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Jindal Steel and Power Ltd (JSPL) has entered into the retail segment with the launch of TMT bars under the “Jindal Panther” brand. TMT bars are used in construction.
The company will cater to markets in eastern, northern and central India.
According to Rohit Choudhuri, Associate Vice-President Marketing, pricing for the product would remain fixed in all markets. Immediate focus, however, would not be in the southern region because of higher freight cost.
“Catering to South and West India would mean incurring high freight costs. Also there are other larger companies in the TMT bar segment in these markets,” Choudhuri said on the sidelines of the launch.
The bars are being produced at JSPL’s Patratu facility in Jharkhand having an annual capacity of one million tonnes. “We would be competing with the local players. There is a lot of vacuum in the TMT bar category that can be channelised,” Choudhuri said.
Niche Products
According to V.K. Mehta, Director (Sales and Marketing), following a slowdown in demand for steel, the company is looking to tap the niche and specialise offerings that are currently being imported.
A new head hardened rail facility (used in Metro and high-speed rails) at Raigarh in Chhattisgarh, as part of its existing unit there, is expected to be operational by January 2014 at an estimated investment of Rs 125 crore.
Compared to an imported price of Rs 70,000-75,000 a tonne, he said, buying the same product through domestic manufacturers would entail a cost saving of nearly Rs 20,000 a tonne.
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