Your SlideShare is downloading. ×
Steel industry in india
Steel industry in india
Steel industry in india
Steel industry in india
Steel industry in india
Steel industry in india
Steel industry in india
Steel industry in india
Steel industry in india
Steel industry in india
Steel industry in india
Steel industry in india
Steel industry in india
Steel industry in india
Steel industry in india
Steel industry in india
Steel industry in india
Steel industry in india
Steel industry in india
Steel industry in india
Steel industry in india
Steel industry in india
Steel industry in india
Steel industry in india
Steel industry in india
Steel industry in india
Steel industry in india
Steel industry in india
Steel industry in india
Steel industry in india
Steel industry in india
Steel industry in india
Steel industry in india
Steel industry in india
Steel industry in india
Steel industry in india
Steel industry in india
Steel industry in india
Steel industry in india
Steel industry in india
Steel industry in india
Steel industry in india
Steel industry in india
Steel industry in india
Steel industry in india
Steel industry in india
Steel industry in india
Steel industry in india
Steel industry in india
Steel industry in india
Steel industry in india
Steel industry in india
Steel industry in india
Steel industry in india
Steel industry in india
Steel industry in india
Steel industry in india
Steel industry in india
Steel industry in india
Steel industry in india
Steel industry in india
Steel industry in india
Steel industry in india
Steel industry in india
Steel industry in india
Steel industry in india
Steel industry in india
Steel industry in india
Steel industry in india
Steel industry in india
Steel industry in india
Steel industry in india
Steel industry in india
Steel industry in india
Steel industry in india
Steel industry in india
Steel industry in india
Steel industry in india
Steel industry in india
Upcoming SlideShare
Loading in...5
×

Thanks for flagging this SlideShare!

Oops! An error has occurred.

×
Saving this for later? Get the SlideShare app to save on your phone or tablet. Read anywhere, anytime – even offline.
Text the download link to your phone
Standard text messaging rates apply

Steel industry in india

2,760

Published on

Scenario of steel industries in india, Overview of different steel industries in india

Scenario of steel industries in india, Overview of different steel industries in india

Published in: Economy & Finance, Business
0 Comments
1 Like
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total Views
2,760
On Slideshare
0
From Embeds
0
Number of Embeds
1
Actions
Shares
0
Downloads
201
Comments
0
Likes
1
Embeds 0
No embeds

Report content
Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
No notes for slide

