JSL launches co-branding initiative with P&T manufacturers
Jindal Stainless Limited (JSL) is launching a nationwide co-branding initiative with Pipes & Tubes (P&T) manufacturers in order to curb its counterfeit products. As per the management's estimates, 25 per cent of pipes and tubes sold annually in India bear the counterfeit branding of JSL.
This co-branding initiative will earn its MoU partners a clear cut distinction from other P&T manufacturers. 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.
Standardised seals have been created by JSL, encompassing the logos of the MoU partner and JSL, the grade of stainless steel and the MoU number. The company’s pan-India MoU partners in this segment have joined hands with JSL for this initiative.
The stainless steel decorative pipes and tubes find major applications in the Architecture, Building and Construction segment, like Railings, Furniture, Decorative items, Facades, and in Automobile, Railways and Transport segment, like Automobile Guards and E-Rickshaws. The P&T 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.
The major city clusters of stainless steel pipes and tubes are Hisar, Ahmedabad, Jaipur, Jodhpur, Kolkata, Bhubaneswar, 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.
JSL currently commands a high market share in this segment and is geared up to increase its revenue in the next two years. According to industry estimates, the current market size of the decorative P&T segment is approximately Rs. 5,300 crore and is growing at a rate greater than 12 per cent, annually.
On Wednesday, the stock of JSL opened at Rs. 31.25 on BSE and was up 3.4 per cent to make intra-day high of Rs. 31.60.