Soma Mondal, who will take over the reins of state-run Steel Authority of India (SAIL) as its first girl chairperson on Friday, can have a number of duties at hand. Paring the corporate’s debt from the present stage of round Rs 50,000 crore, bettering working margin & worker productiveness and setting the journey proper for focused doubling capability to 50 million tonne every year (mtpa) in 10 years are prone to be amongst her priorities.
The saving grace for the brand new chairperson, presently the corporate’s director-commercial, nonetheless, is the sharp rise in metal costs and its risk of holding on the elevated stage on the again of upper demand and iron ore provide scarcity. SAIL, nonetheless, positive factors from each ends because it meets all its iron ore necessities from captive sources.
Coupled with buoyant metal market that’s holding costs at 12-year excessive, SAIL’s shares are hovering now at close to 52-week excessive within the BSE. Nevertheless, any vagaries in coking coal costs, benign until now, which SAIL largely banks on imports may spoil the get together.
One other fear looming giant is the long-pending wage revision of the corporate. Non-executives of the corporate, who’re a majority, are ready for a wage revision for 5 years now; whereas executives are additionally ready for a revision since 2017.
A bit of SAIL’s staff’ union has already conveyed their displeasure over the problem to Mondal, however assured full help to the brand new chairperson in her endeavour to take the corporate to a better top.
Incumbent Anil Kumar Chaudhary, who retires on December 31 upon attaining the age of superannuation after taking cost a bit of over two years in the past, has performed commendable job turning the destiny of the corporate round with some courageous initiatives together with providing staff sabbatical go away, with two successive years of revenue whilst SAIL was incurring losses within the earlier three years beginning with 2016.
A veteran within the steel sector, Mondal joined SAIL in 2017 from one other state-run agency Nalco as its director business. Graduated in electrical engineering from Nationwide Institute of Know-how-Rourkela in 1984, she began her profession in Nalco.
“With the home metal capability is prone to double over the subsequent decade, as per the 300 MT capability goal set by the federal government, SAIL too has set a proportionate goal for itself. The problem, nonetheless, could be to strike a stability between funding the massive growth and sustaining a conservative capital construction,” stated Jayanta Roy, senior vice-president, ICRA.