live project of goodluck steel tubes ltd.(1)

7/31/2019 Live Project of Goodluck Steel Tubes Ltd.(1)

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A

PROJECT REPORT

Demand of steel in India in upcoming

yearsSUBMITTED FOR LIVE PROJECT IN GOOD LUCK

STEEL TUBE LIMITED

Prepared By: Under the Guidance by:

Abhay Singh Prof. Mukesh Porwal

Mohd Fahad Ansari I.T.S., Mohan Nagar

PGDM (2011-13) Ghaziabad (U.P.)

I.T.S-Management and IT Institute, Mohan Nagar, Ghaziabad.

Declaration CertificatePage | 1


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Certified that We Abhay Singh and Mohd Fahad Ansari has carried out

the Dissertation work presented in this thesis entitled Consumption of steel

in India in upcoming years for the live project in Good luck steel pipe

limited under supervision of Prof. Mukesh porwal and Mr Sagar Sodal

Good luck Steel ltd. The dissertation embodies result of original work and

studies carried out by us and the contents of the thesis do not form the basis

for the award of any other degree to the candidate or to anybody else.

Abhay Singh

Mohd Fahad Ansari

PGDM 2nd TRIMESTER

I.T.S., GHAZIABAD

Acknowledgement

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Any accomplishment requires the effort of many people and this work is nodifferent. I have been fortunate enough to get the help and guidance from

many people. It is a pleasure to acknowledge them though still it is

inadequate appreciation for their contribution.

I would not have completed this journey without the help, guidance and

support of certain people who acted as guides and friends along the way. I

would like to express my deepest and sincere thanks to my faculty guide

Prof. Mukesh podwal and Mr. Sagar Sodal Good luck steel ltd. for his

invaluable guidance and help. The project could not be complete without the

support and guidance.

I am also thankful to all my friends and colleagues for cooperating with me

at every stage of the project. They acted as continuous source of inspiration

and motivated me throughout the duration of the project helping me a lot in

completion of this project.

Submitted with regards

Abhay Singh

Mohd Fahad Ansari

Sec c,PGDM (2011-13)

Table of ContentsPage | 3


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Declaration Certificate

Abstract

Acknowledgement

Table of Contents

List of Tables & Figures

1. Chapter -1

1.0.Introduction 7

1.1.Background.. 11

1.2.Research Problem

1.3.Research Objectives . 13

2. Chapter 2

2.0.Literature Review .. 15

3. Chapter 3

3.0.Research Methodology. 20

3.1.Type of Data ..

3.2.Choice of Method for Data Collection..

3.3.Sample Size ...

3.3.1. Sampling Techniques .

4. Chapter 4

4.0. Data Analysis &Findings .. 23

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5. Chapter 6

5.0.Conclusion 34

6. Chapter - 7

6.0. Suggestion for Future Research 35

Bibliography .. 37

CHAPTER -1Page | 5


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INTRODUCTION

India is currently the fifth largest steel-producing nation in the world with production ofover 65.6 million tonnes (MT). However, it has a very low per capita consumption of steelof around 51.7 kgs as against an average of 203 kgs of the world. This wide gap in relativesteel consumption indicates that the potential ahead for India to raise its steel consumptionis high.

During the period from 1997-98 to 2000-01, steel production witnessed a marginal CAGRgrowth of 3%. However during 2001-02 to 2010-11, owing to boom in the infrastructure

and automobile sectors, the industry witnessed a sharp turnaround and registered a steephike of 8.6% CAGR.

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world. It is estimated that India will have a production capacity of 120 MT," Vermasaid.nd there is a likelihood that the trend would continue at least for the next decade.

Demand drivers

India is one of the world"s fastest expanding economies. The liberalisation of the economy

is the key to the boom. India has opened up more to the global economy especially since

1995. Import tariffs have been more than halved since 1990. However, they are still much

higher than in other Asian states. Furthermore, India has a broad base of highly qualifiedtechnicians and engineers. Each year some 200,000 engineering graduates leave Indian

universities, about six times as many as in Germany. In regions where economic catch-up

is being played the demand for steel is of course particularly high. In India demand is

being driven up by mammoth infrastructure projects, like the construction of dams, ports,

power plants, railways and motorways. In addition, the key industrial sectors (such as

construction, automotive and shipbuilding) are experiencing rapid growth. With salaries

and wages rising, consumers are becoming more discerning with regard to their cars,

household appliances and the like, which is also boosting steel demand.

