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EDITORIAL

Chief Editor Ajay Tambe Founder www.steelgroup.co.in Editor & Conceptualiser Rajeev Kumar CEO A Plus Creative Surender Mukhija Creative Director Frames25 Head Marketing Gautam Malhotra Director Marketing Frames25 Marketing & Subscription Neha Kochhar Frames25 Design Maharaj Singh Negi Frames25 Digitalized & Marketed BY Frames25 W 9, II Floor Okhla Phase II New Delhi 110022 Mobile: +91 9990096189 mailframes@frames25.com www.frames25.com Published By Steelgroup.co.in F-1102,Akruti Orchid Park Sakinaka ,Anndheri (E) Mumbai 400072 Mobile:+91-9322199557 ajay.tambe@steelgroup.co.in www.steelgroup.co.in Copyright steelgroup.co.in

Ajay Tambe Dear Readers, Global as well as Indian steel industry is presently going through a tough time .Last few quarters were quite challenging for many of the business houses as the industry is facing many problems . Under this adverse scenario colour coated steel industry is booming in India and a lot of capacity expansion is planned to take the production capacity of colour coated steel to close to 1.5 MT from a moderate existing capacity of 0.8 MT .Majority of the capacity addition is from JSW steel which is also setting up colour coating line for appliance grade .Other companies like Uttam Galva and Ralco steels are also coming up with added capacities. The user segment also gradually becoming demanding as awareness about Galvanized and Colour Coated Steel is gradually increasing. Still, the per capita consumption of colour coated steel is very low in India as compared to Europe, US and even China which ensures the growth in this industry. Usage of colour coated steel in construction segment is also increasing rapidly in India. Steel processors, service centers and profilers play a very important role to maintain the growth of colour coated steel in India. Majority of the profilers in all major cities are family owned business houses and run in a conventional way thus resisting the awareness about this wonderful form of steel in the user segment. We have observed the necessity of having an informative bulletin in the sector after encouraging feedback from 280 delegates and dignitaries from the sector during the first GCP Summit on 22nd Feb 2013 at The LaLiT, Mumbai. This quarterly e-bulletin is our sincere effort to keep the entire sector informed about the market trends, challenges of the user segments, new equipment & technology and overall growth of the sector. Hence, your contribution and opinion are very important for us to keep us going.
Chief Editor
Founder, Steelgroup.co.in ajay.tambe@steelgroup.co.in

August 2013

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CONTENTS
INNOVATION

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Innovation in Coil Coating Technology Vinyl Coated Metal (VCM) Aesthetic & Majestic

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PEB Industry Overview Investment Opportunity in Manufacturing of Pre-painted Galvanized Steel Coils, Sheets & Profiles

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COMPANY

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INNOVATION NOITAVONNI

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INNOVATION

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INNOVATION

YogijiDigi Carving a Niche for Themselves

NOITAVONNI

PROFILE
INNOVATION INNOVATION INNOVATION

TECHNOLOGY

INNOVATION INNOVATION INNOVATION

The Link Coater

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INNOVATION NOIT

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OVERVIEW

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Coil & Cut Sheet Handling and Protection

LOGISTIC 26
FACE TO FACE

Ajay Tambe Face to Face with Pramod Baliga Sagittarius Group

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NEWS 34
Steel Goal Fades as $12 Billion Projects Dumped: Corporate India

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2nd
SUMMIT
2nd GCP summit 2014, January, Bangaluru

Largest Summit for Galvanizing, Coating & Profile Sector in India


To understand market dynamics and network with large, medium and small players in the Galvanizing, Coating and Profiling, SteelGroup is organizing second mega gathering of experts of coated and profiled steel manufacturer, users, processors, technology, equipment & service providers, consultants and traders. Highlight Your Company and Promote your Products & Equipment at the Largest Event of the Galvanizing, Coating & Profiling Sectors

Focus of The Summit


Market Scenario, Demand and Forecast for Coated and Profiled Steel Needs and expectations of actual steel users Galvanizing, Colour Coating and Profiling Demand Drivers in India Packaging and Branding of Coated Steel Import and Export Market of Quality Product Distribution System & logistic issues Equipment and technology in downstream steel processing

Who Should Attend


Users of coated steel products Steel producers Steel service centers and profilers Equipment and technology suppliers Infrastructure, housing development companies and whitegoods manufacturers Project consultants Importers and Exporters Automotive companies Analysts, Traders and Banks Dealers & Distributors Packaging & Logistic Companies

For Sponsorship Opportunity and Delegate Registration Please Contact:

Mr Ajay Tambe Steelgroup.co.in F-1102 Akruti Orchid Park Sakinaka, Andheri Kurla Road, Andheri (East) Mumbai - 72, India Email:ajay.tambe@steelgroup.co.in

Contact Person: Neha Kochhar Frames25 W-9, II Floor,Okhla Industrial Area, New Delhi -110020 Email: nehaframes25@gmail.com

Email : gcpsummit@gmail.com Website : www.gcpsummit.com

Principal Partner

Platinum Partner

ACCIL
Adding New Dimensions to Steel

Gold Partner

Media Partners

Summit Associate

Organizer

Design Partner

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Innovation in Coil Coating Technology

INNOVATION

Vinyl Coated Metal (VCM) Aesthetic & Majestic

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NOITAVONNI

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NOITAVONNI

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INNOVATION NOI

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Innovation

Innovation in Coil Coating Technology


Rajesh Mehrotra, CEO, Berger Becker Coatings (P)Ltd
A picture speaks louder than words. Above Ferrari Workshop is scaling new height of innovation in Coil coating industry that has grown manifold since its inception. Coil Coating Industry, one of the most innovating industries in recent times has evolved beautifully since the inception of first colour coating line in the year 1941.

Coil Coating line yesterday:

Coil Coating today:


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Innovation
The surge in demand of innovative products brings out best technology, automated process and robust coating system to produce Quality products. The main development and innovation takes place to replace the conventional powder coated, spray painted, post painted system, orthodox roofing & cladding system of clad, asbestoses, bricks, with most advance quality product called PPGI. Textures & wrinkle products are based on extremely low gloss levels which reduces unwanted reflection and are being used successfully in colder areas of Europe .Abrasion resistant systems are very good in scratch resistance and find their main application in roller shutters One of the most recent products is Thermal control paint (TCP) & is based reflectivity & emissivity principles. TCP coated sheets find a foremost place in Green building concept on account of its ability to maintain lower temperatures. The product has been a breakthrough in the European markets and slowly making its way into the Asian one also. Dust free systems are based on modifying resistivity of the coating & form the backbone of clean room applications. Inspired by nature, coil coatings have products with natural looks also. The base material is metal but the feeling is of Wood grain, Marble & Leather These products are based on multi layer applications and require very high precision on coil coating lines during application. Even the most advanced sector of coil coating industry i.e. Appliance has not been left untouched by the innovations in the industry.

Process
The progress of advanced coil coating technology in the last 30 years since it was first introduced to the market has been amazing. Latest coil coating technology not only produces higher quality finished goods, but enables a process that is cost effective, efficient and eco-friendly. Although coil coated products are modern, innovative, stylish & tough but their feasibility is dependent on a lot of processes like pre-treatment of metal, process of application & quality of paints and there have been significant innovations in all the three fields. In early nineties the process of pre-treatment was based on acidic and chrome chromates, and then came amorphous phosphates with chromate post rinsing which proved to give better adhesions. These pre-treatments were good for multi substrates like HDG, CRS or Aluminium. With some advance developments in 80's & 90's, a new concept had originated and that is no rinse pre-treatments to save energy, money and protect environment. Latest technology involves Chrome free pre-treatment to eliminate toxic components and adheres to environmental legislations.

Wood finish pattern

Product
Regular Products The technology has changed for better prospects over the years in each and every sector like Building, Automotive and Appliances. Innovation has led the old paint systems of alkyds, acrylics & vinyls to regular Polyesters, Super durables & Silicon modified products. These products are widely being used for roofing & cladding applications. Advanced Products A lot of work has been done on establishment of advance products like Poly vinyl di-fluoride (PVdF), Wrinkle/Texture, Abrasion resistance coatings, TCP, Dust free system, Wood grain ,Appliances etc. Coil coaters & paint suppliers are working hand in hand to give best quality product for the best intended use. They are also working on some of the new products which are very attractive on protecting environment & controlling pollution. PVDF Coatings are premium products which gives best outdoor & long term durability because of excellent UV resistance.
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Marble finish patterns


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Innovation
The monotony of white color in OEM sector has been transformed into a plethora of colors by the new technological advancements in the coil coating industry. New patterns are very eye catching with various dark colors. One has a variety of patterns to choose from solid to metallic finishes, smooth finish to embossed effect. Paint suppliers are also working on upcoming patterns like Lamicoat films, brush finish, hair line and attractive floral patterns. Electron Beam curing process which is intended to provide ultra fast curing, high line speed, compact oven size and high production. Coil coating industry has come a long way from its baby years and has now entered its youth at the epitome of its beauty and strength. This is not the end, this is the beginning of a new era which will usher into the world of colors with a myriad applications.

