New Delhi: In a drive to curb counterfeit products of Jindal Stainless in the market, the company is launching a nationwide co-branding initiative with Pipes and Tubes (P&T) manufacturers. With a current market share of 44 percent and annual revenue of Rs 2,300 crore, Jindal Stainless is geared up to increase its share to 52 percent, eyeing a revenue of over Rs 3,400 crores in the next two years. According to industry estimates, the current market size of the decorative P&T segment is to the tune of Rs 5,300 crore and is growing at a rate greater than 12 percent annually.
Counterfeit market Rs 1,300-cr strong
Addressing media persons in New Delhi on Wednesday, Jindal Stainless Managing Director Abhyuday Jindal said, “We have launched this mutually beneficial co-branding scheme in response to the needs of our customers. It is estimated that over 25 percent of pipes and tubes sold annually in India bear the counterfeit branding of Jindal Stainless, and are valued at over Rs 1,300 crores. We aim to curtail this counterfeiting and capture the growing decorative P&T market in the next 2 years.”
What’s the fix?
A first in the Indian stainless steel industry, Jindal Stainless’ co-branding initiative will earn its MoU partners a clear-cut distinction from other P&T manufacturers. Standardised seals have been created by Jindal Stainless, encompassing the logos of the MoU partner and Jindal Stainless, the grade of stainless steel, and the MoU number. This initiative will help Jindal Stainless and its partners jointly create greater value for customers.
It will also offer greater visibility and penetration in the market for the company’s partners, who were earlier struggling with the adverse effects of counterfeiting, like low market shares, lower margins, bad reputation, and intrusion of inferior quality stainless steel in the market. Apart from this, it will ensure that the right quality material reaches the consumers. Over 60 MoU partners in this segment pan-India have joined hands with Jindal Stainless for this initiative.
The stainless steel decorative pipes and tubes find major applications in the architecture, building and construction segment, like railings, furniture, decorative items, facades, and in automobile, railways and transport segment, like automobile guards and e-rickshaws. This segment is also expecting a growth thrust from the government’s focus on areas like the redevelopment of railway stations, new highways, and metro projects, amongst other infrastructural developments.
Jindal Stainless plans to reach out to customers
This segment has continuous high consumption in northern and western India — the major hubs of stainless steel manufacturers and consumers at the moment. However, a majority of southern and eastern India has also recently shown promising growth potential. The major city clusters of stainless steel pipes and tubes are Hisar, Ahmedabad, Jaipur, Jodhpur, Kolkata, Bhubaneshwar, Raipur and Bangalore. The company will reach out to customer clusters through radio jingles, prints ads, and out-of-home branding while continuing its thrust on training fabricators.
The stainless steel grades used in the decorative P&T segment are 304, JT, J4 and JSLU SD. They offer higher strength, lower lifecycle cost, unmatched aesthetic appeal, low maintenance requirement, along with the advantage of being nearly 100 percent recyclable. These grades are also corrosion-resistant and ensure durability.