Steel

MarketLine Industry Profile
Steel in India
January 2022
Reference Code: 0102-0998
Publication Date: January 2022
Primary NAICS: 212210
WWW.MARKETLINE.COM
MARKETLINE. THIS PROFILE IS A LICENSED PRODUCT
AND IS NOT TO BE PHOTOCOPIED
© MARKETLINE THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED Page | 1

Steel in India
Industry Profiles
1. Executive Summary
1.1. Market value
The Indian steel market shrank by 13% in 2020 to reach a value of $50.9 billion.
1.2. Market value forecast

In 2025, the Indian steel market is forecast to have a value of $76.3 billion, an increase of 49.9% since
2020.
1.3. Market volume

The Indian steel market shrank by 10% in 2020 to reach a volume of 100.3 million tons.
1.4. Market volume forecast
In 2025, the Indian steel market is forecast to have a volume of 146.6 million tons, an increase of 46.2%
since 2020.
1.5. Geography segmentation

India accounts for 6.4% of the Asia-Pacific steel market value.
1.6. Market share
Tata Steel is the leading player in the Indian steel market, generating a 16.9% share of the market's volume.
1.7. Market rivalry

The steel market is highly concentrated to a few large players, as the importance of scale economies favors
concentration to larger companies. However, as the steel market remains highly cyclical, it is subject to
intense competition. The main challenges that steelmakers face include: volatility, shifting demand centers,
complex supply chains, productivity and cost efficiency. The market is also affected by general economic
conditions and end-use markets, including the automotive, appliance, construction, and energy industries.
As these industries experience a downturn, the steel market usually follows their trend.

Steel in India
Industry Profiles
1.8. Competitive Landscape

JSW Steel Ltd, Steel Authority of India, Tata Steel Ltd and Jindal Steel & Power Ltd are the leading players in
the market and are all based in India, which indicates the strong presence of Indian steel producing
companies in the steel market. The majority of the leading players operate a vast product portfolio,
involved in both mining and steel production, which enables these companies to capture a large share of
the market. Furthermore, research and development (R&D) helps leading players to enhance existing
products and meet the evolving needs of their customers. Mergers and acquisitions are very common in
this market. This is mainly due to steel producing companies backward integrating into the mining
business, in order to cut down costs, and secure supplies of raw materials.

Steel in India
Industry Profiles
TABLE OF CONTENTS
1. Executive Summary2
1.1. Market value .............................................................................................................................................. 2
1.2. Market value forecast ................................................................................................................................ 2
1.3. Market volume........................................................................................................................................... 2
1.4. Market volume forecast............................................................................................................................. 2
1.5. Geography segmentation .......................................................................................................................... 2
1.6. Market share .............................................................................................................................................. 2
1.7. Market rivalry ............................................................................................................................................ 2
1.8. Competitive Landscape .............................................................................................................................. 3
2. Market Overview8
2.1. Market definition ....................................................................................................................................... 8
2.2. Market analysis .......................................................................................................................................... 8
3. Market Data10
3.1. Market value ............................................................................................................................................ 10
3.2. Market volume......................................................................................................................................... 11
4. Market Segmentation12
4.1. Geography segmentation ........................................................................................................................ 12
5. Market Outlook13
5.1. Market value forecast .............................................................................................................................. 13
5.2. Market volume forecast........................................................................................................................... 14
6. Five Forces Analysis15
6.1. Summary .................................................................................................................................................. 15
6.2. Buyer power............................................................................................................................................. 17
6.3. Supplier power ......................................................................................................................................... 19
6.4. New entrants ........................................................................................................................................... 21
6.5. Threat of substitutes ................................................................................................................................ 23

Steel in India
Industry Profiles
6.6. Degree of rivalry ...................................................................................................................................... 24
7. Competitive Landscape26
7.1. Market share ............................................................................................................................................ 26
7.2. Who are the leading players? .................................................................................................................. 27
7.3. What strategies do the leading players follow? ...................................................................................... 27
7.4. How did the COVID-19 pandemic affect the industry? ............................................................................ 28
7.5. What are the most recent developments of leading players?................................................................. 29
8. Company Profiles30
8.1. Tata Steel Ltd ........................................................................................................................................... 30
8.2. Steel Authority of India Ltd ...................................................................................................................... 36
8.3. JSW Steel Ltd ............................................................................................................................................ 41
9. Macroeconomic Indicators45
9.1. Country data ............................................................................................................................................ 45
Appendix 47
Methodology ........................................................................................................................................................... 47
9.2. Industry associations ............................................................................................................................... 48
9.3. Related MarketLine research ................................................................................................................... 48
About MarketLine .................................................................................................................................................... 49

Steel in India
Industry Profiles
LIST OF TABLES
Table 1: India steel market value: $ billion, 2016–20 10
Table 2: India steel market volume: million tons, 2016–20 11
Table 3: India steel market geography segmentation: $ billion, 2020 12
Table 4: India steel market value forecast: $ billion, 2020–25 13
Table 5: India steel market volume forecast: million tons, 2020–25 14
Table 6: India steel market share: % share, by volume, 2020 26
Table 7: Tata Steel Ltd: key facts 30
Table 8: Tata Steel Ltd: Annual Financial Ratios 31
Table 9: Tata Steel Ltd: Key Employees 32
Table 10: Tata Steel Ltd: Key Employees Continued 33
Table 13: Steel Authority of India Ltd: key facts 36
Table 14: Steel Authority of India Ltd: Annual Financial Ratios 37
Table 15: Steel Authority of India Ltd: Key Employees 38
Table 16: Steel Authority of India Ltd: Key Employees Continued 39
Table 17: Steel Authority of India Ltd: Key Employees Continued 40
Table 18: JSW Steel Ltd: key facts 41
Table 19: JSW Steel Ltd: Annual Financial Ratios 43
Table 20: JSW Steel Ltd: Key Employees 44
Table 21: India size of population (million), 2016–20 45
Table 22: India gdp (constant 2005 prices, $ billion), 2016–20 45
Table 23: India gdp (current prices, $ billion), 2016–20 45
Table 24: India inflation, 2016–20 45
Table 25: India consumer price index (absolute), 2016–20 46
Table 26: India exchange rate, 2016–20 46

Steel in India
Industry Profiles
LIST OF FIGURES
Figure 1: India steel market value: $ billion, 2016–20 10
Figure 2: India steel market volume: million tons, 2016–20 11
Figure 3: India steel market geography segmentation: % share, by value, 2020 12
Figure 4: India steel market value forecast: $ billion, 2020–25 13
Figure 5: India steel market volume forecast: million tons, 2020–25 14
Figure 6: Forces driving competition in the steel market in India, 2020 15
Figure 7: Drivers of buyer power in the steel market in India, 2020 17
Figure 8: Drivers of supplier power in the steel market in India, 2020 19
Figure 9: Factors influencing the likelihood of new entrants in the steel market in India, 2020 21
Figure 10: Factors influencing the threat of substitutes in the steel market in India, 2020 23
Figure 11: Drivers of degree of rivalry in the steel market in India, 2020 24
Figure 12: India steel market share: % share, by volume, 2020 26

Steel in India
Industry Profiles
2. Market Overview
2.1. Market definition

The steel market consists of the production of crude steel in the stated country or region.
Crude steel production refers to the production of the first solid steel products upon solidification of liquid steel. It
includes ingots (in conventional mills) and semis (in modern mills with continuous casting facilities). Crude steel
also includes liquid steel, which goes into the production of steel castings.
Market values have been calculated using appropriate regional annual average steel prices.
Market shares reflect volumes of steel produced by a company in a respective market.
All market data and forecasts are represented in nominal terms (i.e., without adjustment for inflation) and all
currency conversions used in the creation of this report have been calculated using constant 2020 annual average
exchange rates.
Forecast figures presented in this report are calculated using crisis scenarios for the market. The length of the
pandemic and restrictions introduced by various countries are still difficult to predict. Many governments had
introduced the national lockdowns and temporarily banned sales of products that are deemed "non-essential". As
the length of the pandemic and its impact on this market is not certain, the data used in this report has been
modeled taking forecast impacts on national economics into consideration.
For the purposes of this report, the global market consists of North America, South America, Europe, Asia-Pacific,
Middle East, South Africa and Nigeria.
North America consists of Canada, Mexico, and the United States.
South America comprises Argentina, Brazil, Chile, Colombia, and Peru.
Europe comprises Austria, Belgium, the Czech Republic, Denmark, Finland, France, Germany, Greece, Ireland, Italy,
Netherlands, Norway, Poland, Portugal, Russia, Spain, Sweden, Switzerland, Turkey, and the United Kingdom.
Scandinavia comprises Denmark, Finland, Norway, and Sweden.
Asia-Pacific comprises Australia, China, Hong Kong, India, Indonesia, Kazakhstan, Japan, Malaysia, New Zealand,
Pakistan, Philippines, Singapore, South Korea, Taiwan, Thailand, and Vietnam.
Middle East comprises Egypt, Israel, Saudi Arabia, and United Arab Emirates.
2.2. Market analysis

The market in India has grown strongly during the past five years, despite decline in 2019 and 2020. The market is
forecast to see strong growth in 2021 before returning to moderate growth.
The Indian steel market had total revenues of $50.9bn in 2020, representing a compound annual growth rate
(CAGR) of 7.3% between 2016 and 2020. In comparison, the South Korean and Chinese markets grew with CAGRs
of 5.4% and 13.5% respectively, over the same period, to reach respective values of $37.8bn and $598.3bn in
2020.
Market growth was driven by wider economic growth in the region. As key industries such as construction and
automotive manufacturing increased in activity, the demand for steel steadily increased, leading to market growth.
The market was also bolstered by similar economic growth impacts in other regions.
Decline in 2020 was largely induced by the COVID-19 pandemic, which greatly inhibited steel production in India.
The market volume of steel fell 10% in comparison to 2019, due to reduced exploration activity resulting in lower

Steel in India
Industry Profiles
supply levels. This was coupled with reduced demand due to the recessionary impacts of the COVID-19 pandemic.
Investor and consumer confidence fell greatly, reducing spending in key industries such as construction and
machinery, which caused demand in the steel market to diminish greatly.
Market production volume increased with a CAGR of 1.2% between 2016 and 2020, to reach a total of 100.3
million tons in 2020. The market's volume is expected to rise to 146.6 million tons by the end of 2025,
representing a CAGR of 7.9% for the 2020-2025 period.
The performance of the market is forecast to accelerate, with an anticipated CAGR of 8.4% for the five-year period
2020 - 2025, which is expected to drive the market to a value of $76.3bn by the end of 2025. Comparatively, the
South Korean and Chinese markets will grow with CAGRs of 3.2% and 4.3% respectively, over the same period, to
reach respective values of $44.3bn and $738.7bn in 2025.
The market is forecast to see strong growth in 2021 as global economic activity is set to resume to pre-pandemic
levels. This will result in increased investor and consumer confidence, which will drive activity in the construction,
machinery, and automotive sectors. These are key buyers in the steel market and thus will drive growth in steel
market value.
Decline beyond 2021 will be caused by oversupply in the market, which will result in the price of steel falling
drastically. As supply chains recover post-COVID, global movement and trade of metals will resume, easing access
to steel. This will result in market value declining because of the price fall caused by supply levels increasing.

