Beruflich Dokumente
Kultur Dokumente
JOSNI JOSEPH
AMIT SINGH
TEJDIPSINH
AGENDA
Industry Overview
Industry Value chain & Structure
Market size and Growth
Industry Growth and segment
Major players and Competition
Technology
Regulation
Issue and Concerns
Growth Drivers
Outlook
Industry Overview
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www.steel.nic.in.
Steel making process
Blast Furnace
LD1 LD2
Slabs
Hot strip mill Cold strip mill Billets Merchant mill Wire mill
Market size and Growth
Production of steel
gradually increases
The industry is 60% Steel production and Growth rate
organized. 60000 14
50000 12
Per Capita steel
'000 tonnes
40000 10
8
consumption is 45 kgs, 30000
%
6
20000
leaving scope for 10000
4
2
further increase in 0
2003-04 2004-05 2005-06 2006-07 2007-08 2008-09
0
www.steel.nic.in
Segments of steel
Technology:
Basic oxygen furnace
Electric arc furnace
Induction furnace
Products
Flat iron
Long iron
Value chain
Integrated steel producers
Secondary steel producers
Customers
Construction
Transport equipment
others
Major Players
S a le s o f T o p T e n P la y e rs F o r T h e-0Y9e a r 2 0 0 8
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s.bn
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of total production. 0
T ata S teel S A IL JSW R IN L IS PA T B hus han S teel
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www.steel.nic.in
Herfindal Index
Company Net sales Market share Index value
It implies that the competition in the steel industry is medium to high and
with high concentration.
Michel Porter Analysis
Threat of Entry: Low to moderate
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Regulation
Currently 100% FDI allowed.
Trade policy has been liberalized
Excise duty cuts to 8 %, Import duty cuts to 5%
Full utilization of ppp(public, private, partnership) in development of
infrastructure
Govt. policy allows private capital in port development so that steel
producers would be encouraged to develop port and berth facilities
so as to improve steel productivity
National Steel Policy 2005
To enhance the indigenous steel production to 110 MT per annum by 2019-20 from the 04-
05 level of 38MT, implying a compounded annual growth rate of 7.3%.
To strengthen the existing training and research facilities available to the domestic steel
industry.
Protection of industry from unfair trade practices resulting in integration of the Indian and
global industry especially in periods of downturn.
To boost exports govt. will support all efforts to make available export credit, provide trade
information, and cut transaction costs in general.
Issues and Concerns
Unscientific Mining
Coking coal import dependence
Low R&D investment
High cost of Debt
Inadequate Infrastructure
Low productivity
China becoming the net exporter
Growth Drivers
Key Growth Drivers: Construction, Automobiles, Infrastructure,
Consumer durable, oil and Gas.
Huge source iron ore, Cheap Labour, quality man power.
Mostly Steel plants are located near the Raw material Sources.
Reduction in custom duty in respect of non-alloy steel production.
The Counter Vailing Duty on the TMT roads and bars reduced from
14% to Nil.
The ministry of steel has approved 59 R&D projects costing Rs.408
crores, which work on:
Merger and Acquisition has evolved to be one of the major growth
drivers in the industry leading to economic of scale.
OUTLOOK
Indian Steel Co. acquiring stakes in the foreign firms to become global leaders.
Target to achieve an export ratio of around 25% of total production.
Target of 110mT by 2020.
Demand in automobile and infrastructure will lead to growth in steel industry
Per capita consumption is 40 kg compare to 150kg globally, which has potential
ahead.
Shortage of Cocking coal will be huge challenge.
World steel demand to double in next 25 years, a huge opporunities for the
steel industry.
Upcoming Budget certainly will have great impact on steel industry future.
Thank