The mining ban affects not only the companies involved in extraction and treatment of iron ore from Karnataka, but also peripheral companies that source steel from the core companies. Nirupender Rao, chairman of Pennar Industries Limited which sources steel from JSW talks to CNBC-TV18 of the difficulties and the way ahead for the company.
Below is the edited transcript of the interview. Also watch the accompanying video. Q: Have you had trouble getting steel from JSW and what is the amount of steel or percentage of your steel that you source from this company?A: As of now,we have not had any trouble, e have enough stock to last for a month or so. We do buy from a number of sources that is JSW in Vijaynagar, JSW in Tarapur, Ispat which is now a part of Jindal, Essar Steel, Tata Steel, SAIL and Lloyd Steel.
Jindal Vijaynagar, the Mysore unit, is going to be in difficulty, going ahead. If they have to shutdown for a short while, then we have to alternately ask them to supply from their Tarapur plant and the Ispat plant. We will then have to increase our purchase from Essar, Tata, SAIL and Lloyd to make up for that. Q: Has that meant that there is a slight hardening of prices?
A: Hardening of prices is not a different reason because generally, the steel prices are benchmarked with imports. The imports have gone up because the rupee has appreciated from Rs 45 to Rs 50, so definitely, there is hardening of the prices by about Rs 1,500-2,000. It will not be surprising if we find that the prices increase a week from now by this extent. Q: There was a news report that quoted your MD as saying that we source close to about 10,000-11,000 tonne from JSW, and now with the huge production cuts, our production could take a hit too. You are denying that at the moment?
A: Not exactly. He
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