Transcript

  • 1. Steel Industry In India By: SATYANSHU KUMAR B Tech. MSE, IIT KANPUR
  • 2. INDEX 1. Steel Industry in India: Global Perspective 2. Steel Production Scenario in India: The Way Forward 3. India’s Steel Consumption Trend and the Growth Drivers 4. India’s Steel Import Export Scenario and Future Prospects 5. Raw Material Supplies for Steel Industry: Is India Self Sufficient? 6. Inadequate Infrastructure: A Major Concern for Steel Industry in India 7. Indian Steel Industry and Increasing Role of Technology 8. Prospective Analysis of Indian Steel Industry 9. BIBLIOGRAPHY
  • 3. 1. Steel Industry in India: Global Perspective - Indian steel industry vs. global steel industry - Contribution of India’s economy to global GDP - India & the leading steel producers in the world - India’s share in global steel consumption - Competitiveness of the Indian steel industry
  • 4. Global Steel Scenario Crude steel production worldwide
  • 5. Global Steel Scenario
  • 6. Global Steel Scenario Per Capita Steel Consumption (in Kgs)
  • 7. Global Steel Scenario
  • 8. KEY FIGURES Global crude steel production - 2011: 1527 MT Global crude steel production growth during 2007-11: at CAGR of 3.2 % India’s crude steel production -2011: 72.2 MT India’s GDP growth: 2010-11= 8.4% 2011-12= 6.5% 2012-13= 5.9% India’s GDP: 2011 Nominal - $ 1.85 trillion PPP - $ 4.5 trillion Approximate share of infrastructure(8% E) & manufacturing sector(16 % E) in India’s GDP (FY 12): one fourth
  • 9. Indian steel industry vs. global steel industry  Global crude steel production reached 1527 MT in 2011 showing a 6.8 % growth over 2010.  India has emerged as a leading player in global steel industry contributing to about 4.7 % of global crude steel production in 2011.  Large scale infrastructure expansion plans for twelfth five year plan (FYP:2012-17) and raising per capita steel consumption in India promises unprecedented growth potential of Indian steel Industry during next 10 years.
  • 10. CONTRIBUTION OF INDIA’S ECONOMY TO GLOBAL GDP  India ranked as the third largest contributor (5.65%) to global GDP in 2011 in terms of PPP ranking, only behind US and China.  India’s economic growth has slacked during past three years due to worldwide economic slowdown however during next five years it’s GDP is expected to grow in 6-8 % range.  The sectors with high growth potential like manufacturing and construction sectors which account for about one fourth(FY 12) of India’s GDP will be the key growth drivers for the Indian Steel Industry
  • 11. CONTRIBUTION OF INDIA’S ECONOMY TO GLOBAL GDP
  • 12. INDIA & THE LEADING STEEL PRODUCERS IN THE WORLD  India is the largest producer of sponge iron and fourth largest producer of crude steel in the world.  India registered a 5.7 % growth in crude steel production in 2011 against 2010.  Japan was the only nation among top ten crude steel producers in the world posting negative growth of minus 1.8 % for crude steel production in 2011 against 2010.  Indian steel industry which is not technologically as mature as steel industry of developed economies is implementing latest technology, adapting backward integration and improving efficiency in steel production to reduce cost, increase production and become competitive globally.
  • 13. INDIA & THE LEADING STEEL PRODUCERS IN THE WORLD Top ten crude steel producers in the world and their steel production in: 2010 and 2011 (MT)
  • 14. INDIA’S SHARE IN GLOBAL STEEL CONSUMPTION  India’s per capita steel consumption is only 57 kg against global average of 215 kg.  This shows a broad scope for increase in per capita steel consumption in India and potential unprecedented expansion of steel industry in India.  Global crude steel consumption for 2011 reached about 1373 MT
  • 15. COMPETITIVENESS OF THE INDIAN STEEL INDUSTRY  Abundance of raw materials, iron ore and cheap workforce makes Indian steel industry competitive.  However dependence on imported coking coal, low production efficiency, inadequate infrastructure & technology and delays in regulatory clearances & approvals are major hindrance to growth of Indian steel industry.
  • 16. KEY FIGURES Global crude steel consumption - 2011: 1373 MT Global crude steel consumption growth during 2007-11: at CAGR of 3.04 % India’s crude steel consumption -2011: 67.8 MT India’s global rank: Largest sponge iron producer. 4th Largest crude steel producer Per capita steel consumption- 2011: Global - 215Kg India’s – 57 kg
