the indian steel industry 2012

7/31/2019 The Indian Steel Industry 2012

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Ejvind Vgg Own Man in India

The Indian Steel Industry

DIBD OMII

Own Man In India

May 2012


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Introduction to the Indian Steel Industry

Market situation

Key players in the Indian Steel industry

Investments in the Indian Steel industry

Danish Case

SWOT


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Current market situation The Indian steel market is one of the fastest growing

markets in the world.

The steel industry in India play such a significant rolethat they have their own Ministry of Steel (MoS)

According to MoS and other recent sources, theIndian steel industry has emerged as the 5th largest

steel producing country in the world between

1. China

2. Japan

3. United States

4. India

5. Russia

The Indian steel production was around 72.2 milliontones in 2011.

Furthermore, according to MoS, the Indian steelindustry is expected to becomethe 2nd largest steelproducing country in the world by 2015.


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Current market situation

The Indian steel industry per capitaconsumption is around 55 kg compared to theworlds average consumption of 206 kg ofsteel.

The steel sector contributes to nearly 2% of theGDP and employs over 500.000 people

In order to preserve iron ore resources fordomestic use on cheaper rates, export duty oniron ore has been increased to 30% advalorem on all varieties of iron ore in 2011

The Indian steel industry is making a mark inthe Asian region with Indias leading steelcompany, TATA Steel being the 10th largeststeel producing company in Asia betweenShougang in China on the 9th and ShandongIron and Steel Group in China on the 11thposition.


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Growth Drivers The Indian steel industry is strong

because of easy availability of rawmaterial and workforce

The growth of the construction industry,which is growing at a rate of around 8-

9% is one of the major consumers ofsteel in the country.

The 12 five-year plan by the Indiangovernment, has allocated investment ofUS$ 1 trillion for the core infrastructuresector, comprising power, roads,railways, ports, airports, which are someof the major consumers of steel.

The expansions in the Indian automotiveindustry and the oil and gas sector.


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Key government players in the Indian steel industry

Company name Products Manufactured Manufacturinglocations

Total groupturnover in USD $

Turnover in Indiain USD$

Steel Authority ofIndia Limited (SAIL)

Alloy steel, Ferro steel Bhilai, Durgapur,Rourkel, Bokaro,Raipur, Salem,

Visvesraya

10.87 billion 9.7 billion

Rashtriya IspatNigam limited(RINL)

Crude steel Vishakhapatnam,Andhra Pradesh


HindustanSteelworksConstructionsLimited

Crude steel, Rolled steel Hyderabad, Kolkata 161 million 140 million

MEOCON Limited Rolled steel Orissa 136 million 110 million

MaharashtraElektrosmeltLimited (Subsidiaryof SAIL)

Crude steel Chandrapur 86 million 75 million


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Key private players in the Indian steel industry

Company name Products Manufactured Manufacturinglocations

Total groupturnover in USD $

Turnover in Indiain USD$

Arcelor Mittal Stainless steel such asslabs, coils, coated steel

Orissa, Jharkhand 65 billion 690 million

TATA Steel Limited Crude steel Jamshedpur,Jharkhand, Orissa

23 billion 5.6 billion

JSW Steel Limited Cold rolling, galvanizedsteel

Vijayanagar,Tarapur, Raigarh


Essar Steel Limited Flat steel Hazira, Bailadila,Visakhapatnam,


Ispat IndustriesLimited

Hot rolled steel Dolvi 1.8 billion 1.6 billion

Bhushan SteelLimited

Hot rolled steel Orissa, Mumbai,Chandigarh,Derabassi, Kolkata

941 million 770 million


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Key European steel manufacturers in India

Companyname

Parent company ProductsManufactured

Officelocations

Turnover inIndia inUSD $

Outo Kumpu

India PrivateLimited

Outo Kumpu Stainless steel

products

New Delhi 150 million

Danish SteelClusters

(Private)Limited

Steel PartnerDenmark A/S

Mild steel &Stainless steel

Bangalore 30 million

ASSABSripad SteelLimited

AssociatedSwedish Steels

AB (ASSAB)

Stainless steel Chennai 10 million


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Key European consumer companies of steel in

