Analysis of Steel Industry

Submitted to: Prof.Vaishali Joshi

Submitted by: Arjav Vyas PGDM-3 Marwadi College, Rajkot.

ACKNOWLEDGEMENT

I would like to thank Marwadi Education Foundations Group of Institutions which has provided me a wonderful opportunity to do project study on Steel industry. A special thanks to the Dean of P.G.D.M., Dr. S. C. Reddy sir who has made project study as a part of our course and provided us with an opportunity to know the industry environment. My heartfelt gratitude to Prof. Vaishali Joshi for being my mentor and guiding me in successful completion of this project. I am thankful to the Coordinator of PGDM Prof. Rutwa Mehta for providing us necessary support in completion of this Industry Project.

Table of Contents

Contents
ACKNOWLEDGEMENT .................................................................................................................................. 2 Overview....................................................................................................................................................... 5 EVOLUTION OF THE INDUSTRY ................................................................................................................... 10 CURRENT SCENARIO ................................................................................................................................... 14 Production .............................................................................................................................................. 14 Demand - Availability Projection ............................................................................................................ 15 Steel Prices ............................................................................................................................................. 15 Imports ................................................................................................................................................... 16 Exports .................................................................................................................................................... 16 Levies on Iron & Steel ............................................................................................................................. 16 Opportunities for growth of Iron and Steel in Private Sector ................................................................ 17 The Growth Profile ................................................................................................................................. 17 Number of the Players............................................................................................................................ 18 Major Indian Players In the Steel Industry ................................................................................................. 21 Public Sector ........................................................................................................................................... 21 Private Sector ......................................................................................................................................... 23 Monopoly ................................................................................................................................................... 27 Types of steel .......................................................................................................................................... 27 Production .............................................................................................................................................. 29 Performance of the Indian Steel Industry .............................................................................................. 30 Institutional Design..................................................................................................................................... 32 Introduction ............................................................................................................................................ 32 Policy regime for the Steel sector in India.............................................................................................. 32 Role of Government ............................................................................................................................... 34 REGULATORY ENVIRONMENT ................................................................................................................ 35 National Steel Policy 2005 ...................................................................................................................... 35 Institutional and Policy Settings ............................................................................................................. 35 Allowing Private Ownership and Foreign Investment ........................................................................ 36 Improving Intellectual Property Laws ............................................................................................... 36 Deregulation of Pricing and Distribution of Iron and Steel ................................................................ 36

Customs Policy ................................................................................................................................... 36 Special Economic Zones (SEZs) .......................................................................................................... 36 Special Investment Regions ............................................................................................................... 37 COMPETITION SCENARIO ....................................................................................................................... 37 Overview ................................................................................................................................................ 37 Profile of Major Players Network ........................................................................................................... 38 Tata Steel................................................................................................................................................ 39 Steel Authority of India Limited (SAIL) ................................................................................................... 39 Bhushan Power & Steel Ltd ................................................................................................................... 40 Jindal Steel & Power Limited (JSPL) ...................................................................................................... 40 ESSAR Steel ............................................................................................................................................ 41 CHALLENGES AND OPPORTUNITIES ........................................................................................................... 43 Challenges............................................................................................................................................... 43 Un-remunerative Prices ......................................................................................................................... 43 Endemic Deficiencies ............................................................................................................................. 43 Systemic Deficiencies ............................................................................................................................. 43 High Cost of Capital................................................................................................................................ 43 Low Labour Productivity ........................................................................................................................ 43 High Cost of Basic Inputs and Services .................................................................................................. 43 Opportunities ......................................................................................................................................... 44 Unexplored Rural Market ...................................................................................................................... 45 Other Sectors ......................................................................................................................................... 45 Export Market Penetration ................................................................................................................... 45 Michael Porter five force analysis .............................................................................................................. 46 Entry barriers: High................................................................................................................................. 46 Threat of substitutes: Low ...................................................................................................................... 48 SWOT ANALYSIS OF THE INDUSTRY ............................................................................................................ 49 Climate change risks and opportunities for Indian Steel sector................................................................. 50 Conclusion .............................................................................................................................................. 53 Bibliography ................................................................................................................................................ 55

Overview
Indian steel industry plays a significant role in the countrys economic growth. The major contribution directs the attention that steel is having a stronghold in the traditional sectors, such as infrastructure & constructions, automobile, transportation, industrial applications etc. Moreover, steel variant stainless steel is finding innovative applications due to its corrosion resistive property. India is the fifth largest steel producer at the global front and struggling to become the second largest producer in the coming years. The country has acquired a central position on the global steel map with its giant steel mills, acquisition of global scale capacities by players, continuous modernization & up gradation of old plants, improving energy efficiency, and backward integration into global raw material sources. Global steel giants from across the world have shown interest in the industry due to its phenomenal performance. For instance - the crude steel production in India registered a year-onyear growth of 6.4% in 2010 and reached 66.8 Million Metric Tons. Our new research report Indian Steel Industry Outlook to 2012 says that the, Indian crude s teel production will grow at a CAGR of around 10% during 2010-2013. Moreover, with the government proactive incentive plans to boost economic growth by injecting funds in various industries, such as construction, infrastructure, automobile, and power will drive the steel industry in future. The report also reveals that, steel consumption in India is expected to grow significantly in coming years as per capita finished steel consumption is far less than its regional counterparts. Indian Steel Industry Outlook to 2012 is an outcome of an extensive research and conceptual analysis of the Indian steel industry. The report provides detail information on steel industry in India. The report also presents an insight into the future outlook of various vertical industry segments, including automotive, aerospace, marine, consumer durables, power, railways, telecom, and housing. The report classifies the finished steel product market into two categories - Alloy and Non-alloy. The report also covers information on industry-wise steel demand, overall steel consumption, production, and trading market. Besides, it provides industry forecast for different market segments.

Indian Steel Demand Buoyant

Steel consumption growth in last 5 yrs was range bound at 9-13%, Per capita steel use is 53 kg vis-a-vis 35 kg in 2005 Steel demand expected to continue @10%+ CAGR till 2020

Steel Demand Driver GDP Growth

GDP growth to continue at 8-9% Huge infrastructure investment by Govt. ~ $500 billion

Domestic Steel Production of Finished Steel

Steel consumption in FY 2011 rose by 10.6% y-o-y Capacity augmentation to meet domestic demand

EVOLUTION OF THE INDUSTRY

"The History Of Indias Steel Industry" It all started back around 400 BC when the Greek Emperors would recruit Indians for their abilities to make a steel tipped arrow. There is a lot of evidence that India knew what they were doing in the steel building department and had a handle on it as far back as at least 350-380 AD.

The evidence was and is the well-known relics of the Iron Pillar near Qutab Minar in Delhi. No one has any idea how they engineered the pillar in a way that it never rusted even until today. In addition, the first time that steel structurals were ever used were in 1200 AD at the famous Sun Temple in Orissa.

They were the top of the food chain when it came to steel industry, way back so what happened that caused all this greatness to cease in India.