  • 17. 2. Steel Production Scenario in India: The Way Forward - Indian steel industry: evolution and growth - Steel production trend in India - Leading steel producers in India - Technology wise steel production - Category wise steel production
  • 18. INDIAN STEEL INDUSTRY: EVOLUTION AND GROWTH  Steel making in India can be traced back to 400 BC. The foundation of modern steel industry in India was led down in 1874 by establishment of steel making facility of Bengal Iron Works (BIW) in Kulti (West Bengal).  Beginning of large scale steel production started with establishment of Tata steel plant in 1907 in Jamshedpur, which started production in 1912.  Later large steel plants in India were established in Bokaro, Durgapur, Bhilai, Burnpur and Bhadrawati.  Except Tata Steel, steel production in India was confined to public sector companies under control of SAIL till 1990s.  Post liberalization(1991) large scale development in steel industry was witnessed due to participation of private players and huge influx of foreign investment in steel industry of India.
  • 19. STEEL PRODUCTION TREND IN INDIA  Post independence steel production in India showed a considerable growth in capacity.  Finished steel production increased from 1.1 MT in 1951 to 14.33 MT in 1991-92.  Post liberalization the growth trend continued however at a higher pace and finished steel production reached 73.7 MT(provisional) for 2011-12.  During the period FY 07 to FY 12 crude steel production has attained growth at CAGR of about 7.7 %.  While the average capacity utilization remained near 89 percent of the total production capacity.  During the twelfth five year plan crude steel production is estimated to grow at CAGR of about 11.3 % due to large scale capacity addition plans for steel production during this period.
  • 20. STEEL PRODUCTION TREND IN INDIA
  • 21. STEEL PRODUCTION TREND IN INDIA
  • 22. LEADING STEEL PRODUCERS IN INDIA  Steel making in India is concentrated along mineral rich belt of India, as vicinity to supply of raw materials like iron ore and coal provides considerable economic advantage.  Most of the large scale steel making facilities are concentrated in state of Jharkhand, Orissa, West Bengal, Chhattisgarh and Karnataka.  Steel production in India is leaded by SAIL, Tata Steel, JSW and others, while SAIL continues to be the largest steel producer in India.  Steel production in India which was primarily reserved for government companies till liberalization now sees dominance of private companies in terms of production share.  Share of private sector companies in crude steel production raised from 49 % in FY 01 to 75 % in FY 11.  While the share of private sector companies in finished steel production increased from 68 % in FY 01 to 80 % in FY 11.
  • 23. LEADING STEEL PRODUCERS IN INDIA
  • 24. LEADING STEEL PRODUCERS IN INDIA
  • 25. TECHNOLOGY WISE STEEL PRODUCTION  Steel production in India attained a high growth at CAGR of about 5.8 % during the 11th FYP 2007-11 mostly contributed due to growth in steel making through electric furnaces route.  While the old method of steel making through oxygen route still remains dominating and contributes to about 44 % of crude steel production in 2011.
  • 26. TECHNOLOGY WISE STEEL PRODUCTION
  • 27. CATEGORY WISE STEEL PRODUCTION  Most of the sponge iron produced in India, about 75 % (in FY 11) comes from coal based units.  Production of sponge iron touched 20.37 MT(P) in FY 12 while the capacity reached about 32 MT.  India which is a net exporter of Pig Iron produced 5.78 MT(P) of pig iron in FY 12.
  • 28. CATEGORY WISE STEEL PRODUCTION
  • 29. CATEGORY WISE STEEL PRODUCTION
  • 30. KEY FIGURES Modern steel production facility started in India in1874 Post liberalization (1991) steel making was made open for private co.'s and steel price was also deregulated Finished steel production in India: Year 1951: 1.1 MT 1991-92: 14.33 MT 2011-12:73.7 MT India’s crude steel production growth during 12th FYP 2012-17: estimated at 11.3 % (CAGR) Estimated crude steel volume India reaches by FY 17: Prod.: 125.9 MT Capacity: 139.9 MT
