Debadrita Ray Chaudhuri
• India ranks 5th in the world ranking for production of steel
and fourth largest producer of crude steel in 2011-12 with
89 million tonnes (MT).
• India produced 66.8 million tonnes in 2010-11in comparison
to China’s 626.7 million tonnes.
• About 50% of the steel produced in India is exported.
• India accounts for over 7% of the total steel produced
• India accounts for around 5 per cent of the global steel
• The total employment in the industry is more than 2 million
(including direct and indirect employment).
Players in the Industry:
• Tata Steel: wire rods, bars, and steel flats.
• Jindal Steel & Power: mild steel slabs
and sponge iron.
JSW Steel: gamut of steel products .
Essar Steel: sponge iron, steel and
iron ore pellets.
Rashtriya Ispat Nigam Ltd: liquid steel.
Bhushan Power & Steel Ltd: iron Ore
Lloyds Steel: corrugated sheets and
Steel Authority of India Limited: steel
Reasons for Growth of the Indian
• Abundant resources of iron ore.
• Low cost and efficient labour force.
• Strong managerial capability.
• Strongly globalised industry and emerging global
• Modern new plants & modernised old plants.
Development enhancing facilities:
• Huge Infrastructure demand.
• Rapid urbanisation.
• Increasing demand for consumer durables.
• Untapped rural demand.
• Increasing interest of foreign steel producers in India.
PEST Analysis of Indian Steel
•Recommendations on Captive Mines.
•National Steel Policy to Remove Bottlenecks.
•GDP Growth Rate.
•Reduction in Customs Duty.
•Higher Disposable Income.
•Popularity of Steel Portals.
•Application of SML (Steel Markup Language).
Michael Porter’s Five Forces
•Increasing Demand for Steel.
•Fragmented Coke Suppliers.
•High Raw Material Prices.
•Lack of Transportation.
Intensity of Competition:
•Competition from Foreign Players.
•Spurt in Merger and Acquisition
Threat of New Entrants:
•High Cost of Basic Inputs and Services.
•Industry is Capital Intensive.
Threat of Substitutes:
•Use of Aluminium, Plastic, Carbon Fibre.
Challenges faced by the Indian Steel
• High cost of energy.
• Higher duties and taxes.
• Quality of coking coal.
• Dependence on imports for steel manufacturing
equipments & technology.
Global Impact on the Indian Steel Industry:
• Slow growth in infrastructure development.
• Market fluctuations and China’s export possibilities.
• Global economic slowdown.
• Emphasis on infrastructural development during the
formulation of the Union Budget 2011.
• Noteworthy reductions in import duties on key steelmaking raw materials.
• To ensure growth of Iron and Steel Sector in India,
Ministry of Steel takes up their issues with the other
concerned Ministries/ Departments such as:
Ministry of Coal for allocation of Coal Blocks and Coal
Linkages to Iron and Steel Industry.
Ministry of Petroleum & Natural Gas for supply of
Natural Gas to Iron and Steel Industry
Future Prospects for
•Strong Managerial skills in Iron and Steel making.
•Large pool of skilled Man-power.
•Established steel players with strong skills in steel making.
•Abundant Iron Ore reserves.
•High economic growth driven increasingly by industry.
•Increased Fixed Asset Building.
•Automobiles and component industry growth.
•Pro-active stance of the government.
•Encouragement for overseas investments.