Well, after the advent of foreign rule, the leaders made it a deliberate policy not to allow anything other than raw materials to be supplied to others through trade. Without the actual manufacturing of steel, it is hard for any country to flourish or to come out of a poverty-stricken situation. Just look around and you will see that those who cannot move ahead are often just left behind. In 1830, Joshua Marshall Heath, set up a small plant at Porto Novo on Madras Coast. Heath produced forty tons of pig iron per week. However, it was too expensive for him to deal with because of the amount of charcoal it took to make a ton of steel, so he could not compete. "A Most Relevant Time" Then came the day that started it all off and the players were the Tata Iron And Steel Company. It was August 27, 1907 and they were formed as a venture to produce 120,000mt of pig iron. This was a big deal to say the least. By the time that India gained freedom, Tata was producing up to 1 million tons of ingot. (Please read about Tata Iron and Steel when you get a chance)

The British continued to try to put the Indian steel industry out of business but India continued to hold on with the help of some nationalist. America played a big role in helping India to start the industry but the war made it hard to keep the eye on the ball. After the war Indian Iron And Steel Co. was formed. They started producing pig Iron in 1922 at Burnpur. August seems to be a good month in Indias history. Not only with Tata Iron and steel but also the 9th day of Aug in 1942 which is celebrated as Quit India day. . A movement Gandhi had started to induce negotiations with the British Government.

He wanted to try to deal with the situation in a peaceful way, first with the boycott of British goods and then the Dandi March. The British government sent Sir Stafford Cripps who is seen to the (Right) here. Gandhi made a speech in which he gave the mantra Do or Die We shall either free India or die in the attempt. The rest as they say is history. Just Ahead by 6 years, Indias fist Industrial Policy Resolution, was adopted by the Constituents Assembly in 1948. At this point, the principles of a mixed economy were accepted. Industries were divided into four separate categories. The first strategic industries became the monopoly of the Government. The second were six industries including, coal, iron, and steel. "Jumping A Bit Ahead" The finished steel production in India has gone up from a mere 1.1 million tonnes in 1951 to 23.37 million tonnes in 1997-98 despite overall economic slow-down in the country. The Indian steel industry finally expanded into Europe in the 21st century. India's Tata Steel offered to buy the European steel maker Corus Group PLC. Henceforth, a deal was made This is the way it should have been from the beginning. India now runs with the big dogs. They are buying every tin can that they can get their hands on. So long as they can do so, their economy with strive and flourish. I think that they were so hungry to get back to doing what they originally did so well that they cannot and will not be stopped. So just to recap, the steel industry in India was that of a struggle up until recent times. They were forced by an oppressive thumb not to flourish for all of those years even though they had the means to do so.

That is both evident when we look back as far as 400 BC and as we look at their steel industry of today. Its a shame that anyone is held back by others when they have the means to excel. Keep it all in mind and in perspective when you try to determine what type of respect to give the people of India while you do business with their country.

CURRENT SCENARIO

The Indian steel industry has entered into a new development stage from 2007-08, riding high on the resurgent economy and rising demand for steel.

Rapid rise in production has resulted in India becoming the 4 th largest producer of crude steel and the largest producer of sponge iron or DRI in the world.

As per the report of the Working Group on Steel for the 12 th Plan, there exist many factors which carry the potential of raising the per capita steel consumption in the country, currently estimated at 55 kg (provisional). These include among others, an estimated infrastructure investment of nearly a trillion dollars, a projected growth of manufacturing from current 8% to 11-12%, increase in urban population to 600 million by 2030 from the current level of 400 million, emergence of the rural market for steel currently consuming around 10 kg per annum buoyed by projects like Bharat Nirman, Pradhan Mantri Gram Sadak Yojana, Rajiv Gandhi Awaas Yojana among others.

At the time of its release, the National Steel Policy 2005 had envisaged steel production to reach 110 million tonnes by 2019-20. However, based on the assessment of the current ongoing projects, both in greenfield and brownfield, the Working Group on Steel for the 12 th Plan has projected that the crude steel steel capacity in the county is likely to be 140 mt by 2016-17 and has the potential to reach 149 mt if all requirements are adequately met.

The National Steel Policy 2005 is currently being reviewed keeping in mind the rapid developments in the domestic steel industry (both on the supply and demand sides) as well as the stable growth of the Indian economy since the release of the Policy in 2005.

Production

Steel industry was delicensed and decontrolled in 1991 & 1992 respectively. Today, India is the 4 th largest crude steel producer of steel in the world. In 2011-12 (prov), production for sale of total finished steel (alloy + non alloy) was 73.42 mt. Production for sale of Pig Iron in 2011-12 (prov), was 5.78 mt. India is the largest producer of sponge iron in the world with the coal based route accounting for 76% of total sponge iron production in the country (20.37 mt in 2011-12; prov.):

Last five year's production for sale of pig iron, sponge iron and total finished steel (alloy + non-alloy) are given below:

Indian steel industry : Production for Sale (in million tonnes) Category Pig Iron Sponge Iron 2007-08 2008-09 2009-10 2010-11 2011-12* 5.28 20.37 6.21 21.09 57.16 5.88 24.33 60.62 5.68 25.08 68.62 5.78 20.37 73.42

Total Finished Steel (alloy + non alloy) 56.07

Source: Joint Plant Committee; *provisional

Demand - Availability Projection

Demand Availability of iron and steel in the country is projected by Ministry of Steel in its Five Yearly Plan documents.

Gaps in availability are met mostly through imports. Interface with consumers by way of a Steel Consumers Council exists, which is conducted on regular basis.

Interface helps in redressing availability problems, complaints related to quality.

Steel Prices

Price regulation of iron & steel was abolished on 16.1.1992. Since then steel prices are determined by the interplay of market forces.

Domestic steel prices are influenced by trends in raw material prices, demand supply conditions in the market, international price trends among others.

An Inter-Ministerial Group (IMG) is functioning in the Ministry of Steel, under the Chairmanship of Secretary (Steel) to monitor and coordinate major steel investments in the country.

The Government also took various fiscal and other measures for stabilizing steel prices like significant reduction in import duties o n steel, major raw materials, including mineral products and ores and concentrates in last few years. Also, excise duty for steel is currently at 12%. The government has also imposed export duty of 30% on iron ore fines and lumps in

order to control ad-hoc exports of the mineral and conserve it for long term requirement of the domestic steel industry.

For ensuring quality of steel several items have been brought under a quality control order issued by the Government. The matter to bring more steel items under this order is under examination.

Imports

Iron & steel are freely importable as per the extant policy. Last five years import of total finished steel (alloy + non alloy) is given below:Indian steel industry : Imports (in million tonnes) Category 2007-08 2008-09 2009-10 2010-11 2011-12* 5.84 7.38 6.66 6.83

Total Finished Steel (alloy + non alloy) 7.03 Source: Joint Plant Committee; *provisional

Exports

Iron & steel are freely exportable. Advance Licensing Scheme allows duty free import of raw materials for exports. Duty Entitlement Pass Book Scheme (DEPB) was introduced to facilitate exports. Under this scheme exporters on the basis of notified entitlement rates, are granted due credits which would entitle them to import duty free goods. The DEPB benefit on export of various categories of steel items scheme is currently applicable for steel exports.

