[ad_1]
India’s largest steelmaker expects brutal country upheavals second wave of coronavirus will last until September, as it reduces production due to oxygen shortages and declining industrial demand.
JSW is also struggling to vaccinate its staff, hired workers and their families, who number about 1 million people, as the country tries to overcome the shortage of laundry.
The company, which is India’s largest market producer by market capitalization at A $ 1.8 million ($ 24.4 million), has reduced steel production by almost 10%, according to JSW billionaire president Sajjan Jindal told the Financial Times.
Oxygen shortages for Covid-19 patients have forced industry groups to redirect gas from factories to hospitals.
JSW’s production cuts show how India’s second wave is upsetting what was otherwise expected to be a boom time for Indian industry.
The economy and consumer demand were expected to grow again after a contraction due to the coronavirus last year, while steelmakers had a firm outlook for the global market.
Sajjan Jindal, president of JSW, India’s largest steelmaker © Bloomberg
Corporate India has to juggle oxygen and vaccine shortages, falling demand and infection among employees. Other companies, including larger vehicle manufacturer Maruti Suzuki, are reducing production and temporarily closing factories.
“I never imagined there could be such a violent and devastating second wave,” said Jindal, one of India’s most powerful tycoons. “We are clearly seeing this impact [on domestic demand] coming to our company. . . I see some interruption until September “.
India reported more than 400,000 Covid-19 infections and 4,000 deaths on Saturday, although experts believe the real toll is much higher.
Investors remain optimistic about JSW, the stock price has risen 90% since the beginning of this year, thanks to a strong global steel market.
Jindal said JSW could offset weaker domestic demand through exports, which accounted for about a fifth of revenue. “The global steel cycle has turned north and JSW is in a good position,” said Saurabh Mukherjea, founder of Marcellus Investment Managers.
But at home the picture remains complicated due to the deteriorating business prospects and the burden the disease poses for companies and their employees.
JSW is now the largest supplier of liquid medical oxygen in the country, according to Jindal, which transports about 1,200 tons daily. He said he hoped it would continue “a couple of months.”
The company also faced challenges in serving its employees and their families.
A change in policy this month allowed companies to try to vaccinate workers through links to private hospitals, but JSW – like many others – has been unable to seek laundry due to a shortage of vaccines it is expected to continue until at least July.
He said between 20 and 30 employees tested positive for Covid-19 every day at the company’s main plant in Ballari, South India.
“We, as a country, hesitated to vaccinate,” Jindal said. “We had capacity. Somehow, I don’t know, we didn’t give it so much importance “.
He said authorities could have better prepared the country for the second wave, though he argued that no one had foreseen how serious it would be.
“We’ve definitely messed up planning for this wave,” he said. “Otherwise, we would not have had the elections, we would not have had the Kumbh,” a reference to local polls and a huge religious rally that took place as cases escalated.
“It simply came to our notice then. We have lost many lives and we continue to lose many lives. “
[ad_2]
Source link
