JSL's Export Orders Bounce Back to Pre COVID-19 Levels

Jindal Stainless Limited (JSL), the country's biggest stainless steel maker, has seen a marked escalation in its export orders during May and June. The export shipments are edging close to the pre Covid-19 pandemic level.

During May 2020, JSL shipped over 12,000 tonnes, meaning 40 per cent of its entire share of despatches. In any normal month, the export orders account for 18-20 per cent share of the overall despatches. In June, the company's export shipments are pegged at 18,000 tonnes, scaling up the volume to the pre-Covid level.

Abhyuday Jindal, Managing Director of JSL said, "We've adjusted our sails to weather the storm. We're aggressively chasing export markets in the EU and Russia, which constitute the bulk of our export volumes. Besides, we are also looking afresh at other markets like Korea and South America to maximise exports. We are optimising operations at our plants to align with the market conditions and we'll be swift to respond to domestic demand upon revival."

JSL has gradually ramped up its operations since the re-opening of its manufacturing facility in the first week of May. By the end of May, JSL's downstream facilities were operating at 60 percent of installed capacity, and the overall capacity utilization reached 40 per cent. With the gradual easing of lockdown, utilization will be ramped up in June. For uninterrupted operations and smooth flow of goods throughout the supply chain, JSL is closely coordinating with local authorities.

Since the government is attaching importance on revival of MSMEs and going for a staggered easing of lockdown curbs, demand for stainless steel in the country is expected to get a huge fillip. The health and medical industry is opening up new avenues for production of equipment and infrastructure made with stainless steel. Moreover, 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.

Amid the Coronavirus phobia as companies look to pivot away their manufacturing bases from China, India has the potential to emerge as the new manufacturing hub. In such a scenario of transition, the Indian stainless steel market can fill in the void created by the exit of Chinese industries engaged in the manufacturing of auto components, white goods, pharmaceuticals and electronics.