India Foils to gain from ban on Chinese aluminium: Ess Dee

Q: How much of a protection does this give you on those aluminum foil and flat products?
A: Aluminum foil gives us a 22% protection but that is about one part of it. In giving this safeguard, what the government has also done is ensure a better quality of life. Because on one side, toys from China were banned because they could accidentally be used by a child. On the other side, aluminum which comes into direct contact with the product, a pharmaceutical drug, food or Fast Moving Consumer Goods (FMCG) were being imported from China. So that is one part of safeguarding health and the other part is that we have recently taken over India Foils and this really facilitates our plans to revive that organisation faster than possibly we thought we could do it.

Q: How much did Chinese products garner in terms of market share? How much of substantial difference of market share might it make for you?
A: In terms of market share, it may not be very significant considering the Indian market size but it gives you about 6,000 tonnes which directly or indirectly went to the customers. Basically, there is a huge unorganised sector operating in this country, which are localised with kind of shabby facilities; they had taken the Chinese route.

With globalisation, our requirement to meet the Good Manufacturing Practice (GMP) requirements- this phase in this sector, will tend to get to be phased out with safeguard duty.

Also read: Ess Dee Aluminium Q3 PAT seen at Rs 20.7 cr: P Lilladher

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