Low labour productivity

On top of this, labour productivity in India is still very low. According to the German Steel

Federation, crude steel output at the biggest Indian steelmaker is roughly 144 tonnes per

worker per year, whereas in Western Europe the figure is around 600 tonnes. However,

labour costs in India are very low at 1 per hour worked compared with 26 per hour in

Germany and 18 per hour in Japan

What led growth?

Steel industry reforms - particularly in 1991 and 1992 - have led to strong and

sustainable growth in India"s steel industry. Since its independence, India hasPage | 8


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experienced steady growth in the steel industry, thanks in part to thesuccessive governments that have supported the industry and pushed for its

robust development. Further illustrating this plan is the fact that a number of

steel plants were established in India, with technological assistance and

investments

by foreign countries.

In 1991, a substantial number of economic reforms were introduced by the

Indian government. These reforms boosted the development process of a

number of industries - the steel industry in India in particular - which has

subsequently developed quite rapidly.

The 1991 reforms allowed for no licenses to be required for capacity creation,

except for some locations. Also, once India"s steel industry was moved from

the listing of the industries that were reserved exclusively for the public sector,

huge foreign investments were made in this industry. Yet another reform for

India"s steel industry came in 1992, when every type of control over the

pricing and distribution system was removed, making the modern Indian Steel

Industry extremely efficient, as well as competitive. Additionally, a number of

other government measures have stimulated the growth of the steel industry,

coming in the form of an unrestricted external trade, low import duties, and an

easy tax structure.

Technology shortcomings Although India has modernised its steelmakingconsiderably over the past decades, nearly 6 per cent of its crude steel is

nevertheless still produced using the outdated open-hearth process (EU-25:

just 0.3 per cent). However, SAIL"s Corporate Plan 2012 does contain a variety

of measures to modernise its plant and processes. These include the closure of

those crude steel capacities that use the traditional open-hearth process. The

biggest boost to efficiency in the Indian steel industry has come from

continuous casting, which is seen as an indicator of modernity. The continuous

casting share of crude steel output has risen from nearly two-fifths in the mid-

1990s to two-thirds now (EU-25: 96%), according to the International Iron and

Steel Institute (IISI). This means that although India is still a long way behind

the leading industrial nations it is in the process of narrowing the gap.

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BACK GROUND

Steel is an important indicator to analyze the economic development of a country. The

steel industry is highly scientific and technology oriented. Technological advancement is

very important for the overall health of the steel industry.

Indian Steel Industry

During Ancient Period

The history of iron and steel making in India goes back by several centuries. It dates to 480BC when archers in India used arrows tipped with steel. The iron pillar of Dhar nearIndore in Madhya Pradesh dates back to about 321 AD, the iron pillar of Kutab Minar nearDelhi dates back to about 400 AD and the iron beams of Sun temple of Konark in Orissadates back to 13th century. These pillars are a testimony to ancient India's expertise in themaking of steel.

Before Independence

The roots of the Indian Steel industry in modern times can be traced to the year 1874,when a company called Bengal Iron works at Kulti near Asansol in West Bengal producediron. One of the most important landmarks in the history of Indian steel industry was thecommencement of the Tata Iron and Steel Company at Jamshedpur in the state of Bihar in1907.The other prominent steel manufacturers before independence were Indian Iron andSteel Company (1922),Mysore Iron and Steel Works(1923) and Steel Corporation ofBengal (1937).

After Independence

India found it difficult to sustain development in steel sector after independence on its owndue to the lack of technological development. The high cost of developing technology inthis sector proved to be a major hindrance. That's when the government decided to go forsynergy with other countries for technology transfer. Some of the prominent steel plant setup then was in Rourkela in collaboration with West Germany and in Bokaro incollaboration with Russia. These steel plants came under the purview of public sectorenterprises.

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Post LiberalizationThe post liberalization scenario in the Indian Steel industry has witnessed a monumentalshift. Some of the salient features are:

The need for license for increasing capacity has been abolished. Steel industry has been removed from the list of Industries under the control of

state sector. Foreign equity investment in steel has gone up to 74%. In January 1992 the price and distribution controls were removed. Policies like convertibility of rupee on trade account, freedom to mobilize

resources from overseas financial markets and restructuring of existing tax

structure have immensely benefited the industry.