Steel in India
Industry Profiles
3. Market Data
3.1. Market value

The Indian steel market shrank by 13% in 2020 to reach a value of $50.9 billion.
The compound annual growth rate of the market in the period 2016–20 was 7.3%.
Table 1: India steel market value: $ billion, 2016–20

Year $ billion Rs. billion € billion % Growth
2016 38.4 2,846.9 33.7
2017 49.8 3,690.5 43.6 29.6%
2018 60.3 4,471.3 52.9 21.2%
2019 58.5 4,335.4 51.3 (3.0%)
2020 50.9 3,770.8 44.6 (13.0%)
CAGR: 2016–20 7.3%

SOURCE: MARKETLINE MARKETLINE
Figure 1: India steel market value: $ billion, 2016–20

Steel in India
Industry Profiles
3.2. Market volume

The Indian steel market shrank by 10% in 2020 to reach a volume of 100.3 million tons.
The compound annual growth rate of the market in the period 2016–20 was 1.2%.
Table 2: India steel market volume: million tons, 2016–20

Year million tons % Growth
2016 95.5
2017 101.4 6.2%
2018 109.3 7.8%
2019 111.4 1.9%
2020 100.3 (10.0%)
CAGR: 2016–20 1.2%

Figure 2: India steel market volume: million tons, 2016–20

Steel in India
Industry Profiles
4. Market Segmentation
4.1. Geography segmentation

India accounts for 6.4% of the Asia-Pacific steel market value.
China accounts for a further 75.6% of the Asia-Pacific market.
Table 3: India steel market geography segmentation: $ billion, 2020

Geography 2020 %
China 598.3 75.6
Japan 55.3 7.0
India 50.9 6.4
South Korea 37.8 4.8
Taiwan 13.3 1.7
Rest Of Asia-pacific 35.7 4.5
Total 791.3 100%

Figure 3: India steel market geography segmentation: % share, by value, 2020

Steel in India
Industry Profiles
5. Market Outlook
5.1. Market value forecast

In 2025, the Indian steel market is forecast to have a value of $76.3 billion, an increase of 49.9% since 2020.
The compound annual growth rate of the market in the period 2020–25 is predicted to be 8.4%.
Table 4: India steel market value forecast: $ billion, 2020–25

Year $ billion Rs. billion € billion % Growth
2020 50.9 3,770.8 44.6 (13.0%)
2021 75.9 5,620.7 66.5 49.1%
2022 70.5 5,223.2 61.8 (7.1%)
2023 71.4 5,291.5 62.6 1.3%
2024 73.8 5,470.9 64.7 3.4%
2025 76.3 5,656.4 66.9 3.4%
CAGR: 2020–25 8.4%

Figure 4: India steel market value forecast: $ billion, 2020–25

Steel in India
Industry Profiles
5.2. Market volume forecast

In 2025, the Indian steel market is forecast to have a volume of 146.6 million tons, an increase of 46.2% since 2020.
The compound annual growth rate of the market in the period 2020–25 is predicted to be 7.9%.
Table 5: India steel market volume forecast: million tons, 2020–25

Year million tons % Growth
2020 100.3 (10.0%)
2021 110.3 10.0%
2022 121.4 10.1%
2023 132.5 9.2%
2024 139.4 5.2%
2025 146.6 5.2%
CAGR: 2020–25 7.9%

Figure 5: India steel market volume forecast: million tons, 2020–25

Steel in India
Industry Profiles
6. Five Forces Analysis

The steel market will be analyzed taking steelmakers as players. The key buyers will be taken as end-users, coming
from numerous industries, but mainly automotive, construction and engineering firms, which utilize steel in the
production of their goods, and producers of raw materials, such as iron ore and coal as the key suppliers.
6.1. Summary
Figure 6: Forces driving competition in the steel market in India, 2020
The steel market is highly concentrated to a few large players, as the importance of scale economies favors
concentration to larger companies. However, as the steel market remains highly cyclical, it is subject to intense
competition. The main challenges that steelmakers face include: volatility, shifting demand centers, complex supply
chains, productivity and cost efficiency. The market is also affected by general economic conditions and end-use
markets, including the automotive, appliance, construction, and energy industries. As these industries experience a
downturn, the steel market usually follows their trend.
As steel is the most widely used metal and most recycled material, there are many buyers within this market. Steel is
used as a raw material input in every important industry, namely construction, automotive and transportation,
machinery, packaging, and energy. Large companies operating in these industries are the largest primary buyers in the
market, enjoying high buyer bargaining power.
Suppliers of steel mainly include miners of critical raw materials of iron ore, coal, limestone, and other secondary
minerals that are vital in the steel-making process, as well as suppliers of recycled (scrap) steel and natural gas.
Depending on the types of steelmaking process followed, key raw materials, and therefore suppliers, are slightly
differentiated. Mining giants supply the steel market with necessary raw materials, including iron ore and coking coal.
A significant capital outlay, large economies of scale, and the concentration of the market to established incumbents
are the highest barriers to entry. Moreover, commodity risks and tighter environmental regulations may also
discourage prospective entrants.
The unique properties of steel as a material decrease the threat of substitutes. There are potential substitutes for steel
available, but these vary greatly by application. In most applications, steel competes either with less expensive

Steel in India
Industry Profiles
nonmetallic materials, or with more expensive materials that have a performance advantage. However, these
alternatives are hardly 'drop-in replacements'.

Steel in India
Industry Profiles
6.2. Buyer power
Figure 7: Drivers of buyer power in the steel market in India, 2020
As steel is the most widely used metal and most recycled material, there are many buyers within this market. Steel is
used as a raw material input in every important industry, namely construction, automotive and transportation,
machinery, packaging, and energy. Large companies operating in these industries are the largest primary buyers in the
market.
Large-sized buyers include construction companies, and vehicle and machinery manufacturers. These high-volume
buyers tend to purchase directly from steel manufacturers, negotiating lower input prices by leveraging their size. Due
to the cost-intensive operations within their industries, buyers are highly price-sensitive and they tend to actively push
prices down, suppressing the profitability of steel manufacturers. However, the concentration of the market to a few
enormous size steel manufacturers, which are diversified through a list of industry-clients, is still exerting pressure on
buyers.
Construction companies are vital end-users in the steel value chain because of the scale of work frequently undertaken,
accounting for nearly half of total demand on average. Many steel items used in building construction are standardized
parts (structural steel), allowing construction companies to buy in bulk relatively easily. Large projects, such as the
construction of tower blocks, consume large amounts of steel, granting construction companies the ability to exert
significant downward pressure on costs through large orders that fabricators will compete to fulfill.
Heavy industries, such as ship building, automotive, machinery, aircraft, and rolling stock manufacturing are also major
customers of steel fabricators, accounting for 25% to 30% of total demand. Ship building, rolling stock, and aircraft
companies consume vast quantities of steel, which has to be made to order and arrive on time, making such companies
highly valuable to steel fabricators. Certain mass market product makers, such as automotive and machinery
manufacturers, also demand large quantities of high-quality steel. Only in the automotive industry, 900kg of steel is
used per vehicle, on average. Relationships between steel manufacturers and buyers of such products are vitally
important due to their long replacement cycle, as well as the importance that end-users place upon quality control.
Companies manufacturing products for mass market consumption are also important buyers, accounting for slightly
less than 20% of demand on average. Consumer appliances, cutlery, tools, jewelry, and other small consumer goods
contain small amounts of steel, but significant for the size of the product. Although containing small amounts of steel,
the high number sold increases the importance of these product manufacturers to steel manufacturers.

Steel in India
Industry Profiles
There are also low-volume customers that buy from large stockholders (traders) and service centers, which vary
depending on the final use of steel products. Steel service centers and traders buy steel from manufacturers, store it in
warehouses, and re-sell it to small buyers and end users, also processing it according to customer requirements before
sale. The existence of traders and steel service centers increases buyer power, with these buyers leveraging aggregate
demand from individuals and small and medium-sized companies that buy smaller quantities, below the minimum
amount that a steel manufacturer would sell. However, these buyers, who account for a noticeable share of demand
yet they are scattered, do not enjoy significant buyer power.
Steel is indispensable as it is nearly unsubstitutable as an input for all types of buyers due to its unique properties,
which are vital for products’ end-users. This substantially increases the bargaining power of players in this market.
Nevertheless, steel is largely commoditized as a product, with the absence of a unique product strengthening buyer
power; product differentiation is only limited to the types-alloys of steel and its different forms varying by end use.
There are 3,500 different grades of steel based on various combinations of alloys.
Most buyers are unlikely to integrate backward into steelmaking; a vast investment would be required for steel
consumers to engage in the cost-intensive industry of steel-manufacturing, and that is typically out of their scope.
Similarly, players are unlikely to integrate forward into the various buyer businesses, which also require vast investment
and are out of their scope.
The COVID-19 pandemic will have further reduced the likelihood of buyers backward-integrating into steel due to credit
being constricted and investment being disincentivized due to the adverse economic conditions.
Overall, buyer power is assessed as moderate.

Steel in India
Industry Profiles
6.3. Supplier power
Figure 8: Drivers of supplier power in the steel market in India, 2020
Suppliers of steel mainly include miners of critical raw materials of iron ore, coal, limestone, and other secondary
minerals that are vital in the steel-making process, as well as suppliers of recycled (scrap) steel and natural gas.
According to the World Steel Association, the global steel industry consumes about 2 billion tonnes of iron ore, 1 billion
tonnes of metallurgical coal, and 575 million tonnes of recycled steel to produce 1.7 billion tonnes of crude steel
annually. Depending on the types of steelmaking process followed – either basic oxygen steelmaking (BOF) or electric
furnace steelmaking (EF) – key raw materials, and therefore suppliers, are slightly differentiated.
As steel is an alloy consisting mostly of iron and less than 2% carbon, iron ore is the most critical, non-substitutable raw
material. Due to the economies of scale required in mining activities, iron ore is concentrated to a few giant
international companies, namely BHP Billiton, Vale, and Rio Tinto, which have enormous bargaining power as suppliers.
The power of these suppliers is further strengthened by the importance of the quality of the iron ore, which is mostly
dependent on its purity (grade) and is reflected in its price. For this reason, the highest quality and most sought-after
iron ores for steelmaking are hematite (Fe2O3) and magnetite (Fe3O4). The power of iron ore suppliers is only
mitigated by the fact that iron is a commoditized product, with no significant product differentiation, while the iron
making industry is dependent on the steel market, with 97% of iron ore used in steel production.
As the amount of pure iron in the raw forms of iron ore (sized ore, concentrates, pellets, furnace dust) is typically 60%
to 65%, the rest of the ore is comprised by other naturally-occurring impurities that must be eliminated or “reduced” to
obtain the pure iron in order to produce steel at a later stage. Depending on the steelmaking process followed – either
BOF or EF – the processes and key raw materials used as reducing agents to extract iron in its pure form are also
differentiated.
In the BOF process, iron ore is converted into pure iron (molten pig iron) through smelting in blast furnaces, with the
smelting process dependent upon coke, a fuel-residue obtained by carburising coking coal that acts as a reducing agent.
Accordingly, coal is the most critical raw material after iron in the BOF process, with coal mining companies having
strong bargaining power over steelmakers following that process. In the EF process, either in electric arc furnaces or
induction furnaces, iron ore is converted into its pure form (known as direct reduced iron or sponge iron) through the
direct reduction process by typically using natural gas as a reducing agent, and less commonly coal – or not using fuel at
all in the case of induction furnaces. Another differentiating parameter between the two processes is that in the EF
process, steel can be produced by a 100% input of recycled scrap steel, while in BOF, that capacity is limited to 30% of

