G.H.

Patel Post Graduate Institute of Business Management

Comprehensive Project - I
“Indian Steel Industry”

Guided by: Project Team:

Dr. Hitesh Parmar Deepak Gautam (17M05)
Ankit Maurya (17M04)
Vishali Tickoo (17M42)
Riya Regu (17F30)

Date: / 3rd Semester

/2018 Batch: 2017-2019
Flow of Presentation
• Introduction
• Marketing Strategies Analysis
• Financial Analysis
• PESTEL Analysis
• Michael Porter’s 5 Force Model
• SWOT Analysis
• Steel is the common name for large families of iron
alloys which are easily malleable after the molten stage.
• Steels are commonly made from iron ore, coal, and
limestone.
• When these raw materials are put into the blast furnace,
the result is a "pig iron" which has a composition of iron,
carbon, manganese, sulphur, phosphorus and silicon.
• Steel can also be classified based on shapes and applications:
1. Flat Products include plates, sheets, coils, and strips.
These materials are mainly used in automotive parts,
appliances, packaging, shipbuilding, and construction.
2. Non-Flats include bars, and rods, rails, wires, angles,
pipes, and shapes and sections. These products are
commonly used in the automotive and construction
sectors.
• The elements influence the properties of steel and its
acceptability is predicated on the final application.
• Steel can be classified based on its composition into five broad
group’s viz. Carbon Steels, Alloy Steels, Stainless Steel, Tool
Steels and Galvanized Steels.
 Years HISTORY
350-380 AD Among the widely-known relics is the Iron Pillar near Qutab Minar in Delhi. The pillar did not rust so far an engineering
marvel that baffles the scientists even today.
1200 AD Another engineering feat is the famous Sun Temple at Konark in Orissa, where steel structural were used for the first time
in the world.
1830 A foreigner, Joshua Marshall Heath, had set up a small plant at Porto Novo on Madras Coast.
1874-89 The first notable attempt to revive steel industry in India was made when the Bengal Iron Works came into being at Kulti,
near Asansol in West Bengal. In 1889 the Bengal Iron and Steel Company became a success story.
1908-18 The TISCO plant at Sakchi (renamed Jamshedpur) in Bihar, started pig iron production and rolled out its first steel in this
year. Indian Iron and Steel Company (IISCO) was formed.
1937 The Steel Corporation of Bengal (SCOB) formed in 1937, started making steel in its Asansol plant.
1956 The Government's Industrial Policy had undergone changes once in 1956 and then in 1991
1992 With effect from May 24, 1992 iron and steel industry was included in the list of 'high priority' industry for automatic
approval for foreign equity up to 51% (now 74%).
• The Iron and Steel Industry in India is one of the fastest growing sectors
• India is the third-largest crude steel producer in the world.
• In FY18, India produced 104.98 million tonnes (MT) of finished steel.
• Crude Steel production during 2017-18 stood at 103.13 MT. Crude steel
production reached 44.09
MT during Apr-Aug 2018(P).
• Exports and imports of finished steel stood at 1.35 MT and 1.89 MT,
during Apr-Jun 2018.
• Steel consumption is expected to grow 7.5 per cent year-on-year to 95.4
MT in 2018.
• India’s steel production is expected to increase from
103.13 MT in FY18 to 128.6 MT by 2021.
• The Government of India has allowed 100 per cent foreign
direct investment (FDI) in the steel sector under the
automatic route.
• India’s per capita consumption of steel grew at a CAGR of
3.96 per cent from 46 kg’s in FY08 to 65.25 kgs in FY17.
The figure stood at 68 kg’s during April-February 2017-
18.
• National Steel Policy 2017 seeks to increase per capita
steel consumption to the level of 160 kg’s.
 Market Share (%)
Arcelor Mittal
16%

Others
30%

SAIL
15%

Bhushan Steel
3%

Essar
3%
JSW Tata Steel
3% 13%
RINL
4%
POSCO Jindal S&P Ltd.
6% 7%

Arcelor Mittal SAIL Tata Steel Jindal S&P Ltd. POSCO RINL JSW Essar Bhushan Steel Others
• Capital.
• Lack of technology.
• Low productivity.
• Inefficiency of public sector units.
• Low potential utilization.
• Heavy demand.
• Shortage of metallurgical coal.
• Inferior quality of products.
POLITICAL
• Role of Government as Supplier.
• Role of Government as Customers.
• National Steel Policy.
• The role of the government as the supra environment for
business, creating the rules for competition.
ECONOMICAL FACTOR
• Downward trend in global prices of iron ore, cooking coal
and scrap.
• The short-range outlook of WSA forecasts 1.8% growth in
global steel consumption in 2018 led by India (5.5%).
• The World Economic Outlook, has predicted global GDP
growth of 3.9% and this would be fuelled by GDP growth
of 7.4% in India.
SOCIAL FACTOR
• Quality.
• Safety
Establishing safe and healthy work environment.
Ensuring compliance with mandatory safety and health requirements.
Proper maintenance and orderly housekeeping, to control the risk of
damage to plant and equipment.
Insisting on safe procedures being followed by employees, contractors and
visitors.
• Human Resource.
• Alcohol & Drugs.
TECHNOLOGICAL FACTOR
• Midrex and Corex processes of iron making, which use
non-coking coal, the requirement for coking coal will
drop drastically, as non-coking coal is abundant in India.
• Continuous Strip Processing (CSP) will reduce the cost
of production.
• The convergence of IT with steel may change the
marketing of steel fundamentally.
• Reducing the CO2 emissions of its production will
require a shift away from current production methods
towards completely new ways of making steel.
ENVIRONMENTAL POLICY
• Set sound environmental objectives and targets, and integrate a
process of review, as essential elements of corporate management.
• Install, maintain and operate facilities to comply with applicable
Environmental Laws, statutes and other regulations.
• Conserve natural resources and energy by constantly seeking to
reduce consumption and wastage.
• Minimize process waste, and promote the recovery and recycling of
materials.
• Phase out pollution-prone processes and install state-of-the-art
technology for pollution prevention, and continual improvement, in
environmental performance.
• Develop and rehabilitate waste dumps through a forestation and
landscaping.
LEGAL FACTOR
• Government monitors the steel market conditions and adopts
fiscal and other policy measures based on its assessment.
• GST reforms.
• Export duty on iron ore & No Export Duty on steel products.
• Govt. Has increased import duty and also banned the
production of steel without BIS mark.
• In February 2016 the Indian govt. Had imposed the minimum
import price condition on 173 steel products.
 • Unexplored rural market.
• Growing domestic demand.
opportunities
• Exports.
• Consolidation.

• China becoming net exporter.

• Protectionism in west.
threats • Dumping by competitors.
• Automotive.
• Capital goods.
• Infrastructure.
• Airports.
• Railway .
• Oil and Gas.
• Power.
• Rural India.
• From the above analysis we can conclude that steel like other sector grows
in cyclic manner.
• Indian steel industry has with higher rates & aims to double its production
by 2021.
• But there are some key factors the to achieve its targeted growth such as:
1. Meeting the international standards of per-capita consumption of steels.
2. In order to compete in the world of globalization it is very much essential to adopt
the two tier strategy i.e. long-run & short-run.
3. Creating an infrastructure & bureaucratic support system which is being rated high
on “Ease of Doing Business”.
• Moreover the participation & growth of private sector has increased after
timely efforts of government & also existing firms are being modernized.
• Overall we can say that it is just the beginning of good times for Indian
steel industry and it has been possible due to consistent efforts of
government and the policy of “Liberalization”.