: Digitalisation pushes steel availability, exports #IndiaNEWS #Business Hyderabad: Steel producers realised the greater need for digitalisation and automation in operational levels, leading to automation

Digitalisation pushes steel availability, exports #IndiaNEWS #Business
Hyderabad: Steel producers realised the greater need for digitalisation and automation in operational levels, leading to automation of plant operations, delivery, supply chain management and use of smarter tools such as artificial intelligence and forecasting. There is a tangible rise in steel availability on a year-on-year basis in April-July period of FY22, despite containment in several regions during the second wave.
India became a net exporter of finished steel during July 2021, recording a net trade surplus of 1. 10 million tonnes (MT). Cumulatively, the net export surplus of finished steel during April-July (2021-22) at 3. 50 MT was 11. 7 per cent higher than the corresponding period last year.
Vinaya Varma, MD, mjunction Services, told Telangana Today, “Accelerated pace of vaccination, resumption of economic activities with easing of containment zones and continuous rollout of government impetus measures through productivity linked incentive (PLI) schemes for manufacturing sectors, including steel, is expected to provide further momentum for growth in second half of FY22.
The PLI scheme is expected to bring in investment of approximately Rs 40,000 crore, capacity addition of 25 MT for specialty steel and generate 5,25,000 jobs, of which 68,000 will be direct employment.
Explaining the impact of Covid on digitalisation, he said, “All businesses have been challenged by the disruptions brought about by the pandemic. However, they have also shown agility to shift to digital channels. Businesses have moved from being “forced??? to adopt digital in reaction to the widespread shutdowns in the early stages of the pandemic, to a growing conviction that digital is the way to go. ???
Emergence of marketplace models, automation in invoicing and supplier payments, adoption of cloud-based software and services and hybrid working models are some of the most visible movements towards a “contactless??? economy.
The first wave of coronavirus pandemic impacted economic growth, business confidence, consumption patterns and the entire manufacturing sector. Steel demand contracted by six per cent in FY21. Physical distancing, containment measures and shortage of labour due to mass migration led to bottleneck in plant operations and transportation of material.
The overall supply chain was impacted. Consequently, steel availability and overall volumes fell with both crude and finished steel production down on a year-on-year basis by 5. 6 per cent and 7. 3 per cent respectively in FY21.
He added, “This led to evolution of several major trends and better preparedness for the second wave. There was a greater need for lesser human intervention in transactions and adoption of digital modes through transaction platforms such as robust e-auction platforms, block chain enabled paperless trade transactions etc.

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