Indian long steel manufacturer Kamdhenu Limited’s sales volume through franchise business fell by 35pc to 409,000mt in the first quarter of the fiscal year 2020-21 as per recent press release. Its royalty income also fell by 40pc to Rs147mn.
Company claim that its sales was impacted in Q1 due to COVID-19 related lockdowns and resultant dip in demand in the domestic market.
Subsequently, the company has ramped-up its production to about 80pc at all plants across the country in line with improvement in market conditions and increase in bookings. It is also expecting to reach full production capacity soon.
Satish Kumar Agrawal, Chairman and MD, said, “The steel sector in India has started showing signs of improvement as the finished steel production improved month-on-month in the last three months. Many steel majors have increased prices counting on the strong recovery in domestic demand. With subsequent phases of unlocking in the economy, the construction activity will also return to previous levels.”
The company is one of the largest rebar selling brands in the retail segment which consist of more than 75 franchise units across India to produce steel rebars, structural steel products and colour coated profile sheets. Currently, company has an installed capacity of around 3.3 mn mt of steel rebar.