RINL declares 2013-14 as ‘Year of Quality’

RINL recorded the best ever monthly sales of Rs.2,136crs in March '13, with a cumulative sales of Rs.13,650 crs. in 2012-13. Exports at Rs. 601 crs registered a growth of 45% and rural sales improved by 15%. The distribution network was widened further with a growth of 54%, while the sale of branded products grew by 6%. Growth was recorded in production of hot metal and iron & steel as well at 1%, with a cumulative production of 3.81 million tonnes and 3.4 million tonnes respectively. Coke & coke products registered the best production since inception and the production of dolomite from the captive mines clocked 2% growth. The gross lime production was also the best since inception.Captive power generation at 211 MW during 2012-13 is the highest during the last 5 years. This helped the company to maintain the production level despite power restrictions imposed by the State Grid during the last 8 months.
In 2013-14, RINL has targeted a growth of 20 to 25% in various areas, considering production from the new expansion units. CMD exhorted the RINL collective to gear up for the best ever performance in 2013-14 in all areas of operation. RINL is known for its quality. In order to improve its brand image further, CMD, RINL, declared the year 2013-14 as the “Year of Quality”. Sri Umesh Chandra, Director (Operations) said RINL has prepared a road map to set up an exclusive R&D centre in VSP very soon and added that efforts are on to enhance the Blast Furnace 3 production by reducing coke rate and also by introducing Pulverized Coal Injection which will lead to reduction in cost of production.
Sri P Madhusudan, Director (Finance) said that due to rise in input cost and rupee depreciation, the company's bottom line got affected. The main focus is to invest on higher income and borrowings with less interests to boost the revenues, he added.Sri TK Chand, Director (Commercial) said that steel demand has been sluggish due to power restrictions in South particularly in Andhra Pradesh, forcing Steel Rollings Mills to shut down their operations. He said that RINL has prepared a blue print to handle the products emerged from new units from expansion. Sri YR Reddy, Director (Personnel) stressed the need to enhance self discipline among employees to take the organization to newer horizons. Several welfare initiatives were taken up to boost the morale of employees, he added.Sri NS Rao, Director (Projects) mentioned that safety has been given top most priority in commissioning of new units and stressed the need to consolidate the strengths by meticulous planning to achieve the targets.Sri B Siddhartha Kumar, CVO called upon the employees to contribute in curbing corruption by discharging duties as vigilance officers, then only the organization would grow.Earlier, Corporate Strategic Management gave a presentation highlighting the performance of RINL during 2012-13 and the challenges ahead during 2013-14.Executive Directors, CISF Senior Commandant, Sri Digvijay Singh, Senior officers, representatives of SEA, Unions, SC&ST association, WIPs and large number of executives attended.

  Steel production up 15% at 8.51 MT in FY13

JSW Steel has clocked 15 per cent growth in annual crude steel production at 8.51 million tonnes (MT) in 2012-13. The company had produced 7.4 MT of steel during the previous fiscal, it said in a statement. The Sajjan Jindal-led steel maker said it could operate its Karnataka plant at 80 per cent capacity despite severe shortages of iron ore in the state. "In spite of severe constraints in availability and quality of iron ore in the state of Karnataka, the company could operate its Vijaynagar plant at about 80 per cent capacity due to its unique ability of using low grade iron ore through beneficiation process," the statement said. The company has its main facility at Karnataka with a 10 MT per year production capacity. Its output for flat-rolled products in 2012-13 was up 17 per cent to 6.28 MT. It has produced 5.36 MT in 2011-12. Long products output increased by 18 per cent to 1.8 MT in the last financial year compared to 1.5 MT in 2011-12. The company's quarterly crude production, in the January- March period, was marginally up 2 per cent at 2.1 MT compared to 2 MT in the year-ago period. Like other steel firms in Karnataka, the leading private sector steelmaker has been facing iron ore shortages for more than a year and half now due to restricted supply of the ore in the state, where the apex court had put a mining ban in July-August 2011.

  Tata Steel Q4 production rises 27 pct

Tata Steel said its total saleable steel production rose 27 percent to 2.26 million tonnes in January-March compared with the same period last year. The company's steel sales rose 29 percent to 2.28 million tonnes in fiscal fourth quarter ended March 31 from 1.77 million tonnes a year earlier, it said in a statement.


