Jindal Stainless expects costs to rise in the coming months due to a potential reduction in the European Union’s import quota for India and challenges in scrap availability, even as the company works to pass on incremental costs to consumers. The company has diversified its scrap sourcing in advance to mitigate the impact.
Exports accounted for 11 per cent of Jindal Stainless’ total sales in the September quarter, up from 9 per cent in the corresponding period last year. The company reported a year-on-year increase of around 36 per cent in exports, although it did not disclose the absolute figures.
Tarun Khulbe, CEO of Jindal Stainless, said that while fuel supplies had improved, fluctuations in fuel prices, container availability and ocean freight rates continued to pose challenges for both imports and exports.
As the company imports raw materials and exports finished products, it has been leveraging shipping requirements across both operations to manage logistics challenges and mitigate some of the associated cost pressures.