Role of Business Research in Mining & Metal industry


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  • "Most productivity increases in the past century have been achieved through the ability to process lower grade ores through more efficientmineral processing and the use of ever larger scale equipment.“Mine production has undergone important changes during the 20th century with a shift from underground to open pit mining techniques. Early in the century, underground mining dominated in developed countries, and as mining evolved in emerging economies, open-pit mining became more common ( see Below Figure ).
  • Manufacturing the future: The next era of global growth and innovation, a major report from the McKinsey Global Institute, presents a clear view of how manufacturing contributes to the global economy today and how it will probably evolve over the coming decade. Our findings include the following points:Manufacturing’s role is changing. The way it contributes to the economy shifts as nations mature: in today’s advanced economies, manufacturing promotes innovation, productivity, and trade more than growth and employment. In these countries, manufacturing also has begun to consume more services and to rely more heavily on them to operate. Manufacturing is not monolithic. It is a diverse sector with five distinct groups of industries, each with specific drivers of success.Manufacturing is entering a dynamic new phase. As a new global consuming class emerges in developing nations, and innovations spark additional demand, global manufacturers will have substantial new opportunities—but in a much more uncertain environment.But the manufacturing sector’s relative size in an economy varies with its stage of development. We find that when economies industrialize, manufacturing employment and output both rise rapidly, but once manufacturing’s share of GDP peaks—at 20 to 35 percent of GDP—it falls in an inverted U pattern, along with its share of employment. The reason is that as wages rise, consumers have more money to spend on services, and that sector’s growth accelerates, making it more important than manufacturing as a source of growth and employment.The sector is also evolving in ways that make the traditional view—that manufacturing and services are completely separate and fundamentally different sectors—outdated. Service inputs (everything from logistics to advertising) make up an increasing amount of manufacturing activity. In the United States, every dollar of manufacturing output requires 19 cents of services. And in some manufacturing industries, more than half of all employees work in service roles, such as R&D engineers and office-support staff.As advanced economies recover from the Great Recession, hiring in manufacturing may accelerate, and some nations may even raise net exports. Manufacturers will continue to hire workers, both in production and nonproduction roles (such as design and after-sales service). But in the long run, manufacturing’s share of employment will remain under pressure as a result of ongoing productivity improvements, faster growth in services, and the force of global competition, which pushes advanced economies to specialize in activities requiring more skill
  • India’s manufacturing segment is a crucial cog in the wheel of economic progress; the sector’s contribution to the gross domestic product (GDP) being 16 per cent. With the passage of time post 1990-economic liberalisation era, India has well realised the importance of manufacturing for the overall industrial development. In this wake, the Government has also been very pro-active, especially during the last decade.The recent initiative counts back to the Manufacturing Policy that was announced in 2010. It was followed by the introduction of a systematic Manufacturing Plan for the country, designed with extensive involvement of industry. Now India Inc and the Government are focussing their energies on implementation of this Plan.
  • Role of Business Research in Mining & Metal industry

    1. 1. Role of Business Research in Mining & Metal Manufacturing Industry By- Vipul Saxena
    2. 2. Business Research Quotes “Research is to see what everybody else has seen, and to think what nobody else has thought” “Research is that it tells you what people were thinking about yesterday, not tomorrow. It's like driving a car using a rear-view mirror.” “To steal ideas from one person is plagiarism, to steal ideas from many is Research.” “Business Research is all about finding out answer to questions that deal with their local or national or international market for product & services.”
    3. 3. Business Research Quotes Business research can give you new up to date powerful information that could help you break into a market or take a market to a higher level. Business Research is a process of planning ,acquiring, analyzing and disseminating relevant data, information and insight to decision makers in a way that mobilize to organization to take a appropriate action that in turn , maximize business performance . Business Research is creating new knowledge. Business Research’s Goal is to inspire senior management to move to the front end of the curve.
    4. 4. Objectives of Business Research To make sound business decisions, we need accurate, up-to-date insights about our Business , customers, markets and competitors. Business centric; • Short term and long term infrastructure Projects • Approximate Volume Growth • Approximate increase in installed capacities • Approximate Profitability • Possibility of Transition to Global Market Customers Centric; • Volumes • Production capacity & Lead Time • Quality • Transit Time • Currency fluctuation Market & competitors Centric; • Market size & share • Profitability ratios • Growth Prospective • Economic conditions – Policies etc • Technological breakthroughs • Sustainability—Feasibility Changes in any of above could enhance or reduce Business opportunities.