  • 31. KEY FIGURES SAIL is the largest steel producer in India with 13.76 MT crude steel production in FY 11 Top five steel producers contribute to almost half of crude steel production in India Steel production through induction furnace and electric arc furnace route contributes to more than 50 % of steel production Steel production share- FY 2011: Crude Steel Private Sector: 75% Gov. Sector: 25% Finished Steel Private Sector: 80% Gov. Sector: 20%
  • 32. KEY FIGURES Steel production growth during 11Th FYP 2007- 11: at CAGR of 5.8 % Sponge Iron figures for FY 12 (P): Prod.- 20.37 MT Capacity- 32 MT India is the largest sponge iron producer in the world and contributes about one third of the global sponge iron production Production of pig iron and sponge remained almost flat during last five years Product-wise growth in steel production during 11th FYP 2007-11, in CAGR terms: Flat Prod.- 4.9 % Long Prod.- 5.8 % Alloy Prod.- 16 %
  • 33. 3. India’s Steel Consumption Trend and the Growth Drivers - India’s steel consumption on high growth trajectory - Steel consumption trend in India - Category wise steel consumption - Prime growth drivers of steel demand in India
  • 34. INDIA’S STEEL CONSUMPTION ON HIGH GROWTH TRAJECTORY  Steel consumption in India has grown substantially since evolving of modern steel industry during nineteenth century.  During the past two decade steel consumption has grown at a faster pace driven by liberalization, decontrol of steel industry, growing population, infrastructure development and changing lifestyle of people.  Per capita steel consumption in India (57kg: 2011) which is considerably low compared to global average (215 kg: 2011 ) is estimated to grow substantially during the next five years in proportionate with the growing economy.
  • 35. INDIA’S STEEL CONSUMPTION ON HIGH GROWTH TRAJECTORY
  • 36. STEEL CONSUMPTION TREND IN INDIA  Steel consumption growth during 11 th FYP (2007-11) has outpaced steel  production growth.  Steel consumption growth during this period was at CAGR of 8.8 % compared to production growth at CAGR of 5.8 %.  We have estimated finished steel demand growth during 12th FYP (2012-17) in two scenarios.  For scenario- 1 we assumed finished steel demand to grow at CAGR of 9 % while in more optimistic case of scenario-2 we assume demand growth at CAGR of 11 %, with respect to FY11 as base year.
  • 37. STEEL CONSUMPTION TREND IN INDIA
  • 38. CATEGORY WISE STEEL CONSUMPTION  Steel consumption in India though maintained healthy growth during the 11th FYP (2007-11) but demand of steel in long product category remained sluggish.  Slow paced infrastructure and industrial projects development due to worldwide recession was the major cause for sluggish demand of long product.  While the demand of flat product posted high growth (12.1% CAGR) driven by robust domestic demand of consumer durables and utility items.
  • 39. CATEGORY WISE STEEL CONSUMPTION
  • 40. PRIME GROWTH DRIVERS OF STEEL DEMAND IN INDIA  Steel demand has been proportionate with the GDP growth of the country.  Housing & real estate, construction & infrastructure and manufacturing segment are the prime consumers and drivers of steel demand in India.
  • 41. PRIME GROWTH DRIVERS OF STEEL DEMAND IN INDIA Steel demand drivers and their potential effect on steel demand growth during next 5 year time frame
  • 42. KEY FIGURES Per capita steel consumption growth (CAGR in%) 2006-2011: World Avg.- 2.75 %For India- 6.71 % Steel consumption growth during 11th FYP (2007- 11): at CAGR of 8.8 % Finished steel demand for India by FY 17: Scenario-1: 105 MT (Estimated) Scenario-2: 107 MT (Estimated Increasing urbanization and infrastructure growth to propel per capita steel consumption in India
  • 43. KEY FIGURES Product-wise growth in steel consumption during 11th FYP 2007-11, in CAGR terms: Flat Prod.- 12.1 % Long Prod.- 5.9 % Alloy Prod.- 9 % India’s steel sector growth is primarily driven by domestic demand as export volume is low Factors contributing to steel demand growth in India -Economic growth - Construction - Infrastructure dev. - Population growth - Manufacturing
  • 44. 4. India’s Steel Import Export Scenario and Future Prospects - Steel import trend and future scenario - Steel export trend and future scenario
