The steel industry in India has been growing rapidly, with total crude steel production reaching 102.34 million tonnes in FY18. Capacity has increased to 134.6 million tonnes in 2017-18 and is expected to reach 300 million tonnes in the next decade. Major players like SAIL, Tata Steel and JSW Steel have been undertaking expansion and modernization activities. The government has also implemented policies like the National Steel Policy and allowed 100% FDI to encourage growth in the sector.
India is the second largest producer and consumer of steel next to China. The steel industry contributes around 2% of the GDP and employs 500,000 people directly and 2.5 million indirectly.
Steel is fundamental to the growth of a country. So, let us talk about this industry.
India is the second largest producer and consumer of steel next to China. The steel industry contributes around 2% of the GDP and employs 500,000 people directly and 2.5 million indirectly.
Steel is fundamental to the growth of a country. So, let us talk about this industry.
India has become the world’s fourth-largest producer of crude steel. The country is slated to become the second-largest steel producer by 2015 as large public and private sector players strengthen steel production capacity in view of the rising demand.
The total market value of the steel sector in India stood at US$ 57.8 billion in 2011 and is expected to touch US$ 95.3 billion by 2016. Total crude and finished steel production grew at a compound annual growth rate (CAGR) of 6.6 per cent and 4.2 per cent over FY08-11 to reach 69.6 million tonnes (MT) and 66 MT respectively.
Steel consumption is expected to grow at an average rate of 6.8 per cent to reach 104 MT by 2017 driven by rising infrastructure development and growing demand for automotives. The infrastructure sector is India’s largest steel consumer, accounting for 63 per cent of total consumption in FY11. Attracted by the growth potential of the Indian steel industry, several global steel players have been planning to enter the market. The Government of India (GOI) has allowed 100 per cent foreign direct investment (FDI) in the sector through automatic route in order to attract foreign investments.
when will pi network coin be available on crypto exchange.DOT TECH
There is no set date for when Pi coins will enter the market.
However, the developers are working hard to get them released as soon as possible.
Once they are available, users will be able to exchange other cryptocurrencies for Pi coins on designated exchanges.
But for now the only way to sell your pi coins is through verified pi vendor.
Here is the telegram contact of my personal pi vendor
@Pi_vendor_247
The secret way to sell pi coins effortlessly.DOT TECH
Well as we all know pi isn't launched yet. But you can still sell your pi coins effortlessly because some whales in China are interested in holding massive pi coins. And they are willing to pay good money for it. If you are interested in selling I will leave a contact for you. Just telegram this number below. I sold about 3000 pi coins to him and he paid me immediately.
Telegram: @Pi_vendor_247
The Evolution of Non-Banking Financial Companies (NBFCs) in India: Challenges...beulahfernandes8
Role in Financial System
NBFCs are critical in bridging the financial inclusion gap.
They provide specialized financial services that cater to segments often neglected by traditional banks.
Economic Impact
NBFCs contribute significantly to India's GDP.
They support sectors like micro, small, and medium enterprises (MSMEs), housing finance, and personal loans.
USDA Loans in California: A Comprehensive Overview.pptxmarketing367770
USDA Loans in California: A Comprehensive Overview
If you're dreaming of owning a home in California's rural or suburban areas, a USDA loan might be the perfect solution. The U.S. Department of Agriculture (USDA) offers these loans to help low-to-moderate-income individuals and families achieve homeownership.
Key Features of USDA Loans:
Zero Down Payment: USDA loans require no down payment, making homeownership more accessible.
Competitive Interest Rates: These loans often come with lower interest rates compared to conventional loans.
Flexible Credit Requirements: USDA loans have more lenient credit score requirements, helping those with less-than-perfect credit.
Guaranteed Loan Program: The USDA guarantees a portion of the loan, reducing risk for lenders and expanding borrowing options.
Eligibility Criteria:
Location: The property must be located in a USDA-designated rural or suburban area. Many areas in California qualify.
Income Limits: Applicants must meet income guidelines, which vary by region and household size.
Primary Residence: The home must be used as the borrower's primary residence.
Application Process:
Find a USDA-Approved Lender: Not all lenders offer USDA loans, so it's essential to choose one approved by the USDA.
Pre-Qualification: Determine your eligibility and the amount you can borrow.
Property Search: Look for properties in eligible rural or suburban areas.
Loan Application: Submit your application, including financial and personal information.
Processing and Approval: The lender and USDA will review your application. If approved, you can proceed to closing.
USDA loans are an excellent option for those looking to buy a home in California's rural and suburban areas. With no down payment and flexible requirements, these loans make homeownership more attainable for many families. Explore your eligibility today and take the first step toward owning your dream home.
Currently pi network is not tradable on binance or any other exchange because we are still in the enclosed mainnet.
Right now the only way to sell pi coins is by trading with a verified merchant.
What is a pi merchant?
A pi merchant is someone verified by pi network team and allowed to barter pi coins for goods and services.
Since pi network is not doing any pre-sale The only way exchanges like binance/huobi or crypto whales can get pi is by buying from miners. And a merchant stands in between the exchanges and the miners.