Last five years export of total finished steel (alloy + non alloy) is given below:Indian steel industry : Exports (in million tonnes) Category 2007-08 2008-09 2009-10 2010-11 2011-12* 4.44 3.25 3.64 4.04

Total Finished Steel (alloy + non alloy) 5.08 Source: Joint Plant Committee; *provisional Levies on Iron & Steel SDF levy

This was a levy started for funding modernisation, expansion and development of steel sector. The Fund, inter-alia, supports : 1. Capital expenditure for modernisation, rehabilitation, diversification, renewal & replacement of Integrated Steel Plants. 2. Research & Development 3. Rebates to SSI Corporations 4. Expenditure on ERU of JPC

The SDF levy was abolished on 21.4.94 Cabinet decided that corpus could be recycled for loans to Main Producers Interest on loans to Main Producers is set aside for promotion of R&D on steel etc. An Empowered Committee has been set up to guide the R&D effort in this sector.

EGEAF Was a levy started for reimbursing the price differential cost of inputs used for engineering exporters. Fund was discontinued on 19.2.96.

Opportunities for growth of Iron and Steel in Private Sector

The New Industrial Policy Regime The New Industrial policy opened up the Indian iron and steel industry for private investment by (a) removing it from the list of industries reserved for public sector and (b) exempting it from compulsory licensing. Imports of foreign technology as well as foreign direct investment are now freely permitted up to certain limits under an automatic route. Ministry of Steel plays the role of a facilitator, providing broad directions and assistance to new and existing steel plants, in the liberalized scenario.

The Growth Profile (i) Steel The liberalization of industrial policy and other initiatives taken by the Government have given a definite impetus for entry, participation and growth of the private sector in the steel industry.

While the existing units are being modernized/expanded, a large number of new steel plants have also come up in different parts of the country based on modern, cost effective, state of-theart technologies. In the last few years, the rapid and stable growth of the demand side has also prompted domestic entrepreneurs to set up fresh greenfield projects in different states of the country. Crude steel capacity was 89 mt in 2011-12 (prov) and India, the 4 th largest producer of crude steel in the world, has to its credit, the capability to produce a variety of grades and that too, of international quality standards. The country is expected to become the 2 nd largest producer of crude steel in the world by 2015-16, provided all requirements for creation of fresh capacity are adequately met. (ii) Pig Iron India is also an important producer of pig iron. Post-liberalization, with setting up several units in the private sector, not only imports have drastically reduced but also India has turned out to be a net exporter of pig iron. The private sector accounted for 91% of total production for sale of pig iron in the country in 2011-12 (provisional). The production of pig iron has increased from 1.6 mt in 1991-92 to 5.78 mt in 2011-12 (provisional). (iii) Sponge Iron India is the worlds largest producer of sponge iron with a host of coal based units, located in the mineral-rich states of the country. Over the years, the coal based route has emerged as a key contributor and accounted for 76% of total sponge iron production in the country (20.37 mt in 2011-12; prov.). Capacity in sponge iron making too has increased over the years and stands at around 35 mt.

Number of the Players

The performance of the Indian steel industry has been quite satisfactory over the last decade. Aided by the cutting-edge technology, the steel industry in Asia has made advancements in all areas of operation. There has been a substantial increase in demand for Indian steel products in the global market in the recent times.

This has helped in the growth of Indian steel industry. The industry recorded the highest growth rate in the period from 2004-2005, when the growth rate of the steel sector was 4%. The increased consumption of the finished steel products in the domestic market acted as a positive catalyst in the growth process of the Indian steel industry. The favorable market condition has helped the companies operating in Indian steel industry to expand their operations and earn huge profit.

The top companies of the Indian steel sector mostly operate in four different forms like producers of pig iron, producers of stainless steel, producers of finished steel products, and producers of semi-finished steel. The companies functional in the steel industry of India are both public sector companies and private sector companies.

Some of the leading companies in Indian steel industry are as follows: Ahmedabad Steel Craft: Producer of windows, ventilators, steel doors and the like Ambica Steel: Producer of carbon steel, alloy, and stainless steel Apollo Tubes: Manufacturer of steel tubes and pipes Bengal Industries: Producer of hoses made up of stainless steel Bokaro Steel Plant: Steel manufacturer Beehive Kowtha Group: Manufacturer of castings, towers, and steel buildings Central Steel Corporation: Producer of alloy and tool steels Bharat Impex: Manufacturer of stainless steel kitchenware Allied Ferromelt: Producer of non alloy and alloy steel Anchor Engineers' Files: Producer of steel files for engineers Essar Steel: Producer of sponge iron, steel and iron ore pellets ColdFab: Producer of pre-fabricated buildings of steel Govind Steel: Producer of ductile and grey iron Gaysons: Producer of steel rolls Devson Steels: Fabricates storage tanks Hisar Metal: Producer of strips and stainless cold rolled steel coils Buyao Info: Producer of steel products and re-rolled iron Jindal Iron & Steel: Producer of galvanized steel products Kanoi Group: Dealer of corrugated sheets and steel coils Jindal Steel & Power: Manufacturer of mild steel slabs and sponge iron Lloyds Steel: Producer of corrugated sheets and steel coils

Metalman Industries: Producer of tubular and flat steel items Steel Authority of India: Manufacturer of steel and iron Tata Steel: Producer and supplier of wire rods, bars, and steel flats Vizag Steel: Producer of pig iron and steel.

Major Indian Players In the Steel Industry

Public Sector
STEEL AUTHORITY OF INDIA LIMITED (SAIL) Steel Authority of India Limited (SAIL) is a company registered under the Indian Companies Act, 1956 and is an enterprise of the Government of India. It has five integrated steel plants at Bhilai (Chattisgarh), Rourkela (Orissa), Durgapur (West Bengal), Bokaro (Jharkhand) and Burnpur (West Bengal). SAIL has three special and alloy steel plants viz. Alloy Steels Plant at Durgapur (West Bengal), Salem Steel Plant at Salem (Tamilnadu) and Visvesvaraya Iron & Steel Plant at Bhadravati (Karnataka). In addition, a Ferro Alloy producing plant Maharashtra Elektrosmelt Ltd. at Chandrapur, is a subsidiary of SAIL. SAIL has Research & Development Centre for Iron & Steel (RDCIS), Centre for Engineering & Technology (CET), SAIL Safety Organisation (SSO) and Management Training Institute (MTI) all located at Ranchi; Central Coal Supply Organisation (CCSO) at Dhanbad; Raw Materials Division (RMD), Environment Management Division (EMD) and Growth Division (GD) at Kolkata. The Central Marketing Organisation (CMO), with its head quarters at Kolkata, coordinates the country-wide marketing and distribution network.

VIZAG STEEL. (RINL) RINL, the corporate entity of Visakhapatnmam Steel Plant (VSP) is the first shore based integrated steel plant located at Visakhapatnam in Andhra Pradesh. The plant was commissioned in August 1992 with a capacity to produce 3 million tonne per annum (mtpa) of liquid steel. The plant has been built to match international standards in design and engineering with state-of- theart technology incorporating extensive energy saving and pollution control measures. Right from the year of its integrated operation, VSP established its presence both in the domestic and international markets with its superior quality of products. The company has been awarded all the three International standards certificates, namely, ISO 9001:2000, ISO 14001: 1996 and OHSAS 18001: 1999. RINL was accorded the prestigious Mini Ratna status by the Ministry of Steel, Govt. of India in the year 2006 and the company is gearing up to complete the ambitious expansion works to increase the capacity to 6.3 mtpa by 2009. RINL has prepared a road map to expand the plants capacity up to 16 mtpa in phases.

