This document provides an overview and analysis of the Indian steel industry. It begins with an introduction to steel classification and production. It then discusses the history, current status, key players and market share of the Indian steel industry. The document performs a PESTEL analysis and Porter's Five Forces analysis. It identifies key issues in the industry and discusses opportunities and threats. The conclusion states that while the industry is growing, it must meet consumption targets, adopt long and short-term strategies, and improve infrastructure to achieve further growth.

1. Comprehensive Project -
I
“Indian Steel Industry”
Presented by:
Deepak Gautam
(17M05)
Ankit Maurya (17M04)
Vishali Tickoo (17M42)
Riya Regu (17F30)
3rd Semester
Date:
08/12/2018
Guided by:
Dr. Hitesh Parmar
G.H. Patel Post Graduate Institute of Business Management

2. Flow of Presentation
• Introduction
• Financial Analysis
• Marketing Strategies Analysis
• Key Issues in Industry
• PESTEL Analysis
• Michael Porter’s 5 Force Model
• OT Analysis
• Conclusion
• Bibliography

3. • Steel can also be classified based on shapes and
applications:
1. Flat Products include plates, sheets, coils,
and strips. These materials are mainly used
in automotive parts, appliances, packaging,
shipbuilding, and construction.
2. Non-Flats include bars, and rods, rails, wires,
angles, pipes, and shapes and sections.
These products are commonly used in the
automotive and construction sectors.
• The elements influence the properties of steel
and its acceptability is predicated on the final
application.
• Steel can be classified based on its composition
into five broad group’s viz. Carbon Steels, Alloy
Steels, Stainless Steel, Tool Steels and

4. • Steel is the common name for large families of iron
alloys which are easily malleable after the molten
stage.
• Steels are commonly made from iron ore, coal, and
limestone.
• When these raw materials are put into the blast
furnace, the result is a "pig iron" which has a
composition of iron, carbon, manganese, sulphur,
phosphorus and silicon.

5. Years HISTORY
350-380 AD Among the widely-known relics is the Iron Pillar near Qutab Minar in Delhi. The pillar did not rust
so far an engineering marvel that baffles the scientists even today.
1200 AD Another engineering feat is the famous Sun Temple at Konark in Orissa, where steel structural
were used for the first time in the world.
1830 A foreigner, Joshua Marshall Heath, had set up a small plant at Porto Novo on Madras Coast.
1874-89 The first notable attempt to revive steel industry in India was made when the Bengal Iron Works
came into being at Kulti, near Asansol in West Bengal. In 1889, Bengal Iron and Steel Company
became a success story.
1908-18 The TISCO plant at Sakchi (renamed Jamshedpur) in Bihar, started pig iron production and rolled
out its first steel. In 1918, Indian Iron and Steel Company (IISCO) was formed.
1937 The Steel Corporation of Bengal (SCOB) formed in 1937, started making steel in its Asansol plant.
1956 The Government's Industrial Policy had undergone changes once in 1956 and then in 1991.
1992 With effect from May 24, 1992 iron and steel industry was included in the list of 'high priority'
industry for automatic approval for foreign equity up to 51% (now 74%).

6. • The Iron and Steel Industry in India is one of the fastest growing
sectors
• India is the third-largest crude steel producer in the world.
• In FY18, India produced 104.98 million tonnes (MT) of finished steel.
• Crude Steel production during 2017-18 stood at 103.13 MT. Crude
steel production reached 44.09 MT during Apr-Aug 2018(P).
• Exports and imports of finished steel stood at 1.35 MT and 1.89 MT,
during Apr-Jun 2018.
• Steel consumption is expected to grow 7.5 per cent year-on-year to
95.4 MT in 2018.

7. • India’s steel production is expected to increase from
103.13 MT in FY18 to 128.6 MT by 2021.
• The Government of India has allowed 100 per cent
foreign direct investment (FDI) in the steel sector
under the automatic route.
• India’s per capita consumption of steel grew at a
CAGR of 3.96 per cent from 46 kg’s in FY08 to 65.25
kgs in FY17. The figure stood at 68 kg’s during April-
February 2017-18.
• National Steel Policy 2017 seeks to increase per
capita steel consumption to the level of 160 kg’s.