Steel in India
Industry Profiles
input. Schematically, with BOF, in order to produce 1,000kg of crude steel, it takes 1,370kg of iron ore, 780kg of
metallurgical coal, 270kg of limestone, and 125kg of recycled steel on average, according to the World Steel
Association. On the other hand, with EF, to produce 1,000kg of crude steel it takes 710kg of recycled steel, 586kg of
iron ore, 150kg of coal, 88kg of limestone, and 2.3 GJ of electricity.
In the case of alloy steels, which have slightly different properties from non-alloy steels (which only contain trace
amounts of elements besides carbon and iron), alloying elements such as manganese, silicon, nickel, titanium, copper,
chromium, and aluminum are also added to the steelmaking process. Limestone and other materials are used in small
quantities in steel production to correct impurities, but that does not mean the suppliers are small in scale. The
minerals used as raw material inputs in the steelmaking processes come from almost exclusively mining, with mining
companies limited to very large multi-national firms due to the economies of scale required and the extent of
consolidation the mining industry has experienced. In fact, some of the largest iron ore mining companies are also
engaged in the mining of critical minerals that are used in steelmaking. This furthers increases their power. Most
importantly, steel production companies on the whole prefer to buy from established mining companies due to the
reliability of supply and the economies of scale such companies can provide. Only leading players in mining are capable
of providing materials on the scale the major steel companies require. The bargaining power of suppliers is low in the
case of the backward integration of players through fully integrated steel plants. Some players have their own mines for
key raw materials, such as iron ore and coal, but this requires large financial resources, which are only available to the
largest players.
As steel production is energy intensive, with energy costs accounting for 20% to 40% of production costs, energy
suppliers such as natural gas and electricity companies are also considered major suppliers. Steel production is also
labor-intensive, with the supply of labor from qualified staff an important factor of production.
The push for environmental sustainability has changed the landscape of the steel supply chain in recent years. More
stringent environmental standards have put pressure on steel manufacturers to improve their environmental
performance though higher material and energy efficiency rates and steel recycling. Especially, steel recycling rates
have increased, reducing the importance of suppliers of raw materials. For example, recycling steel leads to significant
raw material savings of over 1,400kg of iron ore, 740kg of coal, and 120kg of limestone for every 1,000kg of steel scrap
made into new steel, according to the World Steel Association. At present, nearly one third of annual steel production is
based on scrap steel. This share is expected to increase further as steel is the most recycled material in the world,
nearly 100% recyclable and 85% recoverable, based on its magnetic properties that allow easy separation from other
waste. However, the supply of scrap steel is highly fragmented as it comes from many different sources; from home
appliances and automobiles that end up in scrappage facilities at the end of their lifecycle to industrial scrap from
byproducts of manufacturing.
Another burning issue is the volatility of prices of raw materials. Steelmakers are adjusting to a shift in the pricing of
iron ore and coking coal, after Vale, BHP Billiton, and rival mining companies abandoned a 40-year tradition of annual
prices in favor of the quarterly, index-linked iron ore contracts system. Having to pay iron ore prices that change on a
quarterly basis, instead of an annual basis, leaves steelmakers vulnerable to significant price volatility risk. Although
players can engage in hedging tactics, the oligopolistic supply of iron ore will continue to squeeze their margins.
Overall, supplier power is assessed as strong.

Steel in India
Industry Profiles
6.4. New entrants
Figure 9: Factors influencing the likelihood of new entrants in the steel market in India, 2020
A significant capital outlay, large economies of scale, and the established brand strength of incumbents TATA Steel,
Steel Authority of India, JSW, and Jindal Steel & Power, which concentrate nearly half of the market, are the highest
barriers to entry in the steel market. Moreover, commodity risks and tighter environmental regulations may also
discourage prospective entrants.
Steelmaking requires large capital outlay: heavy industrial equipment such as blast or electric arc furnaces, basic oxygen
converters, refining ladles, rolling mills, and transportation infrastructure are needed to achieve sizeable production.
This tends to discourage newcomers with insufficient capital. Moreover, operating costs are high, due to the cost of
critical raw materials, such as iron ore and coking coal, with their prices ranging from $60 to $95 per dry metric ton and
$100 to $200 per metric ton on average, respectively, over the last five years.
Commodity prices have always shown significant volatility, which reflects temporary shortage or surplus conditions in
the markets. Moreover, the supply chains of raw materials have a high exposure to disruptions, such as adverse
weather conditions and accidents due to their concentrated structure.
Steelmakers could secure their investments against the risk associated with volatile markets by using option contracts.
Through the use of option contracts called “call option contracts”, buyers have the ability to buy a certain amount of
ore needed for the production of steel at a predefined price at a certain period of time in the future. This enables
steelmakers to set the price beforehand, meaning they are able to buy at their desirable price in the future, avoiding
any effects from high volatility. Additionally, securing access to the supply of these raw materials is crucial to reduce
risks; the amount of recoverable iron ore and coal reserves within a country is a crucial factor when deciding to enter a
market. Moreover, the geographical location of steel mills must be strategically chosen either near mining areas or near
ports and railways dedicated to imports of iron ore and metallurgical coal. In India, steel production was equal to 102%
of demand as of 2018, according to MarketLine, based on figures from the Word Steel Association.
In some countries, governments employ various strategies over trade, for example via tariffs, subsidies, and import
restrictions, to ensure that their domestic market remains competitive against the dumping practices of developing
countries. In many cases, this has allowed the local steel market to continue operations even when better quality,
cheaper steel could be imported from other countries. For instance, in India, there are antidumping duties on imports

Steel in India
Industry Profiles
of flat hot-rolled stainless steel products from China, Malaysia and South Korea that range from USD180 to USD316 per
metric tonne.
Environmental compliance and remediation in many cases substantially increases capital requirements and operating
costs. Most importantly, the variance of international environmental requirements, with those in developing countries
such as India substantially lower compared to those of developed countries, may give rivals in such nations a
competitive advantage.
To expand market share, build synergies, and extend supply chains, merger and acquisition activities are quite common
in this market. There are a variety of reasons why steel companies pursue integration, e.g. achieving economies of
scale, increasing negotiating power with customers and vendors, competing successfully against incumbents, and
entering new markets. Fully vertically integrated companies are able to weather downturns better, also increasing
barriers to new entrants. On the other hand, some of the smaller players that lack the vertical integration are at risk of
becoming potential acquisition targets for big names. This trend puts smaller and weaker companies out of the market
and lowers the risk of newcomers.
The entry of small players has become more feasible though in recent years, thanks to technological advancements in
steelmaking processes that allow operations at a smaller scale. The rise of the direct iron process, which is more energy
efficient than the conventional blast furnace method and provides enhanced capacity through using iron from scrap
steel as feedstock in electric arc furnaces, has fueled the use of the latter as a more economical option. The initial
investment cost of electric arc furnaces is 70% lower than that of a BOF furnace plant of similar capacity, as well as
providing reduced operating costs. For this reason, electric arc furnaces based on the direct reduction process have
become more prevalent in developing countries. Even some large steel manufacturers in developed countries operate
through minimills, with Nucor and Commercial Metals Company (CMC), which operate through minimills exclusively,
the most prominent examples. About 70% of global steel volume is produced using the BOF steelmaking process, with
slightly less than 30% produced using the EAF process. In fact, in developing countries, the EF steelmaking process is
more prevalent as it requires relatively lower investment. In India, the conventional BOF process accounted for 43.8%
of production volume as of 2019, with the EAF process making up 56.2%, according to the World Steel Association. The
share of electric arc furnaces is expected to increase further in line with increasing scrap availability, potentially
attracting new entrants. According to the World Steel Association, global scrap availability is set to increase from 750
million tonnes in 2017 to 1 billion tonnes in 2030.
Investment in R&D is important to keep up with incumbents, as past experience has shown that production processes
can be improved, leading to enormous costs savings. For example, an emerging technology of injecting fine coal
particles into the blast furnace, called Pulverised Coal Injection (PCI), can save about 30% of coking coal used.
Product differentiation through specialization in specific types and forms of steel, alongside product innovation, could
grant smaller steelmaking companies contracts worth millions, gaining brand recognition. Whilst not many small players
are able to produce in the quantities demanded by such projects without the future of the company becoming overly
dependent upon the success of one project, they are able to adapt comparatively easily to producing bespoke
components compared to the giant world-leading firms focusing on mass commoditized products.
The level of demand and the state of capacity of a market are perhaps the catalyst in the likelihood of prospective new
entrants. In India, the level of steel demand is low compared to developed countries but high among developing
countries, at 101.5 million tonnes, or 74.3kg per capita as of 2019, according to the World Steel Association. The Indian
market is also characterized by high capacity utilization, at nearly 86% in 2019, as per MarketLine, based on OECD and
World Steel Association figures, thus having some room for new entrants.
Finally, the macroeconomic outlook of a country is another catalyst considered when deciding whether to enter the
steel market, which is highly susceptible to macroeconomic shocks; its largest industry-clients, namely construction,
automotive, and mechanical equipment, are highly cyclical and vulnerable themselves to economic downturns.
Accordingly, a weaker economic and market outlook amid the ongoing recession caused by the COVID-19 pandemic is
expected to discourage new entrants in the medium-term.
Consequently, these factors make new companies less likely to enter and the overall threat is assessed as moderate.

Steel in India
Industry Profiles
6.5. Threat of substitutes
Figure 10: Factors influencing the threat of substitutes in the steel market in India, 2020
The unique properties of steel as a material, namely the high tensile and impact strength, its fatigue strength, and its
good ductility and weldability at a competitive cost, decreases the threat of substitutes. In addition to an attractive mix
of strength, quality, cost competitiveness, and adaptability, steel is also recyclable. The ability to make full use of
ferrous scrap (the product of earlier industrial production) makes steel environmentally attractive and reduces the
burden on the world’s resources.
There are potential substitutes for steel available, but these vary greatly by application. For example, aluminum or less-
common materials such as fiberglass (glass-reinforced plastic) can be especially advantageous in the automotive
industry, where manufacturers are looking to use lighter materials. Some automotive companies have started using
plastic in their production of cars; however, this threat is low, as the strength of steel is still required for the frame.
Timber, as a durable, renewable resource, with high tensile strength, has been gaining some traction as an alternative
to steel in construction. However, the construction business will continue to rely on steel in the future for the
augmentation of structures. It is likely that certain kinds of large buildings or civil engineering projects would become
very difficult to construct without using materials, such as reinforced concrete, which gains its structural strength from
steel.
In most applications, steel competes either with less expensive nonmetallic materials, or with more expensive materials
that have a performance advantage, including aluminum and plastics in the motor vehicle industry; aluminum,
concrete, and wood in construction; and aluminum, glass, paper, and plastics in manufacturing. Furthermore, metals
such as steel – except for stainless steel – can corrode, whereas reinforced plastic is more durable. However, these
alternatives are hardly 'drop-in replacements'. Using them would require substantial re-tooling of an assembly line.
Thus, although the price of the alternatives may be favorable in some market conditions, especially given the increasing
price of steel, switching costs are likely to remain very high.
Overall, it is unlikely for potential advantageous substitutes to exist in applications where tensile strength and ductility
properties are the most important. Moreover, since steel is 100% recyclable, this also lowers the threat of substitutes
somewhat, especially in a climate where society places heavy focus on the environment and sustainability.
The threat from substitutes is assessed as moderate.