MSTC LTD. MSTC Limited is a Mini Ratna Category-I PSU under the administrative control of the Ministry of Steel, Government of India. The company was set up in 9th September 1964 to act as a regulating authority for export of ferrous scrap with an investment of Rs 6 lakh. Government of India, Members ofSteel Arc Furnace Association and members of ISSAI had made with the investment. MSTC became a subsidiary of SAIL in 1974. In 1982, it got delinked from SAIL and became an independent company under Ministry of Steel. It was a canalizing agency for import of ferrous scrap till 199224. .With the passage of time, the company emerged as the canalizing agency for the import of scrap into the country. Import of scrap was de-canalized by the Government in 1991-92 and MSTC has since then moved on to marketing ferrous and miscellaneous scrap arising out of steel plants and other industries and importing Coal, Coke, Petroleum products, semi finished steel products like HR Coils and export primarily Iron ore. The Company has also established an e-auction portal and undertakes e-auction of Coal, Diamonds and Steel Scrap and has developed an e- procurement portal in house . FERRO SCRAP NIGAM LTD. (FSNL) Ferro Scrap Nigam Limited is a joint sector company, incorporated on 28-3-1979. Presently it is "Mini Ratna II PSU" a Government of India company under Ministery of Steel. It is a wholly owend subsidiary of MSTC Limited and the share capital is INR 200 Million25. The Company undertakes the recovery and processing of scrap from slag and refuse dumps in the nine steel plants at Rourkela, Burnpur, Bhilai, Bokaro, Visakhapatnam, Durgapur, Dolvi, Duburi & Raigarh. The scrap recovered is returned to the steel plants for recycling/ disposal and the Company is paid processing charges on the quantity recovered at varying rates depending on the category of scrap. Scrap is generated during Iron & Steel making and also in the Rolling Mills. In addition, the Company is also providing Steel Mill Services such as Scarfing of Slabs, Handling of BOF Slag, etc. HINDUSTAN STEELWORKS CONSTRUCTION LTD. (HSCL) Hindustan Steelworks Construction Limited (HSCL) was established in 1964, as a construction agency of Government of India under Ministry of Steel, to mobilize indigenous capability for putting up integrated steel plants in the country26. HSCL had done the construction work of Bokaro Steel Plant, Vizag Steel Plant and Salem Steel Plant fromthe inception till commissioning and was associated with the expansion and modernisation of Bhilai Steel Plant,

Durgapur Steel Plant, IISCO (Burnpur) and also Bhadravati Steel Plant. With the tapering of construction activities in Steel Plants, the company intensified its activities in other sectors like Power, Coal, Oil and Gas. Besides this, HSCL diversified in Infrastructure Sectors like Roads/Highways, Bridges, Dams, Underground Communication and Transport system and Industrial and Township Complexes involving high degree of planning, co-ordination and modern sophisticated techniques. The company has developed its expertise in the areas of Piling, Soil investigation, Massive foundation work, High rise structures, Structural fabrication and Erection, Refractory, Technological structures and Pipelines, Equipment erection, Instrumentation including testing and commissioning. The company has also specialised in carrying out Capital repairs and Rebuilding work including hot repairs of Coke Ovens and Blast Furnaces and other allied areas of Integrated Steel Plants. MECON LTD. MECON is one of the leading multi-disciplinary design, engineering, consultancy and contracting organization in the field of iron & steel, chemicals, refineries & petrochemicals, power, roads & highways, railways, water management, ports & harbours, gas & oil, pipelines, non ferrous, mining, general engineering, environmental engineering and other related/ diversified areas with extensive overseas experience. MECON, an ISO: 9001- 2000 accredited company, registered with World Bank (WB), Asian Development Bank (ADB), European Bank for Reconstruction and Development (EBRD), African Development Bank (AFDB), and United Nations Industrial Development Organisation (UNIDO), has wide exposure and infrastructure for carrying out engineering, consultancy and project management services for mega projects encompassing architecture & town planning, civil works, structural works, electric, air conditioning & refrigeration, instrumentation, utilities, material handling & storage, computerization etc. MECON has collaboration agreements with leading firms from the USA, Germany, France, Italy, Russia, etc. in various fields. The authorized share capital of the company is Rs. 10,400 lakh (previous year Rs. 4,100 lakh) against which the paid up capital is Rs. 10,313.84 lakh (previous year Rs. 4,013.84 lakh). All the shares are held by the Government of India

Private Sector
The private sector of the Steel Industry is currently playing an important and dominant role in production and growth of steel industry in the country. Private sector steel players have contributed nearly 67% of total steel production of 38.08 million tonnes to the country during the

period April-December, 2007. The private sector units consist of both major steel producers on one hand and relatively smaller and medium units such as Sponge iron plants, Mini Blast Furnace units, Electric Arc Furnaces, Induction Furnaces, Rerolling Mills, Cold-rolling Mills and Coating units on the other. They not only play an important role in production of primary and secondary steel, but also contribute substantial value addition in terms of quality, innovation and cost effective. TATA STEEL LTD. Tata Steel is among the top ten steel producers in the world with an existing annual crude steel production capacity of 30 Million Tonnes Per Annum (MTPA). Established in 1907, it is the first integrated steel plant in Asia and is now the world`s second most geographically diversified steel producer and a Fortune 500 Company. Tata Steel has an integrated steel plant, with an annual crude steel making capacity of 5 million tonnes located at Jamshedpur, Jharkhand. Tata Steel has completed the first six months of fiscal 2007-08 with impressive increase in its hot metal production. The hot metal production at 2.76 million tonnes is 4.6%more compared to the corresponding period of the previous year. The crude steel production during the period was 2.43 million tonnes which is marginally lower than the production of 2.45 million tonnes last year. The saleable steel production was at a lower level during the period April September, 2007 (2.34 million tonnes) compared to the corresponding period of last year (2.36 million tonnes)28. Tata Steel is continuing with its programme of expansion of steel making capacity by 1.8 million tonnes to reach a rated capacity of 6.8 million tonnes. The Project is reported to be moving ahead of schedule and is likely to be commissioned by May 2008 against the original schedule of June 2008. The Company has planned to take the capacity to 10 million tonnes by the fiscal year 2010. Tata Steels Greenfield projects in Orissa and Chattisgarh are progressing on schedule with placement of equipment order for Kalinganagar Project in Orissa and commencement of the land acquisition process. Jharkhand Project is awaiting announcement of Relief & Rehabilitation policy of the State Government. ESSAR STEEL LTD. (ESL) Essar Steel Holdings Ltd. (ESHL) is a global producer of steel with a footprint covering India, Canada, USA, the Middle East and Asia. It is a fully integrated flat carbon steel manufacturerfrom iron ore to ready-to-market products. ESHL has a current global capacity of 8 million tonnes per annum (MTPA). With its aggressive expansion plans in India and other parts of Asia and North America, its capacity is likely to go up to 25 MTPA by 201229. Its products find wide acceptance in highly discerning consumer sectors, such as automotive, white