Floral pattern

Embossed Pattern
Over 10 million tons of such coated steel is produced today in over 300 coating lines all over the world!!! Today, the world is truly beautiful and more colourful like never before.... Thank you Pre-painted Coil Coating Products

Line Technology
Moving on to the processing segment, earlier conventional lines were operated at a speed of 12-20 meters per minute (mpm) but latest lines are operating upto 120 mpm to cater the growing demands from the market. Not only have line speeds increased tenfold, the number of substrates, paint systems & product application has proliferated over the same period. Latest curing technologies includes Near Infra Red, Infra Red, Ultra Violet &

Line diagram of a Coil Coating Line


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Innovation

Vinyl Coated Metal (VCM)


Aesthetic & Majestic
By manufacturing VCM first time domestically, JSW has made its point to always raise the bar for itself and the industry as whole.
Developers have become increasingly aware of the importance of green and sustainable ecosystem and they are looking for the ways to replace traditional roofing and cladding by the material which is eco-friendly, but also has the advantages which are not possible in conventional form of construction material. At the same time the Consumer Durables manufacturers are looking for steel which can help them to manufacture aspirational products to meet the evolving lifestyle trends. Pre Painted Metal (PCM) & Vinyl Coated Metals (VCM) are such products which are specially designed to cater to the unique needs of both Project & PCM and VCM may be overlaid with print patterns. With various colors, patterns and gloss, PCM and VCM give customers rich options to maximize the beauty of products. In addition colors, patterns and gloss can be developed depending on the usage and specifications. The finishes that are available range from solid colors, granites, marbles, wood grains to brushed patterns. VCM find use in a wide variety of applications ranging from Home Appliances (Refrigerators, Washing Machines, Microwaves), Construction and Transportation, Food Service Industry, Steel Furniture such as Wardrobes and Cabinets, Shipyard Marine Services, Patio covers, Garage doors, Elevators, Roofing to DVD Casings. In India, PCM and VCM are used in the manufacture of refrigerator doors and washing machine bodies. The primary reason for PCM and VCM being used in refrigerator doors and washing machines is that it adds aesthetic appeal to products;

Construction and Consumer Durable segments. PCM and VCM will surely satiate the needs of white-goods and construction sectors by offering the flexibility and freedom to incorporate futuristic designs and patterns, depending on the designer's inspiration. Pre-coated metals eliminate the need for customers' in-plant liquid or powder painting. By purchasing Precoated, customers usually realize significant improvements in quality, cost savings, and production efficiencies. Of the various Precoated metal categories, Vinyl-Coated are "best in class." They provide superior appearance, durability and overall performance. Vinyl coated metal is a value-added product in which vinyl film is bonded to the surface of a metal sheet (usually Cold Rolled, Galvanized or Galvalume). The basic difference between Pre Coated and Vinyl Coated Metal is, Pre Coated Metal sheets are provided by applying a paint film on a metal sheet while Vinyl Coated Metals are essentially metal coated with a vinyl film. Both

this ads aspiration value to the various appliances. As of today, not a single domestic player caters to VCM finishes. Vinyl coated metal is totally imported. The import is primarily done from Korea. The current major suppliers are POSCO, Dongbu and Union Steel to name a few. JSW Steel has taken flight to the future by establishing new Colour Coating line at its Vasind Unit. This technologically superior line will serve the niche market with highly specialized products VCM (Vinyl Coated Metal).

JSW Steel Pioneer in Texture-Finish steel


In line with the ideology of customer-delight through continuous innovation and value creation, JSW Steel started manufacture of Texture-Finish steel in India in 2010. Textured steel provides multiple options for Architects, Builders and Consultants to use environment-friendly steel as substitute for traditional materials. Textured steel is available in various finishes like:
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August 2013

Innovation

JSW Steel Vashind Works

Wood Marble Stone Brick, etc.

JSW Steel's Textured-finish colour coated coils and sheets are durable, cost-effective and easy to install and use. Hence, it proves to be a versatile product for various applications like panelling, steel doors, wall and ceiling panels and even for furniture. It is virtually a ready-to-use product that can be cut, bent, pressed, drilled, roll formed, lock-seamed and joined, all without damaging the surface or the substrate. The manufacturing of VCM comprises of pre-treatment, chromating and phosphating of sheets, an application of primer coat followed by backer coat at appropriate temperature. The primer is based on poly vinyl chloride co-polymer, phthalate plasticizers, pigments and heat and light stablizers. A vinyl film is applied on a base metal which could be either Galvanised steel or Galvalume. There are two types of coaters of vinyl film: sheet laminators and coil coaters. These coaters apply the films the same way except the metal is either pre-cut into sheets or coated in coil form prior to cutting or shearing. The coating lines clean the metal to remove mill oils and metal fragments. These cleaning processes include liquid alkaline cleaners, brushes, and rinse tanks. After the cleaning, there is pretreating with iron phosphates for cold rolled steels, zinc phosphates for Galvanized steels. Adhesives are roll applied, run through a continuous gas fired oven and partially cured. When the pre-glued sheets or coils of metal exit the ovens, the vinyl film is rolled onto the surface of the metal and rolled by metal rolls. It is the pressure of the metal rolls and the residual heat in the metal

strip that completes the curing of the adhesive to the film and the metal surfaces. Advantages of Vinyl-Laminated Metals Attractive Optimal coating quality and consistency Customizable designs Product innovation and differentiation Durable - highly resistant to abrasion, peeling, tearing, texture loss, fading, stains, corrosion, chemicals, weather, moisture, household substances Temperature (hot or cold) insulation Sound-dampening Fame-retardant & fire resistance (self extinguishing) Non-toxic Electromagnetic and radio frequency resistance Fingerprint resistance Easier to clean and less maintenance than other finishes Environmental Friendly: vinyl contains post-consumer recycled content; recyclable and/or biodegradable after use VCM products are engineered for effective formability and are normally well-adapted to press braking, roll forming, stamping, shearing, piercing, die-cutting, crimping, laser cutting, drilling, punching, beading, folding, drawing, lock forming, adhesive bonding, fastening, and wing bending. By manufacturing VCM first time domestically, JSW has made its point to always raise the bar for itself and the industry as whole. This has been done with relentless pursuit of technological advancement, unwavering focus on innovation, strident emphasis on quality products and constant initiative for customer satisfaction.

Construction Pattern
August 2013

Home Appliance Pattern


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COMPANY

PROFILE
YogijiDigi: Carving a Niche for Themselves

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Company Profile

Yogiji Digi Carving a Niche for Themselves

From Left to Right Mr A K Rana, Mr Samir Bansal, Mr S K Tripathi & Mr Navneet Gill

Since the beginning of time, behind the growth of every revered brand name in the world, there have been three distinctive attributes. A vision, holding true to its core values, and finally, continually delivering on its promise of providing superior quality products, technologies & services.
An Association to Excel
The vision of providing economical energy saving Drives & Automation solutions for all industry sectors led to the conception of DIGI DRIVES in 1993. Under the able leadership of Mr Navneet Gill & Mr Samir Bansal, the company began its operations from a small setup in Faridabad manufacturing FHP Bonzer DC Drives. Within a few years, DIGI developed a fully equipped workshop and lab at Faridabad with complete automation system design facility. From the fabrication of panels to FAT (factory acceptance test) of Drives, DIGI became a single source solution provider of Motors, AC Drives, PLC, DCS, Instrumentation, MCC, PCC, Power factor Panels and AGC (Automatic Gauge Control).
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DIGI soon became the channel partner of ABB & the pioneers of the Automation sector in India by providing automation solutions for several plants of Paper mill, Printing, Sponge Iron, Power Plants & Cold Rolling Mills. It was during these several projects of automation for Cold Rolling Mills that DIGI realized there is a dearth of quality Flat Steel solutions provider at an affordable cost in the market. With only a few players supplying quality solutions but at a very high price, there was a big potential in the market to carve a niche for themselves by being a one stop solution provider to the customers. In a global economy subject to ever changing market dynamics & heightened competition, a one stop solution which covers all the requirements of the customer, cutting down cost was the need of the hour. With this vision, brand DIGI joined hands with YOGIJI TECHNOEQUIP in 2008 forming a unique association. YOGIJI TECHNOEQUIP founded by Mr A K Rana (Ex MECON) & Mr S K Tripathi, brought with them invaluable years of experience in design, manufacturing, erection and commissioning of Flat Steel Solutions to the table. With this strong alliance, YOGIJI DIGI setup a state of the art manufacturing facility near Faridabad in 2009 with imported machines. In a short span of time since the alliance, YOGIJI DIGI have successfully designed and commissioned several Cold rolling Mills of varying widths & speeds rolling thinner gauges (0.150.20 mm) with yield of more than 98% on a regular basis.
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Company Profile
With the first narrow width Cold Rolling Mill commissioned recently & a Push Pull Pickling line for AVON Ispat Ltd. Ludhiana under erection in India, YOGIJI DIGI is making their presence felt at home as well. By achieving excellent results for their existing lines, they are grabbing repeat orders from their customers and with each passing day YOGIJI DIGI brand gets stronger. With the vision to become one of the leading flat steel solutions providers, they are constantly evolving with time led by innovation & determination. With their core values of providing quality solutions at an affordable cost intact, they are already delivering on their promises to the old customers & the new.

