Jindal Iron and Steel Company is in discussions with steel mills in Iraq and Ethiopia for taking up the management of the mills under contract with the owners.
Refusing to divulge the names, top sources in the company said, "We are in negotiations with them and hope to finalise the first deal shortly. They have the mills but, no expertise and we will lend the expertise."
However, Jisco is not looking at acquiring these plants. This new initiative is part of the company's strategy to lap both organic and inorganic growth opportunities.
Operating and management contracts was one such initiative. Sources said, the company would also explore the option of acquisitions if the right opportunity presented itself.
As part of the growth strategy, the company was also in the process of enhancing capacity. Galvanising capacity would be increased from 550,000 tonne to 710,000 tonne by October, this year.
Investment in the capacity enhancement would be to the tune of Rs 30-40 crore (Rs 300-400 million), which would be funded through internal accruals. The cold rolling capacity has already been enhanced from 400,000 tonne to 600,000 tonne.
The increased capacity would service both domestic requirements and its increasing export market. The company, which exports to around 60 countries across the globe has increased exports in the fourth quarter by almost 151 per cent, as compared to the same period, last year.
To augment the export initiative further and extend reach, Jisco has decided to set up marketing offices in the United States, the United Kingdom, China and east Africa.
Sources said, "We are in the process of obtaining approval from the necessary regulatory authorities for the purpose."
The company has simultaneously embarked on a branding exercise, which would help it command a premium in the market. Jisco's branding initiative was being guided by Bharat Dabholkar of Publicis.
The company has branded GC sheets in the domestic market Jindal Vishwas. A second brand, GP Jindal Galvplus, would essentially cater to the international market. A soft launch of the branded products has been carried out in Mumbai, Kolkata and Guwahati.
The company has also entered into long-term arrangements with some of its key suppliers like Jindal Vijaynagar Steel for hot rolled coils, Hindustan Zinc and Bharat Petroleum Corporation and Hindustan Petroleum Corporation.