Steel in India
Industry Profiles
6.6. Degree of rivalry
Figure 11: Drivers of degree of rivalry in the steel market in India, 2020
The Indian steel market, similar to other steel markets, is highly concentrated to a few large players. The biggest players
in the Indian steel market (TATA Steel, Steel Authority of India, JSW, and Jindal Steel & Power) accounted for 51.1% of
the production volume in 2020. Moreover, the concentration of the market to the biggest players has increased in
recent years, indicating rivalry intensification against smaller players.
The importance of scale economies in the steel market favors concentration to larger companies, which means that
even more consolidation through mergers and acquisitions is to be expected, especially in the more fragmented
markets. Some of the most successful players are products of mergers and acquisitions and typically are very large
international corporations, with interests around the globe. The fluidity of prices for iron ore and other minable
substances of interest to steelmaking allows only large leading players to gain access to a level of efficiency closed off to
smaller firms. Vertical integration in mining activities may protect larger players from cost increases to some extent,
giving them a competitive advantage. Another recent tactic has been to diversify mine locations to try to diminish the
impact of regional market forces.
Steel is a commodity with limited room for differentiation and that increases rivalry in the market. However, different
customers require different specifications of steel (for example, consistency in terms of the physical properties of steel,
variations in strength, hardness, and bending properties) and steel producers tend to specialize, thereby reducing
competition but also limiting the size of their potential market. For example, non-alloy low carbon steel is the cheapest
form of steel used to produce wires, gears, and tubes, while low alloy steel, which is used in cars, trucks in the form of
plates, or in bridges in the form of structural shapes, is more expensive. Steelmakers may also employ a number of
various fabrication techniques; from hot rolling to create reinforcing bars and plates to more expensive cold rolling to
create stronger strips and bars, along with other fabrication processes such as welding, bending, fastening, machining,
stamping, casting, and finishing, which are employed to process steel into products for sale to end-users.
Players may not be very different in terms of the final product, but they can be different in terms of the steelmaking
processes followed, which may alter the economic fundamentals. For example, players operating through EAF plants
are more flexible in responding to changes in market conditions, as the steelmaking process through that method is
more agile in scale, while the supply chain is less complex than in conventional blast furnaces, with reduced need for
coal and iron ore. Most importantly, variable costs for EAF plants tend to be lower than those for BOF plants. On the

Steel in India
Industry Profiles
other hand, BOF plants can provide greater economies of scale as their capacity can be two to four times bigger, and
the production process 10–20% faster.
Steelmakers worldwide have faced many challenges in recent years: the decline of the quality of raw materials, as
demand has more than doubled since 2000, has reduced efficiency, with the increasing prices of premium raw
materials narrowing profit margins; the overall volatility of prices of raw materials; tighter environmental standards
pushing for cleaner energy and sustainability by increasing scrap recycling rates; and especially in developed countries,
strong competition from cheaper steel exporters from developing countries. All this has led to consolidation through
numerous mergers.
Expanding production activities in the steel market is not easy as that would entail increasing capacity through capital
investment in new manufacturing steel plants, which is a long-term commitment. Oversupply or reduced capacity
utilization could be financially catastrophic amid high fixed costs. Meanwhile, high storage costs prevent players from
manipulating prices by withholding supply, so that they are incentivized to operate at maximum capacity.
The steel market is highly cyclical due to the long service life of its products, and that increases rivalry conditions.
Analytically, the majority of steel produced has a long service life as it is destined for buyers in construction and
transportation (shipping and railway), which are subject to long product life cycles, with demand being highly cyclical as
a result. Final products of other large industry-clients, such as mechanical equipment, machinery, automotive, and
other heavy industries, are also characterized by medium life cycles, thus being subject to cyclical demand as well. The
share of demand from industries with short-life cycles, such as consumer packaging, which are characterized by
relatively stable demand, is too small to compensate for the downfalls of demand of the above industries.
The economic environment impacts demand to a great extent as key-industry clients are vulnerable to macroeconomic
shocks, which in turn affects rivalry conditions. Moreover, the overall increase in iron ore prices since 2015 has induced
adverse rivalry conditions, especially for non-integrated steel producers, which had to raise prices and/or suppress their
profit margins in order to recover the raw material price hikes. The price dip caused by the decline of demand in early
2020 as a result of the ongoing economic recession, provoked by the COVID-19 pandemic, is expected to intensify
rivalry conditions.
Finally, exit barriers are high, because many of the major tangible assets are highly specific to the market, and thus
harder to divest. In this situation, players are strongly motivated to remain in the market even when conditions are
difficult, boosting rivalry.
Although economic growth predicted in the wake of the pandemic should ease rivalry to some extent in the short-term,
due to the high barriers to entry, growth may not significantly reduce rivalry.
Overall, rivalry is assessed as strong.

Steel in India
Industry Profiles
7. Competitive Landscape
JSW Steel Ltd, Steel Authority of India, Tata Steel Ltd and Jindal Steel & Power Ltd are the leading players in the
market and are all based in India, which indicates the strong presence of Indian steel producing companies in the
steel market. The majority of the leading players operate a vast product portfolio, involved in both mining and
steel production, which enables these companies to capture a large share of the market. Furthermore, research
and development (R&D) helps leading players to enhance existing products and meet the evolving needs of their
customers. Mergers and acquisitions are very common in this market. This is mainly due to steel producing
companies backward integrating into the mining business, in order to cut down costs, and secure supplies of raw
materials.
7.1. Market share
Table 6: India steel market share: % share, by volume, 2020

Company % Share
Tata Steel 16.9%
Steel Authority Of India Limited 14.9%
Jsw 14.8%
Jindal Steel & Power Ltd (jspl) 7.5%
Other 45.9%
Total 100%
Figure 12: India steel market share: % share, by volume, 2020

Steel in India
Industry Profiles
7.2. Who are the leading players?
JSW Steel Ltd is the largest steel producing company in India with a 14.6% market share. The company is based in
Mumbai, Maharashtra, India and is a subsidiary of JSW Group. It is a manufacturer of steel products and its product
portfolio includes hot rolled coils, sheets and plates, cold rolled coils and sheets. The company also offers galvanized
and galvalume products, pre-painted galvanized and galvalume products, thermo mechanically treated (TMT) bars, wire
rods and special steel bars. The company operates manufacturing plants in several states, namely, Karnataka,
Tamilnadu and Maharashtra. It serves various markets such as general engineering, pipes and tubes, automobiles,
energy, furniture, solar, agriculture, railway, aerospace, construction, machining and cosmetics. The company, through
its subsidiaries operates, in the US, Mauritius, Panama, the Netherlands, the UK and Italy.
Steel Authority of India is the second largest steel producing company in India with a 14.5% market share. The company
is based in New Delhi, India and is fully state-owned. It is a public sector undertaking, owned and operated by the
Government of India and operates and owns five integrated steel plants at Bhilai, Rourkela, Durgapur, Bokaro and
Burnpur (Asansol) and three special steel plants in Salem, Durgapur and Bhadravathi. It also owns a ferro alloy plant in
Chandrapur. As part of its global ambition, the company is undergoing a massive expansion and modernization program
involving the upgrading and building of new facilities with an emphasis on state of the art green technology.
Tata Steel Ltd is the third largest steel producing company in India with a 16.3% market share. The company is based in
Mumbai, Maharashtra, India and is a diversified and integrated steel company. It has operations across the end-to-end
value chain that extends from mining to finished steel goods. The company offers flat products, construction products,
agricultural implements and bearings. It serves various industries, including construction, automobiles, general
engineering, and agriculture. It also operates captive iron ore mines and collieries at sites around Jamshedpur and
Kalinganagar in India. The company also has a presence in various value-adding downstream businesses. It operates
major production facilities in India, the UK, the Netherlands, Thailand, Singapore, China and Australia.
Jindal Steel & Power Ltd (JSPL) is the fourth largest steel producing company in India with a 5.7% market share. The
company is based in New Delhi, India and is a steel manufacturer and power producer. It produces steel products,
sponge iron, pellets and castings; and plans, implements, develops and operates power plants. The company generates
power using thermal, hydro and renewable sources. JSPL also provides aviation, machinery and real estate
development services. It has operations in Asia, Africa, Australia and the Middle East. The company has steel plants in
India and Oman; and power generation facilities in India.
7.3. What strategies do the leading players follow?
JSW is able to meet a growing demand for its products through the company’s strong manufacturing capabilities. It also
helps the company to control the entire supply chain and realize operational cost efficiencies. JSW Steel operates
through several manufacturing facilities and produced 16.3 million metric tons of crude steel products in FY2019, which
grew 3.2% Y-o-Y. The company exports its products to more than 100 countries worldwide. The company’s
manufacturing facilities in India include Vijayanagar, Karnataka; Salem, Tamil Nadu; and Dolvi, Kalmeshwar, Tarapur and
Vasind in Maharashtra. Through its international subsidiary, the company operates a production facility in Texas, the
US. As of March 2019, the company’s combined annual manufacturing plant capacity is 18 million metric tons per
annum. Furthermore, JSW is able to attract a large customer base and establish itself as a leading steel manufacturer
through its strong client base and brand image. Key clients of the company include Volkswagen, Honda, Maruti Suzuki,
Tata, Ford, Godrej, ITW, L&T, BHEL, Caterpillar and Pennar. The company offers its products under brand names such as
Jindal Vishwas, JSW Colouron, JSW TMT Plus, JSW NeoSteel, JSW Galvos and JSW Galveco. In addition, JSW’s strong
focus on R&D activities has helped the company to offer innovative products to its customers and mitigate risks. It also
focuses on process improvements to enhance quality, cost and energy optimization, waste utilization and the
conservation of natural resources. As a part of its R&D, the company developed new hydraulic bound mixtures (HBM)
using BF slag, LD slag and lime; a heat treatment process; and flux rich shell for pellets.
Tata Steel is able to provide cross-selling opportunities and enhance its brand image through the company’s branded
product portfolio. It also ensures the continuous flow of revenues. Tata Steel has been a pioneer in de-commoditizing
and branding steel for over a century in India. It offers a diversified product portfolio, comprising flat steel products,
long steel products, and construction products and systems. It also manufactures agricultural implements, bearings and

