“Metal Sector has enormous potential in the Indian market” Francesco Esposito, CEO, Danieli India

<p>With two factories, one in Chennai in the south, and the other in Kolkata, in the east, in addition to the commercial offices in Pune, Mumbai and Delhi and more than 1,000 employees, Danieli India is a leading supplier of equipment and plants to the steel and aluminium industry. On a realistic note, Esposito also looks at the hurdles that emerge in the implementation of development projects.&nbsp; The current growth of Danieli is between 10 to 15% of the annual revenue, which is forecasted to be around 120 million euros by June 30, before the closure of the 2016-2017 budget. Francesco Esposito, CEO of Danieli India in his talk says he is both optimistic and careful about his India plans.</p> <p><strong>Question: Danieli is growing in Aluminium Sector with the takeover of FATA, one of the established players in the machinery for Aluminium. What are your further plans?</strong></p> <p><strong>Mr Esposito: </strong>&nbsp;Yes, the takeover of Fata is a strategic move from our end and this will be our future development in the sector of aluminium, together with Danieli Breda for extrusion presses. Metal Sector has enormous potential in the Indian market. Danieli India is so far the largest foreign investment in the equipment sector for steel manufacturing companies.</p> <p>Because of the faster growth of the middle class, consumption of new models of cars and household appliances have immensely grown in recent times, driving the market for products which require materials like specialty steel and aluminium. Danieli is a specialist in this field and can make great value addition to the steel and aluminium sector and the company expects to grow further based on these potentials.</p> <p><strong>Question: What is your outlook for Danieli India in 2017?</strong></p> <p><strong>Mr Esposito</strong>: The large infrastructure projects which are the main consumer of steel are currently not making profits and are not investing much in expansion. That is the reason why even domestic groups, from Arcelor Mittal to Jindal, are not yet committed to maximize their production capacity for the domestic market.</p> <p>Moreover, the growth in steel industry is the growth indicator for all economies over the world.</p> <p>And the growth of the economy, which is expected to be at 7%, is changing the benchmarks, and we expect a strong reflection on steel demand from the second half of 2017. This will drive the business for suppliers like us.</p> <p><strong>Question: Please tell us in brief about the new Danieli plant in Chennai</strong></p> <p><strong>Mr Esposito</strong>:Danieli have been supplying equipment to Indian plants for the past 10 years including to Tata Group, SAIL and Jindal Group. By manufacturing in India, products will be cheaper and therefore, more competitive for customers.</p> <p>The Danieli plant, which is being developed in order to cater exclusively to the automotive sector component makers, is at the industrial area of ??Sri City, about seventy kilometers from Chennai. The foundation of the plant was laid four years ago and 65 million euros have already been invested in the plant which has come into effect this year. &nbsp;</p> <p>This facility will also serve to increase the Group's product exports to neighbouring markets.&nbsp; The plant will contribute towards the growth of its Eastern markets like Bangladesh, Myanmar, Pakistan and the markets of East Africa and those in the Gulf countries which are growing at a faster rate.</p> <p><em>Disclaimer: &ldquo;The information presented herein is neither intended nor implied to be a substitute for professional advice. The views and opinions shared in the interview section of www.alcircle.com are unique to the interviewees and do not necessarily reflect the viewpoint of www.alcircle.com."</em></p>