I will leave the telegram contact of my personal pi merchant. I and my friends has traded more than 6000pi coins successfully
Tele-gram
@Pi_vendor_247
Exploring Abhay Bhutada’s Views After Poonawalla Fincorp’s Collaboration With...beulahfernandes8
The financial landscape in India has witnessed a significant development with the recent collaboration between Poonawalla Fincorp and IndusInd Bank.
The launch of the co-branded credit card, the IndusInd Bank Poonawalla Fincorp eLITE RuPay Platinum Credit Card, marks a major milestone for both entities.
This strategic move aims to redefine and elevate the banking experience for customers.
how to sell pi coins in South Korea profitably.DOT TECH
Yes. You can sell your pi network coins in South Korea or any other country, by finding a verified pi merchant
What is a verified pi merchant?
Since pi network is not launched yet on any exchange, the only way you can sell pi coins is by selling to a verified pi merchant, and this is because pi network is not launched yet on any exchange and no pre-sale or ico offerings Is done on pi.
Since there is no pre-sale, the only way exchanges can get pi is by buying from miners. So a pi merchant facilitates these transactions by acting as a bridge for both transactions.
How can i find a pi vendor/merchant?
Well for those who haven't traded with a pi merchant or who don't already have one. I will leave the telegram id of my personal pi merchant who i trade pi with.
Tele gram: @Pi_vendor_247
#pi #sell #nigeria #pinetwork #picoins #sellpi #Nigerian #tradepi #pinetworkcoins #sellmypi
Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
where can I find a legit pi merchant onlineDOT TECH
Yes. This is very easy what you need is a recommendation from someone who has successfully traded pi coins before with a merchant.
Who is a pi merchant?
A pi merchant is someone who buys pi network coins and resell them to Investors looking forward to hold thousands of pi coins before the open mainnet.
I will leave the telegram contact of my personal pi merchant to trade with
@Pi_vendor_247
Financial Assets: Debit vs Equity Securities.pptxWrito-Finance
financial assets represent claim for future benefit or cash. Financial assets are formed by establishing contracts between participants. These financial assets are used for collection of huge amounts of money for business purposes.
Two major Types: Debt Securities and Equity Securities.
Debt Securities are Also known as fixed-income securities or instruments. The type of assets is formed by establishing contracts between investor and issuer of the asset.
• The first type of Debit securities is BONDS. Bonds are issued by corporations and government (both local and national government).
• The second important type of Debit security is NOTES. Apart from similarities associated with notes and bonds, notes have shorter term maturity.
• The 3rd important type of Debit security is TRESURY BILLS. These securities have short-term ranging from three months, six months, and one year. Issuer of such securities are governments.
• Above discussed debit securities are mostly issued by governments and corporations. CERTIFICATE OF DEPOSITS CDs are issued by Banks and Financial Institutions. Risk factor associated with CDs gets reduced when issued by reputable institutions or Banks.
Following are the risk attached with debt securities: Credit risk, interest rate risk and currency risk
There are no fixed maturity dates in such securities, and asset’s value is determined by company’s performance. There are two major types of equity securities: common stock and preferred stock.
Common Stock: These are simple equity securities and bear no complexities which the preferred stock bears. Holders of such securities or instrument have the voting rights when it comes to select the company’s board of director or the business decisions to be made.
Preferred Stock: Preferred stocks are sometime referred to as hybrid securities, because it contains elements of both debit security and equity security. Preferred stock confers ownership rights to security holder that is why it is equity instrument
<a href="https://www.writofinance.com/equity-securities-features-types-risk/" >Equity securities </a> as a whole is used for capital funding for companies. Companies have multiple expenses to cover. Potential growth of company is required in competitive market. So, these securities are used for capital generation, and then uses it for company’s growth.
Concluding remarks
Both are employed in business. Businesses are often established through debit securities, then what is the need for equity securities. Companies have to cover multiple expenses and expansion of business. They can also use equity instruments for repayment of debits. So, there are multiple uses for securities. As an investor, you need tools for analysis. Investment decisions are made by carefully analyzing the market. For better analysis of the stock market, investors often employ financial analysis of companies.
what is the future of Pi Network currency.DOT TECH
The future of the Pi cryptocurrency is uncertain, and its success will depend on several factors. Pi is a relatively new cryptocurrency that aims to be user-friendly and accessible to a wide audience. Here are a few key considerations for its future:
Message: @Pi_vendor_247 on telegram if u want to sell PI COINS.
1. Mainnet Launch: As of my last knowledge update in January 2022, Pi was still in the testnet phase. Its success will depend on a successful transition to a mainnet, where actual transactions can take place.
2. User Adoption: Pi's success will be closely tied to user adoption. The more users who join the network and actively participate, the stronger the ecosystem can become.
3. Utility and Use Cases: For a cryptocurrency to thrive, it must offer utility and practical use cases. The Pi team has talked about various applications, including peer-to-peer transactions, smart contracts, and more. The development and implementation of these features will be essential.
4. Regulatory Environment: The regulatory environment for cryptocurrencies is evolving globally. How Pi navigates and complies with regulations in various jurisdictions will significantly impact its future.