  • 45. STEEL IMPORT TREND AND FUTURE SCENARIO  India has been a net importer of steel, primarily of high grade steel and special steel products.  Deregulation and reduction in import duties on steel imports has favoured steel imports.  Steel imports has increased during the past decade due to surge in domestic demand and reduction in price differential between imported steel and domestic steel.  Import volumes have been fluctuating during the past five years and as per working group estimates steel imports during 12th FYP is estimated to be in 5-6 MT range.
  • 46. STEEL IMPORT TREND AND FUTURE SCENARIO
  • 47. STEEL EXPORT TREND AND FUTURE SCENARIO  Liberalization and free trade policy helped growth of steel exports from India.  Most of the steel exports from India consists of value added steel products with higher margins.  To remain competitive globally India needs to grow share of value added and sophisticated steel product in its export basket.  Steel exports from India declined during 2008-11 period due to subdued demand of steel globally.  Steel export is expected to regain momentum as the global economy revives.  Steel exports is estimated to grow gradually from about 4 MT during FY 13 to 7 MT by FY 17.
  • 48. STEEL EXPORT TREND AND FUTURE SCENARIO
  • 49. KEY FIGURES India is net importer of steel. India primarily imports as well as exports value added and special steel products Steel import in India touched 7.38 MT in FY 10 Working groupon Steel estimates steel imports in range of 5-6 MT during 12th FYP During 11th FYP steel import posted negative growth of about 9 % Working group on Steel estimates steel exports to reach 7 MT during 12thFYP
  • 50. 5. Raw Material Supplies for Steel Industry: Is India Self Sufficient? - Assessing raw material supply scenario for India - Raw material demand by steel industry - Initiatives that will improve & secure raw materials supply
  • 51. ASSESSING RAW MATERIAL SUPPLY SCENARIO FOR INDIA  Raw material accounts for about 30-50% of the total cost of steel production in India.  Raw materials for steel making includes iron ore, coke, lime, Ferro-alloys and refractories etc.  India has a huge iron ore reserve of about 28.52 billion tons.  About 60-70 % of the iron ore produced is consumed domestically and remaining (mostly fines) is exported.  India lags in coking coal reserves and have only 5.3 billion tons of coking coal reserves.  India meets more than 50 percent of coking coal demand through imports and imports will grow in parallel with increasing steel production capacity.
  • 52. RAW MATERIAL DEMAND BY STEEL INDUSTRY  About 2.5 to 3.5 ton of raw materials is required per ton of crude steel production in India.  With increasing crude steel production capacities demand for main raw materials like iron ore and coking coal by steel industry will increase at faster pace.
  • 53. RAW MATERIAL DEMAND BY STEEL INDUSTRY
  • 54. INITIATIVES THAT WILL IMPROVE & SECURE RAW MATERIALS SUPPLY  Indian steel industry requires reliable and economical raw material supplies to remain competitive on global platform.  Being deficient in coking coal and rich in iron ore fines India needs to adapt steel making technologies which are suitable for low grade Indian coal and iron ore fines.  India requires technology inputs and investments to increase sintering and pelletisation facility for making use of iron ore fines.  Indian companies needs to acquire coking coal assets overseas to assure uninterrupted and economic supply of coking coal for its steel Industry.
  • 55. INITIATIVES THAT WILL IMPROVE & SECURE RAW MATERIALS SUPPLY
  • 56. KEY FIGURES Iron ore production in FY 12 was 169.66 MT India has 28.52 billion tons of iron ore reserves Estimated iron ore consumption by iron and steel industry in FY 12 was 116.3 MT Coking coal production in India for FY 12 is estimated at about 22 MT Coking coal import in India for 2012 is estimated at about 36.8 MT
  • 57. 6. Inadequate Infrastructure: A Major Concern for Steel Industry in India - Infrastructure issues for steel industry in India - Infrastructure addition during twelfth five year plans (2012-17) - Actions to boost infrastructure support to steel industry
