Mumbai: State-run Rashtriya Ispat Nigam Ltd (RINL) plans to increase its steel exports to around 25 percent of overall sales in coming years and has already created a separate division to focus on the same, a top company executive said Thursday.
"We plan to increase our exports in overall sales pie for which we have created a separate division 'International Marketing Division," a top RINL official said here.
He, however, declined to quantify the amount which the company is looking to export in the current financial year.
Many of domestic steel firms have started looking at markets abroad on the back of subdued domestic demand in recent time.
Demand for domestic steel has increased at one of the slowest pace at 0.2 percent to 17.8 million tonnes in the first quarter of current financial year on the back of a slowdown in automobile sales.
Last fiscal, steel demand had also grown at a subdued pace at 3.3 percent against targeted 8 percent in the country.
Further, sharp depreciation of rupee, which has lost more than 20 percent since May to hover around 67 per dollar, has also made exports competitive from steel firms to focus on exports.
The RINL official said countries from South Asia, South East Asia, Central Asia, Middle East Asia and Africa are on the radar of RINL. As per the company, the first international marketing office is getting opened in Colombo.
He said that apart from exports, the steel firm is also emphasising on increasing the products basket with customised high-end products to develop niche market.
In the last fiscal, total revenues of RINL were down by around 6 percent to Rs 13,650 crore on the back of subdued domestic demand whereas its export revenue shot up by 45 percent to Rs 601 crore.
First Published: Thursday, September 5, 2013, 18:50