5. Technology Development: The Pi network must continue to develop and improve its technology, security, and scalability to compete with established cryptocurrencies.
6. Community Engagement: The Pi community plays a critical role in its future. Engaged users can help build trust and grow the network.
7. Monetization and Sustainability: The Pi team's monetization strategy, such as fees, partnerships, or other revenue sources, will affect its long-term sustainability.
It's essential to approach Pi or any new cryptocurrency with caution and conduct due diligence. Cryptocurrency investments involve risks, and potential rewards can be uncertain. The success and future of Pi will depend on the collective efforts of its team, community, and the broader cryptocurrency market dynamics. It's advisable to stay updated on Pi's development and follow any updates from the official Pi Network website or announcements from the team.
what is the best method to sell pi coins in 2024DOT TECH
The best way to sell your pi coins safely is trading with an exchange..but since pi is not launched in any exchange, and second option is through a VERIFIED pi merchant.
Who is a pi merchant?
A pi merchant is someone who buys pi coins from miners and pioneers and resell them to Investors looking forward to hold massive amounts before mainnet launch in 2026.
I will leave the telegram contact of my personal pi merchant to trade pi coins with.
@Pi_vendor_247
how can i use my minded pi coins I need some funds.DOT TECH
If you are interested in selling your pi coins, i have a verified pi merchant, who buys pi coins and resell them to exchanges looking forward to hold till mainnet launch.
Because the core team has announced that pi network will not be doing any pre-sale. The only way exchanges like huobi, bitmart and hotbit can get pi is by buying from miners.
Now a merchant stands in between these exchanges and the miners. As a link to make transactions smooth. Because right now in the enclosed mainnet you can't sell pi coins your self. You need the help of a merchant,
i will leave the telegram contact of my personal pi merchant below. 👇 I and my friends has traded more than 3000pi coins with him successfully.
@Pi_vendor_247
how to sell pi coins effectively (from 50 - 100k pi)DOT TECH
Anywhere in the world, including Africa, America, and Europe, you can sell Pi Network Coins online and receive cash through online payment options.
Pi has not yet been launched on any exchange because we are currently using the confined Mainnet. The planned launch date for Pi is June 28, 2026.
Reselling to investors who want to hold until the mainnet launch in 2026 is currently the sole way to sell.
Consequently, right now. All you need to do is select the right pi network provider.
Who is a pi merchant?
An individual who buys coins from miners on the pi network and resells them to investors hoping to hang onto them until the mainnet is launched is known as a pi merchant.
debuts.
I'll provide you the Telegram username
@Pi_vendor_247
2. Table of Content
Executive Summary……………….….……...3
Advantage India…………………..….……....4
Market Overview …………………….……....6
Recent Trends and Strategies …….……..15
Growth Drivers……………………..............20
Opportunities…….……….......………….…26
Useful Information………..…………….......31
Key Industry Associations…………….......29
3. For updated information, please visit www.ibef.orgSteel3
EXECUTIVE SUMMARY
Total crude steel production in India has increased at a CAGR of 5.43 per cent during FY12–18, with country’s
output reaching 102.34 million tonnes per annum (MTPA) in FY18.
The country remained the third largest crude steel producer in 2017, as large public and private sector players
increased steel production in view of rising demand.
Moreover, capacity has increased to 134.6 million tonnes (MT) in 2017-18 while in the coming ten years the
figure is anticipated to rise to 300 MT of steel.
Third largest producer of
crude steel
Source: World Steel Association, Ministry of Steel, Aranca Research
India’s comparatively low per capita steel consumption and expected growth in consumption due to growing
infrastructure construction, automobile and railways sectors has offered scope for growth
National Mineral Development Corporation is expected to increase the iron ore production 75 million tonnes
per annum (MTPA) until 2021 indicating new opportunities in the sector
Domestic players’ investments in expanding and upgrading manufacturing facilities are expected to reduce
reliance on imports. In addition, the entry of international players would provide benefits in terms of capital
resources, technical know how and more competitive industry dynamics
Note: MTPA – Million Tonnes Per Annum
Strong growth
opportunities
Rising domestic and
international investments
5. For updated information, please visit www.ibef.orgSteel5
ADVANTAGE INDIA
Demand would be supported by growth in
the domestic market
Infrastructure, oil and gas and automotives
would drive the growth of the industry
Lower per capita consumption compared to
international average
Steel production in India is forecasted to
double by 2031
To achieve steel capacity build-up of 300
million tonnes per annum (MTPA) by 2030,
India would need to invest US$ 156.08
billion by 2030-31.
The industry is witnessing consolidation of
players which has led to investments by
entities from other sectors. The ongoing
consolidation also presents an opportunity
to global players to enter the Indian market.
As of 2017, India is the world’s third
largest producer of crude steel (up from
8th in 2003). India’s steel production in
2017 stood at 101.4 MT.