goods, construction, engineering and shipbuilding. Essar Steel Ltd., the Indian Company of Essar Steel Holdings Limited, is the largest steel producer in western India, with a current capacity of 4.6 MTPA at Hazira, Gujarat, and plans to increase this to 8.5 MTPA. The Indian operations also include an 8 MTPA beneficiation plant at Bailadilla, Chattisgarh which has worlds largest slurry pipeline of 267 km to transport beneficiated Iron Slurry to the pellet plant, and an 8 MTPA pellet complex at Visakhapatnam. The Essar Steel Complex at Hazira in Gujarat, India, houses the worlds largest gas-based single location sponge iron plant, with a capacity of 4.6 MTPA. The complex also houses the steel plant and the 1.4 MTPA cold rolling complex. The steel complex has a complete infrastructure setup, including a captive port, lime plant and oxygen plant. Essar Steel produces highly customized value-added products catering to a variety of product segments and is Indias largest exporter of flat products, selling close to half of its production to the highly demanding US and European markets, and to the growing markets of South East Asia and the Middle East. The companys products conform to quality specifications of international quality certification agencies, like ABS, API, TUV Rhine Land and Lloyds Register. Essar Steel is the first Indian steel company to receive an ISO 9001 and ISO 14001 certification for environment management practices. Essar Steel utilizes Hot Briquetted Iron-Direct Reduced Iron (HBIDRI) technology supplied by Midrex Technology, USA along with four 150 tonnes DC electric arc furnaces imported from Clecim, France. The Hazira unit of Essar Steel is equipped with 5.5 million tonnes per annum (MTPA) hot briquetted iron plant, 4.6 MTPA electric are furnace, 4.6 MTPA continuous caster, 3.6 MTPA hot strip mill and 1.4 MTPA Cold Rolling Mill. During the year 2007-08, Essar was awarded costs ISO/TS 16949 and OHSAS 18000 certification. JSW STEEL LTD. JSW Steel Ltd. is one among the largest Indian Steel Companies in India today with capacity of 7.8MT. Indias second largest steelmaker, JSW Steel Ltd. consists of the most modern, eco friendly steel plants with the latest technologies for both upstream & downstream processes31. JSW Steel is a 3.8 MTPA integrated steel plant, having a process route consisting broadly of Iron Ore Beneficiation Pelletisation Sintering Coke making Iron making through Blast Furnace as well as Corex process Steel making through : BOF- Continuous Casting of slabs Hot Strip Rolling Cold Rolling Mills. JSW Steel has a distinction of being certified for ISO9001:2000 Quality Management System, ISO-14001:2004 Environment Management System and OHSAS 18001:1999 Occupational Health and Safety Management System. The capacity as on 1.11.2007 stood at 3.8 MTPA and the capacity is likely to rise to 6.8 MTPA by 2008, and further to 9.6 MTPA by 2010.

JINDAL STEEL & POWER LTD. (JSPL) With an annual turnover of over US $2.00 billion (Rs. 10,000 crore), Jindal Steel & Power Limited (JSPL) forms a part of the US $12 billion (over Rs. 60,000 crore) Jindal Group. JSPL is a leading player in Steel, Power, Mining, Oil & Gas and Infrastructure. Jindal Steel & Power Limited is one of the fast growing major steel units in the country32. The Raigarh plant of JSPL has a present capacity of 1.37 million tonne per annum (MTPA) sponge iron plant, 2.40 MTPA Steel Melting Shop (SMS), 1.0 MTPA plant Mill, 2.30 sinter plant, 0.8 MTPA coke oven and a 330 Mega Watt captive power plant. During the year 2006-07, the company produced 1.19 million tonnes of sponge iron, 0.8 million tonnes of various steel products, 0.57 million tonnes of hot metal and 0.21 million tonnes of rolled products. The performance of JSPL during AprilOctober 2007-08 was 0.68 million tonnes of sponge iron, 0.72 million tonnes of steel products (slabs/blooms/billets/rounds), 0.68 million tonnes of hot metal, 0.27 million tonnes of rolled products and 0.11 million tonnes of plates.

ISPAT INDUSTRIES LTD. (IIL) IIL has set up one of the largest integrated steel plants in the private sector in India at Dolvi in Raigad District, Maharashtra with a capacity to manufacture 3 million tonnes per annum of hot rolled steel coils (HRC). The Dolvi complex also boasts of an ultra modern blast furnace (setup by a group company Ispat Metallics India Ltd.) capable of producing 2.0 million tonnes per annum of Hot Metal/ Pig Iron, a 2.0 million tonnes capacity Sinter Plant(newly commissioned) and a DRI plant with a capacity of 1.6 million tonnes per annum. The complex boasts of an ultra modern captive jetty which meets the plants requirement with regard to import of various raw materials. In the coming years, after augmenting necessary infrastructure facility, it has planned to export the goods from the captive jetty. Further, the complex envisages adding a 110 MW captive power plant (which will use the Blast Furnace gas) in near future33. The integrated steel plant is using the converter-cum-electric arc furnace route (CONARC process) for producing steel. In this project, IIL have uniquely combined the usage of hot metal and DRI (sponge iron) in the electric arc furnace for production of liquid steel for the first time in India.

Monopoly
World Steel Industries are undergoing a booming phase with all sorts of Mergers and Acquisitions taking place all around the world. The key market players are now subjected to fierce competition from the new companies from developing economies. From the early 1990s, China and South Korea have emerged significantly in the World Steel Industries. In the very recent years India is also on a winning streak in terms of M&A. First of all, it was NRI Laxmi Mittal's Mittal Steel (listed in Netherlands) to acquire Arcelor, many times greater than it. Then came the Indian big shot TATA Steel to acquire Corus, the fifth largest steel company in terms of production capacity. Thus, it is being observed that World Steel Industries is going at a very competitive pace and time where the OECD (Organization for Economic Cooperation and Development) countries don't have their monopoly on the steel market. The main demand for World Steel Industries comes from the construction industry. With the developmental works on a rise in both the developed and developing countries, the infrastructure industry along with real estate boom, the demand for steel is rising like anything. For example, more and more real estate companies are using steel frames for building houses. In USA, it had been observed in the early 1990s that the use of steel for house building has increased by nearly five times in just one year. The automobile industry is also coming up fast as a potential demander for World Steel Industries because from a research it has been found out that the use of steel in the vehicles would cause the weight of the same to lessen by almost twenty five percent. The other industries who demand steel industries involve appliance industries, Oil and Gas industries and container industries. On the technological front, the World Steel Industries are making rapid improvement with the implementation of cutting-edge technologies like steel making through the utilization of electric furnace, continuous annealing, casting of thin slabs, and vacuum degassing.

