Jindal Stainless Steel to set up Long Products Plant in Haryana

According to market reports, Jindal Stainless Steel (Hisar) Ltd (JSHL) is soon likely to commission stainless long products plant with a capacity of 50,000 tonnes per year in Hisar, Haryana. Stainless steel long products include any stainless steel obtained from the hot rolling of blooms and ingots to produce semis, bars and wire.

The Hisar plant of the Jindal group was established in 1975 and is fully integrated stainless steel plant with a capacity of 1.80 MnT. The product range includes slabs & blooms, hot rolled coils, strips, plates, coin blanks, precision strips and cold rolled coils. JSHL is India's leading stainless steel products manufacturer with a market share of 45%.

According to company's officials, JSHL's entry in long products segment is a part of its diversification strategy. The planned investment for the new plant is about INR 40 crores and the unit is expected to be operational by the end of current fiscal year. The company's distribution channel for long products is likely to remain as that of already existing flat products.

Last year, as a part of expansion strategy, the company had unveiled its plans to enter some unconventional areas of steel use -- defence, nuclear energy, aerospace and long products, all high-margin segments.

India's stainless steel sector

In 2017, India produced about 3.49 MnT of stainless steel whereas world's largest stainless steel producing country, China's production stood at 25.77 MnT. The global stainless steel production in last year was 48.08 MnT.

Cheap imports from various countries is still a challenge for the domestic stainless steel manufacturers in India. In 2017, India imported about 32,717 tonnes of stainless long products and 264,116 tonnes of stainless flat products.

In order to protect the domestic stainless steel industry from cheap imports, Indian government has already imposed countervailing duty (CVD). However, CVD imposed by the government on stainless steel imports from China is being circumvented by routing imports through free-trade agreement (FTA) countries like Indonesia, Vietnam etc. Imposition of import duty (2.5%) on raw materials (ferro-nickel and stainless steel scrap) for the stainless steel industry, which are not available domestically, further reduces margins of the Indian companies in this sector.

The market size of Indian stainless steel flat products is estimated to be 25 lakh tonnes per annum which is growing at a steady rate of 9-10% per annum. The kitchenware segment enjoys a significant share in the stainless steel market and accounts for around 10 lakh tonnes per annum, almost half of the stainless steel flat products demand in India. JSHL also plans to triple its market share in kitchenware segment in the next two years.