Easy availability of low-cost manpower
and presence of abundant iron ore
reserves make India competitive in the
global set up
100 per cent FDI through the automatic
route is allowed
National Steel Policy (NSP) implemented to
encourage the industry to reach global
benchmarks
20 per cent safeguard duty on steel imports
An export duty of 30 per cent has been
levied on iron ore* (lumps and fines) to
ensure supply to domestic industry.
ADVANTAGE
INDIA
Source: Metallurgical and Materials Engineering Division Board, Aranca Research
Notes: MT - Million Tonnes, FDI – Foreign Direct Investment, *except low grade (below 58 per cent)
7. For updated information, please visit www.ibef.orgSteel7
EVOLUTION OF THE INDIAN STEEL SECTOR
Notes: (1)TISCO - Tata Iron and Steel Company; IISC - Indian Iron and Steel Company; SAIL - Steel Authority of India Ltd;
1907-18 1923-48 1973-921954-64 2015-181993-2014
Production of steel started in
India (TISCO was setup in 1907)
IISC was set up in 1918 to
compete with TISCO
Hindustan Steel Ltd and Bokaro Steel Ltd
were setup in 1954 and 1964, respectively
In the early 1990s, the public sector
dominated steel production
Private players were in downstream
production mainly producing finished steel
using crude steel products
Foreign players began entering the Indian steel
market
No license requirement for capacity creation
Imposition of export duty on iron ore, to focus more
on catering growing domestic demand
Decontrol of domestic steel prices
Launch of Scheme for promotion of Research and
Development in Iron and Steel sector
Mysore Iron and Steel Company
was set up in 1923
According to the new Industrial
Policy Statement (1948), new
ventures were only undertaken by
the central government
SAIL was created in 1973 as a holding company
to oversee most of India's iron and steel
production
In 1989, SAIL acquired Vivesvata Iron and Steel
Ltd
In 1993, the government set plans in motion to
partially privatise SAIL
In 2017, India ranked as the 3nd
largest crude steel producer in the
world, leaving behind United States.
During 2017-18, 9.62 MT of steel
was exported from India.
8. For updated information, please visit www.ibef.orgSteel8
STRUCTURE OF THE STEEL SECTOR
Source: Report on Indian steel industry by Competition Commission of India, Aranca Research
Steel
Form Composition End use
Liquid Steel Crude Steel
Finished
Steel
Alloy Non-alloy
Steel
Structural Steel
Ingots
Semis
Flat
Non-flat
Stainless
Silicon
electrical
High
Speed
Low
carbon
Steel
Medium
carbon
Steel
High
Carbon
Steel
Construction Steel
Rail Steel
9. For updated information, please visit www.ibef.orgSteel9
STEEL PRODUCTION IN INDIA HAS BEEN GROWING
AT A FAST PACE
53.86
58.44
65.84
70.67
74.29
78.42
81.69
88.98
89.79
97.95
102.34
26.08
0
20
40
60
80
100
120
FY08
FY09
FY10
FY11
FY12
FY13
FY14
FY15
FY16
FY17
FY18P
FY19P*
Source: Joint Plant Committee, News Articles, Ministry of Steel
In FY18, crude steel production in India was 102.34 MT, with the total crude steel production growing at a CAGR of 6.63 per cent during FY08-
FY18.
The steel sector contributes over 2 per cent to the GDP of the nation. Also, it employs 0.5 million directly and 2.5 million indirectly.
During 2017-18, finished steel production for sale in India stood at 104.98 MT. Output during Apr-June 2018 reached 26.72 million tonnes.
Steel manufacturing output of India is expected to increase to 128.6 MT by 2021, accelerating the country’s share of global steel production from
5.4 per cent in 2017 to 7.7 per cent by 2021.
56.08
57.16
60.62
68.62
75.7
81.68
87.67
92.16
90.98
101.81
104.98
26.72
0
20
40
60
80
100
120
FY08
FY09
FY10
FY11
FY12
FY13
FY14
FY15
FY16
FY17
FY18P
FY19P*
Notes: FY - Indian Financial Year (April – March), MT - Million Tonnes, CAGR - Compound Annual Growth Rate; P – Provisional, #without deducting own consumption by producers,
^CAGR is up to FY18P, *up to June 2018
Total crude steel production (million tonnes)
^CAGR 6.63%
Total finished steel production (million tonnes)#
^CAGR 6.47%
10. For updated information, please visit www.ibef.orgSteel10
52.12
52.40
59.34
66.42
70.92
73.48
74.10
76.99
81.52
84.04
90.68
23.42
0.00
10.00
20.00
30.00
40.00
50.00
60.00
70.00
80.00
90.00
100.00
FY08
FY09
FY10
FY11
FY12
FY13
FY14
FY15
FY16
FY17
FY18
FY19P^
DEMAND HAS OUTPACED SUPPLY OVER THE LAST
FIVE YEARS
India’s finished steel consumption grew at a CAGR of 5.69 per cent during FY08-FY18 to reach 90.68 MT. Finished steel consumption during Apr-
June 2018 stood at 23.42 million tonnes.
Steel consumption is expected to grow 5.7 per cent year-on-year to 92.1 MT in 2018.
It is expected that consumption per capita would increase supported by rapid growth in the industrial sector and rising infra expenditure projects in
railways, roads and highways, etc.
