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Expands coverage to 100 Eastern cities in Phase 2 of the campaign
Kolkata, November 11, 2020: Jindal Stainless, India’s largest stainless steel manufacturer, is eyeing 15% sales growth in decorative stainless steel pipe & tube market of East India, as part of the recently launched Phase 2 of its nationwide pipe & tube (P&T) co-branding program- ‘Jindal Saathi 2.0’. Launched in 26 cities in the Eastern region last year, to address the burgeoning issue of counterfeiting in the stainless steel P&T market, the first phase of the Jindal Saathi campaign achieved all expected targets and benefits for the product category, thus becoming a resounding success. Consequentially, the Company has expanded the program to over 100 cities from October’20 onwards in West Bengal, Orissa, Jharkhand, Bihar, the seven sister states and Sikkim. The Jindal Saathi campaign has helped curb the sale of counterfeit P&T by upto 10% in the region. According to industry estimates, the current market size of the P&T segment in the Eastern region is approximately ~Rs 1000 crore. With this initiative, Jindal Stainless also intends to bring improved return on capital investment and increased job creation for MSMEs. It will also provide opportunities for expansion in the segment in due time.
Commenting on this development, Director, Jindal Stainless, Mr Vijay Sharma said, “The East-Indian market has played a key role in the success of Phase 1 of the campaign. Buoyed by this success, we have expanded our campaign to several smaller cities in the region. We are also supporting customers by handholding in setting up their businesses. This will, in turn, help in penetration of stainless steel pipes and tubes in the market. Awareness creation and fabricator training programs for our partners have helped reduce the counterfeit supplies from last year’s level of 15-16% to 5-7% this year. This has further boosted MSME trade in the region.”
Eastern region is expected to be a major contributor towards India’s GDP growth (almost 25%). All major core industrial sectors are expected to grow in this region. Both State and Central Governments are focusing on expanding the development scope of this region because of its increasing strategic importance in the geo-political sphere and high potential of logistical infrastructure development through ports, airports, roads and railways expansion. The consumption of stainless steel in this region has increased to ~1,68,000 MT in 2020 annually, a ~500% increase over the past 5 years led by the P&T and Railway & Wagon segments.
Jindal Stainless introduced ‘Jindal Saathi’ in July 2019 with around 100 MoU partners on all- India basis to guard the domestic market from counterfeit products and to ensure supply of supreme quality decorative stainless steel P&T to end-customers. As a part of the initiative, standardized seals were created featuring the logos of Jindal Stainless and its MoU partners, the grade of stainless steel, and respective MoU numbers. India’s existing production capacity in the decorative pipes and tubes segment stands at over 6.5 lakh tonnes annually. In value terms, this is an annual market size of nearly Rs 7,000 crore. The estimated annual growth rate in this segment is 10-12%.
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