Types of steel
Steel is an iron based mixture containing two or more metallic and/or non metallic elements usually dissolving into each other when molten. Since it is an iron based alloyas per its end

user requirementsother than iron it may contain one or more other elements such as carbon, manganese, silicon, nickel, lead, copper, chromium, etc. For example, stainless steel (a type of steel) mainly contains chromium that is normally more than 10.5 percent with/without nickel or other alloying elements. Steel is produced using Steel Melting Shop that includes converter, open hearth furnace, electric arc furnace and electric induction furnace. There are broadly two types of steel according to its composition: alloy steel and non-alloy steel. Alloying steel is produced using alloying elements like manganese, silicon, nickel, chromium, etc. Non-alloy steel has no alloying component in it except that are normally present such as carbon. On-alloy steel is mainly of three types viz. mild steel (contains up to 0.3% carbon), medium steel(contains between 0.3-0.6% carbon) and high steel (contains more than 0.6% carbon). All types of steel other than mild steel are called special steel. It is mainly because a special care is taken in order to maintain particular level of chemical composition in such steel. This process gives different properties to the steel according to its composition. In India, nonalloying steel constitutes about 95 percent of total finished steel production, and mild steel has large share in it. According to shape/size/form steel is categorized into different types such as liquid steel, ingots, semis (semi-finished steel) and finished steel. Liquid steel is a first product that comes out from Steel Melting Shop. Liquid steel further goes into ingots, and then ingots advance to semis.Semis are called semi-finished steel products because they are further subject to forging/rolling in order to produce finish steel products such as flat steel products and long steel products. Crude steel generally includes ingots and semis. According to end use, steel is categorized into structural steels, construction steel, deep drawing Steel, forging quality, rail steel, etc. The following chart depicts various types of steel products according to different categories.

Steel

Form/size/ shape

Composition

End use

Liquid steel

Alloy steel

Non-alloy steel

Structural steel

Crude steel

Stainless steel

Low carbon or Mild steel Medium carbon steel

Construction steel

Silicon

Ingots

Finished steel

electrical steel

Deep drawing steel

Semis

Flat products

Non-flat Products

High speed steel

High carbon steel

Rail steel

Foreign quality steel

Production
During the last five years finished steel production (alloy and non-alloy) grew at the rate of 8 percent (CAGR) to reach at 57.66 mt in 2006-07 from 39.22 mt in 2002-03 (Table 2.2). In 200607, the secondary producers alone contributed about 76 percent and the rest came from the main producers. After liberalization, on the account of active participation of private sector in the steel industry, public sector share in the total production started dwindling. In 2003-04, share of

public sector in the finished steel production (alloy & non-alloy) was 28 percent, which was reduced to 23 percent in 2006-07. According to estimates of Ministry of Steel6, Government of Indiaproduction capacity of the steel industry will be 124 mt at the end of the year 2011-12. It is mainly attributed to positive trends in the consumption. Main producers such as TISCO, SAIL and JSW are aggressively investing in expanding their plant capacities. TISCO has an installed production capacity of 7.5 to 8 mt with another 2.4 mt would be added by 2009. The TISCO is the front runner with an expansion plan of about 30 mtpa by 2020. JSW and SAIL have expansion plans of about 27 mtpa and 24 mtpa, respectively.

Performance of the Indian Steel Industry

Despite the softening of industrial demand as reflected in a 4.4 per cent growth in real consumption of total finished steel during April-December, 2011 over the same period of last year, the overall April-December 2011 performance of Indian steel industry is optimistic, it said. The Survey pointed out a list of bottlenecks responsible for lower steel consumption, including high inflationary pressure within, deteriorating global economy, multiple hikes in interest rates by the Reserve Bank of India. In 2011, it was faced with stiff challenges posed by rising inflationary pressures at home and deteriorating global growth conditions. The multiple hikes in interest rates by the central bank also impacted the industrys growth directly and indirectly through their effect on the growth of key user industries, the Survey said. The RBI had hiked short-term lending rates 13 times between March 2010 and October 2011. Indias steel consumption was a little less than 70 million tonnes last fiscal. According to World Steel Association, global steel consumption is estimated to slowdown to 6.5 per cent for 2011 and 5.4 per cent in 2012.

Raw material security, infrastructure, quality of coking coal and uncertainties in land acquisition have emerged as bottlenecks to setting up of new steel plants, the Survey added. India emerged as the fourth largest producer of crude steel in the world during JanuaryNovember 2011 after China, Japan, and the US. Its crude steel production grew at a compounded annual growth rate of 8.4 per cent during 2006-07 to 2010-11. The increase in production is driven by 8.8 per cent growth in crude steel capacity mainly in the private-sector plants and high utilisation rates during this period,

Institutional Design
Introduction
Steel was under a fairly strict framework of regulation till 1992 and the erstwhile policy was to allocate scarce investment and infrastructure resources for optimum and planned development of the industry and to make available this scarce industrial intermediate to the users at a reasonable price. The basic purpose of the past policy was to manage a scarcity driven market towards an announced objective of establishing a fair and equitable distribution of this product and to keep it affordable as far as possible. The pre-reform steel market in India was controlled in all relevant areas. Competition was limited in this shortage-infested market that had no real role to play in the growth of the individual companies or their performance and the allocative efficiency of investible resources. The prices set by the government were more on political consideration and not strictly on the basis of costs of production or markets demand and supply balance.11 In the absence of an elaborate and an efficient distribution mechanism, one can expect such a system of controlled prices to be favourable to the consumers. However, the trading intermediaries, with whatever role they were allowed to play, gobbled up the margin between the market and the administered prices, with little benefits left to the vast number of small consumers. This was natural given that supply was limited, and higher demand required an allocation mechanism between the many competing consumers. And the intermediaries used price as a means of allocation. In free market such price controls only lead to rents for those not facing the controls. In this particular case this would have only adversely affected the willingness of those facing the controls to invest in increasing production or improving technology. Following the reforms ushered in the nineties this regulatory regime was dismantled. The steel market and the industry currently are free from all regulations in trade, production and investment. Till some time ago, steel was included in the list of essential commodities. After it has been removed, the governments scope for direct policy backed intervention has reduced considerably. Policy regime for the Steel sector in India Under the new industrial policy, iron and steel has been made one of the high priority industries. Price and distribution controls have been removed as well as foreign direct investment up to 100% (under automatic route) has been permitted.

The Trade Policy has also been liberalized and import and export of iron and steel is freely allowed with no quantitative restrictions on import of iron and steel items. Tariffs on various items of iron and steel have drastically come down since 1991-92 levels and the government is committed to bring them down to the international levels. With the abolishing of price regulation of iron and steel in 92, the steel prices are market determined. The Government announced the National Steel policy in 2005. The policy targets indigenous production of 110 million tonnes (mt) by 2019-20 from the 2004-05 level of 38 mt at a compounded annual growth of 7.3 percent per annum. Similarly targeted consumption is 90 mt by 2019-20 from the 2004-05 level of 36 mt, implying a CAGR of 6.90 percent. The policy devises a multi-pronged strategy to achieve these targets with following focus areas removal of supply constraints especially availability of critical inputs like iron ore; improve cost competitiveness by expanding and strengthening the infrastructure in roads, railways, ports and power; increase exports;12 meet the additional capital requirements by mobilizing financial resources; promote investments by removing procedural delays. In addition the policy also addresses challenges arising out of environmental concerns, human resource requirements, R&D, volatile steel prices and the secondary sector. The Eleventh plan working group for steel recommends the following for effective development of the steel industry:

1. Full utilization of the existing policy framework of Public-Private Partnerships (PPPs) in development of infrastructure like Railways. 2. Set up an R&D Mission in order to provide accelerated thrust on R&D and thereby improve the competitiveness of the industry. 3. Spread awareness about hedging mechanisms available in exchanges like MCX and NCDX and develop appropriate regulatory mechanism to avoid any manipulative practices. 4. Develop an appropriate Institutional Framework for collection of data and dissemination of Information. 5. Consider setting up of a multi-disciplinary organization along the lines of the International Iron & Steel Institute (IISI). 6. Proposal to have a dedicated plan fund of Rs. 25 crores for the 11th Five Year Plan in the Ministry of Steel towards grant for development of human resources for iron and steel and for ad campaigns for promotion of steel usage. 7. A Technology Up gradation Fund Scheme (TUFS) for the Small and Medium Enterprises (SME) sector in steel industry to upgrade the technological profile of the plants in the SME sector.

