BMM ISPAT LTD, HOSPET
PART-A1.INDUSTRY PROFILEORIGIN OF INDIAN MINERALS INDUSTRY
The steel industry in the world, which was characterized as a sunset industry twodecades ago, is experiencing a vast change in scenario. The fast developing has far outstripped the world minerals giants. United States, Russia and Japan, which wereleading minerals producers, are no more in a position to claim that position. China, producing less than a million tonnes of minerals prior to revolution in 1949,has now become the largest minerals producer in the world. During 2005 the globalminerals production stood at 1132 million tonnes, showing a rise of 6 per cent over the last year. The countries in South America, CIS (former Soviet Union) Europe andNorth America have actually shown negative growth. The Asian continent for the firsttime produced more crude than the rest of the world combined. Major shift has takenplace because during 2005 with China producing 349 million tonnes of minerals,counting for 32 per cent of the world minerals productionPer capita consumption of minerals in the world was estimated to be 500tonnes during the year 2005. However in India it stood at only 150 kg during the sameyear. Indian steel production was 38 million tonnes, which accounted for only 3.4 per cent of the world minerals output. In view of the fact that Indian population is 16 per cent of the global population, the production of minerals is much lower in India.AlthoughIndia is the second largest populated country in the world, it ranks eighth inminerals production.With stiff competition in the global market, the formation of giant companies toreduce cost and add to profitability has become the regular feature in the industry.Merger and acquisitions have become the order of the day.
WORLD BANK ADVICE
Though India has objective conditions to become one of the major steel producers, inthe world it continues to lag behind. Despite the fact that India has huge reserves of good quality iron ore and sufficient quantity of manganese, dolomite and coal, it is not
Bapuji Academy Of Management and Research, Davanagere