A shift from steel to stainless coaches will boost revenues for the ₹18,000-crore Jindal Stainless, which has a dominant position in this sector.

“We expect 10-12 per cent growth in revenue as volumes will go up significantly,” said Vijay Sharma, Senior Vice-President, Jindal Stainless Ltd.

Integral Coach Factory (ICF) and other production units of the Indian Railways have shifted to manufacturing coaches using stainless steel for body, floor, side panels and roof. Jindal supplies directly to them and to the vendors who make interiors such as handles, seats, side panels and battery box.

Jindal Stainless supplies nearly 10,000 tonnes a month to various coach manufacturers. Its share in this sector is over 70 per cent, he said.

By 2020, nearly 8,000 stainless coaches are to be produced, with each coach having 11-12 tonnes of stainless steel, he said.

Sharma said the company produces 1.8 million tonnes of stainless steel annually and its products are used in every sector from the nuclear plants to utensil-makers, he said.

Globally, per capita consumption of stainless steel is 5 kg while in India it is 2 kg. This means, there is a huge opportunity for growth in India as this sector is at a nascent stage.

India is the second largest producer of stainless steel in the world with around 3 million tonnes a year.

“We are an emerging market and everybody is eyeing this market. Our priority is to ensure that the per capita consumption of stainless steel increases, and we are working with all stakeholders, including consumers on this,” he said.

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