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CREATED BY

GROUP 5
Sakshi Gupta
Jatinder Singh
Hari Om Gupta
Tarun Narang
Kanika Agarwal
INTRODUCTION:-
• Consumption of steel is taken to be an indicator of economic
development.

• Steel is manufactured as a globally tradable product with no
major trade barriers across national boundaries to be seen
currently.

• Further, there are no natural monopoly characteristics in
steel industry in India.

• The new Industrial Policy adopted by the Government of
India has opened up the Iron and Steel industry for private
investment.

 In 2011, India became the fourth largest Steel-producing Nation in
the world with production of over 74 million tonnes (MT).

 Steel demand is being derived from other sectors like
automobiles, consumer durables and infrastructure, its fortune is
dependent on the growth of these user industries.

 The Indian steel sector enjoys advantages of domestic
availability of raw materials and cheap labor. This provides
major cost advantage to the domestic steel industry, with
companies like Tata Steel, being one of the lowest cost producers
in the world.
KEY PLAYERS IN INDIA:-
 Govt. mainly focused on developing basic steel industry, where
crude steel constituted a major part of the total steel production.

 Public sector had a dominant share in the steel production till
early 1990s, but after liberalization private players also came into
industry.

 Major players in steel production in India are-
1. Steel Authority of India Limited (SAIL)
2. Tata Iron & Steel Limited
3. Essar Steel Limited
4. Rashtriya Ispat Nigam Limited (RNIL)
5. JSW Steel Limited
6. Hindustan Steelworks Construction Ltd. (HSCL)


LEVEL OF COMPETETION:-
 Steel sector was first to be liberalized in India.

 During early 1990s, the steel industry was dominated by the
government.

 After liberalization, private players entered into the market.

 The growing consolidation in the steel industry worldwide
through mergers and acquisitions.

 Steel industry has always been an OLIGOPOLISTIC INDUSTRY.

 The future, it appears, will continue to be dominated by a few
large players and the industry will remain oligopolistic.
EFFECTS OF STEEL INDUSTRY STRUCTURE
ON OUTPUT PRICE AND QUANTITY:-
 Overall production efficiency is low.

 Inadequate infrastructure support.

 Posing threat to land acquisitions and rehabilitation issues.

 Threat from cheap import from China and South Korea and
resulting in dumping.

 Latest technological input and research and development
activity is low, causing sluggish production efficiency and
thus, effecting economic growth.



GOVT. POLICIES IN THE STEEL SECTOR:-
 Under the new industrial policy, iron and steel has been
made one of the high priority industries.

 With the liberalization of trade policy, import and export of
Iron & Steel is allowed with no quantitative restrictions on
the import of iron and steel items.

 The vision of National Steel Policy 2012 is to ensure
availability of quality steel to accelerate growth of the
domestic economy at par with the developed world.
MARKET STRUCTURE OF INDIAN STEEL
INDUSTRY:-
 Major players in the Indian market constitute 86% of the
total steel production.









Source-www.indiastat.com
SAIL
28%
TISCO
18%
ISPAT
12%
JSW
13%
ESSAR
15%
OTHERS
14%
Market Structure of Major Players in India
MAJOR DEVELOPMENTS:-
 Domestic crude steel production grew at a compounded
annual growth rate of 8.4% in the last few years.

 South Korean POSCO got an approval for steel plant in a
joint venture with Steel Authority of India in Jharkhand
remain.

 Japan’s Nippon Steel started making cold rolled steel sheets
in a joint venture with Tata Steel.

CONCLUSION:-
 Post liberalization in 1991 Indian Steel Industry has attained
a substantial growth on domestic as well as global platform.

 Growing in pace with the economic Indian Steel Industry has
positioned itself as the largest sponge iron producer and the
4
th
largest crude steel producer in the world.

 Indian steel sector showed resilience and growth during
global economic resilience post 2008 due to robust domestic
demand and the credit goes to policies of the government
and steel producers.

 Indian steel industry attained appreciable growth post
liberalization, but it has suffered due to issues of efficiency,
quality, safety and productivity.

 Future growth and sustainability of Indian steel industry lies
in adapting latest technologies, improving efficiency and
optimizing process.


THANK YOU!!!