Overseas Operation
Successful commissioning of the mill in Zambia led to several repeat orders by the same customer for their projects in Uganda, Mozambique, Tanzania & Ghana. Another 1300 mm width high speed Cold Rolling Mill is already under erection in Egypt. Besides the Cold Rolling Mills, they are also supplying Continuous Galvanizing Line, Push Pull Pickling Line, HR Slitting, CR Slitting, Cut To Length Line & have successfully commissioned their first Color Coating Line in Uganda that uses the top of the line Dual Head Coater of GFG USA. Years of experience & knowledge of both the Mechanical & Automation sector on their side led to the design & manufacturing of their first 1000 mm wide 500 mpm 4 HI Cold Rolling Mill in Zambia and 1250 mm 600 mpm 4 HI Cold Rolling Mill in Nepal which had the best features of several mill designs.

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Company Profile

Simplistic in nature and by removing the redundant features of age old designs, these mills achieved great efficiency with top quality. Achieving such a result at an affordable cost for the customer set a precedent for the things to come. The brand YOGIJI DIGI had now ingrained DIGI's core value of providing 'quality & efficient solutions at an affordable cost'.

Challenges faced in Indian Market


The YOGIJI DIGI brand over the years is establishing itself in the world & the Indian markets at an impressive pace. However, they have to face several challenges in the Indian market in comparison to the overseas market. Any buyer in a market prefers to invest in the best quality product with reliable design & built. In order to get maximum efficiency out of it, they look for the latest technology and features available. But quantity & quality don't go hand in hand always. The mindset of many Indian customers is to get maximum bang for the buck. They want the best quality with the latest technology & design, but they are not willing to shell out the extra money for all its worth. The motto of YOGIJI DIGI has always been to offer the best in quality, design & technology at an affordable cost. But for some of the customers in the Indian market, it becomes a challenge to convince them to increase their budget according to the quality they desire and we provide. There are many new entrants in the Indian Steel industry over the recent past. Business houses that have been involved in trading of Steel coils or involved in other industry, are now setting up their own manufacturing setup of a C R mill. In most of these cases, they do not hire a good technical consultant who should

work for them from the beginning of the project planning till the very end of the project. Due to this, customers end up taking wrong decisions without any technical guidance to help them out. It is when we come into the picture; we realize how the customer has been taken for a ride. For such customers the whole project has to be approached from the scratch bringing them back to square one. This results in customer's precious time and resources being lost. Considering the competitive market it ultimately leads to loss of business for the customer. Apart from the issues relating to the customer, there are other factors as well such as the slow pace at which the bank formalities are done by our Indian banks. For certain services the bank takes months to complete their formalities through endless documentation & procedures. In a global market, months' time can lead to political upheavals in a country which can ultimately cause the whole project to be delayed. For a project to be completed in time and for us to compete in the global market, it is imperative that our Indian banks improve their efficiency.

Miles to go before we sleep


With each project, YOGIJI DIGI continues to innovate by improving on their designs for greater efficiency and reduced cost to the customer. They have recently further improved their infrastructure by setting up another manufacturing setup along with a Sand Blasting unit for superior paint finish quality. It will be a long road which will require even more hard work, perseverance and innovation. But the foundation for a great brand as the Flat Steel Solutions provider has been laid & soon it shall be revered for being the leading brand in a league of its own.
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The Link Coater

TECHNOLOGY

Technology

The Link Coater


Imran khan, Fitch Metals:-

Link Coater In 2006, a totally different coating head construction was patented by FME. This construction, called a Link Coater, does not rely on linear bearings or weak deflection-prone roll supports to establish the inter-relation of nipped rolls. The machine configuration has more to do with strip transport than coating application. Therefore it is the coating head construction and interaction of the nipped that impacts the end coating result. The innovation of the Link Coater construction is that it is based on the triangle geometry. Each corner of the triangle connects a vital coater function in a very rigid configuration and it has similarly triangular link configuration for all coating head roll. So this is the basic difference of design in Link coater design to the conventional roll coating design. Each additional roll such as this pickup roll and metering roll, if included, are also similarly configured in triangular links. As we find that conventional roll coating design has stacked slide type
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design and L- shaped roll support frame mounted on linear bearings so due to that the nip force measurements are far away from the actual roll nip. The design is affecting the actual nip force magnitude because of the unknown stick slip bearings. It has been observed that the stacked slide design mounted on the linear bearings exhibits what is commonly called stick-slip in operation In Link Coater, the applicator roll, metering roll and pick up roll is mounted in traditional fashion. The pivot points replace the traditional linear slides with rolling bearings which provide very low friction and eliminate stick-slip. These bearings are sealed from coating and solvent contamination. LINK COAT Coater-roll support slide deflectionSo due to the configuration difference with the conventional coating design we get the points like there is no deflection or loss of load due triangular geometry of support frame. Some other weakness of the conventional roll coating design is that the deflection of the applicator roll support affects the roll
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Technology

Conventional L-Shaped coating head nip repeatability. A stress analysis of the Link Coater vs. the L-shaped stacked slide quantifies the intuitive observation that the Link Coater construction has 25 times the deflection resistance of the stacked slide.

Conventional L-Shaped coating head

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Technology

CONVENTIONAL coater- roll support slide deflection Advantage the link coater : It eliminates stick slip It eliminates inter-nip roll deflections It eliminates effects of drive shaft vibration It provides reliable and repeatable nip force measurement It enables closed loop nip-force control coater provides paint thickness accuracy up to 0.5 micron. The pay-back of this technology is to improve the Statistical Process Capability of your coil coating operation. Reducing process variation will not only improve product color and consistency but also provide improved cost control through better paint utilization. For more information visit www.fitchmetalseng.com

Due to advanced configuration and specification The Link

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PEB Industry Overview Investment Opportunity in Manufacturing of Pre-painted Galvanized Steel Coils, Sheets & Profiles

OVERVIEW
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Overview

PEB Industry Overview


History
Technological improvement over the years has contributed immensely to the enhancement of quality of life through various new products and services. One such revolution is about the metal buildings industry. The concept of metal buildings originated in the US in early 1900s and gained momentum after the world war. During the second world war, mass production of steel buildings using pre-fabricated technology for the defense sector became popular which gave further boost to the metal buildings construction methodology when compared to conventional methods. During 1960s, a series of enhancements right from computerized designs, production techniques to color coated panels and insulation panels changed the face of this industry. This led to supply of tailor made or customized buildings by aid of technological developments as per the customer's requirements thereby giving a new name to the industry Pre-Engineered Steel Buildings (PEB). The journey continued from 1970s to late 1990s in the developed economies with more than 60% of low rise buildings i.e. industrial and commercial being dominated by PEB.

Driving Factors
PEB concept gained impetus in the Indian markets in the early 2000 due to opening up of the economy and a number of multinationals planning to set up their facilities to target the rapidly growing Indian consumer demand for different products. Changes in Government regulations, industry friendly policies and promotion of India as preferred FDI destination also resulted in heavy FDI inflows thereby giving a further boost to the PEB technology. Though the growth has been exciting, application of PEB concept has still long way to go in the construction sector and acceptance among the corporate which is yet to reach to the level of developed economies. Growth of PEB industry has given development of a new and separate dedicated product line to the steel industry color coated steel. Color coated galvalume steel is considered more durable and corrosion-resistant than post painted steel and also have excellent workability and aesthetic qualities. A wide arrange of color options are also available with pre-painted steel based on various industry requirements with most of the leading steel producers already catering to this with focus on galvalume steel as a separate product.

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Overview

PEB Industry Overview


PEB industry is currently growing at an average of 10-15 percent per annum with the market demand pegged at over 600,000 MT per annum. The PEB industry in India has experienced tremendous growth over the last 12 years which has increased the awareness among consultants and customers. In current scenario, anyone planning to put up a factory or a warehouse immediately thinks of a PEB. The industry is yet to achieve its true potential as increasing consumption is creating demand-supply gap leading to setting up of more industries which in turn is increasing the PEB market size. Also all the Govt. / Private tenders are being issued with special reference to PEB only. The usage of steel and especially PEB has grown rapidly in the industrial segment. This is mainly due to cost savings, faster return on investment, quicker delivery, faster installation, single source responsibility, low maintenance, flexibility in expansion, earthquake resistant, superior quality, etc. which have become vital for any type of project. Rising labor costs, shortage of skilled labor, faster construction time, etc. are some of the other factors leading to increase in demand for PEB which will become one of the construction norms in coming years. PEB is a total steel building package that is delivered to site from a single source as a completed product and is ideal for fast and cost effective growth of infrastructure in India where increasing number of sectors are looking at PEB as a viable construction solution.

New Opportunities
Structural steel is an area which is not yet tapped completely and has very high potential due to very less number of organized players doing offsite fabrication. But the scenario is expected to change over the next few years where demand for factory controlled fabrication will increase when compared to current model of site fabrication. Citing this opportunity, Kirby has entered this heavy engineering applications that include Offices / Commercial Buildings / High Rise Buildings, Shopping Malls, Multiplexes, Power Plants, Oil & Gas Structures, Steel Plants, Bridge Girders, Multi Level Car Parking Structures, Airport Terminal Buildings, Residential Buildings, etc. to cater to growing structural steel demand in the country.

