COVID-19 opens new opportunities for secondary aluminium manufacturers, Pharma & Real Estate to fuel demand: JAL

Despite all the odds and adverse situations generated by the COVID-19 pandemic, it has supposedly opened new floodgates for the secondary aluminium manufacturers, commented Pragun Jindal Khaitan, Managing Director at Jindal Aluminium Limited (JAL).

Mr Khaitan said, “Though JAL did experience the impact of the pandemic due to lowered demand and output during April and May, starting the month of June turned a new leaf of revival, which led to a rise of 65- 70% rise in demand on an average.”

“In terms of export, JAL did not experience any increase or decrease with 15-20% of the total output being disseminated as per demand, keeping it constant. The first quarter of the year was stable in terms of the performance and output of JAL, though the domestic demand was at a low,” he added.

According to him, automobile sales are likely to take time to rebound but pharma/healthcare and real estate would contribute to the rising demand for the secondary aluminium metal. Khaitan said the healthcare sector will grow at its fastest pace, requiring more mechanism and machinery, given the ‘Make in India’ and ‘Self-Reliant’ initiatives growing stronger.

Demand in real estate sector will also grow but gradually as the expenditure towards daily life takes a backseat for a few years. Khaitan said, Before Covid-19, expenditure towards lifestyle and leisure was far more than property purchase, especially amongst the millennial. Their inclination towards investing in property was not defined, but going by the current situation, their outgoing finance towards travel, leisure, and conspicuous purchase has declined. This situation has made them realize that it is their home that is completely safe and worth investing in.”

At present, Jindal Aluminium Limited occupies 25 to 30 per cent of the aluminium extrusion market and 10 to 12 per cent in the rolling division. Going ahead, the company is planning to expand organically.

“We are looking forward to selling the same way as we did the previous year as the plan for the next four to six months is only to grow an optimal method,” he said.

source https://www.alcircle.com/news/covid-19-opens-new-opportunities-for-secondary-aluminium-manufacturers-pharma-real-estate-to-fuel-demand-jal-57893