STEEL INDUSTRY

JSW STEEL COMPANY

ECONOMIC FACTORS:

1. The volatile exchange rate of India can impact JSW Steel investment plans not only in the
short term but also in the long run.
2. STEEL industry is concern to be a very booming industry from past decades.
3. Opening up with the various economies the foreign direct investment is the happened in
this sector.
4. The various foreign players are interested to invest in the country.
5. Under the various economies schemes there is permission in advance licensing scheme
which allows the duty free imports of raw material for exports. But, with the boom in the
industry GDP is rising at very slow rate.
6. The steel industry is also facing the problem of the subprime crisis occurs in the united
states before 15 months. Because of the subprime crisis there is ill effect occurs in the
automobile industry, infrastructure and other business which are related with the steel
industry.
7. There is huge gap between the demand and the supply of the steel in the society.
8. The steel sector contributes over 2 per cent to the GDP of the nation and provides 20 lakh
jobs in the country.
9. During April-January 2017, crude steel production in India grew by 7 per cent YoY and stood
at 39.98 MT.
10. The Government of India has allowed 100 per cent foreign direct investment (FDI) in the
steel sector.
SOCIAL FACTORS:

1. Steel Industry (company) shall constantly strive to improve the quality of life of the
communities it serves through excellence in all facets of its activities.
2. In the company like Tata Steel, Importance will be given to continuous training for
promoting safety consciousness among all employees
3. Companies like SAIL & Tata Steel believe that the loyalty and commitment of its employees
depends upon the quality of life they are offered at work and at home.
4. The socio culture is one of the important aspect in the analysis of the industry it describes
the impact of the particular industry on the society.
5. The steel industry also give the encouragement to the permanent employment to the
people but on the other hand it divides the area in to the rural and urban sector because the
industry is only in the particular area only which leads to the particular development of that
area only and not overall the development.
6. Because of the working conditions the people which are employed in the steel industry
faced many health problems which are incurable in the nature and many industries are not
paying the attention on the health of the employees. Any kind of the allowances are not
given to the employees.
7. Steel industry is also responsible for the development in the rural sector which leads to the
rise in the standard of the living of the people.
8. World steel provides global leadership on all major strategic issues affecting the industry,
particularly focusing on economic, environmental and social sustainability.
9. The housing and construction sector, where major chunk of steel is consumed, shall get a
boost with increase in per capita incomes and social sector schemes like Pradhan Mantri
Awas Yojna-Housing for All, Sardar Patel Urban Housing Mission, 100 Smart Cities Mission
(by 2022), Pradhan Mantri Gram Sadak Yojna, Urban Infrastructure Development Scheme
for Small & Medium Towns (UIDSSMT), National Heritage City Development and
Augmentation Yojana (HRIDAY),
10. The steel industry is characterized by high capital intensity, high dependence on bulk raw
materials, cyclical growth trends, perpetual over-capacity and relatively low profitability.
This is the reason why the problems associated with the steel industry are generally
complex requiring larger governmental and social interventions for its sustainable growth.
CULTURAL FACTORS:

1. Steel companies can offer challenging and rewarding careers, often in an international
context with opportunities to travel and experience many cultures.
2. Safety requires commitment from senior management, which sets the culture in which
everyone knows that safety must not be compromised for any other objective.
3. Workers in the steel-manufacturing industry face many safety risks due to the nature of the
job. How well safety procedures and regulations are followed within an organization is
considered to be influenced by the reigning culture of the organization.
4. Safety culture is regularly mentioned as an important concept in understanding the state of
safety in organizations.
5. Culture consists of the values the members of a given group hold, the norms they follow,
and the material goods they create”
6. Safety culture as normative beliefs and fundamental values, assumptions, expectations,
philosophies, norms, and rules, with regard to safety at a workplace.
7. A strong track record of growth, culture of innovation and global footprint sets us apart.
8. Indeed, according to a broad steel industry labour study by Fairbrother et al (2004)
organisational restructuring towards a more flat, functionally flexible, team-based work
force has coincided with demands for a highly skilled workforce and an organisational
culture that promotes and values credentials and qualifications.
9. The message that employees had to change their mindset and behaviour had been brought
to all organisations. But changing culture and individual behaviour is a long-term process.
10. Collaborative relationships and strong employee engagement have been integrated into
Tata Steel's culture and the new performance culture specifically encourages independent
expression and fearless debate.
DEMOGRAPHIC FACTORS:

1. India is a young country and growing. JSW Steel can use this trend to cater to various
segments of the population.
2. World steel’s Steel Statistical Yearbook presents a cross-section of steel industry statistics. It
contains comprehensive statistics from 2008 to 2017 on crude steel production by country
and process, steel production by product, steel trade by product, apparent steel use and
apparent steel use per capita by country, as well as production and trade of pig iron and
directly reduced iron.
3. The steel industry remains at the heart of global development. In our April Short Range
Outlook, we forecast that in 2019 and 2020 global steel demand was expected to continue
to grow, but growth rates would moderate in tandem with a slowing global economy.
4. On the employment side the study confirmed that the steel industry employs more than 6
million people and that for every 2 jobs in the steel sector, 13 more jobs are supported
throughout its supply chain, in total around 40 million jobs globally.
5. Worldwide more than 6 million people work for the steel industry. In 2017, for every 2 jobs
in the steel sector, 13 more jobs were supported throughout its supply chain.
6. Very little waste is produced. In 2017, 96.3% of the raw materials used for steelmaking were
converted to steel products and co-products.
7. The steel industry generated US$500 billion value added and a further US$1.2 trillion
through its global supply chain.
8. Nearly 100% of our industry co-products can be used. Steelmaking co-products are used in
e.g. concrete, fertilisers, plastics, paints and cosmetics.
9. About 96.8% of steel industry employees and contractors worked in Environmental
Management Systems-registered production facilities.
10. Steel university hosts an annual competition, steel Challenge, for students and young
industry employees to test their knowledge and skills using sophisticated simulations
POLITICAL FACTORS:

1. The present governance system in India has served its purpose for the long time and I
don’t think much will change in the process even though it may throw up leaders that
can lead divergent policy making from the historical norm.
2. JSW Steel has to keep a close eye on the industry wide government priorities to predict
trends. 
3. It is included the political factor which includes the policy offered by the government to
the specific sector.
4. Here for this sector, government introduces the National Steel Policy. The main aim for
the introduction of this policy is to fill the gap between the demand and supply of the
steel. To maximize the production is also main activity is designed under this policy. To
increase the production up to million ton is also the main objective of the policy.
5. Under this policy the special incentives are designed for the steel sector. Incentives like
the cut in the duty, zero duty on imports, provision of the land and other infrastructural
facilities are the facilities provided for the steel sector. Under this policy the government
is encourage to the use the full opportunities available in the PUBLIC AND PRIVATE
PATNERSHIP (PPP).
6. With the growing industry the government is increased the sales tax from the 15%to
20% where as 75% FDI (foreign direct investment) is allowed in the industry this scheme
also provides the various concessions in the custom duties.
7. Though there is a rise in the infrastructure facilities in the country but considering the
steel industry the present condition of the infrastructure is not sufficient in the nature.
Because of the lack in infrastructure steel industry is facing many problems.
8. The government investments in infrastructure such as rail, highways, dams, power
plants and ports are critical prime movers for steel demand.
9. Environmental norms imposed by the government from time to time have a significant
impact, estimated to be around 15% of the project cost.
10. Government of India has approved the National Steel Policy (NSP) 2017, NSP 2017
targets 300 million tonnes (MT) steel-making capacity and 160 kg per capita steel
consumption by 2030.
ENVIRONMENTAL FACTORS:

1. JSW Steel Renewable technology is also another interesting area for JSW Steel. It can
leverage the trends in this sector. India is providing subsidies to invest in the renewable
sector.
2. Coke production is one of the major pollution sources from steel production. Air emissions
such as coke oven gas, naphthalene, ammonium compounds, crude light oil, sulfur and coke
dust are released from coke ovens. 
3. Climate change- Virtually all of the greenhouse gas emissions associated with steel
production are from the carbon dioxide emissions related to energy consumption.
4. Emissions to water- Water emissions come from the water used to cool coke after it has
finished baking. Quenching water becomes contaminated with coke breezes and other
compounds. While the volume of contaminated water can be great, quenching water is
fairly easy to reuse. Most pollutants can be removed by filtration.
5. Waste- Slag, the limestone and iron ore impurities collected at the top of the molten iron,
make up the largest portion of iron-making by-products. Sulfur dioxide and hydrogen sulfide
are volatized and captured in air emissions control equipment and the residual slag is sold to
the construction industry. While this is not a pollution prevention technique, the solid waste
does not reach landfills.
6. Though the steel industry is encouraging the many sectors and the encouraging the
development it is creating the unfavourable environment in the nature.
7. The all leading industries are following the environmental acts which are declared by the
governments, though it is creating very bad impact on the environment.
8. The least importance is given to the environmental aspect. But the Tata steel is encouraging
the eco-friendly system, to reduce the emission the co2 gas during the production process.
9. Set sound environmental objectives and targets, and integrate a process of review, as
essential elements of corporate management.
10. 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 in order to control pollution.
TECHNICAL FACTORS:

1. JSW Steel 5G and its potential – JSW Steel has to keep a close eye on the development and
enhancement of user experience with increasing speed and access. This can completely
transform the customer user experience in the Iron & Steel industry.
2. The traditional technologies are being used from many years in the industry.
3. There is no innovation in the use of the technique in the production process.
4. The Tata steel is developing the same technique is by which the encouragement is given to
the trading of the steel.
5. Tata and sail introduces the online trading of the steel.
6. Only the electric furnace is being used now days in the production process but because of
the fluctuations in the energy there is wastage in the raw material.
7. The basic technologies are used in the production process are basic arc, induction furnace
and electric furnace which are outdated in the nature.
8. Sail the one of the leading steel industry India is planning to set up a plan with PASCO for
using the latest technology named ‘FINEX’.
9. Steel companies will be encouraged to have strategic joint ventures for production and
development of technologically more advanced products.
10. Ministry will encourage the research institutes within the country to develop less resource
intensive and less energy intensive steelmaking technologies as well as new products.