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Though Asian region in general and India in specific was somewhat away from the epicenter of the global recession, it is also witnessing a slow down. Though long term prospects seem to be bright, it is a fact that most of the companies in steel & metals sector today are struggling with markets, finances and bottom line.
CBMPL has been carrying out customized market research assignments and feasibility studies for financial institutions since many years. Now, it has fortified its initiative in 'Industry Research' by forming a separate division 'Strategic Research Group. SRG offers a complete advisory service to the organizations planning to participate in the Indian economy. It can help in analyzing the market potential for your product / service, help to adopt the correct strategy for survival and sustained growth. It can identify and analyze the growth, diversification, collaboration opportunities, domestically as well as internationally. It also renders HR consultancy and can identify the top management executives for employment purpose.
SRG – Activity Profile
l Strategic Planning
l Human Resource & Development (Recruitment at senior & strategic positions like MD, ED, Director – Operations, President, Vice President, etc)
l Collaborations, joint ventures& acquisition and mergers.
l Representation in various parts of the world.
Mr. S. W. Wagh (Ex Essar Steel Ltd. And Ex Director, International Marketing, JSW Steel Ltd.)will be the Director in charge for 'Strategic Research Group'.
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  TATA Steel outlook remains negative – Moody

Global rating agency Moody's said outlook for TATA Steel remains negative as its Indian operations are facing pressure on margins due to slower growth in the domestic economy. The company in a statement said that "The outlook on all ratings (of Tata Steel) remains negative... Moody's expectation is for the year ended March 2013 to reflect the nadir of TATA Steel's credit metrics.”
Moody's Vice President and Senior Credit Officer Alan Greene said that the performance of TATA Steel has been broadly in-line with rating agency's expectations, and TATA Steel UK Holdings (Tata Steel Europe) has been struggling with the moribund state of the European steel industry. He added that “The Indian operations have increased output but are experiencing margin pressure in the face of slower Indian GDP growth.” According to Moody's, the results of TATA Steel for the nine month period ended December 2012 saw group revenues grow by 1.2%. But, steel deliveries declined to 17.6 million tonnes from 18 million tonnes and with pre-tax profit 65 per cent lower for the group, period on period.

  Indian iron ore mining mess - JSW Steel relieved

JSW Steel said the relief provided by the Supreme Court on iron ore mining in Karnataka will be a "breather" for the steel industry in the state, which was on the brink of closure due to ore crunch. Mr Seshagiri Rao company's Joint MD and Group CFO said that "This relief not only provides breather to the steel industry in the region but also assists in providing of direct and indirect employment as well as livelihood for several people employed in the sector at a time when the steel industry was at the brink of closure due to non-availability of iron ore.” Welcoming the apex court judgement, he said it will open up the remaining category A and B mines in Karnataka and will have a positive impact on the steel sector and the economy.
Mr Rao added that "As Indian economy is expected to get back to growth mode, the opening up of mining will enable raw material linkages for further investments in steel sector in Karnataka region.”

  Essar Steel appoints Ashutosh Agarwala as Director Finance & Chief Financial Officer

Essar Steel India Limited has appointed Mr. Ashutosh Agarwala as Director - Finance & Chief Financial Officer. Mr Agarwala is a Chemical Engineer from the Institute of Technology-Benaras Hindu University, and post-graduate in Management from the Indian Institute of Management, Bangalore (IIM-B) with specialization in Finance & Strategy. He has more than 24 years of experience in the fields of finance, strategy, and mergers & acquisitions. He has a consistent track record of successfully completing a wide spectrum of noteworthy transactions in the areas of Mergers & Acquisitions as well as Debt & Equity Capital-Raising for Infrastructure development. Commenting on the appointment, Mr. Dilip Oommen, CEO & MD, Essar Steel said, “Mr Agarwala joins a strong team of professionals at Essar Steel. His experience in varied fields will be an asset to the company as he is joining us at a crucial juncture when the company is in its next phase of growth.”On joining Essar Steel, Mr. Agarwala said, “Essar has been instrumental in successfully building and operating large-scale businesses. It is my pleasure to get an opportunity to work with this entrepreneurial organization and contribute to its ongoing efforts to create value.”Mr Agarwala joins Essar Steel from Jindal Steel & Power Limited, where he held the position of Chief Financial Officer & Director Finance, for the Steel and Cement business. During his career, he has held senior leadership positions with established companies like ICICI Bank, Nagarjuna Fertilizers, Aditya Birla Group and GMR Infrastructure.

