Professional Documents
Culture Documents
AN ANALYSIS
INTRODUCTION
Source: IISI
Tata-Corus
11.3bn$ deal QuickTime™ and a
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INDIAN SCENARIO
PRODUCTION IN INDIA
50
45
Quantity (in million tonnes)
40
35
30
25
20
15
10
5
0
2003-04 2004-05 2005-06 2006-07
YEAR
4
Quantity (in million tonnes)
3
IMPORTS
2
EXPORTS
1
0
2003-04 2004-05 2005-06 2006-07
YEAR
INDIAN TRENDS
Average growth rate for past 15 years 7%
pa
Improved rank to 7th place
Projected growth rate 7.3% pa
Expected to be world's 2nd largest steel
producer by 2016
Race for the capacity
16% CAGR over 5 years
Steam still left in the super cycle
Steel companies in India to outperform
Joined at the hip (to the globe)
Indian production growth slowed by capacity
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INDUSTRIAL REGULATIONS
Pollution Control
ESI
RPF
Central Excise Duty
Custom Duty
Auxiliary Duty
Sales Tax
Laws under Factory Act
INDUSTRIAL REGULATION
SUBSIDIES LICENSE
Interest Subsidy Trade License
Capital Investment Health License
Subsidies Fire License
Stamp Duty
Exemptions
Electricity
Subsidies.
SWOT FOR INDIAN STEEL
SECTOR
Strength Weakness
Unscientific mining
Availability of iron ore
Low productivity
and coke Coking coal import
Low wage labor dependence
availability Low R&D investment
High cost of debt
Quality manpower
Inadequate infrastructure
Mature production
base
SWOT contd..
Opportunities Threats
Unexplored rural China becoming net
markets exporter
Growing domestic
Dumping by
demand
competitors
Exports
Protectionism from
Consolidation
the West
STRATEGIES FOR GROWTH
On the demand side
Extensive promotional campaigns
Strengthening of rural delivery chain
Encouraging infrastructure development
On the supply side
GLOBAL SCENARIO
GLOBAL TRENDS
The global consumption of steel has increased
at a pace of 7%