SAIL told to step up output of value-added products

The steel ministry has asked state-run steel major Steel Authority of India Ltd (SAIL) to look for ways to strengthen its international presence through the manufacture of better value-added products.

SAIL, which currently exports only 3-5 per cent of its saleable steel, can make available special products in emerging economies to expand its market, steel secretary G Mohan Kumar said while reviewing the performance of the PSU at its central marketing organisation (CMO) headquarters in Kolkata.

SAIL closed the just-ended financial year 2013-14 with a 28 per cent rise in exports despite a sluggish market.

Kumar said SAIL can expand its international presence and add more value-added steels to its product basket by utilising the opportunities that will come from SAIL's ongoing modernisation and expansion drive.

He also advised the company to tap the emerging economies with more of value-added products.

The emphasis on value-added steel sales in 2013-14 enabled SAIL to market 2.2 lakh tonnes of special steels, of which nearly one lakh tonnes comprised stainless steel.

SAIL also supplied special quality slabs needed to meet the requirements of Vikram Sarabhai Space Centre.

In the current financial year, the CMO will add high-quality wire rods as well as auto-grade cold-rolled steel from the new mills, which have come up at SAIL's IISCO and Bokaro Steel Plants, respectively.

The domestic steel giant has undertaken a Rs72,000 crore modernisation and expansion plan to take its hot metal capacity to 23.46 million tonne per annum, from 14.23 MTPA at present.