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Indian Steel Industry

By: Group 7 Pallavi Agrawal

Luv Mishra

Gaurav Singh Sneh Srijan

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Indian Scenario

The demand for steel in India is expected to rise 7% in next fiscal year as compared to sluggish 5.5 %last year

India is currently the worlds 4th largest producer of

crude steel after China, Japan and the US with aproduction of 71.3 million tonns, registering agrowth rate of 4.4% over 2011

According to Joint Plant Committee (JPC)estimates, domestic finished steel consumptionposted a growth of 6.8% during 2011-12 to 70.92million tonns

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Market Concentration

Bhushan Power3%

Bhushan Steel4%

Essar Steel

6% Jindal Saw

2%

Jindal Stain.4%

JSW Steel

13%

Rashtriya Ispat

5%

S A I L

16%

Tata Steel

14%

Uttam Galva

2%

Visvesva. Iron0%

Others

31%

Chart Title

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SAIL

Is one of the largest state-owned steel-makingcompany based in New Delhi, India and one ofthe top steel makers in World

Turnover of 48,681 crore (US$8.4 billion) -top five

highest profit earning corporates of the country It is a public sector undertaking -by Government

of India

Annual production of 13.5 million metric tons

14th largest steel producer in the world

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Steel Authority Of India (SAIL)

Basic competitive strategy : Differentiation & CostLeadership

Complementary strategy : Alliances,Collaborative partnership , Join ventures, Mergers,

Expansion, Modernization

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TATA STEEL

Tata Steel was established by Indian Parsibusinessman Jamsedji Tata in 1907

Among the top 10 steel makers in the world

Annual crude steel capacity of over 28 milliontonnes per annum (mtpa).

Operations in 26 countries and a commercialpresence in over 50 countries.

Turnover of US$ 24.82 billion in FY 2012- 2013

It is having market share of around 21%

Has over 81,000 employees across five continentsand is a Fortune 500 company.

Larger production facilities include those in India, theUK, the Netherlands, Thailand, Singapore, China andAustralia.

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STRATEGY

Cost leadership & Broad differentiator

This it is trying to achieve through

Joint Ventures Ex: with Oman Lime Stone Project in 2008

Merger & Acquisition

Ex: acquisition of Corus in Rs.56150 crores in 2007

Outsourcing of value chain activities

outsourcing is done to subsidiaries

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Bhushan Steel limited

Bhushan Steel is the largest manufacturer of auto-grade steel in India

Incorporated in 1983 under the name Jawahar

Metal Industries Private Limited Producer of diversified and value-added steel flat

products

It spends Rs. 260 billion to expand its capacity to 12million tonnes annually

Supply primarily to automotive and consumerdurables manufacturing industry in India and also forexport

2 fully operational facilities-Sahibabad(U.P.) , Khopoli(Maharashtra)

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STRATEGY

Cost Leadership & Broad Differentiator

This is being achieved through

Backward/Forward Integration Increase production to benefit from Economies of

scale

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Jindal Steel Introduction

MISSION :- To strive to be a world class service center of stainlesssteel through constant learning & quality improvement.

VISION:- We are committed to provide world class ethical & quality

service for our customer delight.

Treat employees as 'partners' in progress

Be a good corporate citizen.

Creating value for all stakeholders.

Turnover over $3.5 bn

Market share of 12% in the domestic market

Employee strength over 4000

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Strategies For Jindal steel

Integration to Reduce Cost :-

They have followed forward and backward integration

strategies basically to reduce the cost.

Investment in cutting edge management practices:-

Innovation

Quality System

Diversifying investments

Increasing its productions capacities

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Conclusion

Since the industry has medium concentration andcompetitive, it is necessary for companies toestablish themselves as a cost leader.