Thu, 02 Jul 2020

New Delhi [India], June 4 (ANI): Jindal Stainless Ltd (JSL) said on Thursday it has regained its footing in export volumes by ramping up production for global markets even as the country is yet to completely lift the Covid-19 lockdown.

In May, the company despatched export orders of over 12,000 tonnes, comprising more than 40 per cent of the entire share of its despatches. In a normal month, this percentage hovers around 18 to 20 per cent.

In June, the company is slated to despatch over 18,000 tonnes, taking the export volume back to pre-Covid-19 period.

"We are aggressively chasing export markets in the European Union and Russia which constitute the bulk of our export volumes," said Managing Director Abhyuday Jindal.

"Besides, we are also looking afresh at other markets like South Korea and South America to maximise exports. We are optimising operations at our plants to align with the market conditions and we will be swift to respond to domestic demand upon revival," he said in a statement.

JSL has gradually ramped-up its operations since the re-opening of its manufacturing facility in the first week of May. By the month-end, the downstream facilities were operating at 60 per cent of installedcapacity and the overall capacity utilisation reached 40 per cent.

With the gradual easing of lockdown, utilisation will be ramped up in June. For uninterrupted operations and smooth flow of goods throughout the supply chain, JSL said it is closely coordinating with local authorities.

Given the government's focus on revival of micro, small and medium enterprises (MSMEs) along with planned relaxation of the lockdown, domestic demand of stainless steel is expected to pick up in a couple of months.

The health and medical industry is opening up new avenues for production of equipment and infrastructure made with stainless steel. Moreover, said JSL, the government's push towards infrastructure projects along with robust demand from Railways will generate sustained demand for the industry.

"As more and more people switch to private modes of transport, demand from the two-wheeler segment, where the company enjoys a majority market share, is bound to increase." (ANI)

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