What are the reasons for JSPL foraying into fabricated steel structures in a big way when the steel sector is going through a muted demand growth?
There has always been a spurt of activities in the Infrastructure Sector in our country in the last few years. Earlier, it was investments in the Power Sector and recently, due to Government Policies, there has been a huge demand for steel bridges and other technological structures in the Infrastructure Business mainly in the Railways and Road sectors. JSPL has always shown a keen interest in meeting Customer needs and requirement. Today’s Customer prefers a single window concept where a complete structure can be fabricated and send to the Construction Site on a Just-in Time basis.
JSPL Fabricated Plant uses extensive Automation to ensure a Precise and error free Fabrication. This expertise along with a Zero Wastage concept has helped Customers receive highly precise material on a Just-in Time basis ensuring Optimum Working Capital requirements. The ability to phase out Production of Raw Material from Steel Plant based on Fabrication requirements is an advantage to the Fabrication Business of JSPL.
What are the structural steels JSPL offers for the infrastructure sector? What are the advantages of JSPL’s structural steels compare to its competitors?
JSPL has an array of Products which it can offer to the Infrastructure Industry. JSPL is one of the few companies which manufacture high grade steel of 450 and 550 MPA, which reduces the total tonnage of any structure. This in turn reduces the overall project cost. In addition, JSPL is the only company which produces Hot Rolled Sections of grade up to 450 MPA and our portfolio is ideally suitable for the Steel Building industry.
JSPL can offer a composite solution for any client. In addition to Steel Plates and Hot Rolled Sections, JSPL can supply TMT bars of up to 550 D which is beneficial for any project.
How has various schemes launched for roads and highways and infrastructure sectors and increase budgetary allocation for these sectors helping the PEB industry and JSPL’s Construction Solutions Business in particular?
The sudden increase in the requirement of Bridges for the Railway and Road Infrastructure has catapult the Fabricated requirements of JSPL. JSPL’s Structural Steel Division (SSD) at Punjipatra, Raigarh is a certified RDSO plant for Fabrication & Supply of Steel Bridge girders. SSD - Punjipatra along with SSD -Angul can produce any Typical Bridge structure. In addition JSPL has already made a presentation on the use of Hot Rolled Section (Parallel Flange Beams) to build Railway Platform sheds which would be Error Free, Fast and Cost Effective solution. This concept is widely followed in all developed countries to build Railway Platforms.
Which are the key projects where JSPL is supplying fabricated steel structures?
JSPL has supplied Fabricated Boiler and Turbine structure to most of the major EPC Companies in the country. In addition, JSPL has supplied Steel for various Commercial Complexes in the country. We have supplied fabricated steel structures for a recently inaugurated Airport in India. We have already supplied few railway bridges and Rail-Over Bridges (ROBs) for key Railway Contractors and major EPC companies. At Present, JSPL has an order booking for Steel Bridges and Power Plant Structures of over 30,000 MT. We will soon be supplying steel bridges to DFCC projects and to Sangaldan Railway tunnel project of J&K.
JSPL is executing steel flyovers projects. Can you please share with the readers details of the projects?
JSPL has already executed Railway bridges and ROBs. Discussions are on for a number of steel flyovers with different contractors.
What would be JSPL’s strategies to increase market share in fabricated steel structures market?
JSPL has an installed capacity which is the highest in the country. We are very active in our Marketing efforts and have our offices spread across the country. Further, JSPL ensures that we give a preferential status to our existing Customers which ensures Repeat Business for the Company
JSPL has commissioned a head-hardened rail mill at Raigarh in collaboration with SMS Meer of Germany. Can you please share with the readers the details of the collaboration and the rail mill?
JSPL has invested ` 200 crore to set up head-hardened rail mill at Raigarh. This is India’s first commercial facility to manufacture special quality rails for high speed train corridors and metros. It has been set up in collaboration with SMS Meer of Germany, which is a leading manufacturer and supplier of rolling mill and casting machinery for aluminum, copper, and steel industries worldwide. The plant is capable of producing 30,000 tonne of head hardened rail a month.
What are the special quality rails products that JSPL will be manufacturing for the upcoming metros and high speed train corridors?
Special quality rail are manufactured by head hardening technology which entails a special heat treatment process that requires very precise temperature control to achieve nearly 50% higher hardness as compared to a normal rail. The company has the unique distinction of producing the longest single piece track rails measuring 121 m at its Rail and Universal Beam Mill in Raigarh, Chhattisgarh. JSPL’s rails have been found to be significantly superior in terms of lower rail wear & residual stress, higher strength, enhanced safety & cost efficiency and improved life cycle. We have already supplied our rails to many prestigious projects including the Dedicated Freight Corridor and Delhi Metro Rail Corporation amongst others.
What kind of a growth do you see in steel demand next financial year?
The Modi government has announced proposals to spend a whopping ` 3.96 trillion ($61 billion) in FY 17-18 to build railways, airports and roads. The domestic steel industry as a whole is profiting from rising product prices, growing demand and the reduced threat from Exports after MIP were imposed. Growth in domestic steel demand is expected to recover to levels of 5 – 6 % in the current financial year due to the government’s focus on infrastructure and affordable housing. Given the above scenario, JSPL is ready to grab the opportunity to increase its sale of steel through forward integration. JSPL plans to ramp up capacity after commissioning of blast furnace in Angul this month that’ll produce 3.2 MTPA steel. The new facility will boost sales by about 30 % to 6.8 MTPA over next three years.