  Iron ore prices to stay firm

Iron ore prices are unlikely to fall in the near future in the aftermath of Supreme Court's judgement to allow 50 odd Category-B mines in Karnataka to start operations after fulfilling all procedures.
According to industry sources and analysts, the Supreme Court's judgment will add to supplies of this key raw material for the steel industry in Karnataka. But its impact on prices in this financial year may not be much.
Iron ore prices have been falling lately with the country's largest player, NMDC, cutting prices. Its last cut was in early April. Odisha Mining Development Corporation has also cut prices. Both took cues from falling global prices prices of high grade ore slid from USD 150 a tonne in January to USD 139 a tonne in March. Substantial extra iron ore capacities are also expected to be added in a year's time, which will keep prices under check.
Karnataka requires nearly 35 million tonnes of iron ore annually. NMDC produces 10 million tonnes in the state, which is sold through auction. It is expected to continue selling ore even after more mines start operations.
Category-A mines were allowed to start operations in the last financial year, but their production began only last month. With Category-B mines, production is likely to start this year, the state's total production in FY14 is expected to be around 20 million tonnes.
An analyst with a foreign brokerage covering iron ore said that "2014-15 will see a real turnaround in ore production in Karnataka.”
According to Mr RK Sharma, secretary general of Federation of Indian Mineral Industries, even mines that have been allowed to start operations will take several months before they actually start production. This is because they remain closed for the past two years and now "they will have to take several permissions".

  Steel and mining sectors welcome lifting of Karnataka mining ban

Steel and mining industries hailed the Supreme Court's decision to lift the ban on 84 mines in Karnataka, but were divided on the amount of iron ore that would be available in the market. Apex mining industry body FIMI said that even after Supreme Court permission to operate all Category A and B mines, iron ore availability will ease only to a limited extend as compliance of regulatory norms will not be easy and only 10 million tonnes will be available in immediate future. However, steel industry termed the judgment as a breather and said supplies of iron ore and its quality will improve, while prices will go down. They expressed hope that about 24 million tonnes of iron ore key input for making steel will be available in the market.
steel industry termed the judgment as a breather and said supplies of iron ore and its quality will improve, while prices will go down. They expressed hope that about 24 million tonnes of iron ore key input for making steel will be available in the market.
The Supreme Court, in its order today, permitted mining in Category-A and B but cancelled 49 leases in Category-C mines, where maximum illegalities were reported. After this, 84 mines, falling in Category-A and B, will be available for mining. All these mines are located in Bellary, Tumkur and Chitradurga districts of Karnataka. The court also accepted most of the Central Empowered Committee's recommendations for resuming mining in the state.
FIMI's Secretary General R K Sharma told PTI that only about 50-60 mines will get operational due to stringent conditions and other regulatory issues. "It will lead to production of around 10 MT iron ore only," he said adding that most of the mine owners will find it difficult to meet the reclamation and rehabilitation (R&R) conditions or will not be able operate at reduced capacities as it will be economically unviable for them. Kalyani Steel's Managing Director R K Goyal said that "it will take upto 2 years to all these mines to open. Quantities have been curtailed and not more than 24 million tonnes (MT) is going to be available." Noting that 24 MT is not enough to meet the industry's requirement in Karnataka, he said that "whatever is being available is welcome. It will ease iron ore supply situation." JSW Steel's Joint MD and CFO Seshagiri Rao said, "This relief not only provides breather to steel industry in the region but also assists in providing of direct and indirect employment and livelihood for several people...”

  Odisha government acquires 2100 acres of land for POSCO

Odisha government has acquired 2,100 acres of land for the proposed mega steel project by POSCO India in Jagatsinghpur district. The status paper prepared by the state government said that "State owned Industrial Infrastructure Development Corporation has acquired 2,100 acres of land of which 546 acre had been handed over to POSCO. Rest 1,554 acres is ready to be handed over to POSCO.” Another 600 acres of land for the purpose was expected to be acquired within four months. The paper was prepared for the purpose of the second joint committee meeting at ministerial level in Seoul, South Korea on April 23, 2013, a senior official at the steel and mines department said. The company has reduced its land requirement from 4,004 acres to 2,700 acres for building 8 million tonne per annum steel plant in the first phase.

  AP CM cleared file on iron ore mines – INTUC

Chief Minister Mr N Kiran Kumar Reddy cleared the file pertaining to allotment of iron ore mines in Khammam, Warangal and Karimnagar to Rashtriya Ispat Nigam Limited. According to INTUC national president Mr G Sanjeeva Reddy, told reporters that the allotment would be made as a joint venture with AP Mineral Development Corporation. The allotment letter would be issued soon he said and hoped that this would help RINL in cutting down its production cost. When contacted, RINL officials said they had not yet received any official information about the allotment. Sources said for issuing a GO, clearance from the Centre is required. The Bayaram mines, which were earlier allotted to Rakshana Steels, would now be allotted to RINL and AMPDC.