In December 2016, Essar Steel achieved its highest ever monthly production of 551,000 tonnes and monthly sales of 512,000 tonnes. Currently, all downstream units are operating at near capacity levels.
This feat is exceptional since it has been achieved despite the subdued demand scenario that was triggered by the demonetisation. There was no access to additional working capital and gaining the confidence of vendors and customers was a challenge. However, Essar Steel not only retained almost all its customers, but also added new ones. It is the only steel company that carries a low finished goods inventory.
Commenting on the achievement, Dilip Oommen (CEO & MD, Essar Steel India) said: “The current performance reflects our clear direction to achieve full capacity. The entire team of Essar Steel, including steel production, pellet production, marketing & sales, procurement, logistics, finance and others, have worked in unison to achieve this performance. It augurs well for further improvement in the coming quarters.”
Kudos to Team Essar Steel.