    5. 5. Mining Industry
    6. 6. Global Mining Production–Metal wise Share • • • • Total production value : Only 20 Countries in the world accounted is for 417,867 US$ million (88% of total world production value) Australia being the 1st with production value of 71,955 US$ million (15.6% of world total production value) India is ranked 7th with production value of 26,042 US$ million (5.6% of world total production value) The scale of production every year : Metal Mining • . • Iron ore , Gold & copper is accounted for 68% of total metal mining Production Iron ore Gold Copper Silver, Potash, Nickel, Phosphate, Zinc, PGM others Total World production in millions Tones (Appx.) 2000 821 667 872 769 5128 The total production value of the world mining industry has Increased from US$ 112,211 Million in 2000 to US$ 474,848 Million by 2010
    7. 7. Technology of Extraction based share in Mining
    8. 8. Updates in Mining Industry • The trends of Mine production moving upward to the emerging economies will continue. • The two major land Africa and the Arctic including Siberia, Alaska, northern Canada, Greenland and the Nordic countries. • In addition to this, there are opportunities for mineral extraction at the bottom of the deep seas. • The first mining permits have recently been given in Papua New Guinea for mining at a water depth of 1,500 meters. • Looking ahead, it is possible to get an idea of where mine production in the next decade will be located by analyzing investment flows.
    9. 9. Role of Emerging Techonlogies in future Mining
    10. 10. Mining & Metal Manufacturing industry in INDIA Minral Prodcution trend in India State wise Mineral production Market capitalization Mines inFuel India ( % ) The Mining & Mineral industry constitutes an important segment of the Indian economy. The GDP 5% contribution of the Mining & Manufacturing industry varies from 2 % to 5%. Metallic West Bengal , 3.89 other State, 5.79 Andhra Pradesh Size of the industry Maharashtra , 4.47 11% , 18.76 Minor Minerals India is the seventh largest country which extensively spreads over an area of 3.29 million square Karnataka, 5.15 kilometers. 27% Chhattisgarh, 5.31 Mining Products in India Rajasthan , 12.03 India produces as many as 89 minerals, which includes 4 fuel, 10 metallic, 48 nonmetallic, 3 atomic and Odisha, minerals(including building and other materials) 24 minor 5.63 State contribution Andhra Pradesh being the leading state in term of Mining Production with contribution of 18.76% of total productionAtomic by Rajasthan (12.03%) and Gujarat (11.26%). followed Jharkhand, 9.01 Gujarat , 11.26 3% Pollution Non Metallic Indian Mining Industry is classified under the category of "Red" for pollution which represents highly 54% polluting industries Tamil Nadu , 9.04 Madhya Pradesh Employment opportunities , 9.65 Indian Mining Industry provides job opportunities to around 0.7 million individuals.
    11. 11. Mining & Metal industry in INDIA contd.. India's contribution in the mineral production in world • • • • • • Indian Mining Industry ranks 2nd in barites, and talc/steatite/pyrophillite; India ranks 3rd in coal & lignite ,chromite and Zinc; India ranks 4th in iron ore and kyanite/sillimanite & steel (crude); India ranks 5th in Manganese ore India ranks 6th in Bauxite and aluminum India ranks 10th in Copper
    12. 12. India Degree of self sufficiency in Principal Minerals (Demand & Supply)
    13. 13. India GDP- % Growth Rate (YoY) GDP in % Gross Domestic Product - % Growth Rate (YoY) 10.00 9.00 8.00 7.00 6.00 5.00 4.00 3.00 2.00 1.00 0.00 200708 200809 200910 201011 201112 201213 Gross Domestic Product - % Growth 9.32 Rate (YoY) 6.72 8.59 9.32 6.21 4.96
    14. 14. Mining industry contribution in Indian GDP Mining sector Contribution in Indian GDP 7 6 5.89 5 4.92 4 3.69 3 2.14 2 1 0.43 0 2007-08 -1 2008-09 2009-10 2010-11 2011-12 -0.63 2012-13
    15. 15. New Mining & Metal Reserve /Resource developments – India
    16. 16. Metal Manufacturing Industry
    17. 17. Share of Manufacturing Sector in Global GDP
    18. 18. Global Trends of Contribution of Manufacturing Sector in GDP of Large Developing Economies • Manufacturing’s role is changing : in today’s advanced economies, manufacturing promotes innovation, productivity, and trade more than growth and employment. • Manufacturing is not monolithic :It is a diverse sector with five distinct groups of industries, each with specific drivers of success. • Contribution in GDP : Manufacturing Share in China GDP is accounts for approximately 33% , Indian being at 10th rank with contribution of 13% from Manufacturing sector.