Steel in India
Industry Profiles
auto assemblies, tubes, and wires. The brand, Tata Astrum, was introduced for hot rolled sheets and coils. Tata Astrum
products are being supplied to customers in processed form from service centers which have a tie-up with distributors.
Tata Steel sells pipes and wires under various brands including Tata Pipes and Tata Wiron. It markets panels, coils and
sheets under the brands Tata Steelium and Galvano. The brands, Tata Tiscon and Tata Structura, sell construction
products and systems such as pre-finished steels used in built-up and composite panel systems, structural sections, re-
bar, plates, tubes, roof, and floor decking. Roofing products are sold under the brand Tata Shaktee. Tata Agrico sells
agricultural implements such as hoes, sickles, crowbars, shovels, pick axes, hammers, garden tools, and files. Bearings
products are sold under the brand Tata Bearings. Furthermore, Tata Steel’s strong focus on R&D capabilities helps the
company to mitigate risks originating for operating in one market, by developing high-performance and energy-efficient
products. The company’s R&D focuses on new products, technologies, advanced materials and process improvements
in order to meet customer’s requirements. It has developed industrial solutions, along with graphene doped
composites, including graphene anti-corrosion coatings. It also carried out trials on various innovative processes which
utilize non-coking coal along with coking coal; tested a grade of iron powder with superior toughness properties and
high sinter ability, for diamond cutting tools; and developed a new process for producing high purity iron powder using
in-plant by-products.
SAIL has recorded substantial improvement in its productivity levels. Increasing production provides adequate growth
opportunities and helps the company to enhance its financial position. In FY2020, the company produced 17.51 MT of
hot metal as against 15.98 MT in FY2019, showing an increase of 9.6% YoY. SAIL focuses on investing in new technology
for developing high-performance, and energy-efficient products. The company’s R&D focuses on process innovations
and developing new technologies. It operates through RDCIS, and maintains R&D center in Ranchi, India. The company
also operates more than 300 diagnostic equipment and pilot facilities through 15 major laboratories. As of March 2020,
the company owned 20 patents and 18 copyrights. As a part of its R&D activities, in FY2020, the company developed 20
new products, including resistant steels for Indian construction segment; boilers and pressure vessels, and spring steel
for auto segments, crane, and defence sectors. The company also pursued 90 projects and completed 44 projects, in
FY2020. The company spent INR3,198.6 million on R&D in FY2020, which was 0.5% of the revenue.
JSPL is able to secure competitive advantages through the strategic placement of plants, and their proximity to coal
blocks, and holding long-term power purchase agreements. JSPL has power plants in Chhattisgarh with an installed
capacity of 5,034 MW. The company is one of the few players to have PPAs of approximately 810 MW. JSPL has
consistently led the Central Electricity Authority’s highest plant load factor list among the major thermal power plants
(above 200 MW capacities) in India. Furthermore, ownership interests in iron ore and coal mines ensures the
continuous supply of high quality raw materials. This also reduces the company’s dependency on third parties and
results in cost and time savings. JSPL produces economical and efficient steel and power through backward and forward
integration.
7.4. How did the COVID-19 pandemic affect the industry?
The industry struggled as a result of the pandemic due to the recessionary impacts. Since the demand for steel is
derived heavily from construction industry activity, decline was inevitable as construction tends to be the most
dependent on macroeconomic cycles.
The pandemic also impacted workplaces in the industry with 34% of steel companies (that are WorldSteel members)
reporting a decline in employee headcount and 60% reporting a decrease in number of contractors employed. 53%
stated they implemented the physical removal of vulnerable workers from sites which will likely continue beyond the
pandemic. 82% of companies implemented increased video conferencing measures as a substitute to physical meetings
which will likely continue beyond the pandemic. 53% of companies implemented working from home arrangements
and stated they were likely to increase this beyond the pandemic.
Uncertainty in the evolution of pandemic stages and that caused by government regulation may inhibit the growth in
the industry, which may result in diminished growth rate following the COVID-19 pandemic. Additionally, systemic
uncertainty may cause hesitance among investors further limiting growth in the market. Furthermore, as the economy
recovers from the pandemic, its recessionary impacts may prompt a reversal of fiscal and monetary policy stances from
government and central bank authorities. This may result in monetary constrictions, such as interest rate rises, which
will hinder the attractiveness of investment in the industry.

Steel in India
Industry Profiles
Another by-product of the pandemic may be increased protectionist measures as a result of the vulnerability and
perceived weakness of global supply chains which may provoke nations to re-shore production and supply chains. This
may cause significant damage to steel companies, particularly those that operate internationally as a raw material
provider for other companies through exports. Furthermore, increased pressure may be applied from environmental
activism which may spur greater scrutiny of steel companies.
Decline was greater in emerging economies, due to greater confinement measures, falling raw materials prices,
collapses in tourism and insufficient fiscal support. However, recovery in these economies will likely be quicker than in
developed economies.
7.5. What are the most recent developments of leading players?

JSW Steel Limited has acquired 60.004% of Dolvi Minerals and Metals Private Limited (DMMPL), a company engaged in
the business of acting as traders, whole-sellers and retailers in relation to all forms of metallic and non-metallic
minerals, which include coal and lignite, coal products and iron steel products, from the existing investor(s) of DMMPL.
DMMPL has become a wholly-owned subsidiary of the company, wherein JSW Steel and its nominees hold 100% of the
issued and paid-up equity share capital of DMMPL.
Tata Steel, through its subsidiary Tata Steel BSL Limited, has completed the acquisition of Bhushan Energy Ltd. (BEL), a
power generation, transmission and distribution company, for a purchase consideration of approximately $112.17m. In
accordance with the applicable provisions of the Insolvency and Bankruptcy Code, 2016 (IBC), the Corporate Insolvency
Resolution Process (CIRP) of Bhushan Energy Limited was initiated by its financial creditors. The petition for initiating
the CIRP against BEL was admitted by the National Company Law Tribunal (NCLT). Pursuant to the CIRP, Tata Steel had
submitted its resolution plan which was approved by the Committee of Creditors of BEL (CoC) on September 14, 2019,
and subsequently submitted to NCLT for its approval on September 17, 2019. Under the approved resolution plan, the
operational creditors of BEL will receive an amount of up to $7m (in aggregate) for the settlement of their claims
against BEL. In terms of the approved Resolution Plan, all outstanding warrants issued by BEL will be cancelled and
extinguished, and will no longer be capable of being exercised, exchanged or converted into BEL equity shares.
In February 2020, JSW Steel was named the preferred bidder to acquire Jajang iron ore block in Keonjhar district of
Odisha, India. The firm has acquired the iron ore mine in the auction of Odisha blocks. The projected iron ore resource
is 39.4 million tonnes (Mt).The Jajang iron ore block is the fourth iron ore mine the company has acquired in the state
auctions. The other three are at Nuagaon, Narayanposhi and Ganua. Last month, JSW Steel secured the second iron
block, Narayanposhi, in Odisha, which has the capacity to produce more than 190Mt of iron ore. The third iron ore
mine in Ganua has a capacity of 118Mt of ore.
Most recently in July 2020, given the uncertain market conditions, JSW Steel announced its decision to reduce its capex
target for 2020-21 by about 45% to INR90bn against its earlier plan of spending INR163.4bn.
SAIL is implementing various growth initiatives, which could strengthen its operations and increase the returns. In June,
the company announced its plans to form a joint venture (JV) with POSCO, Mitsubishi Steel, JFE and Nippon. Under the
JV, the company intends to manufacture auto grade steel for the Indian automobile industry. This could strengthen the
company’s financial position. The company plans to setup a disposal facility for Polychlorinated Biphenyls (PCBs), which
are categorized as persistent organic pollutants (POPs) at its BSP site. The project is likely to be completed by the end of
2020. It also intends to install 242 MW renewable energy power plants at its production facilities. It includes 120 MW
capacity solar power plant at BSL; 50 MW plant at Salem; 7 MW plant at BSP; 40 MW plant at RSP; and 25 MW plant at
Kulti. Apart from this, the company has also carried out some major initiatives for implementing renewable energy
projects, including setting up of 10 MW Hydel Power Plant at Mandira Dam, RSP; 6.19 MW roof top solar units on
several buildings under the Ministry of New and Renewable Energy (MNRE) scheme; and installation of 3 MW rooftop
solar power units on various buildings of the company’s plants and units.

Steel in India
Industry Profiles
8. Company Profiles
8.1. Tata Steel Ltd
8.1.1. Company Overview
Tata Steel Ltd (Tata Steel) is a diversified and integrated steel company. It has operations across the end-to-end
value chain that extends from mining to finished steel goods. The company offers flat products, construction
products, agricultural implements, and bearings. It serves various market segments, including construction,
automotive, general engineering, industrial, and agriculture. It also operates captive iron ore mines and
collieries at sites around Jamshedpur, Kalinganagar and Dhenkanal in India. The company also has presence in
various value-adding downstream businesses. It has operations in India, the UK, the Netherlands, Thailand,
Singapore, Vietnam, China, and Australia. Tata Steel is headquartered in Mumbai, Maharashtra, India.
The company reported revenues of (Rupee) INR1,562,941.8 million for the fiscal year ended March 2021
(FY2021), an increase of 4.9% over FY2020. In FY2021, the company’s operating margin was 14.2%, compared
to an operating margin of 3.5% in FY2020. In FY2021, the company recorded a net margin of 4.8%, compared to
a net margin of 1% in FY2020. The company reported revenues of INR602,827.8 million for the second quarter
ended September 2021, an increase of 12.9% over the previous quarter.
8.1.2. Key Facts
Table 7: Tata Steel Ltd: key facts
Head office: 2nd Floor Bombay House, 24 Homi Mody Street, Fort, Mumbai, India
Telephone: 912266658282
Fax: 912266657724
Number of Employees: 73962
Website: www.tatasteel.com/#stats
Financial year-end: March
Ticker: TATASTEEL
Stock exchange: National Stock Exchange of India
SOURCE: COMPANY WEBSITE MARKETLINE
8.1.3. Business Description
Tata Steel Ltd (Tata Steel) is a steel manufacturer that operates across the end-to-end value chain spanning across
ironmaking, mining, steel making, casting, rolling, finishing and delivering finished steel products to the customer.
The company operates through eight reportable geographic segments: Tata Steel India, Bamnipal Steel (including
Tata Steel BSL), Tata Steel Long Products, South-East Asian Operations, Other Indian Operations, Tata Steel
Europe, Other Trade Related Operations, and Rest of the World.
As of March 2021, Tata Steel had 14,688 dealers, 262 distributors, 18 stockyards, 27 sales office, 38 steel
processing centers and six zonal hubs. The company operates major manufacturing facilities in Jamshedpur,
Kalinganagar and Dhenkanal, with an installed capacity of 11 million tons per annum (MnTPA), 3.0 MnTPA and 5.6
MnTPA, respectively.

Steel in India
Industry Profiles
Table 8: Tata Steel Ltd: Annual Financial Ratios

Key Ratios 2016 2017 2018 2019 2020
Growth Ratios
EBITDA Growth % 8.60 150.86 -8.48 -54.20
Net Income Growth % -1007.89 416.79 -23.94 -84.77
EPS Growth % 121.02 78.50 -56.09
Working Capital Growth % -127.47 1956.59 -116.73 43.32
Equity Ratios
EPS (Earnings per Share) INR -6.21 22.20 49.06 87.57 38.45
Dividend per Share INR 7.62 9.53 10.00 13.00 10.00
Dividend Cover Absolute -0.81 2.33 4.91 6.74 3.85
Book Value per Share INR 429.52 371.45 506.01 572.97 611.63
Profitability Ratios
Gross Margin % 44.26 50.00 50.34 49.61 43.85
Operating Margin % 6.36 6.39 21.86 14.40 3.47
Net Profit Margin % -0.36 -3.61 10.82 6.48 1.04
Profit Markup % 79.40 99.98 101.39 98.45 78.09
PBT Margin (Profit Before Tax) % 2.57 2.11 16.89 10.09 -0.93
Return on Equity % -0.88 -11.21 22.07 14.83 2.12
Return on Capital Employed % 5.22 6.10 17.61 13.16 2.73
Return on Assets % -0.43 -2.42 7.01 4.61 0.64
Return on Working Capital % -312.81 1262.91 222.09 -1111.34 -176.30
Operating Costs (% of Sales) % 93.64 93.61 78.14 85.60 96.53
Administration Costs (% of Sales) % 34.52 31.64 30.36 26.98 28.47
Liquidity Ratios
Current Ratio Absolute 0.95 1.01 1.22 0.97 0.95
Quick Ratio Absolute 0.54 0.52 0.71 0.45 0.45
Cash Ratio Absolute 0.13 0.10 0.14 0.05 0.12
Leverage Ratios
Debt to Equity Ratio Absolute 1.87 2.20 1.51 1.46 1.58
Net Debt to Equity Absolute 1.63 1.92 1.14 1.38 1.43
Debt to Capital Ratio Absolute 0.65 0.69 0.60 0.59 0.61
Efficiency Ratios
Asset Turnover Absolute 1.20 0.67 0.65 0.71 0.62
Fixed Asset Turnover Absolute 2.08 1.15 1.19 1.30 1.05
Inventory Turnover Absolute 5.92 2.62 2.32 2.65 2.67
Current Asset Turnover Absolute 4.64 2.43 2.09 2.49 2.53
Capital Employed Turnover Absolute 0.82 0.95 0.81 0.91 0.79
Working Capital Turnover Absolute -49.19 197.68 10.16 -77.17 -50.88
SOURCE: COMPANY FILINGS MARKETLINE