Role of Government
In the pre reform era, the ministry of steel played the role of key regulator and was involved in decision making related to pricing, allocation and distribution. With dismantling of the strict regulatory regime, the role of Government in all sectors has changed to that of a facilitator. So is true of the steel industry. In the post-de-regulation period, the role of the Ministry of Steel is now considered that of a facilitator. This is how the government itself sees its role.13 The box below excerpts the annual report of the Ministry overseeing the steel sector. Given the oligopolistic features of the steel industry, the role of Government in promoting competitive forces in the industry is of some importance. Government intervention may be called for, especially to protect larger consumer interests. But whether it is done via policy or through some regulatory/judicial mechanism is the question of interest. However, the government continues to intervene in ad-hoc ways through its administrative ministry on and off. For instance government's diktat to the steel producers to hold prices down in the face of rising domestic and global demand for steel is a clear example of government's undue intrusion in the market.

REGULATORY ENVIRONMENT
National Steel Policy 2005 The 2005 National Steel Policy (Government of India 2005) sets out the Indian Governments vision for the future of the steel industry. The central goal is the creation of an industry with 110 million tonnes of capacity and 100 million tonnes of production by 2019-20 implying an average growth in production of nearly 7 per cent a year. The Indian Ministry of Steel estimates that achieving this goal will require an extra US$65 billion in capital expenditure in addition to funds for technology upgrades at existing facilities. The national policy seeks to facilitate the creation of additional capacity, removal of procedural and policy bottlenecks that affect the availability of production inputs, increased investment in research and development, and the creation of road, railway, and port infrastructure. The policy focuses on the domestic sector but also envisages a steel industry growing faster than domestic consumption, which will enable export opportunities to be realised. Current steel investment plans Indias ready availability of iron ore and low cost labor contribute significantly to the cost competitiveness of producing steel in India. Notably, Tata Steel, the second largest steel producer in India, has been (with Posco) the worlds lowest cost steel producer since 2001. A comparative advantage for Indias iron and steel industry is the ready domestic availability of significant reserves of high quality iron ore (a key raw material input to steel making), predominantly in the east of India. Although current steel production capacity is located in both the east (.at products from large producers near iron ore supplies) and in the west (long products from smaller producers nearer large construction centers), most significant forthcoming developments are planned in the east to take advantage of low cost iron ore supply. Of particular interest to investors in the Indian iron and steel industry is the state of Orissa, where abundant natural resources and a large coastline make it an attractive target. It contains 25 per cent of Indias iron ore reserves and 20 per cent of Indias coal reserves.

Institutional and Policy Settings

Many government initiatives have been aimed at increasing investment in the steel industry in India, with the following issues being prominent in this context.

Allowing Private Ownership and Foreign Investment Revised foreign investment rules for steel and other high priority industries have increased capital inflow, and ownership of crude steel operations is now split approximately evenly between private and public entities. Although profitable publicly owned companies (which include RINL and SAIL) appear unlikely to be privatised for political reasons (Gupta 2005), the Indian Government has sought to improve their performance by granting some of them Navratna status, which affords them greater autonomy in investment, joint venture and commercial decisions. Improving Intellectual Property Laws The compulsory licensing regime, which still applies to some sectors, enables the Indian Government to force the granting of a technology license if it deems that a patent has not provided a sufficient public benefit at a reasonable price. Its removal from the steel sector has provided greater security in intellectual property ownership and will facilitate the transfer of intellectual property to India and the development of indigenous technology solutions. Deregulation of Pricing and Distribution of Iron and Steel

Steel was the first major industry to have pricing and distribution controls removed. Before these controls were removed, prices did not necessarily re.ect production costs or product quality and regulation of product distribution prevented the industry from implementing efficient logistics. Customs Policy The government has significantly reduced the duty payable on inputs to steel production, on capital equipment and on finished steel products and has streamlined the associated approvals processes. The government administers schemes covering duties, licenses and taxes to support firms that export steel, although some (for example, the Duty Entitlement Passbook Scheme and Duty Free Replenishment Certificate) have the net effect of remitting duty in excess of what was levied on the inputs to the production of the export goods (OECD 2006d) and are potentially subject to challenge in trade forums. Special Economic Zones (SEZs) The government introduced special economic zones in June 2005, with the aim of creating internationally competitive regions in which exporting businesses can base their operations. Eight of these zones are functional or under construction and approval has been given for an additional eighteen zones. Previously existing Export Processing Zones (EPZ) have been converted to special economic zones. Steel plants operating in special

economic zones are not subject to restrictive normal laws for the purpose of export operations and also receive some additional advantages including tax holidays, freedom to source inputs domestically or externally without any specific approval or duty payable, and sales tax reimbursement on domestic purchases. However, the proposed new economic zones will be relatively small, which may limit their effectiveness given that economies of scale are one of the key advantages of such zones. Special Investment Regions The government has recently announced plans to set up special economic and investment regions in six states, modeled on similar regions established in China (Pudong), United States (Houston), and the Netherlands (Rotterdam). The regions are planned to support further downstream processing, such as steel production, and encompass a number of SEZs, with central and state governments providing world class infrastructure linkages to form a larger industrial region. This policy is at an early stage of development, but the key difference between special economic and investment regions and special economic zones appears to be that linking infrastructure will be built by the government in the former but is generally the responsibility of industry in the latter.

COMPETITION SCENARIO
Overview From the biggest players like SAIL and Tata Steel, to mid-level players like Bhushan Steel and Welspun, the next four years are a time to ramp up. SAIL, a state-owned public sector undertaking and India's largest steel manufacturer, is planning to increase its annual production of 12 million tonnes per annum (mtpa) to 22.5 mtpa by 2011-12.