    19. 19. Scenario 1--Segment wise Market Share in Manufacturing Sector
    20. 20. Scenario 2(1)—Geographical concentration of Auto, Chemical, Pharma etc Segment in Manufacturing Sector
    21. 21. Scenario 2(2)—Geographical concentration of Regional processing (Food, Plastic etc) Segment in Manufacturing Sector
    22. 22. Scenario 2(3)—Geographical concentration of Energy, Rubber, Petroleum etc Segment in Manufacturing Sector
    23. 23. Scenario 2(4)—Geographical concentration of Computers, R & D, Semi-conductors etc Segment in Manufacturing Sector
    24. 24. Scenario 2(5)—Geographical concentration of Textile, Garment, Furniture etc Segment in Manufacturing Sector
    25. 25. Broad Outlook of Manufacturing Sector in India Manufacturing enterprises are operating in the country in a large variety of sectors — they are competing with one another and with enterprises abroad. • The first category is the sector of strategic alliance like industries in defense equipment, capital goods and ship building etc. • The second category is for basic inputs like steel, cement, fertilizers, exploration and development of minerals, and these depend on availability of high quality raw material. • The third category sector for depth and value addition are knowledge and technology-based industries with high growth potential. This comprises automobiles, drug, pharmaceutical, petrochemical, electronics, chemical, paper and medical equipment. • The fourth category sector is for employment generation like textile, food processing, leather, gems and jewellery.
    26. 26. Mining industry contribution in Indian GDP Mining sector Contribution in Indian GDP 7 6 5.89 5 4.92 4 3.69 3 2.14 2 1 0.43 0 2007-08 -1 2008-09 2009-10 2010-11 2011-12 -0.63 2012-13
    27. 27. Manufacturing sector contribution in Indian GDP (%) Manufacturing sector contribution in Indian GDP (%) 12 10 11.3 10.28 9.73 8 6 4.33 4 2.69 2 1.89 0 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13
    28. 28. Sector wise contribution in India GDP % Growth Rate (YoY) 100% % contribution 80% 10.27 10.50 9.75 9.98 60% 8.20 10.28 40% 20% 11.30 3.69 4.33 5.80 2.14 0.09 0% -20% 6.59 9.73 2007-08 2008-09 4.92 5.89 0.81 2009-10 2.69 1.89 7.94 3.65 -0.63 2010-11 2011-12 0.43 1.79 2012-13 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 Services 10.27 9.98 10.50 9.75 8.20 6.59 Manufacturing 10.28 4.33 11.30 9.73 2.69 1.89 Mining and Quarrying 3.69 2.14 5.89 4.92 -0.63 0.43 Agri-culture & Allied Services 5.80 0.09 0.81 7.94 3.65 1.79
    29. 29. Contribution of Mining & Manufacturing industry in Indian GDP Mining & Manufacturing Industry Contribution in Indian GDP 12 10 8 6 4 2 0 -2 200708 Manufacturing sector contribution in Indian 10.28 GDP (%) Mining sector contribution in Indian 3.69 GDP (%) 200809 200910 201011 201112 201213 4.33 11.3 9.73 2.69 1.89 2.14 5.89 4.92 -0.63 0.43
    30. 30. he top 10 business risTopks for Mining and Metals Top 10 Business Challenges for Mining and Metals Industry 1. Resource nationalism 2. Skills shortage 3. Infrastructure access 4. Cost inflation 5. Capital project execution 6. Maintaining a social license to operate 7. Price and currency volatility 8. Capital management and access 9. Sharing the benefits 10. Fraud and corruption
    31. 31. Human Resources challenges for Mining & Manufacturing Industry Demographic barrier Technology Skilled employees Human Resources Challenge Cost Geographic challenges Retention