Essar Steel is targeting a revenue of R40,000 crore for 2013-14, with total steel production touching 10 million tonne per annum (mtpa). The company has commissioned the first phase of the 6-mtpa, R4200-crore pellet plant in Paradip, Orissa, which is tipped to be the largest pellet plant at its full capacity of 12 mt.
The company will focus on exports to ramp up sales in the near future as domestic production capacity is likely to exceed demand for the next two years,” said Dilip Oommen, CEO and managing director, Essar Steel. “There are still pockets in the world where there are good demand. We will focus on NAFTA region, West Asia, Far East and Africa for exports.”
Exports currently account for about 30% of Essar Steel’s revenues. In the long run, domestic requirement will exceed capacity, said Oommen. “Even if there is 150 million additional capacity by 2020, there will be supply shortage,” he said.
Essar Steel’s production hit 7.4 mt last year. The company has the capacity to make 14 mtpa.