JSW aims to sell over 50pc production through retail in 2 yrs

Sajjan Jindal-owned JSW Steel today said it aims to sell more than half of its total production through retail chains in the next two years.         

JSW Steel has 7.8 million tonnes per annum (MTPA) capacity now-6.8 MTPA at Vijaynagar and one MTPA in Siscol, the company it had acquired last fiscal. It is investing Rs 1,100 crore to enhance Vijaynagar plant capacity to 10 MTPA, which would go on stream by March, 2011.        

"We target to sell half of the total production through our retail chains in the next two years," JSW Steel's Whole-time Director Jayant Acharya told PTI here.        

JSW Steel currently sells all its coated products in the domestic market through its retail channel.         

The company has already announced its plan to enhance the number of its retail chain, JSW Shoppe, to 250 by the end of the current fiscal from 50 now and further to 600 in FY'11. These will come mainly in the semi-urban and rural areas.         

India's per capita steel consumption is about 70 kgs while in rural areas, the home to 70 per cent population, it is about 2 kgs.         

The expansion of retail chains might help the company to increase sales in these markets.  The first quarter was also boosted by "record quarterly results" in Global Banking and Markets business. The segment witnessed strong performances in foreign exchange and interest rate trading, the statement said.      

Meanwhile, the firm pointed out that increases in loan impairment charges were most notable in the relatively smaller portfolios in Latin America, the Middle East and India.     

The entity saw a rise in loan impairment charges and other credit risk provisions in the first quarter. More than half of the increase was in Personal Financial Services, mainly driven by the continuing weakness in the US.