Kirby India Leading the PEB Revolution


Kirby is a leading player in the Indian PEB market with a market share of over 30%. The company has over 27 sales offices and a network of more than 100 certified builders to cater to the erection procedures as per the international standards capable to handle any type of complexity under adverse site conditions. The company has served over 4,500 customers with more than 15,000 buildings spread over an area of 20 million sqm since its inception. Kirby India has the privilege of partnering who's who of corporates both from national and international front operating across all industry segments by setting up their facilities in India and across the globe. Kirby India has a capacity of 200,000 MT per annum with Hyderabad and Haridwar each having an annual capacity of 100,000 MT respectively. Kirby's Hyderabad and Haridwar factories are ISO 9001:2008 certified. Kirby is also a member of Indian Green Building Council (IGBC) and Institute for Steel Development & Growth (INSDAG). The company has also been awarded with British Safety Council membership after meeting their stringent qualifying criteria. Kirby's buildings are designed as per relevant IS codes and also as required with international standards such as AISC, AISI, MBMA, etc. which are in line with the customer's requirements. The company uses its proprietary software for design and detailing of
JOURNAL

Steel Sector Scenario


India which is expected to become world's second largest producer of steel had total estimated consumption of 73.3 million tonnes of steel in 2012-13, up from 71 million tonnes in 2011-12. India currently stands at fourth position among the major steel producing nations in the world and the government has also taken important initiatives to boost the growth of the steel sector. Per capita consumption of steel in India has gone up by around 25% in the last five years to 59 kg in 2012 against 45.8 kg in 2007. According to World Steel Association (WSA), barring 2008, when India's steel consumption dipped to 45.1 kg against a year-ago, the growth in consumption has been steady every year. But India still lags far behind the world average of 214.7 kg and China's average of 459.8 kg.
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Overview

PEB structures, in addition to the standard packages which include STAADPro, AutoCAD, ProSteel, Tekla, etc. which allows all the buildings to be customized as per the unique demands of the customers. Over the years, Kirby India has evolved from a mere manufacturer of PEB to a total solution provider for customer needs. Like a true leader, it has constantly tried to set new standards in the PEB industry. The company has demonstrated its capability to design and manufacture complex & heavy structures and also by setting up mega projects in the Automobile, Shipyard, General Engineering, Infrastructure, Logistics, and various other sectors. Kirby India has also successfully ventured into many unexplored territories like Power Plant Structures, Bridge Girders and Shipyard structures and became the role model for other PEB players by making inroads into these areas and laying the foundation for similar type of projects. The company has the privilege of partnering most of the leading corporates across all industries by setting up their facilities. To name a few, Kirby India has been associated with companies such as Nokia, Skoda, Tata Group, Reliance Industries, Hindustan Unilever, UNICEF, BMW, Renault-Nissan, Suzlon Group, Birla Tyres, Apollo Tyres, MRF Ltd, Bridgestone, Pipavav Shipyard, L&T, Toshiba-JSW, Pepsico, Coca-Cola, Procter & Gamble, Dabur India, ITC Ltd, Delhi Metro, Bangalore Metro, Hyderabad Metro, Essar, JSW Steel, JSPL, Gati, Mahindra & Mahindra, Asian Paints, Hindusthan National Glass, Shimizu Corporation, Soma

Enterprise, Siemens Ltd, Sterlite Industries, Alstom, Bharat Forge, POSCO, Madhucon Projects, Ruchi Group, BRG Group, Base Corporation, PRP Exports, Kohler, NCC, ABB, Jain Irrigation, Ministry of Defense, etc. and many more. Kirby also received some recognitions and accolades such as CNBC-TV18 Infrastructure Excellence Award 2011, Greentech Environment & Safety Awards 2011, EPC World Awards 2011 and Greentech Safety Award 2012 to name a few. The company has also received various other awards in seminars or events where the company has participated or sponsored over these years.

Research & Development


Kirby India has always been at the forefront of innovation by investing in new production technologies and enhancing the performance through continuous product development. Integrating the company's strength and expertise along with innovation has helped the company lead the Indian PEB market. Apart from the functional requirements, the company has incorporated curved roof panels, wall claddings, flashings, alucobond panels and other such features to improve the aesthetics of the building. All Kirby buildings use steel which is more than 90% recyclable thereby making them as the ideal choice for green buildings. These buildings are cost effective, energy efficient and provide better quality environment due to the favourable roofing material and natural ventilation. This is also one of the reasons for
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Overview
the growth of PEB industry as steel is durable, easy to produce, environmental friendly and has the ability to withstand some of the most damaging weather conditions. Therefore, steel is a green building material - a concept that is increasing in popularity with both builders and consumers. The heightened emphasis on green building construction is also poised to push market expansion. The use of sky lights and solar panels on rooftops will meet daylight and captive power requirements, while, at the same time, reducing emissions and gaining carbon credits under clean development mechanism. Effective usage of insulation material, louvers and other materials are also becoming part of green buildings. All the materials used in making of Kirby buildings are recyclable and environmentfriendly. Kirby is always looking forward to be a part of ecofriendly products and the ongoing green revolution in the construction industry. To conclude, Kirby is the only PEB manufacturer in India that is capable of supplying a packaged solution for all building requirements maintaining international quality standards. Almost all the big names in Indian corporate & multinational companies that have set up facilities in India have joined hands with Kirby in some way or the other. Today, Kirby has become a generic name in the PEB market in India and has maintained its market leadership through its innovation and vast experience. Its buildings have stood the test of time, time and again against all odds manmade and natural. www.kirbyinternational.com E-mail : kirby@kirby-india.com Phone: +91 8455 224401/02

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JOURNAL

Overview

Investment Opportunity in Manufacturing of Pre-painted Galvanized Steel Coils, Sheets & Profiles
Girish Ghate:- EISEN ENGINEERING
There has been an exponential increase in the domestic demand of pre-painted steel in India for the past five to six years. The consumption pattern in the pre-painted steel indicates a growth of 26% for the past five years. Consumption of pre painted steel in India stands at 270,000 tons per year during 2010-11. Based on a sustained growth rate at the same pace, the demand for pre-painted steel in India is expected to reach 2.2 million tons per year by 2019-20, which calls for substantial increase in the domestic production capacity. This paper briefly describes the techno economic feasibility of setting up manufacturing facilities for the production 60,000 tons per year of pre painted steel coils & profiles. Galvanized steel coils have been considered as the input raw material. Major production facilities include entry section, pre-treatment, primer coating, finish coating, exit section, profiling, power & utilities etc. An investment of Rs. 50 crore and an annual turnover of Rs. 360 crore has been envisaged. The IRR works out to 23% with a payback period of 4 years.

There has been an increasing demand for Pre Painted Galvanized Iron (PPGI) steel sheets & profiles in domestic market in India. PPGI finds its application mainly in construction, decorative, appliances and automobile industry. Consumption of PPGI in has seen steep growth in Indian domestic market in the past five years due to the exponential growth in construction as well as in appliances & automobile sectors. Consumption of PPGI is further fueled due to the steady replacement of asbestos and GI sheeting by PPGI in construction industry. PPGI steel exhibit much superior corrosion resistance over galvanizing or painting of sheets applied as 'stand alone' over steel. Galvanizing provides cathodic protection to steel while the paint retards the consumption of zinc during service life of GI sheets. Due to the synergic effect of galvanizing & paint together, the service life of PPGI steel is 1.5 to 2.5 times longer than the sum

of the service life of galvanizing & painting used independently. Excellent formability enables PPGI to be formed in required shapes used in construction & appliance industry.

Market
The demand for PPGI steel in the Indian domestic market is increasing at an exponential rate of 26% for the past five years as seen in the following table. The demand for PPGI steel as on 201011 stood at 270,000 tons per year.

Year 2006-07 2007-08 2008-09 2009-10 2010-11

Tons/year 110,000 140,000 175,000 215,000 270,000

% growth 29 27 25 23 25

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Overview
Based on average growth of 26%, estimated demand for PPGI works out to 680,000 tons per year by 2014-15 during which the demand for PPGI will surpass the domestic production. Based on a sustained growth rate of 26%, domestic demand for PPGI will reach 2.2 million tons per year by 2019-20, which calls for substantial increase in the domestic production capacity. This paper briefly describes the techno economic feasibility of setting of manufacturing facilities for the production of 60,000 tons per year of PPGI coils and profiles based on galvanized steel coils as the input raw material. Entry Section Pre-treatment Primer Coating Finish Coating Exit Section Profiling

Entry section involves pay-off real for unwinding of incoming GI coils, end cutting shear, stitching machine for joining subsequent coil, looper and feeding & guiding system for the strip to pass through the production line. Pre-treatment of the coil involves application of a thin layer of chemical that bonds the coating surface of steel to the subsequently applied paint and ensure excellent adhesion. After the pre-treatment, uniform layer of primer is applied on the surface in the Primer section. Application of primer paint essentially provides corrosion resistance to the product. Primer paint is dried in the primer oven before it passes to the next section. After applying the primer layer, the strip surface is applied with top coat as per the requirement and then cured in the finish paint oven. Top coat provides excellent appearance to the surface and provides resistance to ultra violet light. Exit section consists of cutting shear, re-coiler & coil car. Finished

Production Facilities
Production of PPGI steel essentially involves continuous painting of GI strip with a layer of primer paint and subsequent coating with finish paint. The paints used for coating are generally of polyester, polyurethane, PVDF, plastisol etc. Brief technical specifications of the production line proposed here are as follows: PPGI grade Input material Strip width Strip thickness Line speed Construction grade GI coil 600 to 1250 mm 0.2 to 0.8 mm 50 mpmThe production line

essentially consist of the following sections:

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Overview
Project Cost
Total project cost works out to Rs.50 crore as follows: o o o o o o o o Land & Site Development Civil & Structural Plant & Machinery Utilities & Other Assets Know How & Engineering Preliminary & Preoperative Contingency Margin for working capital Rs. Cr 2 10 21 5 2 3 1 6 Total ...50

Manufacturing Costs
painted steel coils are wound on the re-coiler provided in the exit section. PPGI sheets are processed on the forming lines to produce final shapes as per the market requirements. The manufacturing cost includes the cost towards raw material, consumables, power, utilities, manpower, repairs & maintenance and works overheads. Annual manufacturing expenses amount to Rs. 336 crore as follows: Rs. Cr Raw Material Consumables Power & utilities Manpower Repairs & Maintenance Works Overheads 318.00 6.00 5.00 3.00 0.50 3.50 336.00

Power
Total requirement of power for the plant works out as follows: Maximum Demand, KW ...1000 Annual Power, mill kwh ... 5.1

Requirement of power will be met by state grid. Power will be received at 11 KV and stepped down to required voltages inside the plant.

