KIOCL restarts operation at Mangaluru pellet plant

This statistic underlines the importance of the export market for KIOCL's business model and the impact of export duties on its operations.

KIOCL restarts operation at Mangaluru pellet plant

New Delhi: KIOCL today in its regulatory filing informed that the Pellet Production at Pellet Plant Unit of the Company situated at Mangalore had restarted today i.e., with effect from November 8, 2023 (F/N).

This comes after a temporary suspension due to a lack of demand in the domestic market and the international market's unviability due to high export duties.

The company had previously put a halt to its operations on June 7. However, it resumed its activities later on August 12, only to shut down again due to the aforementioned challenges. The Mangalore unit's operations have been a rollercoaster ride, reflecting the volatility of the global steel market.

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KIOCL's financial report for the fiscal year 2021-22 paints an interesting picture. The company reported a revenue of Rs 3,006.45 crore from operations, with a staggering 97.42% of this revenue coming from exports. This statistic underlines the importance of the export market for KIOCL's business model and the impact of export duties on its operations.

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In light of this, the Union Steel Ministry has stepped in to seek relief from these export duties for KIOCL's iron-ore pellets sold in overseas markets. This intervention is seen as a significant move to support the domestic steel industry and maintain its competitiveness in the international market.

In conclusion, the restart of KIOCL's Mangaluru pellet plant marks a new chapter in India's steel industry. It also highlights the need for supportive government policies to ensure the industry's sustainable growth amidst global market challenges. The road ahead is filled with both opportunities and obstacles, and the industry will be closely watching the developments at KIOCL's Mangaluru plant.

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