Jindal Stainless clamps down on counterfeit market with a co-branding initiative
Eyes additional revenue of Rs 1100 crore over the next two years
In a drive to curb the counterfeit products of Jindal Stainless in the market, the company is launching a nationwide co-branding initiative with pipes and tubes (P&T) manufacturers. With a current market share of 44% and annual revenue of ~ Rs 2300 crore, Jindal Stainless is geared up to increase its share to 52%, eyeing a revenue of over ~ Rs 3400 crore in the next 2 years. According to industry estimates, the current market size of the decorative P&T segment is to the tune of ~ Rs 5300 crore, and is growing at a rate greater than 12% annually.
Abhyuday Jindal, MD, Jindal Stainless, said, “We have launched this mutually beneficial co-branding scheme in response to the needs of our customers. It is estimated that over 25% of pipes and tubes sold annually in India bear the counterfeit branding of Jindal Stainless, and are valued at over Rs 1300 crore. We aim to curtail this counterfeiting and capture the growing decorative P&T market in the next 2 years.”
As a first in the Indian stainless steel industry, Jindal Stainless’ co-branding initiative will earn its MoU partners a clear-cut distinction from other P&T manufacturers. Standardised seals have been created by Jindal Stainless, encompassing the logos of the MoU partner and Jindal Stainless, the grade of stainless steel, and the MoU number. This initiative will help Jindal Stainless and its partners jointly create greater value for customers. It will also offer greater visibility and penetration in the market for the company’s partners, who were earlier struggling with the adverse effects of counterfeiting, like low market shares, lower margins, bad reputation, and intrusion of inferior quality stainless steel in the market. Apart from this, it will ensure that the right quality material reaches the consumers. Over 60 MoU partners in this segment pan-India have joined hands with Jindal Stainless for this initiative.
The stainless steel decorative pipes and tubes find major applications in architecture, building and construction segment, like railings, furniture, decorative items, facades and in automobile, railways and transport segment, like automobile guards and e-rickshaws. This segment is also expecting a growth thrust from the government’s focus on areas like redevelopment of railway stations, new highways, and metro projects, amongst other infrastructural developments. This segment has continuous high consumption in northern and western India – the major hubs of stainless steel manufacturers and consumers at the moment. However, majority of southern and eastern India has also recently shown promising growth potential. The major city clusters of stainless steel pipes and tubes are Hisar, Ahmedabad, Jaipur, Jodhpur, Kolkata, Bhubaneshwar, Raipur and Bangalore. The company will reach out to customer clusters through radio jingles, prints ads, and out-of-home branding, while continuing its thrust on training fabricators.
The stainless steel grades used in the decorative P&T segment are 304, JT, J4 and JSLU SD. They offer higher strength, lower lifecycle cost, unmatched aesthetic appeal, low maintenance requirement, along with the advantage of being nearly 100% recyclable. These grades are also corrosion-resistant and ensure durability.