Indian Steel Industry

• Tata Steel
• JSW Steel
• SAIL

Aashutosh Khapare Ketan Bawaskar

Roll No. M20028 Roll No. M20006
Content Flow Tata Steel SAIL
Introduction Introduction
Analysis Analysis
Supply chain Supply chain
Procurement Procurement
Inventory management Inventory management

Sector Background JSW Steel

Introduction Introduction
Sector composition Analysis
Consumption Supply chain
Leading players Procurement
Government Initiatives Inventory management
 Sector Background
Forms
India is the 3 largest steel producing country
rd

Liquid Steel Crude Steel Finished Steel

• In FY 21 India Produced 102.49 MT crude steel
production & 94.66 MT finished steel production Ingots Flat

• Growth rate expected: 8-9% Semis Non - Flat

• Production >Domestic Consumption
• Exports > Imports
Per Capita Consumption of Steel (Kg)
76
74.1
74
72
70 68.9

Consumption
68
Compositions 66 65.25
63.99
64
• Alloy 62
• Stainless 60
• Silicon Electrical 58
FY 2016 FY 2017 FY 2018 FY 2019

• Non Alloy Steel

 Leading Steel Producing Companies in India
Steel Export (million tonnes) 10.8
9.6
8.2 8.2

6.4

4.1

FY 16 FY 17 FY 18 FY 19 FY 20 FY 21

Consumption of steel Government Initiatives

Consumer
Railways
Intermidiat
Durables
[PERCENT
e
[PERCENT
AGE]
[PERCENT
AutomotiveAGE]
AGE]
[PERCENT
AGE]
Capital Constructio
Goods n
[PERCENT [PERCENT
AGE] AGE]
 Introduction Analysis
• Established in 1907 as Asia’s First Integrated • Total Capacity :- 33 MnTPA
Private Steel Company
• Founder: Mr. Jamsetji N Tata • Total Sales:- Rs 1,56,294 Cr.
• Chairman: Mr. Ratan N Tata
Market Share • Competitive Edge
20% 80% 1. Capacity
Operations
Tata 2. Control over raw materials
steel
Others 3. Customer oriented product mix
4. Lean Production System

• Future Plans
1. Increasing Capacity of current plants
2. Acquisition of mines
Europe India
CEO CEO • Product Mix
Dr Henrik Adam Mr T V Narendran o Automotive Steel
Executive Director Executive Director o Tata Pipes
Mr Sandip Biswas Mr Koushik Chatterjee o Tata Precision Tubes
• 2020 Steel Sustainability Champions o Tata Agrico
recognized by Worldsteel
 Supply Chain Procurement
Raw Material
• Domestic Raw materials are from mines
• Imports due to lack of raw material
• Imported almost 8.3 MnT of coal from
Australia, New Zealand, and North America,
Canada/US and CIS
• 4 MnT of fluxes from the Middle East and
Vietnam
Labour
• Labours are hired on wages
• Mainly from Local contractors

Technologies
• ERP by SAP
• Modernization program costing $2.3 billion
• Helped produce steel at lowest cost in the
• Railways is most Preferred world
 Inventory Management Sustainability
• Partnered with ULCOS to reduce CO2 emission
• Responsible Procurement Policies
• Water harvesting and green cover achieved at TSJ plant

• Economic Order Quantity

• KANBAN Bin System
• XYZ Classification
 Introduction
• Established in 1982 and Second Largest steel
company in India
• Founder & Chairman: Mr. Sajjan Jindal
Market Share
Operations 18% 82%
JSW steel
Others
Plants
• Vijayanagar Works
• Dolvi Works
India • Kalmeshwar Works
CEO • Salem Works
Prashant Jain • Tarapur Works
Managing Director • Vasind Works
Mr. Seshagiri Rao M.V.S. • JSW USA
• Fastest growing companies in India with a global • Bhushan Power & Steel
footprint in over 140 countries
Analysis
• Total Capacity :- 18 MnTPA
• Total Sales:- Rs 84,050 Cr.
• Competitive Edge
1. Use cost leadership methodology
2. Lowest capacity expansion cost
3. Customer-driven Strategy
4. Diversifying coal procurement basket
• Future Plans
1. Doubling capacity of Dolvi Plant
2. Revamp & Modernization of plants
• Product Mix
o Special Alloy Steel
o Avante Steel Doors
o Galvanised Corrugated Sheet & Profile
o Galvalume Steel
 Supply Chain Procurement
Raw Material
Raw Materials • Primary source of Raw materials are from
domestic mines
Backward integration
Contract Options Inbound Logistics • Imports only in case of emergency
• Major Imports are done from Australia and
Centralised logistics
cell
South America
Manufacturing
80% via rail Labour
Latest Technologies
• Labours are hired on wages
Conserving Natural Outbound Logistics • Mainly from Local contractors
Resources
Last Mile connectivity
using digital
Use 80% based on rail/sea
Highly diversified
Technologies
portfolio • ERP by Oracle
Joint venture with MI, Recycling
Japan • Oracle suite Includes Oracle Purchasing,
Reduced environmental Oracle Inventory, Oracle Financials and Oracle
footprint
Connected to garbage project
vendors • Costing Rs. 3Cr.
 Inventory Management Sustainability

• Economic Order Quantity Committed to reduce 01

carbon footprint
• Dynamic Buffer Management

Water Resource
02 Management Policy

R&D initiatives for 03

greener processes

“Zero Harm” accidents

04 and fatalities target

100% Recyclable 05
 Introduction Analysis
• Steel Authority of India Limited • Total Capacity :- 21 MnTPA
• Established in 1954 and Largest and First Public
Sector Steel company in India • Total Sales:- Rs 69,110 Cr.
• Founded as Hindustan Steel Ltd.
• Competitive Edge
Operations 1. Public Sector Orders
Market Share 2. Partnerships with NTPC
16% 84% 3. Strong financial resources owing to
SAIL
being a Govt enterprise
Others 4. Strong Raw material supply

India (Bhilai) • Future Plans

Chairman 1. Expanding capacity of Bokaro &
Smt Soma Mondal Plants Locations Rourkela plants 
Director • BHILAI
Shri Harinand Rai • BOKARO • Product Mix
• ROURKELA  o Railway steel
• Largest and the only company to produce o Wheel and Excels
products specifically for railways o Electrical Steel
Supply Chain
Procurement
Raw Material
• Primary source of Raw materials are from
domestic mines
• Imports of coal from New Zeland & Australia
Labour
• Labours are hired on wages
• Mainly from Local contractors

Technologies & Sustainability

• ERP by SAP named SAP Jam
• Excellence across value chain
• Modern Technologies
• Investment in New Products
 Future
Outlook
Growth rate is expected to
01 be 7 - 8% according to ISA

Steel-making capacity is expected to reach

02
300 million tones per annum by 2030–31

Demand is expected to rise due to

03 government's interest in Infrastructure

Construction, Automobiles and Railways will 04

be other demand rising sectors

05
Under the Union Budget 2021-22, the government allocated Rs.
39.25 crore (US$ 5.4 million) to the Ministry of Steel.