The stainless steel sector is expected to grow by 8-9% in FY25 on strong domestic demand due to increased infrastructure thrust from railway and metro projects. However, increasing imports from China and Vietnam are a “trouble”, says Abyuday Jindal, managing director of Jindal Stainless Steel.
He said export markets such as the US and the EU remain weak, mainly due to high freight rates hurting numbers and geopolitical tensions.
In an interview with business line, Jindal talks about the outlook for the domestic and export markets. The impact of CBAM and the readiness of companies to reduce their carbon footprint. Securing raw materials overseas.
What is the outlook for the domestic market?
We expect the stainless steel industry to continue to grow by 8-9% for some time due to continued infrastructure development across the country.
Many subway projects are already underway, and steady growth is expected. Major projects of Indian Railways such as Vande Bharat sleeper train and Vande Metro are also moving towards premium grade. The government has decided to make all bullet trains made of stainless steel and source them from Indian passenger car manufacturers, which will be a major push.
The Centre’s outlay of Rs 11,111.11 crore on infrastructure projects is expected to generate significant new demand (for stainless steel). Demand in manufacturing and process industries is also expected to recover.
The problem continues to be increased imports of steel and stainless steel. What are your comments?
This is a big problem. China and now Vietnam are the major exporters to India. Shipments from Vietnam increased by nearly 75% year-on-year in the first half of 2025. This is having a negative impact on MSMEs. We are in ongoing dialogue with governments to advocate for the imposition of tariffs on imports from China. Trade practices there often included the dumping of substandard and subsidized stainless steel.
Export markets have been under stress for more than a year. Is there a special reason?
Export is a strategic priority for us. Our largest export markets, the United States and the European Union, have not recovered as expected due to geopolitical factors. Our second quarter exports were also affected by rising transportation costs, with sea freight rates still running at four to five times original costs. However, by targeting other regions such as South America, Korea, and Japan, we were able to maintain exports at 10% (of sales). .
What role did the ME play as a new export destination?
The proximity of the Middle East to our operations has helped us avoid increased cargo volumes due to ongoing wars. In fact, the Comprehensive Economic Partnership Agreement and other favorable factors have enabled us to maintain and even increase shipments to the region.
Has the development of CBAM had an impact on exports, particularly in the EU?
Currently, CBAM does not have a significant impact on the EU market. However, there are still many details that need to be obtained from the EU. It is important to take a wait-and-see approach to understanding how CBAM will develop in practice in the future.
Are you compliant with CBAM requirements?
We have developed an action plan in line with CBAM requirements and communicated our readiness to stakeholders to ensure transparency.
Jindal Stainless has initiated the reporting process and started working with certification bodies. We have implemented a data management system that allows us to efficiently collect emissions (data), production processes and energy consumption throughout our production and supply chain.
To ensure comprehensive (CBAM) compliance, we worked with consulting partners to help address the requirements.
Quarterly CBAM reporting templates are available to EU customers, including for the quarter ending September. Additionally, we are exploring integration with SAP to streamline emissions calculations.
We also need to reduce our carbon footprint at the production or factory level. How is it being treated?
We have a net zero goal for 2050. Over the past three financial years, we have reduced over 300,000 tonnes of CO2.
Jindal Stainless has commissioned the pilot operation of a green hydrogen plant at its Hisar plant. And with a power generation capacity of 90 NM3/hr, Phase 1 of the plant (90 NM3/hr) will reduce CO2 emissions by approximately 2,700 tonnes per year (mtpa).
The project with ReNew Power is also nearing completion and renewable energy procurement will begin in September 2024.
Currently, we are considering the option of a green hydrogen plant for our Jajpur office.
How do you secure raw materials, especially when there is no nickel in India?
In March 2023, Jindal Stainless acquired a nickel pig iron smelter in Indonesia. It was commissioned in August 2024. Commissioning was completed eight months ahead of schedule. The facility will be developed through a joint venture with New Yaking Pte and will secure supply of nickel, a key raw material not available in India. The absence of domestic nickel resources enhances our ability to meet our raw material needs, especially when the market is often subject to (nickel) price fluctuations.
As part of a strategic investment of Rs 5,400 crore, Jindal Stainless has signed an agreement with a Singaporean entity to set up a stainless steel melting plant in Indonesia with an annual production capacity of 1.2 million tonnes. Indonesia is one of the best alternative options to ensure availability of raw materials.
Additional opportunities to secure essential raw materials are also being explored. We also look forward to government support in accessing minerals not available in India.
Published October 22, 2024