Steel in India
Industry Profiles
Table 9: Tata Steel Ltd: Key Employees
Name Job Title Board

A.D. Kothari General Manager Projects TSK Senior Management
A.K. Bhatnagar General Manager Ores, Mines and Quarries Senior Management
Ajit Kar Chief Electrical Maintenance TSK Senior Management
Alan Kam Director Tata Steel Thailand Non Executive Board
Vice President Business Excellence and
Amit Khanna Senior Management
Shared Services Tata Steel Thailand
Amit Kumar Chatterjee Chief Analytics Officer Senior Management
Amitava Baksi Chief Procurement Officer Senior Management
Anurag Pandey Executive In Charge- Global Wires, India Senior Management
Anurag Saxena Chief Electrical Maintenance Senior Management
Anuttara Panpothong Director Tata Steel Thailand Non Executive Board
Ashish Anupam Director Tata Steel Singapore Non Executive Board
Ashish Anupam Director Tata Steel Thailand Non Executive Board
Vice President Human Resources
Atrayee Sanyal Senior Management
Management
Vice President TQM and Engineering and
Avneesh Gupta Senior Management
Projects
Baidyanath Saha Chief Construction Safety, EandP Senior Management
Baran Sengupta Chief Project Engineering Senior Management
Ch. Ramesh Babu Chief Design and Engineering Process Senior Management
Vice President Marketing and Sales Tata
Chaichalerm Bunyanuwat Senior Management
Steel Thailand
Chaitanya Bhanu Principal Executive Officer Senior Management
Chanakya Chaudhary Vice President Corporate Services Senior Management
Chuah Yak Ngi Chief Ethics Counsellor Tata Steel Singapore Senior Management
Chuah Yak Ngi Chief Internal Auditor Tata Steel Singapore Senior Management
Senior Vice President International Sales and
Clement Lim General Manager (Malaysia) Tata Steel Senior Management
Singapore
D.B. Sundara Ramam Vice President Raw Material Senior Management
David W. Crane Director Non Executive Board
Vice President Technology and New Materials
Debashish Bhattacharjee Senior Management
Business
Deepak Kapoor Director Non Executive Board
Dibyendu Bose Vice President Supply Chain Senior Management
Dibyendu Dutta Chief Portfolio Management and FFI Senior Management
Farida Khambata Director Non Executive Board

Steel in India
Industry Profiles
Table 10: Tata Steel Ltd: Key Employees Continued

Gopal Prasad Choudhary Chief Security and Brand Protection Senior Management
Hatasakdi Na Pombejra Director Tata Steel Thailand Non Executive Board
Helen Matheson Director Legal Tata Steel Europe Executive Board
Helen Matheson Secretary Tata Steel Europe Executive Board
Henrik Adam Chief Commercial Officer Tata Steel Europe Executive Board
Henrik Adam Chief Executive Officer Tata Steel Europe Executive Board
Henrik Adam Chief Technical Officer Tata Steel Europe Executive Board
Henrik Adam Director Tata Steel Europe Executive Board
Jayanta Banerjee Chief Information Officer Senior Management
Jayanta Chakraborty Chief Financial Officer Tata Steel Thailand Executive Board
Jayanta Chakraborty Director Tata Steel Singapore Executive Board
Jayanta Chakraborty Vice President Finance Executive Board
Karamveer Singh General Manager Operations, TSK Senior Management
Koushik Chatterjee Chief Financial Officer Executive Board
Koushik Chatterjee Director Executive Board
Koushik Chatterjee Director Tata Steel Europe Executive Board
Lim Siew Har Chief Financial Officer Tata Steel Singapore Senior Management
Chief Human Resources Officer Tata Steel
Lucy Tan Senior Management
Singapore
Mallika Srinivasan Director Non Executive Board
Manish Kumar Singh Chief Automation and IT Shikhar Senior Management
Chief Corporate Audit and Assurance India
Manish Sharma Senior Management
and South East Asia
Meena Lall Chief Legal Officer Industrial and Litigation Senior Management
Natarajan Chandrasekaran Chairman Non Executive Board
Nirbhay Singh Salar Chief Project Planning Senior Management
O.P. Bhatt Director Non Executive Board
O.P. Bhatt Director Tata Steel Europe Non Executive Board
Vice President Procurement Tata Steel
Paitoon Chuesook Senior Management
Thailand
Parvatheesam Kanchinadham Chief Legal Officer Corporate and Compliance Senior Management
Parvatheesam Kanchinadham Secretary Senior Management
Peeyush Gupta Chairman Tata Steel Thailand Executive Board

Steel in India
Industry Profiles

Peeyush Gupta Vice President Supply Chain Executive Board
Pornchai Tangworrakulchai Vice President NTS Plant Tata Steel Thailand Senior Management
Prabhat Kumar Executive In Charge- IBMD Senior Management
Prakash Singh Chief Capability Development Senior Management
Prakhar Mishra Chief Coke Plants Senior Management
Probal Ghosh Vice President Shared Services Senior Management
Rajesh Chintak Chief HRBP EandP and Shared Services TS Senior Management
Rajesh Kumar Chief Manufacturing, Flat Products Senior Management
Rajesh Ranjan Jha Vice President Engineering and Projects Senior Management
Vice President Operations of Kalinganagar
Rajiv Kumar Senior Management
Steel Project
Rajiv Mangal Chief Executive Officer Tata Steel Thailand Executive Board
Rajiv Mangal Director Tata Steel Singapore Executive Board
Rajiv Mangal Director Tata Steel Thailand Executive Board
Rajiv Mangal President Tata Steel Thailand Executive Board
Rajiv Mukerji Vice President Group Strategic Procurement Senior Management
Ranganath Raghupathy Rao Director Tata Steel Thailand Non Executive Board
Ratan Naval Tata Chairman Emeritus Executive Board
Ritu Raj Sinha Chief Corporate Administration Senior Management
Vice President SISCO Plant Tata Steel
Rungroth Lert-A-Rom Senior Management
Thailand
Vice President SCSC Plant Tata Steel
Sakchai Loyfakhajohn Senior Management
Thailand
Vice President Corporate Finance, Treasury
Samita Shah Senior Management
and Risk Management
Sandip Biswas Chief Executive Officer Tata Steel Europe Executive Board
Sandip Biswas Director Tata Steel Europe Executive Board
Sanjay Rajoria General Manager Jharia Senior Management
Sanjay S. Sahni COMS-Branded Products and Retail Senior Management
Vice President Financial Operations and
Sanjib Nanda Senior Management
Corporate Reporting
Vice President Safety, Health and
Sanjiv Paul Senior Management
Sustainability
Sarajit Jha Chief BTDS and CP Senior Management
Satish Kumar Tiwary Chief Mechanical Maintenance TSK Senior Management
Saurabh Agrawal Director Non Executive Board

Steel in India
Industry Profiles

Sharat Chandra Kumar General Manager Design and Engineering Senior Management
Vice President Human Resources and
Sirorote Matemanosak Senior Management
Corporate Affairs Tata Steel Thailand
Sudhakar Ramamoorthy Marur Chief Technology Officer Senior Management
Sudhansu Pathak Vice President Steel Manufacturing Senior Management
Sumit Shubhadarshan Chief FandA Engineering and Projects Senior Management
T.V. Narendran Chief Executive Officer Executive Board
T.V. Narendran Director Executive Board
T.V. Narendran Managing Director Executive Board
T.V. Srinivas Shenoy Chief New Material Business Senior Management
Tan Man Ee Chief Operating Officer Tata Steel Singapore Executive Board
Tan Man Ee Director Tata Steel Singapore Executive Board
Taratorn Premsoontorn Director Tata Steel Thailand Non Executive Board
Ujjal Chakraborti Executive in Charge- Tubes Senior Management
Unmesh Vasantrao Nerkar Chief Commercial Manufacturing Senior Management
Uttam Singh Vice President Iron Making Senior Management
COMS-Industrial Products, Projects and
V. Ravichandran Senior Management
Export
Vijay Kumar Sharma Director Non Executive Board
Chief RandD Designate and Product
Vinay V. Mahashabde Senior Management
Technology
Wanlert Kanwiwat Chief Operating Officer Tata Steel Thailand Senior Management
Chief Group Human Resources and Industrial
Zubin Palia Senior Management
Relation

Steel in India
Industry Profiles
8.2. Steel Authority of India Ltd
Steel Authority of India Ltd (SAIL) is a government-owned metal and mining company. The company
manufactures and sells a range of iron and steel products such as hot and cold rolled sheets and coils,
galvanized sheets, electrical sheets, structural steel, electrical steel, railway products and plates. It also
manufacturers bars and rods, stainless steel and other alloy steels. The company owns and operates integrated
steel plants, special steel plants and a ferro alloy plant in the eastern and central regions of India. It also owns
and operates iron ore mines, RMD flux mines, consultancy, and transport and shipping operations. SAIL is
headquartered in New Delhi, India.
The company reported revenues of (Rupee) INR691,136.1 million for the fiscal year ended March 2021
(FY2021), an increase of 12.1% over FY2020. In FY2021, the company’s operating margin was 12.8%, compared
to an operating margin of 9.9% in FY2020. In FY2021, the company recorded a net margin of 6%, compared to a
net margin of 3.4% in FY2020. The company reported revenues of INR268,280.1 million for the second quarter
ended September 2021, an increase of 30% over the previous quarter.
8.2.2. Key Facts
Table 13: Steel Authority of India Ltd: key facts
Head office: Ispat Bhawan Lodi Road, , New Delhi, India

Telephone: 911124367481
Fax: 911124367015
Website: www.sail.co.in
Steel Authority of India Ltd (SAIL) is a steel manufacturing company. It is among the 10 Maharatnas of India's
Central Public Sector Enterprises. The company manufactures and sells a range of steel products, including hot and
cold rolled sheets and coils, galvanized sheets, electrical sheets, structural, railway products, plates, bars and rods,
stainless steel and other alloy steel products. In FY2021, the company produced 16.6 million tons (MT) of hot
metal; 15.2 MT of crude steel; and 14.6 MT of saleable steel.
The company operates through nine reportable business segments: Bhilai Steel Plant (BSP), Bokaro Steel Plant
(BSL), Rourkela Steel Plant (RSP), Durgapur Steel Plant (DSP), IISCO Steel Plant (ISP), Salem Steel Plant (SSP), Alloy
Steel Plant (ASP), Visveswaraya Iron and Steel Plant (VISL), and Others.
In FY2021, the company’s capital expenditure stood at INR29,933.8 million.

