Jindal Steel aims to double turnover

Jindal Steel & Power Ltd (JSPL) expects to more than double its turnover to Rs 2,000 crore on the back of higher production of sponge iron and power.

The company, part of the $2 billion O P Jindal group, said it will become the largest producer of coal-based sponge iron in the world after the production capacity is increased by 0.6 million tonne to 1.3 million tonne by this year-end.

JSPL is also expanding its power generation capacity to 255mw with the addition of 50mw by December 2004. With Jindal Power, where JSPL has majority stake, also setting up a 500mw plant, the company willhave access to a total generation capacity of 750mw by 2007, a company official said.

"There will be a major increase in turnover and profits with the early completion of these projects. The turnover should grow to Rs 1,000 crore during 2003-04, Rs 1400-1,500 crore next year and Rs 2,000 crore in 2005-06," the official said.

The expansion of the sponge iron project is one of the four major projects, costing Rs 550 crore, which will be completed 3-9 months ahead of schedule. This will make JSPL the cheapest producer of this product globally, the official said.

He said the demand for coal-based sponge iron has increased owing to expansion in the infrastructure and housing sector. Besides, steel companies have started using more sponge iron owing to their mettalurgical coke content.