IndiaCompany and country of origin Segment City Turnover in India inUSD$

Alfa Laval India Limited (Sweden) HVAC Pune 208 million

Atlas Copco (Sweden) A/C, Construction andMining, Industrial tools

Pune 290 million

Sandvik Asia Limited (Sweden) Engineering components Pune 421 million

Car-O-Liner AB (Sweden) Automotive New Delhi 80 million

SKF India (Sweden) Automotive Pune 355 million

Outo Kumpu (Finland) Automotive New Delhi 150 million

Alumeco India Extrusion Limited(DK)

Aluminium Medak 13 million

Carl F International (DK) Steel products Mumbai 75 million

Danfoss Industries Private Limited(DK)

HVAC Chennai 50 million

F L Smidth Limited (DK) Building and Construction Chennai 67 million

Sanistl


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Major steel clusters and steel plants in India

12

34

5

Major steel plants:

1. Bokaro (SAIL)2. Durgapur (SAIL)

3. Jamshedpur (TISCO)4. Bhelia (SAIL)5. Raipur (SAIL)6. Rourkela (SAIL)7. Vishakhapatnam (RINL)8. Salem (SAIL)9. Visvesraya (SAIL)10.Vasind (Jindal)11.Ahmedabad

12. Orissa (Arcelor Mittal)13. Jharkand (Arcelor Mittal)

- Steel clusters in India

8

11

10

6

79

1213


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Investments in the Indian steel industry Rashtriya Ispat Nigam Ltd has announced that US$

961.54 million worth of new units would come up in theplant as a part of its expansion project.

Steel Authority of India Limited (SAIL) is planning to setup a 12 million tones plant in Jharkhand, North WestIndia.

In UIC Udyog Ltd, a leading manufacturer of steel wires

and wire products, plans to set up a facility formanufacturing of steel wires with a total investment ofUS$100 million

Stainless steel manufacturer and exporter, VarunIndustries, is setting up a US$ 171.8 million stainlesssteel-cum-alloy steel plant in West India.

Jindal Steel Works (JSW) has invested around US$ 1.6billion and plans to increase capacity of its Bellary plant inSouth India from 7 mn tpa to 10 mn tpa by theend of

2010-11. JSW Steel plans to expand its annual capacity to 32

million tones by 2020.

JSW Steel has recently made a joint venture withJapans JFE Steel, which would lead to a jointconstruction and operation of a 10 mn tpa steel plantin West Bengal in India.


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Danish steel representation in India

Steel Partner A/S is a manufacturer of sheet metal parts and assembles in mild steel and stainless steel.

Steel Partner Denmark A/S is a Danish owned joint venture between two investors, where one is a steel manufacturer

and the other being a sub supplier within the Danish market.

Danish Steel Cluster in India is the subsidiary of Steel Partner Denmark .

Danish Steel Cluster (P) Limited was founded in 2005 and has been operating from Bangalore, which is the

export oriented unit.

Danish Steels major activities in India includes manufacturing parts and sub assemblies mainly for exports.

Danish Steel has around 60 highly skilled employees in India.

Danish Steel started its operations in India with a mission to become market leader by providing the

customers superior quality products at reasonable price.

Danish Steel Clusters in India has a vision to be a successful player in the global market of manufacturing

and machining.


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SWOT Analysis

Strengths

Availability of iron ore and coal in bulk quantity

Low cost efficient and abundant labor

Strong managerial capabilities

Modern new plants and modernized old plants

Weaknesses

Dependence on imports for steel manufacturing

equipments and technology

Low R&D investments

Inadequate infrastructure

Slow statutory clearance for development of mines

Opportunities

Unexplored rural markets

Rapid urbanization

Growing domestic demand and increased level of

exports

Indian steel producers looking for overseas

acquisitions in steel as well as raw materials

Strong growth in steel heavy industries e.g. the

automotive industry and within the infrastructure

Increasing interest of foreign steel producers in India

Threats

Slow growth in infrastructure development

Market fluctuation and increase in Chinas export

possibilities

Global economic slow down

Higher duties and taxes

CSR related issues: increased focus on the

environment and labor conditions


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Danish contact in India

If you are interested to hear more about India and the rising steelindustrys possibilities do not hesitate to contact:

Ejvind Vgg director of the DI office in India:

E-mail: [email protected]

Phone: +91 9930 562729/ +45 2728 0486
mailto:[email protected]:[email protected]

the indian steel industry 2012

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