DSTI/SU/SC(2006)43STEEL MARKET DEVELOPMENT..........................................................................................................24
M&A activity and consolidation trends....................................................................................................24
Global steel industry on a merger spree................................................................................................24
Indian companies not lagging behind....................................................................................................25
Recent change in the steel industry...........................................................................................................26
Trends in raw material scenario in India and overseas..............................................................................26
The Indian steel industry – challenges for the future................................................................................28
REGULATORY PERSPECTIVE AND GOVERNMENT POLICY UPDATE..........................................30
Government policies.................................................................................................................................30
Government's role is crucial..................................................................................................................30
New steel policy....................................................................................................................................30
Impact of duties and tariffs........................................................................................................................31
Tariffs effect on major players in steel..................................................................................................31
FUTURE OUTLOOK...................................................................................................................................32
Growth projection and outlook analysis....................................................................................................32
Domestic demand capacity ratio............................................................................................................34
Indian steel - Should emerge from the current weakness......................................................................34
Lure of Iron ore......................................................................................................................................35
Short-term Outlook: steady growth in steel demand until 2006................................................................36
India: low per-capita consumption, attractive growth prospects...........................................................36
Infrastructure and construction: key drivers..........................................................................................36
Automobile/White goods sectors to further drive growth.....................................................................36
Low but rising gross domestic capital formation...................................................................................36
Industrial production and manufacturing sector drive growth...............................................................37
The principal drivers.................................................................................................................................38
Power: massive investments on the cards..............................................................................................38
Roads.....................................................................................................................................................38
Housing shortages to prop up demand for steel.....................................................................................39
Duties cut and assumed forecast...............................................................................................................40
The Pie gets bigger in India.......................................................................................................................41
Advantage India........................................................................................................................................42
ISSUES AND CHALLENGES....................................................................................................................43
Current global issues and implication on Indian industry.........................................................................43
Issues.....................................................................................................................................................43
Conclusion.............................................................................................................................................45
Key India centric industry constraints.......................................................................................................45
Steel companies in India operate in an adverse factor cost scenario.....................................................46
Recommendations.....................................................................................................................................46
Backward integration is the key to leadership.......................................................................................47
THE PRINCIPAL PLAYERS - A COMPARATIVE PERSPECTIVE.......................................................48
Tata steel...................................................................................................................................................48
SAIL..........................................................................................................................................................51
Jindal steel and power (JSPL)...................................................................................................................53
Essar steel..................................................................................................................................................55
Ispat steel...................................................................................................................................................56
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