  • 58. INFRASTRUCTURE ISSUES FOR STEEL INDUSTRY IN INDIA  Steel industry is heavily dependent on raw material and bulk movement.  For every tonne of steel produced about four tonnes of raw materials requires to be transported.  Indian steel industry is facing difficulties and delays caused due to inadequate infrastructure for transportation and handling bulk materials.  Most of the steel plant does not have proper connectivity through rail network to mines and ports.  Bulk handling facility at majority of the ports, mines and steel plants are of low capacity causing delays in loading & unloading.  In most cases road networks connecting steel plants to mines and ports are congested leading to delays in supply and delivery of raw material and other items.
  • 59. INFRASTRUCTURE ISSUES FOR STEEL INDUSTRY IN INDIA
  • 60. INFRASTRUCTURE ADDITION IN INDIA DURING TWELFTH FIVE YEAR PLANS (2012-17)  With increasing capacities of steel production in India more than 400 MT of bulk handling capacity and transportation infrastructure will be required by steel industry by 2017.  Almost two fold rise in infrastructure demand by steel industry during next five years will require massive investment in road, rail and port infrastructure facility.  An estimates investment (by public and private sector) of $ 1 trillion has been envisaged for infrastructure sector(including road, rail, port and other transportation infrastructure) during 12th FYP.
  • 61. INFRASTRUCTURE ADDITION IN INDIA DURING TWELFTH FIVE YEAR PLANS (2012-17)
  • 62. ACTIONS TO BOOST INFRASTRUCTURE SUPPORT TO STEEL INDUSTRY - Rapid completion of “Dedicated Freight Corridor” by railways to address increasing freight traffic - Developing road, rail and port infrastructure dedicated for steel industry - Addition of large capacity siding and loading facility at ports, mines and steel plant - Developing self, part of project linked transportation infrastructure by large project developers - Introducing large capacity wagons for rail transport - Improving loading and transportation infrastructure by adapting latest technology and equipment - Widening congested road and railways
  • 63. KEY FIGURES Estimated investment in infrastructure sector during 12th FYP(2012-17): $ 1 trillion Estimated bulk transportation & handling capacity requirement of steel industry by 2017: more than 400 MT Investment in infrastructure sector of India is estimated to remain in 9-10 % range during 12th FYP (2012-17) Infrastructure requirement by steel industry is estimated to double in next five years.
  • 64. 7. Indian Steel Industry and Increasing Role of Technology - Technological exposure of Indian steel industry - Indian steel industry needs to adapt latest technologies
  • 65. TECHNOLOGICAL EXPOSURE OF INDIAN STEEL INDUSTRY  Indian steel industry is highly fragmented with large number of small to large scale producers.  Use of steel making technologies varies among different steel making units.  With overall low level of advanced technological exposure, Indian steel industry faces issues of quality, efficiency, hazards and process standards.  The overall use of latest and modern technologies is inadequate in the entire steel industry value chain comprising of raw material mining and processing, transportation and steel making.  This leaves a broad scope for process improvement through introduction of latest and efficient technology
  • 66. TECHNOLOGICAL EXPOSURE OF INDIAN STEEL INDUSTRY RAW MATERIAL SUPPLY • Low mechanization level & latest technology input: for mining and processing raw materials • Inadequate facility: for use of iron ore fines using pelletisation & sintering technology • Lack of coal processing & washing technology : to make higher use of low grade Indian coal • Inadequate facility: for raw material loading and transportation • Lack of facility: for use of raw material rejects STEEL MAKING PROCESS • Most of steel making facilities use: old and less efficient steel making technology • Expenditure on research and development: is considerably low • Present steel making facility: not suitable for Indian iron ore fines and high ash coal • Relatively lower number of steel plants: with facility to make complex steel products • On average Indian steel industry lags: in process efficiency and hazard control STEEL INDUSTRY PROCESS CHAIN
  • 67. INDIAN STEEL INDUSTRY NEEDS TO ADAPT LATEST TECHNOLOGIES  With open trade policy for steel, Indian steel industry faces global competition, hence to remain competitive and profitable it has to adapt latest and efficient technologies.  Using latest technologies can boost steel companies business with advantages of scale, quality, productivity, safety and higher margins.  As overall exposure of Indian steel industry to latest technology remains low, so there is a huge potential for increase in production and process optimization.  Also with development and use of technologies suitable for steel making using iron ore fines and low grade Indian coal, Indian steel Industry can have advantage of raw material security and sustainability.
