Essar Steel Ltd (ESL) has unveiled its business plans for 2001-02. Marketing will be the thrust area, besides technology improvement, cost cutting and product development.

ESL director (operations) John Parker, during a presentation at the company's Hazira plant, said that target for production this year will be 2.3 million tonne (mt) of which 1.4 mt has been earmarked for domestic sales. Mr Parker was, however, not very optimistic on the prices in the international markets. The company has earmarked 0.9 mt for export this year, he added.

ESL is now taking major steps to improve consumer relationship. The company has set up a technical relationship and services team. The team will interact with officials from customer companies and resolve matters relating to technology and other issues at the manufacturing level. This exercise, Mr Parker, said will eliminate the time lag in meeting customer needs and will help the company meet specific customer needs. This kind of interaction will also help in development of custom made products.

ESL to make steel for Merc, Volvo Mercedes and Volvo, top-notch global automobile manufacturers, have approved ESL to manufacture steel for car wheels. While Kalyani Steel, which is a cold roller is the actual supplier, it will, however, source its hot rolled coil for this purpose from Essar. Essar officials said teams from the two car majors had visited the plant and have given the go ahead to Kalyani Steel to sources the steel from ESL. ESL will supply PK 46 grade of steel for this purpose to Kalyani Steel.

Mr Parker said the company will exercise discretion on its commitments on exports, and this will depend on prices prevailing in the international market. The company expects prices in third quarter to be around $275 per tonne.

On technology development, Mr Parker said that company has been successful in manufacturing sour gas quality API 5L X52 & X60, Interstetial Freeze (IF) steel for automobile application. ESL will also supply steel for beverage cans, high strength low alloy (HSLA) steel for auto and building sector, high strength steel for colour coated sheets for building construction and steel for enamelling applications. Mr Parker said: "Demand for quality steel has increased tremendously. A lot is being driven by multinational manufacturers and spare parts manufacturers." He said a chunk of this steel is also sold in markets of south India and Pune.

According to Mr Parker, there is huge demand for API grade steel and emphasis will be on up market production. The realisation on base grades in the international market is around $60 per tonne while for API grade the realisations can go as high as $170 per tonne. ESL can currently manufacture API grade up to 12 mm to 13 mm, beyond which steel is likely to lose mechanical properties, Essar official said. The company in a press release on Wednesday stated that literage operations at Hazira are discontinued during the monsoon as the port of Magdalla is closed for literage operations from May 15 to September 15 every year due to unfavourable weather conditions.

...hikes HBI plant capacity at Hazira. Essar Steel Ltd (ESL) has increased its hot briquetted iron (HBI) plant capacity at Hazira to 2.2 million tonne (mt) from 1.76 mt. ESL's HBI plant chief Mr Russ Baily said, "We have set a target of reaching 2.4 mmtpa by the end of the current fiscal. With further modification underway, we will be able to operate at 2.4 mmtpa from September this year."