CNBC-TV18’s Nigel D'souza is in conversation with JSW Steel's Joint MD & Group CFO Seshagiri Rao on the side-lines of the Centrum Symposium on steel. Internationally steel prices went up further therefore there is a scope for Indian steel prices to go up, he said.
The recovery in steel demand in 2017, is on the back of a recovery in construction, infrastructure, and real estate, said Seshagiri Rao, Joint MD & Group CFO, JSW Steel.
The National steel policy 2017 puts a focus on domestic manufacturers and to achieve 300 million tonne (mt) of steel making capacity by 2030. In an interview to CNBC-TV18, Seshagiri Rao, Joint MD & Group CFO, JSW Steel spoke about the latest happenings in his company and sector.
"Today we have 18 mt installed capacity which is 15 per cent of the national steel manufacturing capacity of 128 mt. If the country builds 300 mt capacity by 2030, we would like to plan accordingly to maintain our 15 per cent share, which will be 40-45 mt," JSW Steel joint managing director & group CFO Seshagiri Rao told PTI.
Speaking about government’s assurance about resolving the NPA mess, Seshagiri Rao, Joint MD and Group CFO of JSW Steel told CNBC-TV18 that there is no specific agenda with regards to steel sector's non-performing assets (NPA) problem.
"The company should close the year, FY17, with a topline of around Rs 2,300 crore, up about 15 percent from last year’s Rs 2,000 crore", ukumar Srinivas, MD of Shankara Buildpro told CNBC-TV18.
Currently, the port handles 35 mtpa of cargo but aiming for 100 mtpa over two and half years, said Sajjan Jindal, CMD, JSW Group.
The Steel Ministry has asked the Steel Authority of India (SAIL) to evaluate taking over Monnet Ispat, sources close to the development told CNBC-TV18.
Speaking to CNBC-TV18 Seshagiri Rao, Joint MD & Group CFO at JSW Steel said that the company will see an impact due to higher coking coal prices in the coming quarter.
Sajjan Jindal, Chairman, JSW Group said fortunately enough iron ore capacity is being developed in the country and so, the country we will import very little ore; in fact in time they would be net exporter of iron ore.
Speaking to CNBC-TV18 Sajjan Jindal, Chairman and Managing Director of JSW Steel said that he will be focussing on adding value to steel products.
The company has no problem in funding acquisitions if it's value accretive, says Seshagiri Rao, Joint MD and CFO, JSW Steel.
The government's recent decision to impose minimum import price on steel products was needed and users should focus on the long-term picture instead of trying to take advantage of short-term, unsustainable prices, says Seshagiri Rao, CFO, JSW Steel.
The minimum import prices (MIP) introduced by the government will help curb unfair trade practices, says Seshagiri Rao, joint MD & Group CFO of JSW Steel.
The ratings agency said company's debt-coverage ratio and credit numbers were weaker after JSW Steel announced their 9-month results, said Puneet Bhatia, AGM at Credit Analysis Research.
Seshagiri Rao, Group CFO, said that the company is better-positioned to manage its Rs 40,000 crore debt and steps taken by the government have helped reduce imports substantially.
Rajat Monga, Chief Financial Officer & Senior Group President of Financial Markets, Yes Bank is confident of seeing an improvement in credit growth going forward and expects the underlying credit growth to be around 13-14 percent.
In an interview with CNBC-TV18, he said that there is no big 'uptick' in steel demand and expects iron ore prices to go up by Rs 500 per tonne, which will be an added burden on the industry.
Speaking to CNBC-TV18, Sajjan Jindal, CMD of JSW Steel says that the steel industry is yet to see pick-up and therefore, the company plans to focus more on Brownfield projects than Greenfield projects currently.
The government should take some urgent steps to prevent the steel sector from collapsing, says Seshagiri Rao, Joint Managing Director & Group CFO, JSW Steel. He says domestic steel producers are hurting from Korean and Japanese firms cutting their product prices.
In an interview to CNBC-TV18, Narendra Kothari, chairman and managing director, NMDC says the company has lowered prices from Rs 3600 to Rs 1500 per tonne.
In order to avoid the safe guard duty, the Chinese are under pricing the products, so there has been no relief for the domestic steel producers as such, said Seshagiri Rao, Joint Managing Director of JSW Steel.
After the duty increase of 2.5 percent last time, in fact the imports from Japan and Korea have gone up, says Seshagiri Rao of JSW Steel.
The People's Bank of China allowed the yuan to depreciate almost 2 percent against the US dollar to levels last seen three years ago, sending a shock through currency markets.
Speaking to CNBC-TV18, Sajjan Jindal, Chairman and MD, JSW Steel, says 50 percent of India‘s steel imports come from Foreign Trade Association (FTA) countries. FTA nations facilitate for duty free steel being dumped from nations like China which, in turn, is hurting steel industry, domestically.