Water & Utilities


The total requirement of water and other utilities work out as follows: Water Compressed air LPG 5 m3/hr 50 m3/hr 150Nm3/hr

Revenue
Based on the production envisaged and unit sales price, the total revenue of the plant is estimated at Rs. 360 crore based on the production of 60,000 PPGI per year.

Financial Indicators
Key financial parameters and indicators are as follows: Project Cost Project Cost Debt Equity Rs. Cr Rs. Cr Rs. Cr 50 33 17

Schedule of Implementation
Total time required for implementation of the project is estimated at 12 months. Activities involved in the implementation include basic & detailed engineering, procurement, civil & structural work, equipment installation, cold commissioning, hot trials & commissioning.

Profitability at Rated capacity (3rd Year)


Sales Turnover perating Expenses PBIDT Profit Before Tax Profit After Tax Rs. Cr 360O Rs. Cr 336 Rs. Cr 24 Rs. Cr 15 Rs. Cr 11

Manpower
The total manpower requirement of the plant during operation is estimated at 60 as follows: General Manager Manager Engineers / Executives killed Operators Semi Skilled Manpower 1 5 18 12 4 Total ... 60

Financial Parameters BEP, conventional BEP, cash Basis IRR on Investment PV Index Pay back, convent. Pay back, NPV

% % % Year Year

40 33 23 2.2 4 5

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Coil & Cut Sheet Handling and Protection

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LOGISTIC

JOURNAL

Logistic

Coil & Cut Sheet Handling and Protection


The efficient handling and storing of materials is vital to industry. These operations provide a continuous flow of raw materials, parts, and assemblies through the workplace, and ensure that materials are available when needed. Yet, the improper handling and storing of materials can cause costly injuries and material damages, General material handling and caring principles can help reduce damage to coated material. These include work practices, ergonomic principles, and training and education. Whether moving materials manually or mechanically, employees should be aware of the potential hazards associated with the task at hand and know how to exercise control over their workplaces to minimize the damage to coated material. Using proper and efficient techniques can reduce chances of damage while at the same time easing the workload.

Packet lifted with Woolen felt only to avoid damage to edges

Material stored in dry and good ventilated shed

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Logistic
Handling of Material at Plant Coil handled with C-Hook padded with Woolen felt. The floor should be flat & clean. In the plant, Padding on hooks and other handling devices helps to avoid damage on edges. Cushioning materials like felt board and polyurethane protect coils while they are moved, placed in inventory or shipped.

Handling of Material: Things to remember


Always keep the material in a dry, shaded and good ventilated area. Do not keep the material under direct sunlight and open area. Do not keep the material on wet floor (water, rain, etc.). If not required for immediate use, provide cover to protect the material If Sheets become wet during storage, it should be separated without delay & surface moisture removed with clean cloth. The steel sheets then be stacked so that air circulation completes the drying process.

GI coils and Packets:


Coils and packet have to be kept on the wooden Block on Floor Proper Lashing to be done Never allow a coil to contact the floor directly.

Good Storage conditions can eliminate the followings:


Moisture penetrating between the Sheets. Moisture or water penetrates between the Sheets through the wooden pallets. Wet storage staining. White rust. Paint peel off.

What is White rust & how it is caused?


White rust is a complex, hydrated zinc carbonate/zinc hydroxide. It is a corrosion product of zinc which is formed under specific conditions of exposer. The most common causes of white rust are: Ingress of water, due to rain water between the adjacent surfaces in a stack of galvanized or pre painted steel or sheets or within windings in a coil during either transportation or storage. Condensation within a coil or sheets due to rapid changes in temperature, Condensation from the drying out of new buildings or laying & drying out of wet concrete. Prolonged , adverse storage or inadequate protection during transportation allowing considerable water ingress between stacked coils or sheets results into some time red rust also

BGL, PPGI and PPGL Coils :


These products have to be Kept on the truck with vertical packing (Eye to sky) to avoid transit rubbing marks on the surface. Truck needs to be covered with tarpaulin to avoid any water seepage during transportation.

Transportation
Transport driver should check material must be covered with double tarpaulin. Other goods should not be transported with pre painted material. Ensure no water seepage during transportation. Ensure there should be no hole on the floor of truck to avoid water seepage. Truck platform should be flat

Warehouse
Following care needs to be taken for the coated steel product to avoid any damage to the coating Avoid the water seepage inside the packed coils and packets. Material is to be kept on the Dry surface to avoid moisture contact. Packed coil and packets are to be store and stacked properly in a closed shade to protect the material from the rain water.

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Logistic
Stacking of material
Coils should remain packaged to prevent rust till further processing Partially processed coils should be repacked for future use Coils should not be allowed to butt-up against safety rails or walls or floor plates Metal-on-metal contact should be avoided whenever possible. Coil/sheet stock should be stored in dry conditions. The floor should be free of debris. Minimize coil stacking, but when required Band clips should not reside between touching coils Felt strip padding should be placed between coils Narrower coils should be stacked on wider coils Highter weight coils should be stack on heavier coils If any deviation is observed, same should be recorded in L.R. copy. Ensure there should be no damage to the goods during unloading (woollen felt, Rubber coated C-Hook etc. can be used) Do not slide sheet on rough surface or over each other. For personal safety and to protect the surface finish, wear Clean, Dry Hand Gloves. Rotated on a first-in/first-out basis Organized to minimize unnecessary coil/sheet movement Arranged so coils can be easily reached in the order you plan to use them Stack Corrosion Water is a necessary perquisite for corrosion of stored pre painted panels Water or water vapor may penetrate between panels or coil wraps due to capillary action Ambient humidity and temperature cycles will also promote water intrusion into stored panel bundles through condensation. Besides water, two other important factors that contribute to the corrosion of stored pre painted panels are temperature and exposure time. Corrosion will accelerate with increased temperature. Given enough time, panel bundles will eventually become wet and storage corrosion may occur under most job site panels. Storage/ stack corrosion can be prevented by: Reducing site storage time. Decreasing water contact. Moderating temperature extremes Courtesy JSW Steels Ltd. To Be Continued in next edition

Coils should be stacked with sufficient distance in between for SAFE material handling Recommendations : Ensure the material condition is OK during unloading of the material.

Coils should not be stored in open yard

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FACE TO FACE
Ajay Tambe Face to Face with Pramod Baliga, Sagittarius Group
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JOURNAL

Face to Face

Ajay Tambe Face to Face with Pramod Baliga, Sagittarius Group


Pramod Baliga
May you live in interesting times goes the old Chinese adage, and interesting times these are indeed, especially for those involved in the Colour coated steel industry. The market is set to grow at a very high rate but it also has to face the challenges of a new and growing industry. This puts an independent service centre, like ours, in a very interesting position where growth is the key but prudence will decide our longevity. raw material, machiner y and your personnel. Thanks to the continuous improvements put in by the mills, the qualit y of raw mater ial has been consistently improving, though I think, some more adjustments would help increase the yield of the coil. Upkeep and regular preventive maintenance has helped us keep our machines in shape and running smoothly. A lot of emphasis is given on the maintenance of the rolls, they are cleaned and oiled every week to ensure no damage is done to the material. Maintaining quality through the vigilance of your personnel is the most challenging. The most effective way is through continuous monitoring and training. We try to do this by having regular weekly meetings highlighting safety and quality issues with the team. Also, there are stipulated number of pieces after which the parameters are checked again and cross checked by another person. The culture of quality is hard to develop and harder to maintain, we have found this is best done if started from day 1.

AT- What Are The Challenges To Run An Independent Service Center?


PB- One of the key challenges for us, is that in a crowded market to establish and maintain a brand for ourselves. Our experience with the our HR/CR service centre, has taught us that one of the best ways to build your brand is to deliver good and consistent quality products and service. But, the problem with quality is that it is not a onetime investment but needs to be taken up as a continuous and rigorous endeavour.

AT - What Are The Main Factors To Influence The Quality?


PB- There are three main influencers on the quality of your final product the quality of
August 2013

AT- How Sagittarius Able To Maintains Highest Safety Standards?


PB- PG- Safety is another key challenge, as far as personnel are concerned. Whether we like it or not, there is always a threat of
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Face to Face
serious injury and even fatalities. Much like quality, even safety requires continuous vigilance and an uncompromising attitude. Nobody should be allowed on the shop floor without basic safety equipment like safety shoes, helmets, gloves, etc. This rule extends to our visitors as well, much to their dismay, but we it is something that is of pr ime impor tance and cannot be compromised on. Another important factor that helps maintain safety, is teaching the team to look out for each other and warn the other people in advance if something unsafe is noticed. raw material prices of coated products, even though international prices are falling. Such fluctuation makes it hard for us to plan especially for big projects which span over a few months. A certain amount of stability will help independent service centres like us.

