Source: mysteel.com
According to international media reports on September 16, 2023, India’s Jindal plans to invest 1 billion rupees in Rathi Super Steel over the next two years, aiming to boost its products in the infrastructure sector. Earlier this year, India’s Jindal acquired debt-laden Rathi Super Steel for around 2 billion rupees through a debt resolution process. “This is our first foray into long products, primarily due to the country’s focus on infrastructure,” said Abhyuday Jindal, Managing Director of India’s Jindal. They plan to increase Rathi Super Steel’s annual capacity from the current 150,000 tons to about 200,000 tons.
Currently, only about 2-5% of India’s Jindal’s product portfolio is used in the infrastructure sector. The company plans to increase this percentage to 15-20% over the next two to three years, becoming a major player in this sector. Traditionally, the company has mainly produced flat stainless steel products, while the infrastructure sector utilizes long products such as wire rods, bars, and threaded steel. The 1 billion rupee investment in Rathi Super Steel will be used to increase capacity and enhance plant quality to better meet the products needed in the infrastructure sector.
The factory currently produces wire rods, which are of low value. India’s Jindal will consider producing bars and threaded steel at the factory, which can be used in railways, bridges, and infrastructure projects, especially in coastal areas. The Indian government is considering mandating the use of stainless steel in bridges near coastal areas to avoid weakening due to corrosion. A senior executive of the company stated that such policies could be a significant demand driver for India’s Jindal. “As more lifestyle costs are factored in, infrastructure projects will see more use of stainless steel,” the executive noted.