STEEL INDUSTRY

PRESENTED BY-

Tufail Khan

OBJECTIVE
Objective of my presentation is to review the current scenario of Steel Industry in India.

The Indian Steel Industry

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7th largest producer of steel in the world Liberalised in early 1990s The steel industry now accounts for a capital base of Rs. 90,000 crore contributes around 6 per cent of the Gross National Product provides direct employment to more than 4 lakh people consumption of steel increased 43.471 million tonnes in 2006-07.

Top Ten Steel Producing Countries

Country
China EU 27 Japan Production (Million Metric Tones) 237.5 108.3 59.4

USA
Russia S Korea India Ukraine

48.5
30.8 25.7 22.9 21.3

Brazil
Turkey

16.3
12.6
Source: International Steel Iron Institute

The World Steel Dynamics have ranked the companies which are as follows:
Rank 1 2 3 4 5 6 7 8 9 10 10 11

Company Name TATA Usinor POSCO CSN Baosteel China Steel Gerdau Nucor Car-Tech Nippon Steel Severstal Dofasco

National Steel Policy

Target of 110 million tonnes by 2019-2020. Anticipated growth in construction, Automobiles, Oil &
Gas transportation and Infrastructure.

Urban promotion of usage of steel in bridges, crash

barriers, fly overs, building construction etc.

target of raising per capita consumption in rural areas

from the present 2 kg to 4 kg by 2019-2020.

Exports to grow at 13% per annum.

National Steel Policy Targets

Producti Impor Expor Consumpt on (mt) ts (mt) ts(mt) ion(mt) 2019-20 110 6 26 90
2004-05 38 2 4 36

CAGR (%)

7.3

7.1

13.3

6.9

LAST FOUR YEARS IMPORT OF FINISHED STEEL IN INDIA

Year
2003-2004 2004-2005 2005-2006 2006-2007 2007-08 (Apr-June, 2007)

Qty. (In Million Tonnes)

1.540 2.109 3.850 4.100 0.800

( S o u r c e :

LAST FOUR YEAR EXPORT OF FINISHED STEEL FROM INDIA

(Qty. in Million Tonnes)
Finished (Carbon) Steel 2002-2003 2003-2004 2004-2005 2005-2006 2006-2007 2007-2008 (April-June 07) 4.506 4.835 4.381 4.478 4.750 1.310

MAJOR PLAYERS

SAIL TATA STEEL ESSAR STEEL JSW STEEL ISPAT INDUSTRY BHUSHAN STEEL

MARKET SHARE

Company Profile Steel authority of India Ltd. (SAIL)

ABOUT COMPANY
Formed in 1973 as a company with the objective: Of bringing in companies producing steel and related inputs under one umbrella In 1978, SAIL became an operating company: Steel making subsidiaries were dissolved & merged with SAIL Subsequently, the following companies were taken over as subsidiary companies: Indian Iron & Steel Company (IISCO) 1979 (merged with SAIL in 2005-06) Maharashtra Elektrosmelt Limited (MEL) 1986 (under merger with SAIL ) Visvesvaraya Iron & Steel Limited (VISL)- 1989 (merged with SAIL in 1998-99) Overview of SAIL

AWARDS AND ACHIVEMENTS

SCOPE Gold Trophy for Excellence and Outstanding Contribution to the Public Sector Managementinstitutional category for 2004-05. SCOPE Meritorious Award for Environmental Excellence & Sustainable Development for 2004-05. Business world-FICCI-SEDF Corporate Social Responsibility Award 2006 for its innovative Corporate Social Responsibility initiatives in the fields of education, medical and healthcare, womens empowerment, tribal welfare Golden Peacock Eco-Innovation Award 2006 by the World Environment Foundation.

SAIL bagged the Construction World NICMAR Award - 2006 and was adjudged number one company in turnover and profitability amongst steel manufacturing industries. First Pinnacle Award to SAIL for best steel company for supply of steel for construction industry by Zee Business.

MERGERS AND ACQUISITION

The process for merger of NINL, MEL & BRL with SAIL has progressed significantly. MOU has been signed with MOIL for setting up a Ferro alloy production facilities at BSP. MOU has been signed between SAIL, RINL and NMDC for setting up a green field Steel Plant in Chhattisgarh.

SWOT ANALYSIS

STRENGTHS

Sterling reputation of SAIL as whole. Unbridled Ambition. Strong Balance Sheets. Extraordinary understanding of Global Finance. Unflinching determination to succeed. Brand name. Reputation for high quality management. Strong corporate Governance.

weaknesses

opportunity