Steel in India
Industry Profiles
Table 14: Steel Authority of India Ltd: Annual Financial Ratios

Key Ratios 2016 2017 2018 2019 2020
Growth Ratios
EBITDA Growth % 103.47 1.94
Net Income Growth % 34.01 89.79 934.65 -9.71
EPS Growth % -0.21
Working Capital Growth % 43.47 -33.91 -32.44 -58.38
Equity Ratios
EPS (Earnings per Share) INR -10.00 -6.26 -0.64 6.22 6.21
Dividend per Share INR 0.50
Gross Margin % 26.55 28.30 31.50 38.18 41.59
Operating Margin % -11.75 -5.59 2.87 9.40 9.92
Net Profit Margin % -9.51 -5.53 -0.48 3.51 3.44
Profit Markup % 36.15 39.47 45.99 61.77 71.20
PBT Margin (Profit Before Tax) % -16.19 -9.46 -0.89 5.30 5.35
Return on Equity % -10.40 -7.44 -0.76 5.92 5.11
Return on Capital Employed % -8.25 -4.54 2.35 8.25 7.46
Return on Assets % -8.25 -2.64 -0.25 2.01 1.73
Return on Working Capital % 35.86 13.47 -12.40 -68.27 -159.25
Liquidity Ratios
Leverage Ratios
Efficiency Ratios
Working Capital Turnover Absolute -3.05 -2.41 -4.32 -7.26 -16.06

Steel in India
Industry Profiles
Table 15: Steel Authority of India Ltd: Key Employees

A. Devadas Director Operations Executive Board
A. K. Bhatta Director Projects, Bhilai Steel Plant Senior Management
A. K. Kundu Director Sales, Raw Materials Division Senior Management
A. K. Singh Chief Executive Officer Bokaro Steel Plan Senior Management
A. K. Singh Director MandHS, Bokaro Steel Plant Senior Management
A. K. Singh Director Works IISCO Steel Plant Senior Management
A. K. Sinha Director Law and PLO Executive Board
Director Finance and Accounts, Central
A. K. Tulsiani Senior Management
Marketing Organisation
A. V. Kamlakar Chief Executive Officer IISCO Steel Plant Senior Management
Director Research and Development Centre
Ajay Arora Senior Management
for Iron and Steel
Director Commercial, Central Marketing
Alok Sahay Senior Management
Organisation
Amarendu Prakash Director Bokaro Steel Plant Executive Board
Amit Sen Director Finance Executive Board
Anirban Dasgupta Director Bhilai Steel Plant Non Executive Board
Arvind Kumar Director Collieries Senior Management
Ashok Kumar Tripathy Director Non Executive Board
Atanu Bhowmick Director Works, Bokaro Steel Plant Senior Management
Atul Srivastava Director Executive Board
Atul Srivastava Director Personnel Executive Board
B. Mishra Director Coal Import Group Executive Board
B. P. Singh Director Works, Durgapur Steel Plant Senior Management
D. Chattaraj Chief Executive Officer Rourkela Steel Plant Senior Management
Director Materials Management, Rourkela
D. K. Mohapatra Senior Management
Steel Plant
Director Finance and Accounts, Bokaro Steel
D. K. Saha Senior Management
Plant
Director Marketing Services, Central
D. Kumar Senior Management
Marketing Organisation
Dr. R. Guha Niyogi Director I/c MandHS IISCO Steel Plant Non Executive Board
Dr. S.K. Issar Director I/c MandHS, Bhilai Steel Plant Senior Management
Director Research and Development Centre
Dr. Santosh Kumar Senior Management
for Iron and Steel
Director Marketing, Central Marketing
G. Ghosh Senior Management
Organisation
G. Vishwakarma Director Executive Board

Steel in India
Industry Profiles
Table 16: Steel Authority of India Ltd: Key Employees Continued

G. Vishwakarma Director Projects and Business Planning Executive Board
Gopal Singh Bhati Director Non Executive Board
Director Technical, Projects and Raw
Harinand Rai Executive Board
Materials
Jagdish Arora Director Centre for Engg. and Technology Senior Management
K. B. Sunil Director Projects, IISCO Steel Plant Senior Management
K. K. Jha Director Executive Board
K. K. Singh Director Personnel and Administration Executive Board
K. N. Thakur Director MandHS, Durgapur Steel Plant Senior Management
K.L.S. Rao Director Visvesvaraya Iron and Steel Plant Senior Management
Kamakshi Raman Director HRD, Management Training Institute Senior Management
Kanhaiya Sarda Director Non Executive Board
Krishan Kumar Gupta Director Non Executive Board
L. N. Mallick Director Logistics and Infrastructure Senior Management
M. B. Balakrishnan Secretary Senior Management
M. Biswas Chief Executive Officer Bhilai Steel Plant Senior Management
M. Biswas Director Mines and Rowghat Senior Management
Director Sales and ITD, Central Marketing
M. C. Agarwal Senior Management
Organisation
M. H. Siraji Director CandIT Executive Board
M. V. Zode Director Chandrapur Ferro Alloy Plant Senior Management
Director Materials Management, Durgapur
N. Roy Senior Management
Steel Plant
N. Shankrappa Director Non Executive Board
Neelam Sonker Director Non Executive Board
Executive Director- RP&E, Raw Materials
P. C. Naik Senior Management
Division
P. K. Dash Director Works, Rourkela Steel Plant Senior Management
P. Kumar Director Projects, Rourkela Steel Plant Senior Management
Puneet Kansal Director Non Executive Board
R Gopal Director CMMG Executive Board
R. Kushwaha Director Projects, Bokaro Steel Plant Senior Management
Director Personnel and Administration, Raw
R. Muniraju Senior Management
Materials Division
Director Personnel and Administration
R. V. Singh Senior Management
Rourkela Steel Plant

Steel in India
Industry Profiles
Table 17: Steel Authority of India Ltd: Key Employees Continued

Rajesh Bhasin Director Internal Audit Executive Board
Director Materials Management, Bhilai Steel
Rakesh Senior Management
Plant
Director Personnel and Administration, Bhilai
S. K. Dubey Senior Management
Steel Plant
S. Subbaraj Director Alloy Steels Plant Senior Management
Sagi Kasi Viswanatha Raju Director Non Executive Board
Sanjay Sharma Director Vigilance Executive Board
Sanjeev Taneja Director Salem Steel Plant Senior Management
Director Materials Management IISCO Steel
Shibasis Basu Senior Management
Plant
Soma Mondal Chairman Executive Board
Director Growth Division Environment
Somnath Nandi Senior Management
Management Division
Sukriti Likhi Secretary Executive Board
Sumita Dutta Chief Corporate Affairs Senior Management
T. B. Singh Chief Executive Officer Durgapur Steel Plant Senior Management
T. B. Singh Director Projects, Durgapur Steel Plant Senior Management
Executive Director- Power, Elec. and
Tejveer Singh Senior Management
SAILCON
Director Materials Management, Bokaro Steel
V. K. Pandey Senior Management
Plant
Vijoy Kumar Singh Director Non Executive Board

Steel in India
Industry Profiles
8.3. JSW Steel Ltd
JSW Steel Ltd (JSW Steel), a subsidiary of JSW Group, is a manufacturer of steel products. Its product portfolio
includes hot-rolled coils, sheets and plates, cold-rolled coils and sheets. The company also offers galvanized and
galvalume products, pre-painted galvanized and galvalume products, Thermo Mechanically Treated (TMT) bars,
wire rods and special steel bars. The company operates manufacturing plants in Karnataka, Tamilnadu and
Maharashtra, in India. It serves to various markets such as general engineering, pipes and tubes, automotive,
energy, furniture, solar, agriculture, railway, aerospace, construction, machining and cosmetics. The company
through its subsidiaries operates in the US, Mauritius, Panama, the Netherlands, the UK and Italy. JSW Steel is
headquartered in Mumbai, Maharashtra, India.
The company reported revenues of (Rupee) INR798,390 million for the fiscal year ended March 2021 (FY2021),
an increase of 8.9% over FY2020. In FY2021, the company’s operating margin was 19.1%, compared to an
operating margin of 10.4% in FY2020. In FY2021, the company recorded a net margin of 9.9%, compared to a
net margin of 5.5% in FY2020. The company reported revenues of INR325,030 million for the second quarter
ended September 2021, an increase of 12.5% over the previous quarter.
8.3.2. Key Facts
Table 18: JSW Steel Ltd: key facts
Head office: Jindal Mansion 5 A, G. Deshmukh Marg, , Mumbai, India

Telephone: 912223513000
Fax: 912224917933
Website: www.jsw.in
Ticker: JSWSTEEL
Stock exchange: National Stock Exchange of India
JSW Steel Ltd (JSW Steel), a subsidiary of JSW Group, is a steel manufacturer. It produces and markets steel
products in domestic and international markets. The company markets its products through over 16,000 exclusive
and non-exclusive retail outlets and exports its products to over 100 countries. It has license to operate 13 iron ore
mines in India. The company operates manufacturing plants in Indian states such as Karnataka, Tamil Nadu and
Maharashtra. It operates in various countries, including in the US, the Netherlands, Panama, Mauritius, the UK and
Italy. JSW Steel classifies its products into two categories: Flat Products and Long Products.
The flat products include hot rolled coils and sheets, cold-rolled coils and sheets, galvanized and galvalume
products, avante steel doors, galvalume and color coated products. Its long products comprise thermo mechanical
treatment (TMT) bars, wire rods and special alloy steel such as MS slabs, steel billets and blooms and long rolled
products. The company manufactures hot-rolled coils, sheets and plates at the Vijayanagar, Karnataka; and Dolvi,
Maharashtra manufacturing facilities. Its Vijayanagar production facility has an annual production capacity of 12
million tonnes annually (MTPA), while its Dolvi unit has an annual capacity of 5 MTPA. It serves hot rolled products
to several markets, which include industrial - engineering, pipes and tubes, automotive and energy sectors. Its
Salav unit produces direct reduced iron and hot briquetted iron with an annual production capacity of 0.9 MTPA;
and Vasind unit produces colour coated products with an annual production capacity of 0.4 MTPA.

Steel in India
Industry Profiles
In FY2021, the company produced 8.7 million tonnes (Mt) of hot rolled products. The company manufactures cold
rolled coils and sheets at the Vijayanagar, Karnataka facilities. It supplies cold-rolled products to the automotive,
furniture, cold-rolled formed sections, white goods, and drums and barrels markets. In FY2021, the company
manufactured 1.8 Mt of cold-rolled products. The company manufactures galvanized and galvalume products
through its Vasind, Tarapur and Kalmeshwar, Maharashtra facilities. The company primarily serves solar, furniture,
agriculture and automotive markets. In FY2021 the company manufactured 0.4 million tonnes of galvanized coils
and sheets. JSW Steel manufactures color coated products at its Maharastra manufacturing facilities. The company
serves furniture, agriculture and consumer goods markets. The company manufactures thermo mechanical
treatment (TMT) bars under the brand name JSW Neosteel. It serves railway, aerospace, and construction
markets.
JSW Steel manufactures special alloy steel at its Tamil Nadu facility. It supplies to several leading auto industries in
Hosur and Chennai. The company manufactures wire rods at its Vijayanagar, Karnataka facility. It serves
automotive, machining, cosmetics, office equipment and general engineering markets. In FY2021, the company
produced 0.2 million tonnes of MS slabs, 0.4 million tonnes of steel billets and blooms, and 3.5 million tonnes of
long rolled products. The company’s key brands include JSW Vishwas, JSW NeoSteel, JSW ColouronPlus, JSW
Pragati, JSW Everglow, JSW Platina, JSW Trusteel, JSW Galvos, JSW Radiance and JSW Galveco. It owns steel plants
in seven facilities located in Karnataka, Tamil Nadu and Maharashtra with a total installed capacity of 18 million
tonnes per annum (MTPA). In FY2021, the company produced 15.08 Mt of steel products with 89% capacity
utilization.

