Jindal Stainless Ltd is keen to tap the Rs 14,000 crore stainless steel kitchenware market more aggressively following the Goods and Services Tax (GST) rollout which has helped the industry to become more organised, a company official said Friday. The company has already invested Rs 240 crore to add capacity in two cold rolled mills totalling 2 lakh tonne per annum at its Jajpur plant in Odhisa. The plant will help the company in supplying cold rolled stainless steel to kitchenware fabricators of the eastern and northeastern region at a more competitive price, the official said.
"We have increased the capacity of cold rolled stainless steel at Jajpur plant by 2 lakh tonne a year. Post GST rollout, the kitchenware fabricators have turned organised which will push for higher demand," Jindal Stainless sales head Vijay Sharma said. Kitchenware and allied application of stainless.steel annual demand in India are valued at Rs 35,000 crore.
The kitchenware application demand is Rs 14,000 crore from 10 lakh tonne per annum. Of this, about 1.5 lakh tonne of stainless steel is imported. Jindal Stainless currently has total cold rolled capacity of 1.1 million tonnes. Ramping up the capacity of cold rolled products will help improving margins, Sharma said. The company has a small subsidiary that showcases potential fabricators to promote downstream for kitchenware. The company would stay away from promoting its own brand at a retail level as it may invite conflict of interest but the company is evaluating co-branding options, Sharma said.
(With inputs from agencies.)