AT- What Is Your Opinion On The Future O pp or tunities I n Galvanizing And Colour Coated Steel Business?
PB- - The growth in this sector is inevitable. Infrastructure is a crying need of the country and this sector looks well placed to service this need. There is also tremendous competition in this sector, but we believe that a strong customer focus and financial prudence will define organizations that will succeed. This is a very big challenge and opportunity for the independent service centres as customers are demanding and input costs and labour costs are only moving northwards. There are also markets that remain largely unexplored and extending our reach and service to rural or semi-rural markets is a huge opportunity for us. This might mean larger volumes but these markets have traditionally price conscious and price sensitive. One thing we would definitely like to improve in our segment is the collaboration and co-operation between the mills and service centres. Both have a lot of value to give each other. Service centres have their ears very close to the ground and their inputs would be invaluable to the mills
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AT- What Is Your Mantra For Satisfied Customers?


PB- - The challenge of costs is universal and ubiquitous. One of the ways we try to reduce costs is by reusing as much as possible. The biggest challenge of costs comes when a balance between cost and quality has to be made. Now, this question has to be answered by the organization whether they want to focus more on costs or more on quality and a decision based on that. We prefer to err on the side of quality rather than costs. As far as finances are concerned, there is always a balancing act between inventory and the interest burden. If your inventory is low, you might not be able to service the customer in time but your interest costs will be lesser. On the other hand, a high inventory might mean satisfied customers but emptier pockets. Inventory turnaround is a key metric for an organization of our size. We are also seeing a regular fluctuation in
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whereas the mills have a lot to offer in terms of knowhow and best practices. They will also need to solve challenges together, for e.g., some segments of the market need better education and understanding of the product. Also, in terms of branding, once the sheets are laid it is very hard to identify which mill the sheet has come from and which service centre the material has been processed at, this needs to change.We also need to identify areas where we can provide value addition for the customer and other areas where colour coated products can be used. We need to diversify usage from roofing and cladding to other areas; this will help us avoid stagnation and improved pricing. This will also help avoid unfair practices taking place in the market. All in all, like any industry that is yet to m a t u re t h e re a re c h a l l e n g e s a n d opportunities. We need to convert the challenges to opportunities both at an industry level and a service centre level. (PB - Pramod Baliga AT - Ajay Tambe)

About Sagittarius Group


The Sagittarius group is a 27 year old organization which started of as a trading company by two ambitious entrepreneurs Mr Sanjay Nadgir and Mr Pramod Baliga. Apart from trading, Sagittarius Group houses - Sagittarius Metals a HR/CR independent third party steel service centre with cut-to-length, slitting and blanking lines started in 1996. Sagittarius Profiles is the youngest company in this group, started in 2012, it is an independent service centre for colour coated sheets, Z/C purlins and other construction related accessories.

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NEWS
Steel Goal Fades as $12 Billion Projects Dumped: Corporate India
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News

Steel Goal Fades as $12 Billion Projects Dumped: Corporate India


ArcelorMittal (MT) and Posco's decisions to scrap $12 billion of proposed steel projects in India and delays in building plants by Tata Steel Ltd. (TATA) and its peers will probably cut the nation's 2020 capacity target by a quarter. India may add about 50 million metric tons in the next eight years, half of an earlier plan, taking total capacity to 150 million tons, according to the average estimate of six analysts, government officials and company executives in a Bloomberg survey. Slowing demand, land acquisition delays, rising funding costs and difficulties in getting iron ore mining permits are diminishing the viability of the projects, said A.S. Firoz, the steel ministry's chief economist. The Indian rupee's plunge to a record this year, which lifted equipment and raw material import costs, has exacerbated the nation's decline as a favored steelmaking destination. Steel is crucial to Prime Minister Manmohan Singh's effort to boost infrastructure investment and revive economic growth from 5 percent, the slowest in a decade. "The actual work for easing the process of mining permits and land acquisitions is far from desirable, making steel investments a distant dream for both foreign and local companies," said Devendra Pant, chief economist at India Ratings & Research, the local unit of Fitch Ratings. "Delays in implementing large-scale projects may spur imports of these products, critical for infrastructure, eventually putting enormous strain on our macroeconomic balances." ArcelorMittal, Posco ArcelorMittal, the world's biggest steelmaker, ditched its 12 million-ton-a-year project in Odisha last week after waiting more than seven years to get land and permits to mine for iron ore, a key raw material. South Korea's Posco, which is close to acquiring all the land for a planned $12 billion plant and port in the eastern state, exited its project in the southern state of Karnataka for similar reasons. India has certainly lost sheen," said Prasad Baji, an analyst at Edelweiss Financial Services in Mumbai. "I don't see the investment cycle returning in the near future. Tata Steel, India's biggest producer of the Alloy, fell 3% to 233.8 rupees at the close in Mumbai, extending its drop this year to 45 percent. Steel Authority of India Ltd., the second-biggest, lost 1.3 percent to 44.35 rupees extending this year's decline to 51 percent. Smaller rival JSW Steel Ltd. (JSTL) dropped 1.3 percent to 564.2 rupees, taking its fall this year to 30.5 percent. It looks very difficult we'll be able to reach 200 million tons by 2020, given the ongoing issues with land acquisition and other processes," Ponnapalli Madhusudan, Finance Director at Rashtriya Ispat Nigam Ltd., a state-owned unlisted steelmaker, said by phone from the southern city of Visakhapatnam. "The timeline to achieve this target may be extended." Tata Steel, Jindal Tata Steel in 2005 announced plans to spend $10 billion for a 12 million ton project in the eastern state of Jharkhand. It expected to set up the first phase of 6 million tons within three years to 4 1/2 years from the date of obtaining all clearances. The Mumbai-based company is awaiting a resettlement and rehabilitation policy from the state government for the project, according to its website. Steel projects have been facing difficulties for the past two years due to delays on various fronts, but there is hope things will improve," said Sushil Maroo, deputy managing director at Jindal Steel & Power Ltd. (JSP), controlled by billionaire lawmaker Naveen Jindal. "The country has taken steps to bring transparency to mine allocations and this will help improve things. Jindal Steel has been awaiting mining permits for almost a year for a coal mine in Odisha, where it's building a steel mill that will run on gas produced from thermal coal. The company has completed all formalities needed for the permit, Maroo said in a phone interview on July 19. JSW Steel deferred the construction of a $3 billion steel project in the eastern state of West Bengal, citing lack of assured raw material supplies, Group Chief Financial Officer Seshagiri Rao said in April. The Mumbai-based company got land and necessary approvals last year for the 3 million-ton plant. The company also scrapped expansion at its largest factory in Karnataka that is running at less than capacity due to an iron ore shortage. Corporate and infrastructure investments in India started slowing because of policy bottlenecks and a tighter monetary policy aimed at curbing commodity prices, according to the Economic Survey for the year ended March 31. Almost half of the major infrastructure projects, including power plants and oil refineries, were running behind schedule, said the survey, which is a report on the government's performance for the year. "The policy paralysis is taking a big, big toll on the economy," said Giriraj Daga, an analyst at Nirmal Bang Equities Pvt. in Mumbai. "It is killing the manufacturing sector and soon we will see the ripple effects on services."

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News JSW Steel wins Prestigious Platts Global Metals Award


JSW Steel, the flagship company of $11 billion Indian conglomerate JSW Group, has won the prestigious "The Industry Leadership Award" at Platts Global Metals Awards, which recognises achievements in steel, metals and mining. The award ceremony was recently held in London. Mr Seshagiri Rao, Joint MD, JSW Steel and Group CFO said, "It gives us immense pleasure to get this prestigious global award. The company remains committed to the pursuit of challenging targets, safety, environmental protection, transparency, openness and social responsibility in every aspect of business around the world." Platts has ranked the Industry Leadership Award category on five parameters -Financial Results, Innovation, Product Quality, Safety and Strategic Vision. Under Financial Results, it scanned Annual Report, Company Growth figures and projections, Credit rating, Capital assets whereas in Innovation, it checked technology, processes, cost effectiveness and sustainability. On Product Quality aspect, it evaluated record of reliability based on low percentage of load rejections, consistency of product specifications and in time delivery and on safety it evaluated parameters on employee, community & environment safety. Platts Global Metals Awards is a competitive awards program honouring excellence and accomplishments in the global metals industry.

