Q&A: India’s Jindal Stainless eyes 10pc export growth

Indian stainless steel producer Jindal Stainless (JSL) is confident of strong growth in domestic and export sales in the 2024-25 fiscal year ending 31 March, as a result of a significant recovery in European demand and new supportive measures from the Indian government. Argus spoke with JSL's managing director Abhyuday Jindal about his market expectations in the coming months and the firm's sustainability plan. Edited highlights follow:

What are JSL's expectations for the next quarter and for FY25?

We expect a relatively modest performance in the upcoming quarter and for FY25. On the global front, despite the protectionist measures, exports are gradually picking up, particularly to Europe, and we have now extended our reach to Japan and Korea. Looking at the current global scenario, we are expecting 10pc export projections for this fiscal year. In Europe, the recovery is more noticeable in western countries such as Germany, Italy, and France, although it remains relatively modest.

Domestically, we expect a robust demand, bolstered by the government's annual infrastructure budget of 11.11 trillion rupees ($132.2bn). This presents a significant growth opportunity, particularly as we have started manufacturing stainless steel long products.

How is the removal of import duties on raw materials benefiting the growth of the stainless steel industry?

The removal of duty on ferro-nickel is expected to make the stainless steel industry more competitive. It will especially help the suppliers in India to develop, as now they will have multiple options across the globe to source the raw material and produce desired outcomes.

How much does government support and policies positively impact the steel sector?

The Indian government has shown support for our industry through initiatives like the Production Linked Incentive and the Make in India campaign. The forthcoming stainless steel policy is also expected to drive increased usage of the metal domestically. Additionally, the government is now actively promoting the use of stainless steel in infrastructure projects.

Recently, the road transport and highways ministry recommended using stainless steel within 30km of the coastline for construction purposes. JSL is the first private entity in steel sector to spearhead government of India's Brand India initiative.

What are JSL's initiatives and strategies for achieving net zero emissions and by which year?

Jindal set the target of achieving net zero emissions by 2050, adopting energy efficient technologies, scaling up renewable energy and integrating circular economy principles in our operations. We have reduced over 300,000t of carbon dioxide in the last three fiscal years and are investing Rs7bn in sustainability projects to reduce 1.5mn t of carbon emissions per year.

We are the first stainless steel manufacturing company in India to have installed a green hydrogen plant to produce stainless steel. We have also partnered with India's largest renewable energy company to develop a utility-scale captive renewable project for the supply of power to our Jajpur plant, Odisha. We have also invested in rooftop and floating solar plants to mitigate carbon emissions. We were also one of the only stainless steel companies to have participated at the prestigious Cop-28 held in Dubai last year.

Any capacity expansion plans and investments?

We have recently announced a three-pronged investment cum expansion strategic plan, which includes setting up a steel melt shop in Indonesia by investing Rs7bn for setting up a 1.2mn t/yr steel melting shop. It is a plug-and-play model and expected to be operational in 24 months. With the new melt shop in Indonesia, our total capacity will soon reach 4.2mn t/yr, positioning us among the top three global stainless steel manufacturers.

Infra upgradation of our Jajpur plant we are investing Rs19bn to improve and upgrade the infrastructure in our plant in Odisha, India.

JSL acquired Chromeni Steels Private Limited in Gujarat at an investment of Rs158.9mn to increase the capacity of our cold-rolling facility in line with our long-term vision of increasing the proportion of cold rolled products in our entire product mix.

By Deepika Singh