CAN JINDAL FIRE UP HIS FURNACE?
Article Abstract:
The twin blast furnaces of Jindal Vijayanagar Steel (JVS) at Toranagallu in the Bellary district of Karnataka will commence operations in September 1998. The project was to start producing steel from September 1996 and has witnessed cost overruns of Rs1,668 crore. Though JVS' capital expenditure rose by Rs838 crore since production capacities were raised and a three million tonne minimum economic size pelletisation plant was put up, the per tonne cost of production did not increase. However, JVS has to face various other problems. HRC supply already matches demand even before JVS has gone on stream and the demand is not likely to grow in 1998-99. JVS claims that it will use around 70,000 tonnes of hot rolled coils (HRC) to feed Jindal Iron & Steel Company's (Jisco) cold rolled coils (CRC) capacity and with Jisco planning to double its capacity by 2001 AD, all the HRC produced will be used in house. JVS will be saddled with 900,000 tonnes of HRC to be sold in the market. JVS plans to sell its products in the south, which accounts for 19 percent of the domestic market. HRC will have a freight advantage of between Rs1,100 per tonne to Rs1,800 per tonne compared to other producers. However, JVS will be using the corex process, pioneered by Voest Alpine of Austria, in its blast furnace, which is untried technology and may prove to be a drawback, Further, JVS will not be able to achieve the kind of thinness of its steel slabs that Ispat that Essar can. (tsm)
Comment:
Will commence operation of twin blast furnaces at Toranagallu in Bellary district of Karnataka, India, in 9/98
Publication Name: BusinessWorld
Subject: Business, international
ISSN:
Year: 1998
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THE RETAIL RITUAL
Article Abstract:
Bombay Dyeing plans to enter the retail segment to cope up with the competition in the textile industry. It plans to launch new premium brands like the Forest Hills range of casual trousers and Princeton range of formal shirts in departmental stores in October 1998. It has launched its Raptures range consisting of a bedsheet, two pillow cases, two towels and two napkins priced at Rs1,000 in February 1998. It has 1,200 stockists throughout India. It has 565 outlets of which 20 are exclusive Vivaldi outlets. It plans to launch its new range of towels priced at Rs250-Rs450 through retail outlets. (tsm)
Publication Name: BusinessWorld
Subject: Business, international
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Year: 1998
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