Essar Steel Launches Wood-Finish Steel


Essar Steel Ltd has launched wood finish steel products that can be used as a substitute for wood laminates used for interiors. Unlike laminates, these steel products are termite resistant, light weight, fully recyclable, manufactured at Essar Steel's Pune facility. These products have wide applications and can be used for both internal as well as external requirements. It can be used for panelling, steel doors, wall and ceiling panels and even for furniture. With the launch of this product, Essar Steel has a complete range of products required for pre-engineered buildings. The product range includes coloured roofing products, colour products for wall, ceiling, furniture and doors. Globally too, few steel companies have wood finish steel in their product portfolio, barring the likes of AcelorMittal, and some of the Japanese and Korean steel majors. Commenting on the launch of these specialized wood-finish products, Mitesh Shah, CEO, Pune Facility, Essar Steel said: "We strive to introduce innovative products and the launch of the wood-finish products is a step in that direction. These products

are alternative for laminates with unique features and benefits, cheaper by 20% and expect to capture at least 10% of the market share in the current year. Essar Steel has annual production capacity of 400,000 tonnes of colour-coated products. The products can be made weather-proof, corrosion resistant, UV resistant and anti-bacterial. "We are targetting exports to cold countries like Russia and Northern Europe were these products offering 100% UV resistance, is in demand. The north east region of our country is also a target area. We are looking at a volume of 5,000 tonnes per month," said R Sirdhar, Business Head Downstream Products, Essar Steel Ltd. Wood finish steel is a vale added product and is priced at a premium of 20% over pre- painted steels.

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News Posco Calls Off Rs 32,000 Crore Steel Project in Karnataka


In a major embarrassment for the Congress government in Karnataka, South Korean steel major Posco has decided to call off its Rs 32,000 crore integrated steel plant project in the state owing to unfavourable market conditions and protracted delay in acquisition of land. The company recently withdrew its deposit of Rs 60 crore made to the government for purchase of land. Posco India Chairman & Managing Director Yong Won Yoon had recently said the Karnataka project was on hold because of "political uncertainty" in the state.
However, as soon as the Congress government assumed power, it was expected that Posco would be fast-tracked. But with Chief Minister K. Siddaramaiah not showing "much interest", Posco decided to pull out. Confirming Posco's decision, Karnataka's industries and commerce secretary M.N. Vidyashankar said: "Soon after the land agitation began, the company had decided to withdraw. It has withdrawn the amount it had deposited for the land." Source: dailymail.co.uk decrease by 16 percent to EUR 1.152 billion (2011: EUR 1.365 billion). The elexis group contributed an unchanged order intake of EUR 180 million to the group. On average over 2012, the number of employees in the SMS group including apprentices was 11,822 (2011: 10,477). Due to the acquisition of the majority share in Paul Wurth, the number of employees in the SMS group increased to a total of 13,588 at the end of 2012. Close cooperation between Paul Wurth and SMS Siemag, Paul Wurth will continue to operate as an independent company within the SMS group. Numbering more than 1,500 employees and 25 subsidiaries, it ranks among the world's leading producers of blast furnaces, coke oven plants, and green technology for metallurgical plants. The product ranges of Paul Wurth and especially SMS Siemag complement each other perfectly. That's why Paul Wurth is associated organizationally with the Business Area SMS Siemag. The merger creates a solid basis for future growth.

SMS Group: Customers Reluctant to Place Orders


Order intake down Sales up Result comparable to previous year Integration of Paul Wurth Continued investment in German and foreign locations Further expansion in growth fields electrics and automation, service, energy, and green technology The SMS group, a group of companies in metallurgical plant and machinery construction, generated an order intake in business year 2012 of EUR 2.835 billion (2011: EUR 3.423 billion). Sales increased by five percent to EUR 3.237 billion (2011: EUR 3.070 billion). Acquiring a majority share in Luxembourg Company, Paul Wurth at the end of 2012 means that the group added roughly EUR 500 million to the total order volume. That produced a net group result of EUR 258 million (2011: EUR 265 million), almost matching the previous year's level. Both business areas, SMS Siemag and SMS Meer, clearly felt the impact of customers' restraint in placing orders. Specifically, order intake by SMS Siemag contracted by 24 percent to EUR 1.519 billion (2011: 2.007 billion). SMS Meer experienced a

Essar Steel Launches Color Coated Roofing Products in Kashmir Market


Essar Steel Ltd, one of India's leading steel producers, today announced the launch of high quality color-coated roofing products especially for the Jammu and Kashmir market in India. These are specialized steel products which will be largely used for the housing segment. The company can also provide solutions for ultra high freezing conditions through sandwich panel shelters. Moreover, as Jammu and Kashmir has a relatively high incidence of ultraviolet radiation, the company can provide solutions in the form of PVDF (polyvinyl difluoride) products, which can withstand these radiations. These products will be supplied from Essar Steel's state-of-the-art plant based in Pune, Maharashtra. In order to ensure consistent supply of the product, the company has streamlined its distribution network and enhanced its supply chain management in the region. The company has also appointed distributors to ensure the availability of the product. Tested for its superior quality and durability, the product ensures complete resistance from cracking, peeling off color under any climatic condition. Manufactured with a high-precision prepainting process and adhering to stringent JIS, ASTM, ECCA, SNI and EN standards, they amalgamate many desirable qualities like strength, enhanced corrosion resistance, aesthetic appeal and promise longer life to the product.

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Commenting on the launch of the product, Mr Dilip Oommen, Managing Director & CEO, Essar Steel India, said, "Jammu and Kashmir is potentially a big market for us. With the launch of this product we are sure that we will be able to create a mark for our brand in this market. These products have been tested for extreme weather conditions in the region and we will put in all necessary steps to ensure a consistent supply and service to our valuable customers. These color-coated products are currently available in a variety of shades and patterns. There are more than 480 shades - ranging from RMP, SMP, PVDF, Wrinkle, Wood Finish and ARS. The products find varied application in construction and infrastructure industry, white goods and automotive industry depending on life cycle and environment. Currently these products are being largely exported to Europe, Russia and African countries.

SMS Siemag Cold Rolling Plant In Harbin Rolls First Strip


The new CVC plus six-high cold rolling mill at Northeast Light Alloy Co. Ltd. (NELA) successfully rolled its first strip. At its production site in Harbin, in the Chinese province of Heilongjiang, Northeast Light Alloy Co. Ltd. now has an installed annual production capacity of 85,000 tons of Aluminium Cold Strip. The rolling mill features equipment of the latest state of the art, designed to produce premiumgrade strips. The technological features of the mill include CVC plus, hot edge spraying and DS systems. The up to 1,900-mm-wide strips are rolled to minimum final gages of 0.1 millimeters to be used, among others, as input material in foil production. In addition to the rolling mill, SMS Siemag also supplied the equipment for coil preparation and coil transport as well as the media supply system. SMS Siemag AG is a company of the SMS group which, under the roof of the SMS Holding GmbH, consists of a group of companies internationally active in plant construction and mechanical engineering for the steel and nonferrous metals industry. With more than 13,500 employees, the group generates sales of about EUR 3.3 billion.
Sources : www.livemint.com

Mitsubishi - Hitachi Acquires CONCAST (INDIA) LIMITED


Mitsubishi-Hitachi Metals Machinery, Inc. (MH) and CONCAST (INDIA) LIMITED (CIL), a leading supplier of continuous casting machines in India, have decided to enter into a strategic partnership together to capitalize on the individual strengths of both companies. MH has recently concluded the share purchase agreement with CIL's shareholders. The Indian government plans to develop and invest rapidly in infrastructure at about one trillion US dollars in the twelfth Five Year Plan (2012-2017) and it is highly expected that steel consumption will increase, iron and steel industries will expand and the demand for metals machinery will grow. Under such circumstances MH has focused on CIL, which has outstanding and significant achievements in the metals machinery industries in India. With the benefit of CIL's competent engineering capabilities, MH has gained the following: A foothold to advance into the field of long products The addition of continuous casting technologies of both round billets and slabs which are not in the possession of MH at present The penetration into the good markets of CIL such as the Middle East, Africa, etc. The synergy effects, such as packaged order intake for steel making equipment, increased engineering capacity for lines and equipment of flat products through technology and know-how transfer from MH, the utilization of supply chains of CIL, etc.

Monnet Ispat May Abort Jharkhand Plan


Close on the heels of Posco and Arcelor Mittal pulling out of $18 billion projects, domestic steel firm Monnet Ispat and Energy is actively considering scrapping its proposed 1.5 million tonnes plant in Jharkhand. The city-based sponge iron and power producer has proposed 1.5 million tonnes per annum (mtpa) green field steel plant in Jharkhand. It is now considering withdrawing the plans for want of raw material, water and land- the same reasons cited by both ArcelorMittal and Posco as well. "Yes, it is correct that we are seriously considering withdrawing from the Jharkhand green field project," said Amitabh Mudgal, Senior Vice President (Marketing & Corporate Affairs), Monnet Ispat and Energy. Monnet Ispat, which is setting up a 1.5 million tonnes per annum (mtpa) steel plant in Chhattisgarh, had signed an MoU with Jharkhand government in 2003 to set up a DRI-based 1.5 mtpa steel plant at Hazaribagh with Rs. 1,400 crore investment on 500 acres of land.

