In a bid to mitigate the negative impact of the appreciating US dollar on profitability in the long run and also to expand international footprints, Rashtriya Ispat Nigam Ltd (RINL) mulls to focus more on exports, a senior official of the company said.
Hyderabad: In a bid to mitigate the negative impact of the appreciating US dollar on profitability in the long run and also to expand international footprints, Rashtriya Ispat Nigam Ltd (RINL) mulls to focus more on exports, a senior official of the company said.
The corporate entity of Vizag Steel imports more than 3.5 million tonnes of cooking coal per annum from Australia to meet its requirements and though the company's hedging mechanism is in place, it does not want to take currency risk in future, which may impact the financials of the steel maker, the official added.
Currently, the RINL exports around 8 percent of its production and has plans to double it in the coming two to three years, the official said.
Exports contributed Rs 600 crore during the last fiscal registering 45 percent growth over previous fiscal.
An expert committee on marketing appointed by the management after market analysis of the prices of the same in the past have advised to continue market initiatives to overcome market sluggishness during the year 2013-14.
Market analysis says that sluggishness is likely to continue for the next two to three years given the weak micro-economic fundamentals in domestic economy and euro zone crisis, the official said.
"In its pursuit to expand new geographical market segments, RINL has developed a Grand International Marketing Strategy. The strategy envisages establishing RINL market presence in South Asia, South East Asia, Central Asia, Middle East Asia and African countries.
"RINL has already made a structural change in its marketing division by creating International Marketing Division (IMD) headed by GM. The first international marketing office of RINL is getting opened in World Trade Centre, Colombo," the official told PTI.
RINL export market strategy includes taking advantage of zero duty situation in the neighbouring country for export of billets. Such billets exported to these countries will get rolled in rolling mills and the products under the brand name of 'Vizag Steel' will be exported to the various countries.
In its export network, Colombo has been identified to be the hub of exports of RINL products, the official added.