Milestone

The Indian steel industry has come a long way since its humble beginnings. The takeoverof the British steel giant Corus steel by Tata Steel and the acquisition ofArcelor byMittal Steel herald a new beginning for the Indian steel industry. These events signify thefact that the Indian steel industry has acquired a global identity and are today extremelycompetitive globally.

Some of the prominent steel producers today are Posco, Tata Steel, Essar, Ispat, Sail andGood luck steel.

Future trends

It has to be said that the global recession has affected the Indian steel industryespecially stainless steel, but the steel industry is trying to offset the negative effectof the recession by focusing on transportation and construction projects which areusually funded by the government.

India is the only country globally to record a positive overall growth in crude steelproduction at 1.01 per cent for the period January -March 2009.

It is estimated that India's steel consumption will grow at nearly 16% annually till2012.

The National Steel Policy has forecasted the demand for steel would reach 110million tons by 2019-2020.

RESEARCH PROBLEM

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Estimation of demand of steel.in upcoming years

RESEARCH OBJECTIVES

This study is based on research for upcoming demand for steel; we try to forecast the

demand of steel in different sectors and city which sector and city consume highest amount

of steel we also want to show which the upcoming projects are and how much they

consume steel. And how Government policies (5 year plan) effect the consumption of

steel. Because demand of steel is effected by government plans and GDP growth rate

This information is based on a number of sources including books, periodicals, magazine,

and websites

.

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CHAPTER -2

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LITERATURE REVIEW

We began a short literature review on the demand of steel. Working through Project wefound many likely articles. When we read each, we wrote a paragraph description ofarticle.

We link our project with the statements, articles and annual report of the ministry of steelin India.

1. Trends and developments in steel sector-:

India is the 5th largest producer of crude steel in the world and is expected to become the2nd largest producer by2015-16.

India continues to maintain its lead position as the world's largest producer of directreduced iron (DRI) or sponge iron during January-December 2010, a rank it has held onsince 2002.222 MoUs have been signed with various States for planned capacity of around 276

million tone.

Investment plans are in the States of Orissa, Jharkhand, Chhattisgarh, West Bengal,Karnataka, Gujarat and Maharashtra.

Highlights-:

During April-Dec. 2010, the following is the estimated industry scenario as compared tosame period of 2009-10: Crude steel production was at 50.59 million tone, a growth of 4.5per cent. The Main Producers produced 17.66 million tone during this period, which was agrowth of 1.8 per cent compared to same period last year.

The Major Producers produced 10.08 million tone during this period, which was a growthof 2.5 per cent compared to same Period last year..The rest i.e. 22.85 million tone was the contribution of the Other Producers, which was agrowth of 7.8 percent compared to same period last year.

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Pig iron production for sale in April - December 2010 was 4.22 million tone, a 0.7 percent decline over same period of last year. The Main Producers accounted for only 11.6per cent of the same, the rest being the share of the Other Producers.

In case of total finished steel (alloy + non-alloy) during April - December 2010Production for sale was at 47.30 million tons (mt), a growth of 7.9 per cent Steel exportsincreased by 17.3 per cent as it reached an estimated 2.46 million tone while steel importswere at an estimated 5.36 million tone, a growth of 2.8 per cent.

l India remained a net importer of steel.

2. Business standard-: Indias steel demand will grow by 4.3%.

India's steel consumption may grow by just 4.3% in 2011 to 67.7 million tone, premierindustry body World Steel Association (WSA) said today.

"In 2011, India's steel use is forecast to grow by 4.3% to reach 67.7 million tone due toeconomic growth. In 2012, the growth rate is forecast to accelerate to 7.9%," theassociation said in its outlook for 2011 and 2012.

3. Steel consumption to reach 122 MT by 2015: ASSOCHAM

Steel consumption in India is likely to reach around 122 million tons (mt) by 2015 fromthe current annual base of about 70 mt, industry body Assocham said today.

Rising demand from sectors like agriculture, consumer durables, capital goods, oil and gasand water is the key growth driver behind this upward spiraling demand of steel,

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Assocham secretary general D S Rawat said here while releasing the chambers study onIndian Steel Sector.

"Given the growth prospects for the economy, steel production in India is likely to doublefrom the existing level in the years to come," he said. It requires a vision encompassingavailability of key raw material, infrastructure, research, development, rehabilitation andhuman resource development, he added.

