Essar Steel’s Production Performance Improves Significantly in Q2 FY17

Essar Steel, one of the leading steel manufacturers of India has achieved 58% jump in its flat steel production in second quarter of  FY17 against corresponding quarter of previous year. The same is recorded at 1.34 MnT in Q2 FY17 against 0.85 MnT in Q2 FY16.

On Q-o-Q basis, company’s flat products output has registered an increase of 10% in Q2 FY17 as the same was recorded at 1.22 MnT in Q1 FY17.

The company’s liquid steel production has also registered a growth of 65% Y-o-Y basis as the same stood at 0.81 MnT in Q2 FY16  against 1.34 MnT in Q2 FY17.

In case of PPGI (Pre Painted Galvanised Iron) the company has registered a record growth of 98% at 81 KT production in Q2 FY17 against 41 KT in corresponding quarter of previous year.

Source: Essar Steel’s Release

How Essar Steel Improved its Performance?

Essar Steel which has been dealing with very high debt levels especially since past one year, was cautioned by the lender banks to ramp up their production in order to survive in the market.

The company has made serious efforts since the start of this year to retain its position in the market. It has adopted strategies such as adding more value added grades as per the customer requirements in its product mix and controlling logistic and input costs to achieve better sales realizations from the market.

The government initiatives such as imposition of MIP and anti-dumping duty has also helped in curbing cheaper imports in to India, helping domestic players to improve their presence in the domestic market. Also global steel prices  increased considerably during three months of Jul to Sep, thus encouraging domestic players to make export sales fetching good realizations.