With the CIL-MH partnership, the company is poised to increase sales and accelerate global business expansion, thereby aiming at being the No.1 supplier for metals machinery in the world. Sources : www.goodreturns.in
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Monnet's problems started with land acquisition issues. Following signing of the MoU, the Jharkhand government had created a nodal agency Jharkhand Infrastructure Development Corporation (JIDCO) to acquire the land for the project. Monnet had deposited the desired amount. However, after three years, JIDCO was dissolved and Monnet was advised to go for purchase of land directly. "We started to work on land acquisition in Hazaribag and were later told that water is not available at this site. So, we changed the project site to Chas Block in Bokaro district with assurance from the state that required water will be made available from the Damodar river," Mr. Mudgal said. However, when the company was ready to register the land following the "tedious process of verifying ROR (Record of Rights) and making all efforts", the state government informed it that water could not be made available from the river. On the iron ore front also, Monnet said, the state had backtracked from the earlier promises. Mudgal said the state government had recommended to centre for allocation of Ghatkori Iron Ore mine to Monnet Isapt, only to withdraw later saying the area has been reserved for state-owned firms. Monnet took the matter to court, but lost the case. It seems Jharkhand does not require industry. We briefed all this to Inter Ministerial Group meeting in the Ministry of Steel that in the absence of water and iron ore, it is not possible for to move ahead," Mr. Mudgal said. However, unlike Posco or ArcelorMittal, which pulled out their cumulative Rs. 80,000 crore investment proposal in Jharkhand and Odisha respectively, Monnet does not want to lose hope in Jharkhand even now. In a statement issued to announce its financial results on Tata Steel said, while "the Group has successfully implemented its 3 million tonne per annum bownfield expansion at Jamshedpur to take total capacity to 10 million tonne in March 2013. The group is now embarking on its next phase of growth and is setting up a 6 million tonne steel project in Odisha."

Usha Martin Enters in Technical Tie-up With Aichi Steel of Japan


Usha Martin Limited signed a technical assistance agreement with Aichi Steel Corporation (ASC), a Usha Martin Usha Martin enters in technical tie up with Aichi Steel of Japan leading specialty steel and forging company of Japan. With technical assistance from Aichi Steel, Usha Martin aims to achieve operational excellence and enhance quality level of its steel products to the best in the class. Usha Martin's steel plant, set up in 1971 near Jamshedpur, is a vertically integrated plant with major raw materials coming from its captive coal mines and iron ore mines. "By joining hands with Aichi Steel, Usha Martin aims to improve its production efficiencies and utilize its facilities to produce higher value steel products. In addition, support from Aichi Steel, a Toyota group company, will help Usha Martin to have a larger presence in passenger vehicle market." Mr Rajeev Jhawar, the Managing Director of Usha Martin said. Mr Jhawar said, "Aichi Steel is globally known for its unwavering commitment to quality. Partnership with Aichi Steel will help Usha Martin to further enhance its quality levels." Aichi Steel has Specialty steel, stainless steel, Forgings and Electromagnetic products as its main products. Established in 1940, ASC's steel plant at Chita, Japan has state-ofthe-art Steel making, rolling and inspection facilities. It is one of the largest producers in Japan for straight length specialty steel products. In FY 2012-13, ASC's production of specialty steel and forgings was 1.2 million Tonnes. Aichi Steel has significant international presence in business of forged products. By joining hands with each other, both companies look forward to strengthen their respective business in future.

Tata Steel Sets Up New 6mn Tonne Steel Plant for Odisha Project
To initiate its new Greenfield six million tonne steel plant in Odisha's Kalinganagar, Tata Steel has set up a new subsidiary, Tata Steel Odisha. According to the reports, the project will be implemented in two phases of 3 million tonne each. Tata Steel said it has successfully negotiated financial closure of its 6 million tonne per annum Kainganagar project. Some Rs 22,800 crore worth of project financing was tied up with a consortium of 21 banks and financial institutions. This will meet the funding requirement of both the phases of the project.

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Ankit Metal to Put Up Steel & Power Plants for Rs 408 Crore
Ankit Metal & Power, an arm of the Rs 4,000 crore SKP Group, that also owns companies like Rohit Ferro Tech (a leading producer of ferro chrome), Impex Ferro Tech (largest producer of manganese alloys) and SKP Overseas (owning Indonesia coal mines), is now coming up with a new steel, pellet & power plant at Jorehira in West Bengal's Bankura district with a capital outlay of Rs 408.45 crore. This is part of the company's backward integration plans. The company had earlier announced a Capex plan of Rs 2000 crore over the next two years, which included ramping up of its steel, alloy, pellets and power capacities through greenfield and brownfield expansions. The company is also on the look-out for mines and alloy units (domestic or overseas), if they are available at right prices, top company officials said. "The new plant, which is expected to be commissioned within this year itself, will produce 45 MW of captive power, 0.6 million tonne of pellet, 100 thousands tonne of wire rods, 30 TPD sponge iron, RM pre heater and AOD converter," Ankit Patni, managing director, Ankit Metal & Power, said. "In a country where production and manufacturing industry is facing tough challenges due to shortage of power, the captive power plant will definitely boost the production capacity of the company. Once the plant is operational, it would generate about 3000 employment, direct and indirect, in our state", said Mr Patni. The plant, being put up on a 100 acre land, enjoys the locational advantage of being positioned close to the coal belt in Ranigunj and having linkage with Coal India Limited for supply of company's annual coal requirement, thereby deriving cost savings in logistics and transportation, he said. Once all the projects, which have been lined up, come through over the next two years, the company is looking at a steel capacity of 400,000 tonne per annum, alloy capacity of 400,000 tonne per annum, pellet capacity of 2 million tonne and captive power generation of 150 MW. Strategically located on the coast in the state of Maharashtra, India, the JSW-Dolvi Works 1.0 MTPY MIDREX Plant began operation in 1994 producing cold DRI for use on site utilizing 100% natural gas. With the continuing escalation of natural gas pricing, combined with infrequent availability of consistent gas supply in India, JSW Steel has looked to Midrex for use of coke oven gas to create better sustainability for the plant and overall site. The project, scheduled to be completed within 16 months or less, will use COG as a supplement to its natural gas intake so that the DR plant will be able to efficiently operate under a wide range of operating parameters, offering maximum flexibility to JSW Dolvi Works. JSW Dolvi Works is owned by JSW Steel Ltd. (India's largest privately owned steel company) and has a long history of implementing technological enhancements to boost productivity, lowering costs and improving environmental performance. These include the induction of an automated Lime Coating System and an Oxygen Injection System. Sources : www.mydigitalfc.com

JSW Steel ranked world's most aggressive steelmaker for expanding capacity rapidly: World Steel, USA
JSW Steel, the flagship company of $11 billion Indian conglomerate JSW Group has been ranked as the world's most aggressive steelmaker for expanding capacity rapidly by World Steel Dynamics (WSD) Inc, USA based on a study of 34 world class steel makers. The country's largest private steel manufacturer in terms of installed capacity, JSW Steel has also secured highest scores in conversion cost, yields and most preferred location in highgrowth markets. WSD has 34 steelmakers on in its "World-Class Steelmakers" list. Based on 23 parameters that include size, expansion plan, adaptation of new technology & products, pricing power, raw material security, labour , environment, safety and energy cost etc, JSW Steel has been ranked fourth amongst the best operating steel plant in the world. Mr Seshagiri Rao, Jt MD and Group CFO, JSW Steel said, "We are a rapidly aggressive expanding company seeking to harness new technologies and the substantial expected growth of steel demand in India. We will be commissioning our new 2.3 mtpa capacity Cold Rolled Mill this year in our downstream plant. We have also decided to produce automotive grade steel in collaboration with JFE of Japan. The company can achieve 90 per cent of capacity utilisation by December.

Midrex and JSW Steel to Convert DR Plant to Allow Use of Coke Oven Gas to Supplement NG for DRI Production
Midrex and JSW Steel to convert DR PMidrex Technologies, Inc. and JSW Steel Ltd. have announced the signing of a contract to modify the existing MIDREX Direct Reduction Plant located at JSW-Dolvi Works (formerly JSW Ispat, Ltd.) to utilize coke oven gas (COG) to supplement its natural gas supply for production of direct reduced iron.

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WSD in its report says the global economy is looking better. The risk of a global recession in 2013 seems diminished, although global growth in 2013 may not be robust due to reduced gains in fixed asset investment. It has further forecasted of a 4% rise in global steel production because of an increase in steel buyer inventories. WSD expects steel demand growth to be about 2.5% per year by 2020 or a higher growth rate than China. World Steel Dynamics is a strategic information service providing critical and new perspectives on possible and probable steel industry developments. WSD regularly analyzes and publishes reports on steel prices, steelmakers' costs, steel supply, demand and steel finances. Sources : Mitsubishi Hitachi, SMS Group, Economic Times, www.goodreturns.in, www.livemint.com, www.bloomberg.com, www.mydigitalfc.com, Midrex, JSW Steel & JSPL

Essar Steel raises prices, JSW to follow


The relentless fall in rupee, which has been taking input costs of primary steel producers only higher, has prompted Essar Steel and JSW Steel to consider increases product prices for August. While Essar Steel has raised prices of all its products by Rs 1,0001,200 per tonne from August 1, JSW Steel is planning to follow suit and is in talks with its clients. The company plans to hike prices of all its flat products and some of its long products. "We are in discussion with our clients for the price increase as there is a cost push due to rupee (depreciation) and also internationally flat steel product prices have gone up," Jayant Acharya, director-commercial and marketing of JSW Steel said. Both JSW Steel and Essar Steel are into production of long as well as flat steel products. Flat steel products find wide application in the auto industry, while long products are used in the construction segment. Coking coal and iron ore are the two key raw materials used for making of steel. Since domestic primary steel producers are dependent on imports of coking coal to meet their fuel supply requirement, weakening of rupee against the dollar swells the import bill of these producers, in turn raising their cost of production. On Friday, the rupee fell 67 paise to an all-time closing low of 61.10 against the dollar. Also, in the week ended Friday, the local currency depreciated 3.4%. Source: Business Standard

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