India’s per capita consumption of steel grew at a CAGR of 3.96 per cent from 46 kgs in FY08 to 68.00 kgs in FY17. The figure stood at 68 kgs (P)
during Apr 2017-Feb 2018.
Consumption of finished steel (in million tonnes)
#CAGR 5.69%
Source: JPC India Steel, Ministry of Steel, Aranca Research
Note: MT - Million Tonnes, ^ – up to June 2018, * - up to February 2018, #CAGR- up to FY17, P – Provisional, kg - kilograms
46.00
45.00
51.00
55.00
58.20
59.30
59.56
61.15
63.99
65.25
68.00
0.00
10.00
20.00
30.00
40.00
50.00
60.00
70.00
80.00
FY08
FY09
FY10
FY11
FY12
FY13
FY14
FY15
FY16
FY17
FY18P*
Per-capita consumption of steel (in kgs)
#CAGR 3.96%
11. For updated information, please visit www.ibef.orgSteel11
TRENDS IN IMPORTS AND EXPORTS OF STEEL
Indian Government imposed Anti-Dumping Duty on 47 steel products
for five years beginning from August 2016.
In 2017-18, the country’s finished steel exports increased 17 per cent
year-on-year to 9.62 million tonnes (MT), as compared to 8.24 MT in
2016-17.
During the same period, the country’s finished steel imports rose 3.5
per cent year-on-year to 7.48 MT, as compared to 7.23 MT in 2016-
17.
Exports and imports of finished steel stood at 1.35 MT and 1.89 MT
during Apr-Jun 2018.
7.03
5.84
7.38
6.66
6.86
7.93
5.45
9.32
11.71
7.23
7.48
1.89
5.08
4.44
3.25
3.64
4.59
5.37
5.98
5.60
4.08
8.24
9.62
1.35
0
2
4
6
8
10
12
14
FY08
FY09
FY10
FY11
FY12
FY13
FY14
FY15
FY16
FY17
FY18
FY19*
Imports Exports
Finished steel exports and imports (in million tonnes)
Source: Joint Plant Committee, Aranca Research
Note: FY - Indian Financial Year (April - March), FY19* - up to June 2018
12. For updated information, please visit www.ibef.orgSteel12
KEY PLAYERS OF THE INDUSTRY
Source: Aranca Research
Company Products
Tata Steel Ltd Finished steel (non-alloy steel)
SAIL Finished steel (non-alloy steel)
JSW Steel Ltd Hot-rolled coils, strips and sheets
Jindal Steel and Power Ltd Iron and steel
Ispat Industries Ltd Hot-rolled coils, strips and sheets
Welspun-Gujarat Stahl Rohren Ltd Tubes and pipes
Bhushan Steel Ltd Cold-rolled coils, strips and sheets
Visa Steel Ltd Ferro Chrome, coke and special steel
13. For updated information, please visit www.ibef.orgSteel13
KEY STEEL PLANTS IN INDIA
Alloy and special steel plants
under SAIL (Bhadrawati and
Salem); iron and steel plant
at Visvesvaraya
Steel integrated plants
under SAIL (Bhilai, Rourkela,
Bokaro, Durgapur and
Burnpur)
Tata Steel’s largest steel
plant, based in Jamshedpur
RINL steel plant in
Vishakhapatnam
Source: Company websites, Aranca Research
14. For updated information, please visit www.ibef.orgSteel14
STEEL SEZs IN INDIA
Source: Formal approvals granted in the Board of Approvals after the SEZ rules coming into force, Special Economic Zones in India website, www.sezindia.nic.in
Developer Location Product
Viraj Profiles Ltd Thane, Maharashtra Stainless steel engineering products
SAIL Salem SEZ Pvt Ltd Salem, Tamil Nadu Steel
Orissa Industrial Infrastructure Development
Corporation
Jaipur, Orissa
Metallurgical-based engineering and
ancillary/downstream industry
Tata Steel Special Economic Zone (TSSEZ) Gopalpur, Odisha Steel and allied downstream industries
16. For updated information, please visit www.ibef.orgSteel16
NOTABLE TRENDS IN THE INDIAN STEEL INDUSTRY
… (1/2)
Source: Ministry of Steel, Ministry of Railways, Aranca Research
Notes: MTPA - Million Tonnes Per Annum
Most of the companies in the industry are undertaking modernisation and expansion of plants to be more cost
efficient. E.g. SAIL has undertaken modernisation and expansion for its 6 plants
An Inter-Ministerial Group (IMG) functioning under the Ministry of Steel, is monitoring and coordinating major
steel investments across the country
The production capacity of SAIL is expected to increase from 13 MTPA to 50 MTPA in 2025 with total
investment of US$ 24.88 billion.
Growing investments
SAIL and Arcelor Mittal are going to form a joint venture to set up a 1.5 million tonne per annum steel plant.
