RINL hopes to sell 1 mn tonne more steel on retail focus

Rashtriya Ispat Nigam Ltd (RINL), which plans to sharpen focus on retail sales this year, is likely to sell additional 1 million tonne (MT) steel on account of higher production.

"We hope to sell 1 MT steel more in 2014 over last year. This will be possible as we expect production of 4.2-4.3 MT steel this year against 3 MT last year," RINL commercial director TK Chand told PTI.

The public sector steel-maker, which is expanding capacity to 7.3 MT, is also increasing focus more on retail sales for better margin.

"We want to focus more on retail sales this year to increase average realisation for which we are in the process of enhancing our consumer touch-points," Chand said, adding that RINL is also in the process of beginning e-booking to ensure timely delivery.

Currently, retail sales constitute around 50% of gross sales, while around 24% come from projects and the rest from industrial consumers.

The company will focus more on Andhra Pradesh and other Southern states where it has been traditionally enjoying strong sales, along with other regions.

On exports, Chand said while the steel firm will continue its leadership position in pig iron exports. "The company hopes to increase its long-product range this year in the exports market as well," he added.

Pegging this year's steel consumption growth to be around 4%, the official said demand growth will be driven by factors such as economic recovery in the US and the Eurozone, rising demand from China (the largest producer and consumer) and a likely recovery in the domestic economy.

"There are some green-shoots seen in the domestic economy along with demand uptick in rural markets. We hope steel demand to be in the range of 3.8-4.2% in 2014," Chand said, adding production growth will be around 5%.