In a drive aimed at curbing counterfeit products, Jindal Stainless is launching a nationwide co-branding initiative with Pipes and Tubes (P&T) manufacturers.
With a current market share of 44 per cent and annual revenue of Rs 2,300 crore, Jindal Stainless is geared up to increase its share to 52 per cent, and is eyeing a revenue of over Rs 3,400 crore in the next two years, the firm said in a release today.
“We have launched this mutually beneficial co-branding scheme in response to the needs of our customers. It is estimated that over 25 per cent of pipes and tubes sold annually in India bear the counterfeit branding of Jindal Stainless, and are valued at over Rs 1,300 crore,” managing director Abhyuday Jindal was quoted as saying.
According to industry estimates, the current market size of the decorative P&T segment is about Rs 5,300 crore, growing at a rate greater than 12 per cent a year.
Jindal Stainless’ co-branding move will earn its MoU partners a clear-cut distinction from other P&T makers. Standardised seals have been created by Jindal Stainless, encompassing the logos of the MoU partner and Jindal Stainless, the grade of stainless steel, and the MoU number.
Over 60 MoU partners in this segment pan-India have joined hands with Jindal Stainless for the initiative.
The move will help Jindal Stainless and its partners jointly create greater value for customers. It will also offer greater visibility and penetration in the market for the company’s partners, who were earlier struggling with the adverse effects of counterfeiting, such as low market shares, lower margins, bad reputation, and intrusion of inferior quality stainless steel in the market. Apart from this, it will ensure that the right quality material reaches the consumers.
Stainless steel decorative pipes and tubes find major applications railings, furniture and decorative items, among others. The segment is also expecting a growth thrust from the government’s focus on areas like redevelopment of railway stations, new highways, and metro projects, among other infrastructural developments. It has continuous high consumption in northern and western India – the major hubs of stainless steel makers and consumers currently. However, most of southern and eastern India has also recently shown promising growth potential.
The company will be reaching out to customer clusters through radio jingles, prints ads, and out-of-home branding, while continuing its thrust on training fabricators.
The stainless steel grades used in the decorative P&T segment offer higher strength, lower lifecycle cost, unmatched aesthetic appeal, low maintenance requirement, along with the advantage of being nearly 100 per cent recyclable. These grades are also corrosion-resistant and ensure durability.