The consortium of SAIL and National Fertiliser Ltd. (NFL) has been nominated for revival of Sindri Unit of the
Fertiliser Corporation of India Ltd
RINL, Vishakhapatnam Steel Plant and the Power Grid Corporation of India Ltd (POWERGRID) signed an
MoU to set up a JV company to manufacture transmission line towers and tower parts including R&D of new
high-end products
Attracted by the growth potential of the Indian steel industry, several global steel players have been planning
to enter the market
Liberty House Group, a UK based business, is aiming to acquire Bhushan Power and Steel which will help the
conglomerate to enter the Indian market.
Strategic alliances
Entry of international
companies
17. For updated information, please visit www.ibef.orgSteel17
NOTABLE TRENDS IN THE INDIAN STEEL INDUSTRY
… (2/2)
Source: Ministry of Steel, Aranca Research
Indian steel companies have now started benchmarking their facilities and processes against global standards,
to enhance productivity
These steps are expected to help Indian companies improve raw material and energy consumption as well as
improve compliance with environmental and pollution yardsticks
Companies are attempting coal gasification and gas-based Direct-Reduced Iron (DRI) production. Other
alternative technologies such as Hismelt, Finex and ITmk3 being adopted to produce hot metal
Ministry of Steel has issued necessary direction to the steel companies to frame a strategy for taking up more
R&D projects by spending at least 1 per cent of their sales turnover on R&D to facilitate technological
innovations in the steel sector.
Ministry has established a task force to identify the need for technology development and R&D
Ministry has adopted energy efficiency improvement projects for mills operating with obsolete technologies
Increased emphasis on
technological innovations
18. For updated information, please visit www.ibef.orgSteel18
STRATEGIES ADOPTED
Source: CCI, Ministry of External Affairs
Companies in the steel industry are investing heavily in expanding their capacity. Major public and private
companies, including Tata Steel, SAIL and JSW Steel, are expanding their production capacity.
Tata Steel is expanding the capacity of its Kalinganagar plant from 3MTPA to 8MTPA with an estimated
investment of Rs 23,500 crore (US$ 36.46 billion). The capacity expansion is expected to improve margins
and lead to cost effectiveness.
The Ministry of Steel is encouraging R&D activities by providing financial assistance from Steel Development
Fund (SDF) and Plan Scheme of the Central Government. Furthermore, the government has allowed 100 per
cent FDI through the automatic route in the Indian steel sector
A long term perspective is to achieve capacity of 300 mtpa by 2030, as per National Steel Policy 2017
SAIL is increasing its production capacity by 60-70 per cent in the last leg of its US$10.79 billion programme.
JSW Steel is looking at starting activity in the next fiscal on its 12 million tonnes mega steel plant proposed in
Odisha.
JSW Steel has undertaken capacity expansion at its Dolvi unit in Maharashtra. It is investing around Rs 15,000
crore (US$ 2.24 billion) to double the capacity of its plant to 10 million tonnes by the end of 2019. The
company has set a target of increasing its capacity from the current 18 MTPA to 24 MTPA by March
2020.
Capacity expansion
In the last few years, rapid and stable growth in demand has also prompted domestic entrepreneurs to set up
fresh greenfield projects in different states of the country. Mittal Steel announced two 12 mtpa greenfield steel
projects, one each in Jharkhand and Orissa
As India surges ahead in building infrastructure, investments in steel pave the way ahead
Greenfield projects –
focus on downstream
value-added products
Note: GDP – Gross Domestic Product, MTPA – Million tonnes per annum
20. For updated information, please visit www.ibef.orgSteel20
STRONG DEMAND AND POLICY SUPPORT DRIVING
INVESTMENTS
Growing demand in the
construction industry
Growing demand in the
automotives sector
Rising demand for consumer
durables and capital goods
Growing demand
100 per cent FDI in the steel
sector
Encouragement of sector-based
R&D activities by the
government
Reduced custom duty and other
favourable measures
Policy support
Rising investments from
domestic and foreign players
Increasing number of MoUs
signed to boost investment in
steel
Foreign investment of nearly
US$ 40 billion committed in the
steel sector
Increasing investments
Inviting
Resultingin
Notes: FDI - Foreign Direct Investment, MOU – Memorandum of Understanding
21. For updated information, please visit www.ibef.orgSteel21
2.36
2.98
3.15
3.23
3.09
3.22
3.41
3.79
4.01
0.57
0.76
0.93
0.83
0.7
0.7
0.78
0.81
0.89
11.13
14.15
16.31 16.58
17.71
19.45 19.76 20.71
24.17
0
5
10
15
20
25
30
FY10
FY11
FY12
FY13
FY14
FY15
FY16
FY17
FY18
Passenger Vehicles Commercial Vehicles Two & Three Wheelers
CAPITAL GOODS, CONSUMER DURABLES AND
AUTOMOTIVES FURTHER DRIVING STEEL GROWTH
Source: SIAM, PWC, CEAMA, Aranca Research
Notes: F- Forecast, FY - Indian Financial Year (April - March), *Provisional Estimates of National Income
Over 2017-22F, the appliances and consumer electronics (ACE) sector will expand at a CAGR of 9 per cent as growth in disposable income is
expected to result in increase in demand for such products.