"Domestic steel companies must target countries like Australia and Mozambique to makeup for the low reserves of coking coal," Rawat said.

"Considering that India is self-reliant in iron ore production, the steel companies mustintensify efforts to develop technologies to make use of iron ore fines and thermal coal forsteel production," he said.

Assocham has suggested the Ministry of Steel to form a core group in this regardconsisting of representatives from academics, industry and equipment designer capable ofusing locally available raw material.

"Since, profitability of our steel industry is based on price of coking coal in theinternational market, thus efforts should be made to intensify use of technologies that canutilise high ash coke and iron ore fines available locally," said Rawat.

There is a huge potential for consumption of steel in the rural sector where steel andenergy consumption is abysmally low and must be augmented for socio-economicdevelopment and achieve the desired goal of inclusive growth. Besides demand for steel intraditional sectors and high-tech engineering industries like construction, fertilizers,petrochemicals and power generation is likely to swell further.

Demand for cold rolled grain oriented (CRGO) and cold rolled non oriented (CRNO) steelare bound to rise on the back of large scale capacity expansion in power sector andassociated infrastructures, he added.

4. Steel industry in India past, present and future-:

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The history of steel-making in India can be traced back to 400 BC when the Greekemperors used to recruit Indian archers for their army who used arrows tipped with steel.Many more evidences are there of Indians perfect knowledge of steel-making long beforethe advent of Christ. Archaeological finds in Mesopotamia and Egypt testify to the factthat use of iron and steel was known to mankind for more than six thousand years and thatsome of the best products were made in India. Among the widely-known relics is the IronPillar near Qutab Minar in Delhi. The pillar, built between 350 and 380 AD, did not rust sofar -----an engineering marvel that baffles the scientists even today. Yet anotherengineering feat is the famous Sun Temple at Konark in Orissa, built around 1200 AD,

where steel structurals were used for the first time in the world.

These were the halcyon days when India flourished in all directions and when itsprosperity was a matter of envy for the foreigners. But as ill luck would have it, Indiasprosperity gave way to poverty after the advent of the foreign rule. Indias indigenousindustry languished because of a deliberate policy of the colonial rulers to make thecountry only a supplier of raw materials.

Steel Role plays a vital role in the development of any modern economy. The per capitaconsumption of steel is generally accepted as a yardstick to measure the level of socio-economic development and living standards of the people. As such, no developing country

can afford to ignore the steel industry.

It can be said with a certain measure of confidence that Indias iron and steel industry

which had a glorious past and has an uncertain present may now look forward to a bright

future.

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CHAPTER -3

RESEARCH METHODOLOGY

The structure of this report will focus on which sector is having the highest consumption of

steel in future and compare, contrast, and offer insights to sectors with indifferent issues.

This report will be examining the key factors to particular sector with the highest

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consumption. Report is also focusing on the ratio of demand and supply in current scenarioand in future, weather it is having a matching ratio or having a mismatch to examine the

opportunities and the scarcity in the steel sector.

NATURE OF RESEARCH

Since source of primary data directly relevant was scare. It was decided that

the analysis had to be secondary data analysis, collected directly from the

Internet, News Paper, & Magazine.

Due to the availability of knowledge of specific problems, the

research could be classified as an analytical research.

AREA OF STUDY: Area of study is India.

DATA COLLECTION:

According to the thesis of my research we have collected secondary data

from Literature Review, Internet, News paper, & Magazine.

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SOFTWARE USED: Microsoft Excel, MS word.

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CHAPTER -4

DATA ANALYSIS AND FINDINGS

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'India's steel consumption at 122 mn tonnes by 2015'

Indias steel consumption is likely to touch 122 million tonnes (MT) by 2015 from thecurrent base of about 70 MT.

This would be achieved with the sectors compounded annual growth rate (CAGR) ofabout 15 per cent, Associated Chambers of Commerce and Industry of India (Assocham)said .

The construction and infrastructure sector is Indias largest steel consumer, accounting for

61% of total steel consumption in FY09, and future demand looks strong.

