Indian Steel

Industry
International School of Business & Media;
Kolkata

Anindya Pal
Abhijit Samanta
Kamalika Mondal
Subhadeep Chakraborty
Saugata Dastidar
Presentation Overview

1 Steel Industry in India

2 Industry forecast vs Company forecast

3 Sales Trend Analysis

4 Sales Strategies

5 Conclusion
ndian Steel Industry
Today India is in seventh position among all the crude steel
producing countries

In 1992, India produced 14.33 million tones of finished carbon steels

and 1.59 million tones of pig iron. In 2008, India produced nearly 46.575
million tones of finished steels and 4.393 million tones of pig iron.

In 1992, the total consumption of finished steel was 14.84 million tones. In 2008, the total
amount of domestic steel consumption was 43.925 million tones.

Steel production in India has increased by a compounded annual growth rate (CAGR) of 8
percent over the period 2002-03 to 2006-07. The per capita consumption of steel in India, at
around 46 kg, is well below the world average (150 kg) and that of developed countries (400
kg). Indian demand is projected to rise to 200 million tones by 2015.

While steel continues to have a stronghold in traditional sectors such as construction,

housing and ground transportation, special steels are increasingly used in engineering
industries such as power generation, petrochemicals and fertilizers.
Industry Forecast

Source: IAS, CMIE

Industry
Forecast

Source: IAS, CMIE

Production Forecast : Market Leader vs
Market Challanger

Source: IAS, CMIE

Production Forecast : Market Leader vs
Market Challanger
SAIL

•The actual steel production of SAIL is varrying at a

higher rate than of the TATA STEEL
•3 Yr & 5 Yr moving average of SAIL is showing almost same
forecast.
•Being a market leader SAIL is having much more production
than of TATA STEEL.

TATA STEEL

• The actual production of TATA STEEL is growting

maintaining a constant growth rate and the fluctuation in
production is less.
•As compare to SAIL, TATA STEEL is having lower production
volume .
•In last two years i.e. 2008 & 2009 TATA STELL has managed
to reduce the production gap with SAIL by maintaing a
constant growth in their production.
arket Share Analysis : 2007 - 2009

Source: IAS, CMIE

arket Share Analysis : 2007 - 2009

Assumption:
We are assuming that these are
the major steel manufacturing
companies in India.

1.There is a slight fall down in the market

share of SAIL in recent years.
2.TATA STEEL is maintaing a constant market
share and in recent years there is a slight
growth in their overall market share.
3.Essar Steel faced a slight decline in their
market share in 2009.
4.JSW Steel maintained a huge growth in 2008
market share but again in 2009 it falled
down.
Steel Industry & Major Consumers of Steel :
Trends

Source: IAS, CMIE

Steel Industry & Major Consumers of Steel :
Trends

1.The chart shows the co-relation between the YOY growth

of Steel and Various products of steel.
2.
3.For all the areas the co-relation is +ve which means
that the steel production and the productions of steel
dependent items have a very significant relationship.
4.
5.Hydro turbine, AC Generators and Automobile Industry
is very highly co-related ( Value > 0.5) with steel
production. In other words more we produce steel more
is the scope of growth of these industries.
SALES TREND
ANALYSIS
Steel Industry & Major Consumers of Steel :
Trends

Source: IAS, CMIE

Steel Industry & Major Consumers of Steel :
Trends

Source: IAS, CMIE

SALES STRATEGIES
Strategies : Market Leader vs Market Challang

SAIL TATA STEEL

( Market Leader ) ( Market Challenger )

Hold its market share Increase market share to become the leader
IL : Defensive Strategy
Colaborati
on with
Posco ,
South
Korea

Leveraging Producing
marketing various
network grades of
auto steel .

SAIL

Plan value
added Increase
items in Cost
the Competetiv
product eness
basket
TA STEEL : Offensive Strategy
Acquisitio
n of
Millennium
Steel ,
Thailand
in 2005

Accuisitio
n of Corus TATA
in 2007 STEEL

Acquisitio
n of
NatSteel ,
Singapore
in 2004 .
Conclusi
on

qFrom the over all analysis of strategies we can

see that the market leader always try to defend
its own position and market share.
q
qThe main objective of all the activities they
perform is to be there in the market with their
existing position.

qOn the other hand the market challenger always

try to increase the market share. The main thing
they try to do is to get into various mergers and
acquisitions so that they can create a strong
industry base with the other existing players.
THANK YOU!