Jisco To Hike Production By 10-12%
(by Candida Moraes, Mumbai - April 21, 2003 FINANCIAL EXPRESS)

Jindal Iron & Steel Company (Jisco) plans to step up its production level by 10-12 per cent for the current fiscal and has added capacities to the tune of two lakh tonne at its Tarapore cold rolled (CR) facility to the existing capacity of about four lakh tonne. Jisco is also planning new investments for the current fiscal and the new capacities will enable it to supply 'CR Full Hard' to markets in China and Africa which have set up galvanising lines but do not have CR processing facility. A Jisco official told FE that all investments being planned would be funded internally and the company is eying markets in Africa and sees the possible opening up of a greater market in the Middle East as due to the Gulf war, a lot of steel will be required for reconstruction. At present, customer requirements are being addressed at Jisco and things look upbeat as last year had been a good one. He said: "We look at business with customers as partnerships rather than mere relationships between a buyer and a supplier." Various new facilities are being added which will help increase the production level.

Jisco has just been awarded 'The Raw Material Supplier Award' by Honda India at the recent suppliers meet. It is working towards debottlenecking its 5.5 lakh tonne galvanising capacity, with negligible or marginal expenditure and expects to see an increase of roughly 13 per cent in its galvanised plain (GP) and galvanised corrugated sheet (GC) production this year. It is carrying on with its recently restarted hot rolled (HR) plate production and has markets in Gujarat, Maharashtra and Madhya Pradesh. Jisco had downed shutters on its HR plate operation almost ago, when prices dropped below Rs 12,000 a tonne. It has a captive source of HR coil from its backward integration project of Jindal Vijayanagar Steel (JVSL). Presently it is India's largest exporter in the GP/GC segment.

With regard to the company chairman's earlier statement that its aim is to achieve an export target of 80 per cent of its GP/GC production, a company spokesperson said that the company is looking at a 76-78 per cent now. Its production for 2002-03 was over five lakh tonne and is now poised at about 6.2 lakh tonne given the capex increase. The official feels that the upturn of steel prices, increase in overseas demand and decreasing operational costs due to increased efficiency are the probable reasons for the company's profitable mode.