Infrastructure: the key driver of steel consumption in IndiaBetween FY09 and FY10, infrastructure development

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Increase the demand for long steel by 8.6%,but flat steel only 3.2%. This trend is likely tocontinue in the short term, as investment grows in this sector. According to IndiasPlanning Commission projections, total investment in the infrastructure sector in theEleventh Five-Year Plan (2007 2012) will be around INR20.6 trillion (US$444.8 billion)and the Twelfth Five-Year Plan (20122017) forecasts investment of approximatelyINR45 trillion (US$971.7 billion).29 In FY10, around 7.2% of GDP was spent oninfrastructure. The Indian Government aims to increase this to around 9% by 2014.

Investment in infrastructure

In FY10, around 7.2% of GDP was spent on infrastructure. The Indian Government aims

to increase this to around 9% by 2014.

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Investment as % of GDP

Power and pipeline construction in particular will be important drivers of steel demand.During the Tenth Five-Year Plan (20022006), demand for power increased at a rate of

6.2% and availability by 5.8% creat deficit. To address Indias chronic power shortages,the Governments Eleventh Five-Year Plan envisaged capacity additions of 100,000MWby 2012, and launched several initiatives, including the Ultra Mega Power Projects.However, capacity additions fell behind this target, leaving a widening gap to be bridgedduring the next plan period.Demand for steel is also expected to come from the huge network of pipelines to be laidover the next few years for oil and gas transportation, with the network for liquid fueltransportation likely to grow from the present 16,800km to 22,000km in 2014.

In addition, the shipbuilding industry is likely to undergo a fast growth cycle due toincreasing sea-borne trade and coastal shipping trends, further pushing up demand for

steel.

Automotive is the next manufacturing hub

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AUTO SECTOR NEEDS

Only half of India's annual automotive steel requirement of four million tonnes in the formof bearings, hot rolled coils or welded tubes is met by domestic producers. The other halfis high-strength cold rolled steel used in body panels of automobiles. These are importedand currently supplied by Nippon, Posco among others.

While these specialised automotive grades of steel may account for barely 3-4 per cent ofthe overall steel volumes, they enjoy realisations which are at a 30-40 per cent premium tohot rolled coils, owing to the high quality of steel required and more processing. With theautomobile segment expected to clock a moderate growth of 10-12 per cent a year over the

next few years, there is good scope to capitalise on this demand.

CAPITAL GOODS

Another lucrative niche is the capital goods segment which consumed between 10-12 percent of the steel produced in 2010-11.

With roughly 74,000 MW of thermal power capacity expected to be commissioned during

the 12th Five-Year Plan, there is likely to be greater demand for variants of steel such asCold-Rolled Grain Oriented steel.

Domestic steel producers also have a fair chance of supplying to at least half theupcoming power projects, with BHEL and combines such as Toshiba-JSW, Bharat Forge-Alstom bagging half the 12th Plan power capacity. At stake here for local steel players isan estimated Rs.166,500 crore of orders which would include steel pipes, boiler plates andtransmission equipment.

One estimate by a SAIL official suggests that there may be Rs.1,500-2,000 crore worth ofopportunities in niche space's such as CRGO steel every year. RINL recently announced its

intention to set up a 100,000 tonne per annum plant to cater to this niche sgement. TataSteel through its European arm owns Cogent Power which produces 'electrically efficient'grades of steel, whether they leverage this competence to compete domestically remains tobe seen.

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Capacity additions by major steel producers to meet increasing demand

India was the 5th largest producer of steel in 201136 and is expected to become the worldssecond largest producer in coming years, if all planned capacity expansionprojects become operational. Projects expected to be operational in the next three years .estimated project completions, total crude steel capacity in India is expected to be around112.5 million tonnes by 2015 a growth rate of 9%.

Expected capacity additions

Year-ending 31 March 2007 2008 2009 2010 2012201

5

Tata Steel (India) 5 5 6.8 6.8 6.8 12.7

Essar steel(india) 4.6 4.6 4.6 4.6 9.2 9.2

Ispat 3.6 3.6 3.6 3.6 3.6 3.6

JSW steel 3.8 3.8 3.8 7.8 11 11

RINL 3.5 3.5 3.5 3.5 3.5 6.3

JSPL 2.9 2.9 2.9 2.9 4.9 6.9

SAIL 13.8 13.8 13.8 13.8 15.9 24.7

Bhushan steel 0.3 0.3 0.3 0.3 2.2 5.1

Bhushan power&steel 1.4 1.4 1.4 1.4 1.4 1.4

others 17.9 20.9 25.6 28 28 31.6

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total crude 56.8 59.8 66.3 72.8 86.6112.

