Jindal Stainless Group aims 15-20pc jump in topline in FY19

KOLKATA: The Jindal Stainless Group -- Jindal Stainless Ltd and Jindal Stainless (Hisar) Ltd -- is aiming at a 15-20 per cent jump in topline in the 2018-19 fiscal, betting big on higher value-added product mix."Stainless steel demand in India is growing at 9-10 per cent, while our growth is expected to be at 12-13 per cent. But, due to higher value-added product mix, our revenue is likely to jump by 15-20 per cent," Jindal Stainless Group Sales Head Vijay Sharma said today.The Group's turnover during the last fiscal was around Rs 20,000 crore from sales of 1.4 million tonnes of steel products.It is foraying into stainless long-products to deepen its portfolio over the next 18 months for an annual capacity of about 50,000 tonnes a year, company officials said."Long products constitute about 20 per cent of total demand, so it is natural to expand. It is being implemented at Jindal Stainless (Hisar)," Sharma said.Jindal Stainless is also installing additional two lakh tonnes per annum capacity, which would expand the Group's capacity of cold-rolled products, currently at 0.6 million tonnes.He said the Jindal Stainless Group sees the automotive sector and the railways, which are expected to see a sharp rise in demand, as growth drivers."Railways is expected to increase stainless steel coaches to 5,000 units a year by 2020 from 2,500 coaches procured in 2017-18. In the infrastructure sector, there is scope for good demand," Sharma said.In the automotive sector, there is an overall rise in demand of stainless steel and by 2020, when Bharat-VI norms are implemented, consumption of stainless will jump by 30-35 per cent, he said.Meanwhile, the company said the combined short and long-term debt is about Rs 7,400 crore (Jindal Stainless Ltd Rs 4,600 crore and Jindal Stainless (Hisar) Limited Rs 2,800 crore)."We have met all the requirements for exiting the CDR (Corporate Debt Restructuring). The banks are also in agreement with us, and we have applied for the exit. We are awaiting response from the CDR cell now," Sharma said.

from Economic Times https://ift.tt/2N7jOlA