India’s largest steelmaker cuts production when the Covid crisis hits demand

India’s largest steelmaker expects turmoil from the country’s brutal turmoil Second wave Coronavirus will persist until September as production declines due to lack of oxygen and shrinking industrial demand.

JSW is also struggling to vaccinate a total of about one million staff, contract workers, and their families as they try to overcome the shortage of jabs.

JSW’s Billionaire Chair Sajjan Jindal told the that the company, India’s largest steel producer with a market capitalization of Rs 18 trillion ($ 24.4 billion), has cut steel production by almost 10%. ..

The severe oxygen deficiency of Covid-19 patients has forced industry groups to revert gas from factories to hospitals.

JSW’s production cuts highlight how India’s second wave is confusing what was expected to be a boom period for Indian industry.

While the economy and consumer demand were expected to recover following the shrinkage caused by the coronavirus last year, steelmakers are on a strong outlook for the global market.

Sajjan Jindal © Bloomberg, Chairman of JSW, India’s Largest Steelmaker

Enterprise India needs to reconcile oxygen and vaccine shortages, declining demand and employee infections. Other companies, including Maruti Suzuki, the largest automaker, have cut production and temporarily closed their factories.

Jindal, one of India’s most powerful tycoons, said: “We are clearly seeing the impact [on domestic demand] Come to our company. .. .. There will be confusion until September. “

India reported more than 400,000 Covid-19 infections and 4,000 deaths on Saturday, but experts believe the real casualties are much higher.

Investors remain bullish on JSW, whose share price has risen 90% since the beginning of the year, thanks to the strong global steel market.

Mr Jindal said JSW could make up for weak domestic demand through exports, which account for about one-fifth of revenue. Saurabh Mukherjea, founder of Marcellus Investment Managers, said:

But at home, the situation remains complicated as business prospects deteriorate and illness puts a strain on companies and their employees.

According to Jindal, JSW is currently the country’s largest supplier of liquid medical oxygen, transporting approximately 1,200 tonnes per day. He said he expected it to last “a few months.”

The company also faced the challenge of caring for its employees and their relatives.

This month’s policy change allowed companies to attempt to vaccinate workers through a partnership with a private hospital, but JSW, like many other companies, was unable to procure jabs because it was serious. Vaccine shortage It is expected to continue until at least July.

He said about 20-30 employees tested positive for Covid-19 daily at the company’s main factory in Varali, southern India.

“We were suffering from vaccination as a country,” said Jindal. “We had the ability. For some reason, I don’t know, we didn’t attach much importance to it.”

He said authorities could have better prepared the country for the second wave, but no one expected how serious it would be, he claimed.

“We certainly messed up this wave plan,” he said. “Otherwise, there would have been no elections and no Khumbu,” he said, referring to a large religious rally that took place during the surge of local polls and incidents.

“We would have paid more attention to it. We have lost many lives and continue to lose many lives.”

India’s largest steelmaker cuts production when the Covid crisis hits demand

Source link India’s largest steelmaker cuts production when the Covid crisis hits demand

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