Mumbai-based JSW Steel Ltd, one of India's largest steelmakers and which sells around 40 percent of its production overseas, has said that it plans to run its mills at maximum capacity at least until June 2009 in order to meet higher rural-based demand. Furthermore, in this context, the company is considering cutting its exposure in the international markets.
Changing its approach, the Indian steel producer is now focusing more on rural markets by opening 60 retail outlets by mean of the franchise route, mostly in small towns and villages, to boost demand. In addition, JSW Steel intends to build a nationwide network of sales outlets with as many as 600 branches in the next two years.
Sajjan Jindal, vice chairman and managing director of JSW Steel, said, "The reduction in steel prices has increased the demand," going on to forecast that sales would double to 600,000 mt in the current month from a year ago.
According to Mr Jindal, major demand is coming from rural areas especially from the housing sector for galvanized sheets, while the infrastructure sector is also expected to see a rise in demand for steel.
In February, JSW completed the expansion of its annual capacity to 6.8 million mt from 3.8 million mt.