The Rs 21,000-crore Jindal Stainless group is eyeing a 20 per cent growth in topline in the next 12 months on the back of increased capacities at Hisar and Jajpur. While a cold-rolling unit would go on-stream at Hisar, two facilities would be commissioned at Jajpur over the next two months. With this, cold-rolled (CR) steel, which is a value added product, would increase to 60 per cent of sales, said Vijay Sharma, head of sales at Jindal Stainless.
CR accounts for about 55 per cent of the sales. However, in stainless steel, CR dominates the portfolio at around 80 per cent of the product mix. Jindal Stainless, which is waiting to exit from the corporate debt restructuring (CDR) cell, will expand in phases.
After the expansion at Jajpur, Jindal’s total melting capacity would be 1.9 million tonnes (mt). The current size of the Indian stainless steel flat products industry is 2.5 mt per annum of Rs 35,000 crore. Sharma said the Indian market was growing at 9-10 per cent while that in global market was around 5 per cent. Of the major application segments of the stainless steel in India, the kitchenware segment accounts for 40-45 per cent, of which Jindal Stainless has a 50 per cent market share.
Imports, however, are a cause for concern. In kitchenware, imports are at 1,50,000 tonnes, primarily from China. Total stainless steel imports would stand at about 5,00,000 tonnes of a total market size of 2.5 million tonnes.
Jindal Stainless' major competition is from imports, Sharma said.
He pointed out that the potential growth was immense as per capita consumption in India was 2 kg while the world average was 6 kg.
Jindal Stainless, which is a B2B player, will also explore the option of co-branding in applications that have a higher usage of stainless steel like pipes & tubes, kitchenware.