2. INDIAN STEEL INDUSTRY
Third – Largest Steel Industry in the World,
Backbone of Human Civilization,
Highly dependent on the availability of -
Iron ore as Raw Material,
Cost Effective Labor,
Large amount of Capital.
GDP Contribution – 2%
Provides employment to 20 Lac people across the Country.
During April-January 2017, crude steel production in India
grew by 7%
3rd largest Crude Steel Producer in world in
the year 2016
2030F
300
millio
n tons
3. Total Steel Production ( in %age)
Private Sector Public Sector
CAGRataDecrease
CAGRataGrowth
4. TOP 10 Steel Companies
( on the basis of Market Cap. & Volume manufactured)
Company Name Market Capitalization (in
Cr.)
Volume ( in 000’s)
Tata Steel 63231.01 2838.86
JSW Steel 60031.67 4037.13
Steel Authority of India 22160.27 4043.13
Essar Steel Ltd. 11467.12 65.89
Technocraft Industries 1074.75 18.20
Electrosteel Steels 942.01 534.34
Gallant Ispat 778.68 1.66
Steel Exchange India 607.50 181.16
Adhunik Industries 216.98 1.00
Visa Steel 193.60 25.15
5. PEST ANALYSIS
PEST
POLITICAL
• National Steel Policy (NSP)
• Digital India – MSTC Metal Mandi
• Steel Research and Technology Mission of India
SOCIO – CULTURAL
• Divides into Rural and Urban
• Less attention to Worker’s
Health
TECHNICAL
• Blast Furnace (BF)/Basic Oxygen Furnace (BOF)
• Electric Arc Furnace (EAF)
• Direct Reduced Iron (DRI)
ECONOMICAL
• FDI
• Duty Free Imports
6. PORTER’S FIVE FORCE MODEL
Threats
of New
Entrants
Buyers
Power
Industry
of
Competiti
on
Suppliers
Power
Threats of
Substitutes
7. Buyers’ Power
• Increasing Demand
for steel
• Fragmented Coke
Suppliers
Suppliers Power
• High Raw Materials
• Lack of
Transportation
Intensity of Competition
• Competition from Foreign
Players
• Spurt in merger and
acquisition activities
Threats of New Entries
• High cost of basis
Input and Service
• Industry is Capital
Intensive
Threats of Substitutes
• Use of Aluminium,
Plastic, Carbon Fibre
8. FUTURE TRENDS IN STEEL INDUSTRY
• Expected to become the second largest steel producer by
2018,
• Approved by the Union Cabinet in May 2017,
• Expected to boost India's steel production,
• Thriving automobile and railways sectors,
• Expected rise in consumption due to increased infrastructure
construction.
