Essar Steel has over the years become a preferred supplier of value-added steel and related products to several automotive and defence companies across the globe. In an exclusive interaction with The Dollar Business, Dilip Oommen, MD & CEO, Essar Steel India Ltd., talks about the factors that have contributed to the success of the company apart from sharing his vision for the future.
TDB: India’s steel exports have jumped substantially in recent months. Are steel makers focusing more on exports due to muted domestic consumption?
Dilip Oommen (DO): The global steel market has been struggling with subdued demand over the last couple of years. At the same time, many countries, including India, were swamped with steel supplies from China, Japan and South Korea at predatory prices. Since then, most of the impacted countries have initiated trade measures to curb such imports. This has helped bring stability in the international market.
Overall, India’s steel exports jumped 102% in FY2017 to 8.24 million metric tonne (MMT) from 4.07 MMT in the previous fiscal year, FY2016. However, Essar Steel’s focus continues to remain on the domestic market. Most of our production is based on the requirement from our customers and we have been able to sell what we produce. I expect higher steel demand to continue till the monsoon sets in.
The quality of our steel conforms to international standards and hence our products are accepted globally by highend steel users. We endeavour to meet this global demand without disturbing the domestic market.
TDB: Indian government has been coming up with protective measures such as minimum import price (MIP) and anti-dumping duties on steel products. How beneficial have they been?
This story is from the June 2017 edition of The Dollar Business.
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This story is from the June 2017 edition of The Dollar Business.
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