The appliances and consumer electronics market is estimated at US$ 31.49 billion in 2017 and is forecasted to reach US$ 48.37 billion by 2022.
Automobile production in India expanded at a CAGR of 7.08 per cent during FY13-FY18.
Gross Value Added (GVA) of the construction industry grew 8.8 per cent* during 2017-18 and is expected to post strong growth in the current
fiscal year, backed by higher expenditure of the government.
As the construction industry is a major consumer of steel, expansion in the construction industry will translate into growth of steel sector.
31.49
48.37
0
10
20
30
40
50
60
2017
2022F
Total automobile production in India (million units)Appliances and Consumer Electronics Industry (US$ billion)
CAGR 8.96%
22. For updated information, please visit www.ibef.orgSteel22
POLICY SUPPORT AIDING GROWTH IN THE STEEL
SECTOR … (1/2)
Source: Ministry of Steel, Aranca Research
New National Steel Policy has been formulated by the Ministry of Steel in 2016, which will retain the objectives
included in National Steel Policy (NSP) 2005. It aims at covering broader aspects of steel sector across the
country including environment and facilitation of new steel projects, growth of steel demand in India and raw
materials
Under the policy, the central government stated that all the government tenders will give preference to
domestically manufactured steel and iron products. Moreover, Indian steel makers importing intermediate
products or raw materials can claim benefits of domestic procurement provision by adding minimum of 15 per
cent value to the product.
The New steel policy, 2017 aspires to achieve 300MT of steel making capacity by 2030. This would translate
into additional investment of Rs 10 lakh Crore (US$ 156.08 billion) by 2030-31.
New Steel Policy seeks to increase per capita steel consumption to the level of 160 kgs by 2030 from existing
level of around 60 kg.
National Steel Policy 2017
‘The scheme for the promotion of R&D in the iron and steel sector’ has been continued under the 14th Finance
Commission (2019-20). Under the scheme, 26 projects have been approved with financial assistance of Rs
161 crore (US$ 24.98 million) from Ministry of Steel.
The Ministry of Steel is also actively participating in the Impacting Research Innovation & Technology (IMPRINT) &
Uchchatar Avishkar Yojana (UAY) Schemes launched by Ministry of Human Resource Development. IMPRINT scheme
aims to solve major engineering and technology challenges and UAY is promoting industry sponsored, outcome-oriented
research projects.
Ministry of Steel is setting up an industry driven institutional mechanism - Steel Research & Technology Mission of India
(SRTMI) – with an initial corpus of US$ 30.89 million. The institute will facilitate joint collaborative research projects in the
sector.
R&D and innovation
Note: MT - Million tonnes
23. For updated information, please visit www.ibef.orgSteel23
POLICY SUPPORT AIDING GROWTH IN THE STEEL
SECTOR … (2/2)
Source: The Economic Times, Ministry of Steel, Business Standard, Make In India, Aranca Research
The government hiked the export duty on iron ore to 30 per cent ad valorem on all varieties of iron ore (except
pellets)
Rise in export duty
Reduction in custom duty
on plants and equipment
The government has reduced the basic custom duty on the plants and equipments required for initial set up or
expansion of iron ore pellets plants and iron ore beneficiation plants from 7.5/5 per cent to 2.5 per cent
Customs duty on imported flat-rolled stainless steel products has been increased to 10 per cent from 7.5 per
cent
Basic customs duty on steel grade dolomite and steel grade limestone is being reduced from 5 per cent to 2.5
per cent. Basic customs duty is being reduced from 10 per cent to 5 per cent on forged steel rings used in the
manufacture of bearings of wind-operated electricity generators
Going forward, the Make in India initiative and policy decisions taken under it are expected to augment the
country’s steel production capacity and resolve issues related to the mining industry
100 per cent FDI through the automatic route is allowed in the Indian steel sectorForeign Direct Investment
Push due to Make in India
initiative
24. For updated information, please visit www.ibef.orgSteel24
THE SECTOR WITNESSED RISING INVESTMENTS IN
THE LAST DECADE
Source: Thomson ONE Banker, Department of Industrial Policy and Promotion
Date announced Acquirer name Target name Value of deal (US$ million)
Jul-18 Aion Investments-JSW Steel Monnet Ispat and Energy 428.85
Jun-18 Vedanta Star Ltd Electrosteel Steels 825.45
May-18 Tata Steel Ltd Bhushan Steel 5,461.60
Dec-17 Tata Steel Ltd Bhubaneshwar Power 39.5
Jan-17 Tata Steel Ltd Creative Port Development Pvt Ltd -
Aug-16 JSW Steel Ltd Praxair Oxygen Pvt. Ltd. 36
Aug-16 Kirloskar Ferrous Industries Ltd VSL Steels Ltd. 23.68
Aug-14 JSW Steel Ltd Welspun Maxsteel Ltd 165.85
Apr-14 JSW Steel Ltd Vallabh Tinplate Pvt Ltd 7.63
Mar-14 Lalitanjali Group Pvt Ltd Centom Industries Ltd -
Dec-13 Venus Insec Pvt Ltd Goodluck Steel Tubes Ltd 23.73
Oct-13 JSW Projects Ltd IST Steel and Power Ltd -
Aug-13 Readymade Steel India Ltd Kridhan Infra Solutions Pvt -
Jul-13 Swelect Energy Systems Ltd Amex Alloys Pvt Ltd -
Cumulative FDI inflows
Period: April 2000 to March 2018
Sector
• Metallurgical industries US$ 10.70 billion
26. For updated information, please visit www.ibef.orgSteel26
OPPORTUNITIES … (1/2)
The automotive industry is
forecasted to grow in size to
US$ 260-300 billion by 2026
The industry accounts for
around 10 per cent of demand
of steel in India.^
With increasing capacity
addition in the automotive
industry, demand for steel from
the sector is expected to be
robust
In 2017, India overtook
Germany to become the fourth
largest automobiles market
globally.