Steel in India
Industry Profiles
Table 19: JSW Steel Ltd: Annual Financial Ratios

Key Ratios 2016 2017 2018 2019 2020
Growth Ratios
EBITDA Growth % 149.86 14.55 29.93 -37.22
Net Income Growth % 1150.29 76.38 22.93 -47.24
EPS Growth % 277.85 80.44 17.12 -71.86
Working Capital Growth % -22.93 -30.32 46.45 -14.70
Equity Ratios
EPS (Earnings per Share) INR 3.96 14.95 26.98 31.60 8.89
Dividend per Share INR 0.75 2.25 3.20 4.10 2.00
Dividend Cover Absolute 5.28 6.65 8.43 7.71 4.45
Gross Margin % 27.97 32.60 33.03 40.70 32.58
Operating Margin % 3.86 15.37 15.30 17.59 10.44
Net Profit Margin % -0.73 5.82 8.49 9.01 5.50
Profit Markup % 38.83 48.37 49.31 68.64 48.33
PBT Margin (Profit Before Tax) % -5.37 8.47 10.39 13.18 4.11
Return on Equity % -1.77 15.56 22.19 21.95 11.01
Return on Capital Employed % 3.11 15.89 17.76 20.45 8.68
Return on Assets % -0.81 4.13 6.90 7.38 3.27
Return on Working Capital % -16.50 -112.30 -194.02 -176.40 -106.14
Liquidity Ratios
Cash Ratio Absolute 0.03 0.03 0.04 0.13 0.09
Leverage Ratios
Efficiency Ratios
Working Capital Turnover Absolute -4.28 -7.31 -12.68 -10.03 -10.17

Steel in India
Industry Profiles
Table 20: JSW Steel Ltd: Key Employees

Haigreve Khaitan Director Non Executive Board
Harsh Charandas Mariwala Director Non Executive Board
Hiroyuki Ogawa Director Non Executive Board
Jayant Acharya Director Commercial and Marketing Executive Board
Lancy Varghese Secretary Senior Management
Malay Mukherjee Director Non Executive Board
Mohan Raj Director Non Executive Board
Nirupama Rao Director Non Executive Board
Punita Kumar Sinha Director Non Executive Board
Rajeev Pai Chief Financial Officer Senior Management
Sajjan Jindal Chairman Executive Board
Sajjan Jindal Managing Director Executive Board
Savitri Devi Jindal Chairperson Emeritus Executive Board
Seshagiri Rao Chief Financial Officer JSW Group Executive Board
Seshagiri Rao Director Executive Board
Seshagiri Rao Joint Managing Director Executive Board
Seturaman Mahalingam Director Non Executive Board
Vinod Nowal Director Executive Board
Vinod Nowal Managing Director Deputy Executive Board

Steel in India
Industry Profiles
9. Macroeconomic Indicators
9.1. Country data
Table 21: India size of population (million), 2016–20

Year Population (million) % Growth
2016 1,269.0 1.2%
2017 1,283.6 1.2%
2018 1,298.0 1.1%
2019 1,312.2 1.1%
2020 1,326.2 1.1%
Table 22: India gdp (constant 2005 prices, $ billion), 2016–20

Year Constant 2005 Prices, $ billion % Growth
2016 1,847.6 7.7%
2017 1,990.6 7.7%
2018 2,146.3 7.8%
2019 2,315.9 7.9%
2020 2,500.7 8.0%
Table 23: India gdp (current prices, $ billion), 2016–20
Year Current Prices, $ billion % Growth

2016 2,671.5 14.3%
2017 3,035.3 13.6%
2018 3,453.7 13.8%
2019 3,932.6 13.9%
2020 4,509.7 14.7%
Table 24: India inflation, 2016–20

Steel in India
Industry Profiles
Year Inflation Rate (%)

2016 6.7%
2017 6.4%
2018 6.3%
2019 6.3%
2020 6.2%
Table 25: India consumer price index (absolute), 2016–20

Year Consumer Price Index (2005 = 100)
2016 246.5
2017 262.2
2018 278.7
2019 296.3
2020 314.6
Table 26: India exchange rate, 2016–20

Year Exchange rate ($/Rs.) Exchange rate (€/Rs.)
2016 67.1794 74.3472
2017 65.0484 73.5945
2018 68.4090 80.6918
2019 70.3943 78.8440
2020 74.1023 84.5848

Steel in India
Industry Profiles
Appendix
Methodology
MarketLine Industry Profiles draw on extensive primary and secondary research, all aggregated, analyzed, cross-
checked and presented in a consistent and accessible style.
Review of in-house databases – Created using 250,000+ industry interviews and consumer surveys and supported by
analysis from industry experts using highly complex modeling & forecasting tools, MarketLine’s in-house databases
provide the foundation for all related industry profiles
Preparatory research – We also maintain extensive in-house databases of news, analyst commentary, company profiles
and macroeconomic & demographic information, which enable our researchers to build an accurate market overview
Definitions – Market definitions are standardized to allow comparison from country to country. The parameters of each
definition are carefully reviewed at the start of the research process to ensure they match the requirements of both the
market and our clients
Extensive secondary research activities ensure we are always fully up-to-date with the latest industry events and trends
MarketLine aggregates and analyzes a number of secondary information sources, including:
- National/Governmental statistics
- International data (official international sources)
- National and International trade associations
- Broker and analyst reports
- Company Annual Reports
- Business information libraries and databases
Modeling & forecasting tools – MarketLine has developed powerful tools that allow quantitative and qualitative data to
be combined with related macroeconomic and demographic drivers to create market models and forecasts, which can
then be refined according to specific competitive, regulatory and demand-related factors
Continuous quality control ensures that our processes and profiles remain focused, accurate and up-to-date

Steel in India
Industry Profiles
9.2. Industry associations
9.2.1. International Iron and Steel Institute
Rue Colonel Bourg, 120 B-1140 Brussels, BEL

Tel.: 322 702 89 00
Fax: 32 2 702 88 99
www.worldsteel.org/ix.php
9.3. Related MarketLine research
9.3.1. Industry Profile
Global Steel
Steel in Europe
Steel in Asia Pacific
Steel in Japan
Steel in China

Steel in India
Industry Profiles
About MarketLine
In an information-rich world, finding facts you can rely upon isn’t always easy. MarketLine is the solution.
We make it our job to sort through the data and deliver accurate, up-to-date information on companies, industries and
countries across the world. No other business information company comes close to matching our sheer breadth of
coverage.
And unlike many of our competitors, we cut the ‘data padding’ and present information in easy-to-digest formats, so
you can absorb key facts in minutes, not hours.
What we do
Profiling all major companies, industries and geographies, MarketLine is one of the most prolific publishers of business
information today.
Our dedicated research professionals aggregate, analyze, and cross-check facts in line with our strict research
methodology, ensuring a constant stream of new and accurate information is added to MarketLine every day.
With stringent checks and controls to capture and validate the accuracy of our data, you can be confident in MarketLine
to deliver quality data in an instant.
For further information about our products and services see more at: http://www.marketline.com/overview/
Disclaimer
All Rights Reserved.
No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form by any means,
electronic, mechanical, photocopying, recording or otherwise, without the prior permission of the publisher,
MarketLine.
The facts of this report are believed to be correct at the time of publication but cannot be guaranteed. Please note that
the findings, conclusions and recommendations that MarketLine delivers will be based on information gathered in good
faith from both primary and secondary sources, whose accuracy we are not always in a position to guarantee. As such
MarketLine can accept no liability whatever for actions taken based on any information that may subsequently prove to
be incorrect.
Copyright of Steel Industry Profile: India is the property of MarketLine, a Progressive Digital
Media business and its content may not be copied or emailed to multiple sites or posted to a
listserv without the copyright holder's express written permission. However, users may print,
download, or email articles for individual use.

Steel

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Steel

Uploaded by

Copyright:

Available Formats

MarketLine Industry Profile

Reference Code: 0102-0998

Publication Date: January 2022

Primary NAICS: 212210

© MARKETLINE THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED Page | 1

1.1. Market value

1.2. Market value forecast

1.3. Market volume

1.4. Market volume forecast

1.5. Geography segmentation

1.6. Market share

1.7. Market rivalry

© MARKETLINE THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED Page | 2

1.8. Competitive Landscape

© MARKETLINE THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED Page | 3

1.1. Market value .............................................................................................................................................. 2

1.2. Market value forecast ................................................................................................................................ 2

1.3. Market volume........................................................................................................................................... 2

1.4. Market volume forecast............................................................................................................................. 2

1.5. Geography segmentation .......................................................................................................................... 2

1.6. Market share .............................................................................................................................................. 2

1.7. Market rivalry ............................................................................................................................................ 2

1.8. Competitive Landscape .............................................................................................................................. 3

2.1. Market definition ....................................................................................................................................... 8

2.2. Market analysis .......................................................................................................................................... 8

3.1. Market value ............................................................................................................................................ 10

3.2. Market volume......................................................................................................................................... 11

4.1. Geography segmentation ........................................................................................................................ 12

5.1. Market value forecast .............................................................................................................................. 13

5.2. Market volume forecast........................................................................................................................... 14

6. Five Forces Analysis15

6.1. Summary .................................................................................................................................................. 15

6.2. Buyer power............................................................................................................................................. 17

6.3. Supplier power ......................................................................................................................................... 19

6.4. New entrants ........................................................................................................................................... 21

6.5. Threat of substitutes ................................................................................................................................ 23

© MARKETLINE THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED Page | 4

6.6. Degree of rivalry ...................................................................................................................................... 24

7.1. Market share ............................................................................................................................................ 26

7.2. Who are the leading players? .................................................................................................................. 27

7.3. What strategies do the leading players follow? ...................................................................................... 27

7.5. What are the most recent developments of leading players?................................................................. 29

8.1. Tata Steel Ltd ........................................................................................................................................... 30

8.2. Steel Authority of India Ltd ...................................................................................................................... 36

8.3. JSW Steel Ltd ............................................................................................................................................ 41

9.1. Country data ............................................................................................................................................ 45

9.2. Industry associations ............................................................................................................................... 48

9.3. Related MarketLine research ................................................................................................................... 48

About MarketLine .................................................................................................................................................... 49

© MARKETLINE THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED Page | 5

Table 2: India steel market volume: million tons, 2016–20 11

Table 3: India steel market geography segmentation: $ billion, 2020 12

Table 4: India steel market value forecast: $ billion, 2020–25 13

Table 5: India steel market volume forecast: million tons, 2020–25 14

Table 6: India steel market share: % share, by volume, 2020 26

Table 7: Tata Steel Ltd: key facts 30

Table 8: Tata Steel Ltd: Annual Financial Ratios 31

Table 9: Tata Steel Ltd: Key Employees 32

Table 10: Tata Steel Ltd: Key Employees Continued 33

Table 11: Tata Steel Ltd: Key Employees Continued 34

Table 12: Tata Steel Ltd: Key Employees Continued 35

Table 13: Steel Authority of India Ltd: key facts 36

Table 14: Steel Authority of India Ltd: Annual Financial Ratios 37

Table 15: Steel Authority of India Ltd: Key Employees 38