  • 68. INDIAN STEEL INDUSTRY NEEDS TO ADAPT LATEST TECHNOLOGIES
  • 69. KEY FIGURES Expenditure on research & development by Indian steel Industry is estimated to be very low at an average 0.2% of the turnover Introducing latest technologies will improve Indian steel industry’s: - Efficiency - Product quality - Carbon footprint - Production cost - Competitiveness - Use of domestic raw material - Growth
  • 70. 8. Prospective Analysis of Indian Steel Industry - Potential Growth Drivers of Indian Steel Industry - Strength, Weakness, Opportunity & Threat: SWOT Analysis
  • 71. POTENTIAL GROWTH DRIVERS OF INDIAN STEEL INDUSTRY  Indian steel industry is aiming for high growth during the next 5-7 years, supported by economic growth and positive change in consumption behavior of the large and growing population.  The prime factors which will support growth of Indian steel Industry are demand driving factors, government policies and capacity addition plan for steel.
  • 72. POTENTIAL GROWTH DRIVERS OF INDIAN STEEL INDUSTRY SteelDemandDrivers - Growing economy - Large population - Low per capita steel consumption - Manufacturing & construction activity - Untapped rural market - Industrial activity growth GovernmentPolicies - Funding developments - Stressing on R&D - Offering incentives - Policies favoring domestic industry & regulating dumping - Judicious Import- export taxes/duties - Faster approvals CapacityAdditioninSteel Making - SAIL, Tata Steel, JSW, ISPAT, RINL, ISPAT etc. along with global multinational like POSCO, Arcelor Mittal, Nippon Steel Kobe Steel, Severstal and others have large scale expansion plans for steel making in India - Planned projects by Indian and global companies is likely to increase India’s steel producing capacity to 150 MT by 2017
  • 73. STRENGTH, WEAKNESS, OPPORTUNITY & THREATS: (SWOT) ANALYSIS  Indian steel Industry is evolving itself to become global leader in terms of product quality and overall efficiency.  It’s growth objective can be attained efficiently by addressing the present issues and challenges and building the growth strategies in cohesion with its strength.
  • 74. SWOT Analysis STRENGTH Low manpower cost Abundance of raw materials Policies for long term linkages for raw material supply Option of getting project linked captive iron ore, coal mines Large economy and population driving steel demand
  • 75. SWOT Analysis WEAKNESS Overall production efficiency is low Inadequate infrastructure support Lacking in coking coal reserve and most of iron ore reserves consists of iron ore fines Latest technological input and research and development activity is low
  • 76. SWOT Analysis OPPORTUNITY Growing & untapped rural market Infrastructure & manufacturing activity growth to drive steel demand Per capita steel demand to grow, which at present is one fourth of the global average Low present export volume: so potential for growth in exports is considerable Option for investment and stake acquisition
  • 77. SWOT Analysis THREAT Delays in approvals and regulatory clearances Land acquisition and rehabilitation issues Competition from large number of small steel producers Threat from cheap import and dumping Issues of capital for projects and high interest on loans
  • 78. KEY FIGURES Planned projects for steel making is likely to increase steel production capacity of India to 150 MT by 2017 Promising factors of Indian steel industry: - Potential for high growth - Cheap labour - Untapped market - Abundant raw material supply - Growing Economy
  • 79. 9. BIBLIOGRAPHY World Steel Association, International Monetary Fund, Economic Times, Ministry of Steel - India, Public Information Bureau - India, mjunction Joint Plant Committee- India, Planning Commission - committee on Infrastructure, Annual report 2010-11- MoS, World Steel in Figures 2012-WSA, Press Information Bureau- GoI, moneycontrol.com, The Telegraph, The Economic Times, miningweekly.com, Wikipedia and CorpotradeGlobal Research & Database.

×