The demand for colour-coated steel products is set to grow by 8-10pct each year on an average driven by demand from the construction segment and manufacturers of appliances and white goods, Ranjan Dhar, the director for sales and marketing at AM/NS India said.
India currently consumes around 3.2 mln ton of coated steel each year, he said, adding that the demand for this product from the value-added segment is growing at a faster pace than that of steel.
AM/NS India, which is the fourth largest producer of steel in India, a joint venture between ArcelorMittal and Nippon Steel, has recently launched a color-coated steel brand, a patented product from ArcelorMittal.
Coated steel products account for about 20-25pct of the total value-added products ecosystem, and AM/NS will produce around 700,000 ton of its offering ‘Optigal’ each year in India. It plans to scale this up to 1 mln ton eventually, Dhar said.
These products will initially be manufactured at the company’s unit in Pune, following which these products will also be manufactured at other units, Dhar said.
AM/NS India is also evaluating other products, both from ArcelorMittal and Nippon Steel, which can be launched in India. Products from both these companies which are suitable for the Indian markets will be regularly launched going ahead, Dhar said.
