RINL Makes its Way to Revival on Better Volumes and Rising Steel Prices

In a media conference held at Vishakhapatnam yesterday, RINL’s Chairman and Managing Director (CMD) P. Madhusudan talked about the company’s performance in the past and its plans in the next fiscal. The main points highlighted by him are as follows:

• RINL’s steel plant hit the road to recovery in the financial year 2017-18 after two difficult years amid market slow down and contingencies such as Hudhud cyclone in Oct’14.

• After hitting the recovery path in 2016-17, the company achieved a turnaround in the current fiscal year of 2018-19.

• The company reduced its net loss from INR 1,300 crore to INR 900 crore and expects to achieve break-even and earn a nominal operational profit of INR 100 crore by the end of current fiscal i.e. till Mar’18.

• The company was able to successfully complete its expansion project where it doubled its capacity to 6.3 MnT and also undertook modernisation project that totalled its production capacity to 7.3 MnT.

• The entire cost required for expansion and modernisation was INR 1,600 crore which was met through internal accruals and loans.

• Although raw material costs such as coal and iron ore prices in the past few months, company was able to cope up with on all fronts. In case of acquiring captive iron ore mines, the Andhra Pradesh government agreed to allot west Godavari’s district iron ore mines to the company whereas the company’s efforts to acquire captive iron ore mines in Odisha and Rajasthan had not met any success.

• In current year, the company took up coastal shipping of products to Kochi, Mumbai, and Ahmedabad.

• Currently, the company is meeting Andhra Pradesh government’s majority long steel requirements for the construction works in the new capital, Amaravati, and the Polavaram irrigation project on the Godavari.

• Despite making losses the company spends INR 8-10 crore per annum on CSR (Corporate Social Responsibility) projects per annum.

• The company’s future looks bright in coming years and that it will play major part in the building of a new Andhra Pradesh as the biggest industrial unit in the state.