5

steel capacity

Big plans

Tata Steel plans to set up a steel plant at Kalinga Nagar, Orissa, which will focusentirely on flat steel products. The first phase is expected to be commissioned byFebruary 2014. The first phase will see an investment of up to Rs 25,000 crore(US$ 5.631 billion), of which the steel maker has already invested over Rs 10,000crore (US$ 2.252 billion).

Recently South-Korean steel company Posco, got permission from the Ministry ofEnvironment and Forest to set up a steel project worth US$ 12 billion in Orissa.

Bhilai Steel Plant (BSP) the sole producer of rails in India has recently receivedanother order for exporting rails to Sri Lanka. The order is of about 14,000 tonnesfor the UIC-60 grade of rails. Earlier, the company had received an order to supply6,500 tonnes of rails to Sri Lanka.

RINL, the corporate entity that runs the Vizag steel plant, has inaugurated a seriesof auxiliary units to expand the capacity of the plant to 6.3 MT The project hasbeen executed by Instrumentation Ltd, Kota and associates at a cost of around Rs10 crore (US$ 2.25 million).

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Varia Engineering Works, Ahmadabad-based rolling mills manufacturingcompany, is setting up India"s first 6-stand continuous cold rolling mill formanufacturing stainless steel.

Government of india has sanctioned Rs 35,242 crore.

Government has sanctioned Rs 35,242 crore for phase 3rd metro rail project in delhi. This

is the largest urban infrastructure project in country till date- Kamal Nath, union urbandevelopment minister.

With the project report on Ahmadabad and Lucknow Metro rail ready, survey is

underway for the project for the Indore, Chandigarh and Bhopal Metro rail. For the

Kochi metro project, the proposal will be put before the Cabinet to build the 25.3-

km network in Kerala.

Since Metro Railway is a Railway which is a Central subject, it has been decided

that all Metro Rail projects in the country, whether within one municipal are or

beyond, shall be taken up under the Central Metro Acts only.

Work progress on wallaround kannur Airport.

The construction of the round wall of the proposed Kannur International Airport inKerala is in progress. The Rs 1,000 crore project is expected to be completed in

three years. The tender for the airport survey at Moorkanparamb near Mattanur in

Kannur district in Kerala has started. When the survey is completed the work of the

Kannur airport will be streamlined. Moorkanparamb is 25 km away from Kannur

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public private partnership projects. In such a scenario. MPIL being a player inIndia's growth story will hugely benefit in such a scenario."

Ashwani Gupta, Founder &

Managing Director, MPIL

Centre sanctions Rs 200 cr for Punes international airport.

The Union Ministry of Civil Aviation has sanctioned Rs 200 crore for the Chakan

International Airport in Pune district, which will come up on a 700-hectare site

adjacent to the one earlier proposed. An 18-km-long metro rail line has also been

proposed to link the airport to an international exhibition centre at Moshi, said

Pune Divisional Commissioner Dilip Band on November 24.

4 more flyovers announce for KochiThe Public Works Department (PWD) has announced the completion of a feasibility study

for constructing four flyovers in Kochi. Public Works MinisterVK Ibrahim Kunju has

said that the National Highway Authority of India (NHAI) had conducted the study to

build flyovers at Vyttila, Palarivattom, Edappally and Kundanoor junctions at an estimated

cost of Rs 1,158 crore.

The minister said he would seek assistance from the Central government to carry out the

proposed project. The construction of the flyovers was expected to be completed in three

years. The flyover at Edappally will cost Rs 706.09 crore, the Palarivattom flyover is

expected to be built spending Rs 110.03 crore, that at Vyttilla will cost Rs 251.22 crore

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Kandla port plans three more berths at Rs 544 crore

The Shipping Ministry has initiated the upgradation of Kadla port under the public

private partnership (PPP). The work involves construction of additional three

berths at an estimated cost of Rs 544 crore.

To be completed in next two years, the Kandla Port will be able to handle 100 mmt

capacity per annum. Presently, these berths have a handling capacity of 6 mt per annum.The project also involves upgrading the handling capacity of the barge jetty, of IFFCO

Kisan Bazar & Logistic to 2 mt at an estimated cost of Rs 27 crore.

