Industry Overview

• Steel is an alloy consisting mostly of iron, with a

carbon content between 0.2% and 2.14% by weight.

• India is the 10th largest steel producer in the world,

but with only a 2% share in the global trade.

• SAIL and TATA Steel have traditionally been the

major steel producers of India.

• Steel is mostly used for construction of bridges,

buildings, automobiles production etc.

• With the developing Indian economy steel is

demanded more & more by many sectors.
Market Structure
PEST Analysis

Political

• Political stability

• Trade regulations

• Tax policies such as import & export duties

• Industrial safety and environmental regulations

• Employment laws
 Continued
Economic

• Inflation rate

• Interest rates

• Exchange rates

• Labor costs

• Government expenditure

• Consumer spending
 Continued
Social

• Consumer Behavior

• Income Distribution

• Living Standards

• Health & Safety measures

• Fashion & Lifestyle changes

• Employment Opportunities
 Continued
Technological

• Technological Developments

• New Inventions

• Automation

• Information Technology

• Infrastructure Development
 Recent Trend
• JINDAL Steel unit to set up 1600 MW Power Plant.

• TATA Steel is in talks with Toyota to supply high-grade

steel skin panels for the car maker's proposed small car
project.

• Prices have been raised by 500 rupees ($10.4) to 750

rupees per tonnes, based on market conditions.

• JSW Steel bags Golden Peacock for CSR initiatives.

• ESSAR Steel sets up processing facility in Chennai’s auto

belt.

• BHUSHAN Steel acquires 9.5% stake in Orissa Sponge Iron

& Steel.
 Continued
• Tata Steel is about to launch India’s first organized
steel retail store selling steel with its first pilot store
‘Steel Junction’ in Kolkata.

• Tata Steel hopes that ‘Steel Junction’ would be a

platform that would bring together vendors &
manufacturers.
Indian Steel Industry- Major Players
Finished Steel Production 2008-09

Company 08-09
(MT)
S A IL
2 2% SAIL 9.15
O th ers
40 % Tata Steel 3.8

R IN L RINL 3.0
7% ESSAR 3.3
T ata Ste el
ISPAT 2.6
E ss a r JS W L 9%
8% JSWL 3.5
8%
Is pa t OTHERS 17.2
6%
Total 42.7
 SWOT Analysis
Strengths
1. Availability of iron ore and
coal
2. Low labour wage rates
3. Abundance of quality
manpower
4. Mature production base
Opportunities
1. Unexplored rural market
2. Growing domestic demand
3. Exports
4. Consolidation
Weaknesses
1. Unscientific mining
2. Coking coal import dependence
3. Low R&D investment
4. Inadequate infrastructure
 Threats
1. China becoming net exporter
2. Protectionism in the West
3. Dumping by competitors
4. Global economic slowdown
 Conclusion
• Indian Government targets to increase the production
capacity from 56 million tonnes annually to 124 million
tonnes by 2011-2012.

• Numerous steel companies are willing to invest in the

Indian Steel Industry.

• As per Investment Commission of India more than 30 billion

USD are in the pipeline for investment over the next five
years.

• With an expanding consumer market, the Indian Steel

Industry is likely to receive huge domestic & foreign
investments.