Date:18/09/2008 URL: http://www.thehindubusinessline.com/2008/09/18/stories/2008091851850200.htm

Back Jindal Stainless not to cut prices further

‘Weak rupee has led to rise in input costs’.

– Ramesh Sharma

Mr Ratan Jindal, Vice-Chairman and Managing Director, Jindal Stainless Ltd, addressing a press conference in the Captial on Wednesday.

Our Bureau

New Delhi, Sept. 17 Jindal Stainless Ltd is unlikely to cut product prices in the immediate future because of prevailing higher input costs. “The rupee has weakened very sharply, leaving no room for us to cut prices,” Jindal Stainless’ Vice-Chairman and Managing Director Mr Ratan Jindal told a news conference.

He said the rupee’s decline against the dollar has increased the cost of inputs such as nickel. Jindal Stainless had cut product prices earlier this month and in April.

Orissa pact

Speaking at the event, Mr Jindal said the company recently signed an agreement with Orissa to supply 1,000 MW to the grid from its upcoming power plant in the State. Jindal Stainless is also building a 500-MW plant to supply power to its greenfield stainless steel plant in Orissa.

The New Delhi-based company will spend between Rs 10,000 crore and Rs 12,000 crore on capital expenditure in the next five years, Mr Jindal said.

Name change

He added that the company has changed its name to JSL Ltd.

Mr Jindal said he expects the local consumption of stainless steel to grow 10-12 per cent in the current fiscal. He also announced the formation of a marketing joint venture with South Korea’s Daiyang Metal Co. Ltd.

Both the companies will have equal stakes in the venture, which will globally distribute the company’s products that are manufactured in India and Indonesia.