Jindal Stainless, a prominent stainless steel manufacturer catering to diverse sectors like transportation and construction, is proactively addressing its Scope 3 emissions in preparation for the European Union's (EU) Cross-Border Adjustment Mechanism (CBAM). Abhyuday Jindal, the company's Managing Director, indicated that they have already made significant investments in the renewable sector and are exploring hydrogen power. Despite the EU's carbon tax posing challenges for an industry already 95% scrap-based, Jindal Stainless is honing in on Scope 3 emissions, deploying advanced tech platforms for their suppliers.
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The company recently amplified its Odisha facility's production capacity, positioning itself among the top global stainless steel producers with a capacity of 2.9 mtpa. For the fiscal year 2023-24, they aspire to boost production by 20 to 25%. Jindal believes that India's rising steel market, aiming for production targets of 9 million tonnes for stainless steel and 300 million tonnes for steel, will prove advantageous for them.
Within the next 3-4 years, stainless steel consumption in India is projected to hit 5 kg/capita, while developed nations average between 28-30 kg/capita, and the global average stands at 6 kg. The primary growth drivers will be domestic demand, but exports are anticipated to pick up in the latter half of the fiscal year.
However, Jindal voiced concerns over China's subsidized and inferior stainless steel flooding the Indian market. While the steel ministry has sought the finance ministry's intervention, a resolution is still pending. The surge in Chinese stainless steel imports, up by 318% in two years, has adversely affected the local industry, causing a 50% drop in capacity utilization.
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According to Procurement Resource, Jindal Stainless is working on its Scope 3 emissions and is ready to deal with the carbon pricing by the EU. The company has already invested in the renewable sector and is further planning for hydrogen power. The growing steel market is benefitting the company. As a result, they are ready to tackle the challenges of the carbon tax.
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