Automotive
The capital goods sector
accounts for 11 per cent of
steel consumption and
expected to increase 14/15 per
cent by 2025-26 and has the
potential to increase in
tonnage and market share
Corporate India’s capex is
expected to grow and generate
greater demand for steel
Capital goods
The infrastructure sector
accounts for 9 per cent of steel
consumption and expected to
increase 11 per cent by 2025-
26.
Due to such a huge investment
in infrastructure the demand
for long steel products would
increase in the years ahead
Seventy per cent of the
country’s infrastructure
estimated at Rs 6 lakh crore
(US$ 89.50 billion) is yet to
come up. Thus, a significant
growth potential for steel
sector is present.*
Infrastructure
More and more modern and
private airports are expected to
be set up
In FY18, passenger traffic at
Indian airports stood at 308.75
million and number of
operational airports stood at 94
in July 2017.
Development of Tier-II city
airports would sustain
consumption growth
Estimated steel consumption in
airport building is likely to grow
more than 20 per cent over
next few years
Airports
Source: Make In India, Livemint , SIAM, Ministry of Steel, Airport Authority of India
Note: Capex – Capital Expenditure, P – Provisional, ^Livemint article dated June 12, 2018, *According to Mr Chaudhary Birender Singh, Minister of Steel
27. For updated information, please visit www.ibef.orgSteel27
OPPORTUNITIES … (2/2)
Source: Make In India, Ministry of Power, Aranca Research
The Dedicated Rail Freight
Corridor (DRFC) network
expansion would be enhanced
in future
Gauge conversion, setting up
of new lines and electrification
would drive steel demand
PPP Investments in railways
are expected to grow from Rs
24,000 crore (US$ 3.72 billion)
in 2017-18 (RE) to Rs 27,000
crore (US$ 4.19 billion) in
2018-19.
Railways
Oil and gas amongst major
end-user segment accounted
for ~34.4 per cent of primary
energy consumption in FY16
This would lead to an increase
in demand of steel tubes and
pipes, providing a lucrative
opportunity to the steel
industry
Oil and gas
The government targets
capacity addition of 100 GW
under the 13th Five-Year Plan
(2017–22)
Both generation and
transmission capacities would
be enhanced, thereby raising
steel demand from the sector
Power capacity addition of
17,169.86 MW achieved in
2017-18.
Power
Rural India is expected to
reach per capita consumption
of 12.11 kg to 14 kg for
finished steel by 2020.
Policies like Food for Work
Programme (FWP) and Indira
Awaas Yojana, Pradhan Mantri
Gram Sadak Yojana are
driving growing demand for
construction steel in rural India
In FY16, per capita
consumption of steel in rural
India is estimated at 9.74 kg.
Rural India
Note: RE – Revised Estimates
31. For updated information, please visit www.ibef.orgSteel31
GLOSSARY
CAGR: Compound Annual Growth Rate
FDI: Foreign Direct Investment
FY: Indian Financial Year (April to March)
• So FY10 implies April 2009 to March 2010
JV: Joint Venture
MoU: Memorandum of Understanding
MT: Million Tonnes
MTPA: Million Tonnes Per Annum
NPAT: Net Profit After Tax
SEZ: Special Economic Zone
TMT: Thermo Mechanically Treated
US$ : US Dollar
Wherever applicable, numbers have been rounded off to the nearest whole number
32. For updated information, please visit www.ibef.orgSteel32
EXCHANGE RATES
Exchange Rates (Fiscal Year) Exchange Rates (Calendar Year)
Year INR INR Equivalent of one US$
2004–05 44.95
2005–06 44.28
2006–07 45.29
2007–08 40.24
2008–09 45.91
2009–10 47.42
2010–11 45.58
2011–12 47.95
2012–13 54.45
2013–14 60.50
2014-15 61.15
2015-16 65.46
2016-17 67.09
2017-18 64.45
Q1 2018-19 67.04
Year INR Equivalent of one US$
2005 44.11
2006 45.33
2007 41.29
2008 43.42
2009 48.35
2010 45.74
2011 46.67
2012 53.49
2013 58.63
2014 61.03
2015 64.15
2016 67.21
2017 65.12
Source: Reserve Bank of India, Average for the year
33. For updated information, please visit www.ibef.orgSteel33
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