‘We’re producing 210 tonnes of oxygen per day’

The steel industry has been on a high with spreads at record levels. In an interview, DILIP OOMMEN, chief executive officer, AM/NS India, tells Ishita Ayan Dutt major customers have indicated the current surge in Covid cases may have a limited impact on demand, but the situation is being closely monitored. Edited excerpts: The past financial year (FY21) has been good for the steel industry. What is the outlook for the current year?

The robust demand outlook witnessed last year is expected to roll into the current financial year as well, especially for the first two quarters of FY22. Our customers continue to be enthusiastic about the stock uptake across sectors. Furthermore, the impetus on increased infrastructure spending from the FY22 Budget will fuel the sector’s growth in the year ahead.

Are you seeing the impact of curbs on some of the end-user segments amid surging Covid cases?

As of now, there is no drop in demand; however, we are monitoring the situation. We are engaging with our major customers across industry verticals, who indicated that the current surge in Covid-19 cases has a limited impact on their demand as of now. Nevertheless, it

is critical to mitigate the rising trend of cases because it may impact the demand outlook in the months to come, which, in turn, would have a cascading effect on the larger economy.

Given the rising cases in Gujarat, are operations at your Hazira plant impacted? What about Odisha?

AM/NS India gives utmost importance to the health and overall wellbeing of our employees.

We are conscious and vigilant in the cities where we have operations. However, some

Covid cases have been reported in the company.

Currently, operations continue at optimum capacity at Hazira as well as Odisha. We are strictly following the guidelines and directives issued by the Central government as well as respective state governments from time to time to safeguard employees and other stakeholders in our facilities.

The Centre has extended the vaccination drive to a larger section of the population. How does AM/NS India plan to facilitate vaccination for employees?

The new guideline is a step in the right direction as this timely decision will help in effectively mitigating the spread of this lethal virus. At AM/NS India, the health and safety of the employees is the topmost priority. We have inoculated a section of employees. We will follow the fresh guidelines, based on the availability of vaccine doses.

Are you stepping up the supply of oxygen after the meeting with the prime minister?

We have now stretched to produce and offer 200-210 tonnes liquid oxygen per day. We are leaving no stone unturned to support the government in these challenging times.

You are in the process of undertaking brownfield expansion in Hazira. What kind of ramp-up in capacity is expected this year? What kind of raw material security does the plant now have?

A capacity optimisation exercise is currently underway in Hazira to increase our capacity by one million tonnes per annum (MTPA) by CY23. We are also in advanced discussion with the government to further enhance our capacity in the short term (phase 1) by 5 MTPA in Hazira. Our Thakurani mines are operating at full capacity while the Sagasahi mines are also expected to start operations — the two key developments that are in line with our longterm goal to make AM/NS India self-reliant by boosting raw material security.

When is the pellet plant expansion in Odisha likely to be completed?

We are nearing completion on doubling the Paradeep pellet plant capacity from the current 6 MTPA. Production will start this quarter.

You have submitted an EOI for Neelachal Ispat. Would you also look at participating in RINL and NMDC’S Nagarnar steel plant privatisation?

AM/NS India is firmly committed to contributing to the Atmanirbhar Bharat initiative, which aims to strengthen the country’s domestic manufacturing ecosystem and integrate it into global value chains. AM/NS India, like always, will continue to explore accretive organic and inorganic expansion opportunities.