MUMBAI: State-run Rashtriya Ispat Nigam Ltd (RINL) plans to increase its steel exports to around 25 per cent of overall sales in coming years and has already created a separate division to focus on the same, a top company executive said today.
"We plan to increase our exports in overall sales pie for which we have created a separate division 'International Marketing Division," a top RINL official told PTI here.
He, however, declined to quantify the amount which the company is looking to export in the current financial year.
Many of domestic steel firms have started looking at markets abroad on the back of subdued domestic demand in recent time.
Demand for domestic steel has increased at one of the slowest pace at 0.2 per cent to 17.8 million tonnes in the first quarter of current financial year on the back of a slowdown inautomobile sales.
Last fiscal, steel demand had also grown at a subdued pace at 3.3 per cent against targeted 8 per cent in the country.
Further, sharp depreciation of rupee, which has lost more than 20 per cent since May to hover around 67 per dollar, has also made exports competitive from steel firms to focus on exports.
The RINL official said countries from South Asia, South East Asia, Central Asia, Middle East Asia and Africa are on the radar of RINL. As per the company, the first international marketing office is getting opened in Colombo.
He said that apart from exports, the steel firm is also emphasising on increasing the products basket with customised high-end products to develop niche market.
In the last fiscal, total revenues of RINL were down by around 6 per cent to Rs 13,650 crore on the back of subdued domestic demand whereas its export revenue shot up by 45 per cent to Rs 601 crore.