With the BJP-led NDA set to be back in the saddle, the Indian steel industry expects major focus on manufacturing and infrastructure sector to give a fillip to the steel demand.
Market is plagued by sluggish demand with production growth of four per cent and consumption of 0.6 per cent during fiscal 2013-14. It is projected that the market will be further subjected to stress from supply side with main and major producers coming up with additional capacity of three million tonne in long product segment alone.
Trends suggest that with slump in domestic market, the steel manufacturers are looking at tapping the overseas market. Leading from the front, RINL, JSW, Tata and few others have revised their strategies to explore the export market. Products from expansion project of RINL, which has its headquarters in the city, have rolled out to the market and it is expected that products from the recently completed Rs.12,500-crore 6.3 million tonne expansion project will hit the market in full swing by 2016-17.
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Sources said RINL is planning big in export. The navratna company was hit hard by recession during 2012 and with lot of strenuous efforts it could remain afloat during the period. RINL has been quite aggressive in leveraging shore based location and export at least 10 per cent of its production volume. It has an ambitious plan of achieving a turnover of Rs. 5,000 crore from exports in next three to four years, sources said.
In terms of volume, the company aims at one million tonne. RINL’s present export share is only six to seven per cent of its product volume. The company, it is learnt, wants to double it. RINL Export market strategy focuses under Foreign Trade Policy areas like South Asia, South East Asia and Middle East. A high-level team consisting of Ministry of Steel Joint Secretary Lokesh Chandra and RINL Director (Commercial) T.K. Chand went on a business trip to Nairobi and opened African market for RINL products. API grade round products from expansion will go to the Middle East. Market watchers say while RINL is poised to encounter stiff challenge from China, Turkey and Ukraine in South Asia and South East Asia, the company is bound to make a great dent in export.