8. Arcelor Mittal
16%
SAIL
15%
Tata Steel
13%
Jindal S&P Ltd.
7%
POSCO
6%
RINL
4%
JSW
3%
Essar
3%
Bhushan Steel
3%
Others
30%
Market Share (%)
Arcelor Mittal SAIL Tata Steel Jindal S&P Ltd. POSCO RINL JSW Essar Bhushan Steel Others

12. • In steel industry segmentation done by
keeping in mind use of steel by various
industry.
Segment-wise consumption of steel (2017-
18)
Market Analysis

13. LONGPRODUCTS
• Construction.
• Mechanical
engineering.
• Energy.
• Automotives.
FLATPRODUCTS
• Pipe.
• Tubes.
• Packaging
and
Appliances.
• Automotive.
• Construction.

15. Key Issues in Indian Steel Industry
• Capital
• Lack of technology
• Low productivity
• Inefficiency of public sector units
• Low potential utilization
• Heavy demand
• Shortage of metallurgical coal
• Inferior quality of products

16. POLITICAL
• Role of Government as Supplier.
• Role of Government as Customers.
• National Steel Policy.
• The role of the government as the supra environment
for business, creating the rules for competition.

17. ECONOMICAL FACTOR
• Downward trend in global prices of iron ore, cooking
coal and scrap.
• The short-range outlook of WSA forecasts 1.8% growth
in global steel consumption in 2018 led by India
(5.5%).
• The World Economic Outlook, has predicted global GDP
growth of 3.9% and this would be fuelled by GDP
growth of 7.4% in India.

18. SOCIAL FACTOR
• Quality.
• Safety
Establishing safe and healthy work environment.
Ensuring compliance with mandatory safety and health requirements.
Proper maintenance and orderly housekeeping, to control the risk of
damage to plant and equipment.
Insisting on safe procedures being followed by employees, contractors
and visitors.
• Human Resource.
• Alcohol & Drugs.

19. TECHNOLOGICAL FACTOR
• Midrex and Corex processes of iron making, which
use non-coking coal, the requirement for coking coal
will drop drastically, as non-coking coal is abundant in
India.
• Continuous Strip Processing (CSP) will reduce the
cost of production.
• The convergence of IT with steel may change the
marketing of steel fundamentally.
• Reducing the CO2 emissions of its production will
require a shift away from current production methods
towards completely new ways of making steel.

20. ENVIRONMENTAL POLICY
• Set sound environmental objectives and targets, and
integrate a process of review, as essential elements of
corporate management.
• Install, maintain and operate facilities to comply with
applicable Environmental Laws, statutes and other
regulations.
• Conserve natural resources and energy by constantly
seeking to reduce consumption and wastage.
• Minimize process waste, and promote the recovery
and recycling of materials.
• Phase out pollution-prone processes and install state-
of-the-art technology for pollution prevention, and
continual improvement, in environmental
performance.
• Develop and rehabilitate waste dumps through a
forestation and landscaping.

21. LEGAL FACTOR
• Government monitors the steel market conditions and
adopts fiscal and other policy measures based on its
assessment.
• GST reforms.
• Export duty on iron ore & No Export Duty on steel
products.
• Govt. Has increased import duty and also banned the
production of steel without BIS mark.
• In February 2016 the Indian govt. Had imposed the
minimum import price condition on 173 steel products.

24. • Unexplored rural market.
• Growing domestic demand.
• Exports.
• Consolidation.
Opportunities
• China becoming net exporter.
• Protectionism in west.
• Dumping by competitors.
Threats

25. • Automotive.
• Capital goods.
• Infrastructure.
• Airports.
• Railway .
• Oil and Gas.
• Power.
• Rural India.

26. Conclusion
From the above analysis, we can conclude that steel like other sector grows
in cyclic manner.
• Indian steel industry has growing higher rates & aims to double its
production by 2021.
• But there are some key factors the to achieve its targeted growth such as:
1. Meeting the international standards of per-capita consumption of
steels.
2. In order to compete in the world of globalization it is very much
essential to adopt the two tier strategy i.e. long-run & short-run.
3. Creating an infrastructure & bureaucratic support system which is
being rated high on “Ease of Doing Business”.
• Moreover the participation & growth of private sector has increased after
timely efforts of government & also existing firms are being modernized.
• Overall we can say that it is just the beginning of good times for Indian
steel industry and it has been possible due to consistent efforts of

27. Bibliography
Webography:
www.moneycontrol.com
www.zenithresearch.org.in
www.worldwidejournals.com
www.omicsonline.org
www.ibef.org
www.steel.gov.in
Software used: Microsoft Excel and Capital line
Reports: CARE Ratings professional opinions: Steel Review & Outlook: June 2018
RBSA – Indian Steel Industry Analysis 2018
Reference Books:
• Marketing Management, 15th Edition by Philip Kotler and Kevin Lane Keller.
• Financial Management, 11th Edition by I M Pandey
• Exploring Strategy: 11th Edition