NTPC to build power plant in Kanpur at Rs 6,600 crore

NTPC would invest around Rs 6,600 crore for setting up a coal based power project at

Kanpur on which the work is expected to start from January 2012. The proposed 1,320 mw

project is likely to come up at Bilhaur near Kanpur in Uttar Pradesh.

Uttarakhand CM requests central aid for 3 new airports

Keeping in view the strategic importance ofUttarakhand, Chief Minister RameshPokhriyal Nisahanksought from the centre the development of three new airports andnew railway lines in the hill state.

Nishank said the centre should develop Naini-Saini airport in Pithoragarh district,

Chaniyalisaur in Uttarkashi and Gauchar in Chamoli district with the cent per cent

infrastructure grant. All these three airports are located near the international borders

which are strategically very important, he said in a representation to Montek Singh

Ahluwalia Deputy Chairperson of the Planning Commission.

Private sector powers BHEL order book

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A sustained focus on private sector contracts is paying off for Bharat Heavy Electricals Ltd(BHEL), which bagged a Rs 5,450-crore order from a Bajaj Hindustan unit for setting up athermal power project in Uttar Pradesh.

CONCLUSION

As we do research for upcoming demand for steel in India and we search different govt

and important sites to collect data to analyse in future which sector consume how much

steel and in which sector opportunities for future demand so company prepare itself for

future demand and cash that opportunities.we also mention in the report about upcoming

projects which will be beneficial for the company.how policies effect the demand and

consumption of steel as from prerious year data we can easy see that demand of steel is

more in automobile sector but now in According to Indias Planning Commission

projections, total investment in the infrastructure sector in the Eleventh Five-Year Plan

(20072012) will be around INR20.6 trillion (US$444.8 billion) and the Twelfth Five-

Year Plan (20122017) forecasts investment of approximately INR45 trillion (US$971.7

billion) so there will be lot of opportunities in this sector and then automobile ,capital

goods and other sectors.

At present time India is the 5th largest producer of steel in the world but want to become 2nd

largest producer of steel in upcoming years so there is a huge opportunity for Good luck

steel ltd as Indian government wants to increase export to other countries and increase

production of steel there are lots of market pyarer in steel sector but Good luck produce

quality products and Tata is the one of the cheapest steel producer of world.

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There will be lots of projects in upcoming years from dfferent sectors as mention in thereport these are-

metro rail project in delhi.

Kannur International Airport

Indian Railways plans six high-speed corridors

Power Grid Corporation of India

Punes international airport etc

So there will be lots of demand of steel in this projects as government spend huge amount

of investment on these projects.

RECOMMENDATIONS

1. As there will be huge demand of steel in future so company should increase their

production in order to meet the upcoming demand of steel in future.

2. As there competitor Tata steel producing very cost effective steel so for healthy

competition company should produce huge steel at effective cost.

3. There will be lots of project in upcoming years the company should focus on there

projects because these projects consume lots of steel.

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CHAPTER -5

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BIBLIOGRAPHY

INTERNET

www.google.com

www.steel.gov.in

www.pressinformationbureau.gov.in

www.kannurairport.org.inwww.assocham.org.in

www.powergridindia.com

www.automobileindia.com

www.infrastructure.gov.in

www.aai.aero.in

www.indiarail.gov.in

www.metro.co.in

www.planningcommission.nic.in

www.igovernment.in

Newspaper

Economic Times

Business Standard

Hindustan Times

Business Line.

Magzine

Business today

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http://www.google.com/http://www.steel.gov.in/http://www.pressinformationbureau.gov.in/http://www.kannurairport.org.in/http://www.assocham.org.in/http://www.powergridindia.com/http://www.automobileindia.com/http://www.infrastructure.gov.in/http://www.aai.aero.in/http://www.indiarail.gov.in/http://www.metro.co.in/http://www.planningcommission.nic.in/http://www.igovernment.in/http://www.google.com/http://www.steel.gov.in/http://www.pressinformationbureau.gov.in/http://www.kannurairport.org.in/http://www.assocham.org.in/http://www.powergridindia.com/http://www.automobileindia.com/http://www.infrastructure.gov.in/http://www.aai.aero.in/http://www.indiarail.gov.in/http://www.metro.co.in/http://www.planningcommission.nic.in/http://www.igovernment.in/


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live project of goodluck steel tubes ltd.(1)

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