Stainless steel SEZ to come up in India

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Stainless steel could shine brighter in India as in their scramble for market share the steel makers want to locate users of steel next to their factories in special economic zones.

Jindal Stainless and Steel Authority of India have plans to capture customers right next to their stainless steel plants.

"We are setting up an SEZ next to our Orissa plant on a 300 acre land which will have shops, which use our steel for making products," pointed out Ratan Jindal, VC & MD, Jindal Stainless.

With the demand for stainless steel growing from various sectors and demand picking up from railways for coaches and wagons, Jindal Stainless is ramping up capacity to 1.5 mt in Haryana and the fast progressing Orissa plant by 2010.

One the same line SAIL is also putting up a stainless steel plant in Salem to up total capacity to 1.5 mt from 0.65 mt by 2010 and both are setting up SEZs in Orissa and Salem respectively to have customers just next door.

"It will give us assured customer with no export expense since rupee appreciation is making exports less attractive," added Ratan.

The formation of SEZs are becoming quite a trend in stainless steel sector and with more international players setting up shops in India, competition is going to rise within the coming period.