PRESENTATION

ON
ESSAR STEEL

KOMAL GARG
BBA-IV ‘B’
67
 INDEX
1.INTRODUCTION

2.COMPETITORS

3.SWOT ANALYSIS

4.MARKETING MIX
 INTRODUCTION

The ESSAR STEEL CO. was founded 3 decades ago by

RUIA family and is headed by chairman Shashi Ruia and
vice-chairman Ravi Ruia . India's steel industry went
through a rough phase between 1997 and 2001 when the
overall global steel was facing a downturn and recovered
after 2002.
The major factors that led to the revival of the steel industry
in India after 2002 was the rise in global demand for steel and
the domestic economic growth in India.
India has now emerged as the eighth largest producer
of steel in the world with a production capacity of 35MT.
Almost all varieties of steel is now produced in India.
India has also emerged as a net exporter of steel which
shows that Indian steel is being increasingly accepted in
the global market. 
 COMPETITORS
1.SAIL
2.TISCO
3.JINDAL VIJAY NAGAR STEEL LTD.
4.JISCO
5.SAW PIPES
6.UTTAM STEEL LTD.
7.ISPAT INDUSTRIES LTD.
8.MUKAND LTD.
9.MAHINDRA UJINE STEEL CO.LTD
10.TATA STEEL LTD.
11.USHA ISPAT LTD.
12.KAIYANI STEEL LTD.
13.ELECTRO STEEL CASTING LTD.
‡14.SESA GOA LTD.
15.NMDC
16.LIOYOLS STEEL INDUSTRIES LTD
 SWOT ANALYSIS
STRENGTHS
1.People ask for essar, it is having a good image and brand
loyalty among consumers.
Service is good
2.It create brand image by offering 24 carat quality steel.
Essar is the 1 steel company in the country to brand steel
products.
Essar is producing the most customized products this is
the sign of value for money.
WEAKNESS
1.Lack of awareness program for consumers. They think
Birla Gold contains more FLYASH.

2.LACK OF CAPTIVE IRON ORE MINES

Cost of raw material is high since Essar don’t have its own
mines. So getting raw materialmarket is costly affair.

3.HIGH COST OF CAPITAL

Steel is a capital intensive industry; steel companies
in India are charged an interest rateof around 14%
on capital as compared to 2.4% in Japan and 6.4% in
USA.
 OPPORTUNITIES
1.EXPORT MARKET PENETRATION
It is estimated that world steel consumption will double in
next 25 years.

2.UNEXPLORED RURAL MARKET

Enhancing applications in rural areas assumes a much greater
significance now for increasingper capital consumption of
steel. The usage of steel in cost effective manner is possible in
thearea of housing, financing, structures and other possible
applications where steel cansubstitute other materials.
THREATS

1.Technological change:
For developing country like India, where capital it
self is costly, technological obsolescence is major
threat.

2.Ever decreasing import duty on steel i.e.

high quality of product from developed countries
available for import at very competitive price.

3.High cost of basic inputs and services

MARKETING MIX
1.PRODUCTS

Main category of products manufactured in the Essar Steel:

Iron
ore
Hot Rolled Products
•Coils
• Plates
• Sheets
Primed Cold Rolled Products
Galvanized Products.

2.PRICE

Essar Steel is the market leader in many niche segments in the domestic
markets. Present market share is 35% for hot & cold rolled products.
Essar is producing the most customized products.

Price is varies as per the different type & grades steel Product.
HR Plates & Sheets Rs 37/kg; GP Coils ± Rs 44.45/kg to Rs 51/kg.
3.PROMOTION

Essar advertising policy is non conventional they always do need base

advertisement.
Taking part in Industrial Exhibition Sometime useful move of company gives positive
publicity. They dont do aggressive advertisement .

4.PLACE

Production hub as at Hazira, Surat Gujarat .Overall distribution and Selling Hub is
Mumbai.

A complete steel processing plant is located near to Chennai covering the major
auto manufacturing hub of India.

A different cold rolling plant of 0.4 MTPA in Pune for the production and distribution
of sheet to the different Electrical durable manufacturers.
THANK YOU!