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Rashtriya Ispat Nigam Ltd (RINL) is aiming at Rs 20,000-crore sales turnover during the current financial year, according to Mr A.P. Chowdhary, Chairman and Managing Director.
“The new units in the expansion project will begin production soon and in the first quarter itself the products will reach the market. Therefore, greater efforts have to be made to market them. RINL has a strong brand value and we are sure they will find acceptance in the market.,” he said.
He was addressing vendors and dealers of the Visakhapatnam Steel Plant here on Tuesday at the inaugural session of the Partners' Summit 2012 held in the plant. He said the plant had achieved record sales turnover of Rs 14,457 crore during 2011-12.
Mr Chowdhary said that with 6.3 million tonnes (including the expanded capacity) the company would be the undisputed leader in the long product market. He said that increase in steel prices had become inevitable due to the ever-rising input costs and it was more so for companies like RINL that are without captive iron ore mines. He said consumption of steel was going up in rural areas, which was a good trend and augured well for Vizag Steel.
Earlier, Mr T.K. Chand, Director (Commercial), welcomed the vendors and dealers and spoke on the sales performance of the plant. He said the company had fared well in the eastern region during the year, registering growth of 22 per cent. On the whole, the sales growth rates in various markets in the country ranged from 10 per cent to 22 per cent. He said 2012-13 would be a good year and 10 per cent hike was expected in domestic steel consumption. The market will be on the upswing, but it will be necessary to maintain a steady pricing mechanism, he said.
Exports
He said the steel plant had exported products worth Rs 480 crore during the year and, though the amount may account for a small percentage of its sales turnover, it was critical to its performance. The sale of byproducts fetched Rs 538 crore during the year, and the project sales registered a growth of 13 per cent during the year.
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