Jindal Steel to step into container manufacturing
Indian steel major, Jindal Steel & Power Ltd (JSPL), will soon enter the container manufacturing business and is setting up a manufacturing facility in either Chattisgarh or Odisha.
Earlier, Hyundai, Balmer Lawrie, and Nathani were among the few manufacturers in India. After China started producing containers at a much competitive price of Rs 72,907 per unit against Rs 132,232-Rs 145,895 per unit manufactured domestically, these players went out of business.
Currently, India sources its entire container needs from China at Rs 239,760-Rs 454,545 per container. Last week, the firm reported a consolidated net profit of Rs 2,566 crore in the December quarter against a loss of Rs 218.57 crore in the same period last year on the back of increased revenues.
The top line stood at Rs 10,533 crore in the period under review, up 40% from the same period last year due to increased volumes as well as realisations.
Consolidated earnings before interest, taxes, depreciation and amortisation (Ebitda) in the December quarter stood at Rs 4,252 crore against Rs 1,574 crore in the corresponding period last year.
The Ministry of Ports, Shipping and Waterways (MoPSW) recently formed a committee to examine the viability of making containers at Bhavnagar in Gujarat and developing it into a manufacturing hub. At present, India has no container manufacturers.
In the last few months, an uneven import-export scenario for India has led to a severe shortage of container boxes pushing costs higher. After Chinese imports came under scanner and bans were imposed, there has been a severe shortage of containers in the domestic market.