RINL seeks partners to sell steel against raw material supply

Steel Insigh

Rashtriya Ispat Nigam Ltd (RINL) has come out with an innovative business model to get into sourcingcum-supply pact with partners which will fund its working capital without cash outgo.

“RINL is looking to partner with companies having interests in steel and steelmaking raw materials and invites business proposals for supply of steel from RINL. Potential partner may participate by way of supplying one or more key raw materials like coking coal /BF coke, iron ore and, in turn, take steel products as per mutually agreed terms and conditions. Potential partner can also fund working capital and, in turn, take steel products as per mutually agreed terms and conditions,” RINL said in an Expression of Interest floated recently.

RINL would engage with potential partners to evolve a business model and finalise related terms and conditions, it added. RINL has been finding difficulties in sourcing key steel-making raw materials and the model, if successfully implemented, may resolve the crisis, industry watchers said.

Eyes improved performance in FY24 RINL expects positive performance in the current financial year. “With lessons learnt from this difficult year and with the determination of RINL collective our organisation can turn Profit After Tax (PAT) positive in the 1st quarter of FY24,” Atul Bhatt, CMD, RINL, said while addressing the RINL collective on April 1.

“FY23 has been the most difficult year due to the multiple challenges at multiple fronts. But because of the dedicated efforts of the team RINL we could overcome the challenges,.” He added congratulating RINL collective.

Giving an update on the forged wheel project, he informed that Preliminary Acceptance Certificate (PAC) has been issued for the plant at Rae Bareli and very soon the production will be ramped up to 55,000 wheels to meet the demand from Indian Railways for high speed trains.

“In the area of raw material securitisation, we had taken several initiatives, with timely intervention from the Ministry of Steel. We increased usage of Indigenous coals in the blend and advance payment from customers was incentivized,” he said.

“Odisha Mineral Development Corp, (OMDC), the RINL’s subsidiary, could achieve significant progress towards resumption of mining operations. This would not only provide raw material security to RINL but also provide income in the form of dividends,” he added.

Appreciating the works collective for maximizing the production within the available resources, Bhatt said, “On the operations front, we have successfully sailed through the most difficult year in the history of the Company. Within the saleable steel production of about 13,000 tons/day, we have maximized the finished steel production to about 12,500 tons/day. For the year as a whole, Hot Metal production from 2 blast furnaces, finished steel production from all the expansion mills and high-end value steel production are the best for any year since inception.”

CMD Bhatt congratulated marketing collective for their multiple initiatives and commercial skills like advance payments from customers etc. to secure our share in the market amidst the toughest competitive business environment. He also applauded the financial acumen of the finance collective in the management of cash flow and treasury management.

DK Mohanty, Director (Commercial), AK Bagchi, Director (Projects) and other officials also attended the meeting.