. During June, the export shipments are projected to reach 18,000 tonnes, matching volumes of the pre Covid-19 period.

“We’ve adjusted our sails to weather the storm. We’re aggressively chasing export markets in the EU and Russia, which constitutes the bulk of our export volumes. Besides, we are also looking afresh at other markets like Korea and South America to maximise exports. We are optimising operations at our plants to align with the market conditions and we’ll be swift to respond to domestic demand upon revival”, said Abhyuday Jindal, managing director, JSL. For uninterrupted operations and smooth flow of goods throughout the supply chain, JSL is closely coordinating with local authorities.

 

Given the government’s focus on revival of MSMEs (micro, small & medium enterprises) along with planned relaxation of the lockdown, domestic demand of stainless steel is expected to pick up in a couple of months. The health and medical industry is opening up new avenues for the production of equipment and infrastructure made with stainless steel. Moreover, the government’s push towards infrastructure projects, along with robust demand from railways, will generate sustained demand for the industry. As more and more people switch to private modes of transport, demand from the two-wheeler segment where the company enjoys a majority market share, is bound to increase.

JSL has gradually ramped up operations since it recommenced its manufacturing facility in the first week of May, the company’s downstream facilities were operating at 40 per cent whereas the overall capacity utilisation stood at 40 per cent.  As the lockdown restrictions ease further, JSL hopes to expand production.