Steel industry leaders have called on medium and smaller steel manufacturers in Central India to adopt a collaborative approach to remain competitive as large integrated producers expand their capacities. The recommendations were made at the mjSTEELATHON conference held in Raipur on Friday.
The conference, themed “Connecting Businesses. Creating Opportunities,” focused on the challenges and growth opportunities facing steelmakers in Chhattisgarh and neighbouring industrial regions. Participants highlighted the need for shared infrastructure, cooperation between regional players and the development of new steel-consuming industries.
VR Sharma, Managing Director of Jindal Steel Limited, said smaller steel plants needed to work together to compete with larger producers. He also pointed to the growing importance of meeting stricter environmental requirements. Mr Sharma suggested that steelmakers explore cooperative industrial models and establish special purpose vehicles (SPVs) to develop common facilities. One option, he said, could be a central direct reduced iron (DRI) unit that could serve multiple manufacturers and help them improve operational efficiency.
Such arrangements could allow smaller companies to share infrastructure and resources rather than invest separately in facilities that may be expensive to establish and operate. Niladri Bhattacharjee, Partner and Metals & Mining Industry Leader at Grant Thornton Bharat, said regional steel manufacturers should look beyond their traditional focus on long steel products and explore emerging sectors that could create additional demand.
He recommended that regional industry associations in Vidarbha and Raipur work with the Central Government to encourage the development of industries such as defence production, capital goods, automotive manufacturing, warehousing and logistics. Growth in these sectors could create new markets for steel producers and strengthen the industrial base of Central India.
The conference also highlighted Chhattisgarh’s role in India’s future steel industry. Vinaya Varma, Managing Director and Chief Executive Officer of mjunction services limited, said the state would be important in meeting the country’s long-term steel production ambitions.
India is targeting steelmaking capacity of 600 million tonnes by 2047. Varma expressed confidence that Chhattisgarh would play a major role in supporting this expansion. The discussions at mjSTEELATHON underlined the importance of closer cooperation among regional manufacturers, industry associations and policymakers. Shared facilities, stronger links with end-use industries and a wider customer base could help smaller steel producers manage costs and prepare for changing market conditions.
mjunction services limited, the organiser of the conference, is a 50:50 joint venture between Tata Steel and SAIL. Established in 2001, the company operates as a business-to-business e-commerce provider, offering services that include e-auctions, e-procurement, e-marketplaces, loyalty management, financing and agricultural commodities.
Through its technology-based platforms and industry services, mjunction works with public- and private-sector clients to improve transparency and efficiency in business transactions. The conference provided a platform for industry leaders to discuss practical ways to support the growth of Central India’s steel sector amid rising capacity, environmental requirements and changing demand patterns.