Tata Steel proposes to increase its steel making capacity to 33-34 mtpa by 2015, besides increasing the capacity of its Jamshedpur plant from 5 mtpa to 10 mtpa. In addition, the Tatas are planning to set up a 12-mtpa greenfield project in Jharkhand, a 6-mtpa plant in Orissa and another 5 mtpa capacity unit in Chhattisgarh. According to London-based Iron and Steel Statistics Bureau (ISSB), India's Tata Steel, which recently acquired Anglo-Dutch firm Corus Group, has been ranked the world's sixth largest producer of the alloy with an output of 24 million MT. India-born business tycoon Lakshmi Mittal-controlled Arcelor Mittal has emerged as the largest producer with total production of 118 million metric tonnes in 2006, after Mittal Steel acquired European giant Arcelor SA for US$ 38.3 billion in the industry's biggest ever transaction. Significantly, in the country ranking, India is ranked at the seventh position, with a total output of 44 million MT (up eight percent from previous year). As India surges ahead in building infrastructure and catapulting its industry to new economic highs, investments in steel will pave the way ahead. Mittal Steel has announced a 12-mtpa greenfield steel project in Jharkhand and a 12-mtpa greenfield steel plant in Orissa. Profile of Major Players Network Name Year of Establishment Company Profile

ales/Revenues/Turnover Global Presence / Marketing

Tata Steel 1907 Tata Steel is the world's 6th largest steel company With an existing annual crude steel capacity of 28 million tonnes. Asia's first integrated steel plant and India's largest integrated private sector steel company is now the world's second most geographically diversified steel producer. Tata Steel plans to grow and globalise through organic and inorganic routes. Its 5 million tonnes per annum (MTPA) Jamshedpur Works plans to double its capacity by 2010. The Company also has three greenfield steel projects in the states of Jharkhand, Orissa and Chhattisgarh and proposed steel making facilities in Vietnam and Bangladesh. US $26.06 billion in 2011 Tata Steel has operations in 24 countries and commercial presence in over 50 countries.

Tata Steel Tata Steel (earlier known as Tata Iron & Steel Company or Tisco) represents the country's single largest, integrated steel plant in the private sector. The company has a wide product portfolio, which includes flat and long steel, tubes, bearings, ferro-alloys and minerals as well as cargo handling services. While in terms of size, Tata Steel ranks 34th in the world; it was ranked first (for the second time) among 23 world class steel companies by World Steel Dynamics in June 2005. Recent overseas acquisitions are Tata Steel buying Anglo-Dutch firm Corus for over 12 billion dollars With its plant located in Jamshedpur (Jharkhand) and captive iron ore mines and collieries in the vicinity, Tata Steel enjoys a distinct competitive advantage. The main plant at Jamshedpur manufactures 5 MTPA of flat and long products, while its recently acquired Singapore-based company, NatSteel Asia, manufactures 2 MTPA of steel across Singapore, China, Philippines, Malaysia and Vietnam. Steel Authority of India Limited (SAIL) Steel Authority of India Limited (SAIL) is a leading Public Sector Undertaking (PSU) in which the Government of India owns about 86 per cent of equity. It is a fully integrated iron and steel maker, producing both basic and special steels for domestic construction, engineering, power, railway, automotive and defence industries and for sale in export markets. It is ranked amongst the top ten public sector companies in India in terms of turnover. They manufactures and sells a broad range of steel products, including hot and cold rolled sheets and coils, galvanised sheets, electrical sheets, structurals, railway products, plates, bars and rods, stainless steel and other alloy steels. SAIL have five integrated plants and three special steel plants, located principally in the eastern and central regions of India and situated close to domestic sources of raw materials, including the Company's iron ore, limestone and dolomite mines. The company has the distinction of being Indias largest producer of iron ore and of having the countrys second largest mines network. This gives them a competitive edge in terms of captive availability of iron ore, limestone, and dolomite which are inputs for steel making.

Bhushan Power & Steel Ltd

Bhushan Power & Steel Ltd., an ISO 9002 certified company, is a merged entity of Bhushan Industries Ltd., Bhushan Metallics Ltd. and Decor Steel Ltd. Bhushan Steel has a turnover of more than USD 540 Million and is a leading manufacturer of Flat, Round and value added products in Steel.

Bhushan have 7 World class and state of art plants at Chandigarh, Derabassi, Kolkata and Orissa in India. A completely integrated plant is commissioned under Phase I in Orissa and Phase II is all set for take off. In Orissa plant, technology and equipments are procured from worldrenowned Companies like Luirgi from Germany, ABB Ltd., SMS Demag, Siemens etc. It is selling its Value added range of products in Secondary Steel through a large distribution network in India (comprising more than 25 sales offices) and Abroad. Jindal Steel & Power Limited (JSPL) Jindal Steel and Power (JSPL), part of the US$4 billion Jindal Organisation, has business interests in steel production, power generation, mining iron ore, coal and diamond exploration/mining. The current turnover of the company is over Rs. 30 billion and on a path of catalyzing economic development of the country through its contribution to the infrastructure sector. JSPL with its obsession for excellence is increasing its portfolio of value-added products, bringing the world's best to India and making an international mark. Production Capabilities expanded to serve the infrastructure sector, catalysing economic, development and growth. JSPL has the integrated steel plant (as approved by Joint Plant Committee) at Raigarh in the state of Chhattisgarh, India. The facilities include world's largest coal-based Sponge Iron Plant with a capacity of 1.37 million TPA using ten indigenously developed rotary kilns. The company has achieved complete backward integration with its captive iron & coal mines making it one of the lowest-cost producers of sponge iron .The steel making capacity has been expanded from 400,000TPA to 1.15 million TPA. JSPL today is the largest private sector investor in Chhattisgarh with a total investment of Rs.100 billion.

JSPL has recently signed an MoU with the State Government of Orissa to set up a 2 million tonne steel plant with an investment of Rs.13.5 billion which would be expanded to 6 million

tonne and another MoU has been signed with the State Government of Jharkhand to set up a 5 million steel plant with an investment of Rs.120 billion. ESSAR Steel

Essar Steel Limited (the "Company") is the flagship Company of the Essar Group and looks after the Groups interest in the steel business. The Company was incorporated in June 1976 under the name of Essar Construction Limited and was engaged primarily in core sector activities, including marine construction, pipeline laying, dredging and other port-related activities. In 1984, the Company ventured further into other core sectors mainly the field of exploration and development, drilling onshore and offshore oil and gas wells for Indian Public Sector oil exploration companies. In view of this the Companys name was then changed to Essar Offshore and Exploration Limited in May 1987. In August 1987, the Companys name was changed to Essar Gujarat Limited, to reflect its highly diversified business interest. In 1988, the Company made an initial public offer for its shares, which are now listed on Bombay Stock Exchange, National Stock Exchange of India and 2 other Indian Stock Exchanges. The Company diversified into the steel business in late 1980s with

the purchase of an HBI manufacturing plant in Emden, Germany, which was dismantled and relocated to Hazira, on the west coast of India. Global forays Indian steel producers are eyeing and buying when it comes to the international markets. The regulatory environment, too, has changed for the better. Not only is it enabling the industry to stretch out to foreign shores, the country's steel industry is getting renewed global attention. Tata Steel has been given the green signal by the South African government to start construction on its US$ 103 million ferrochrome steel plant at Richards Bay in the country's KwaZulu-Natal region.

After acquiring Singapore's NatSteel last year, Tata Steel now plans to buy Thailand's Millennium Steel PCL for US$ 400 million as part of its US$ 23 billion expansion

programme over the next 12 to 15 years. The acquisition of the Anglo-Dutch steelmaker Corus makes Tata Steel the world's fifth largest steelmaker, adding 19 MT of steel-making capacity.

Jindal Steel is close to picking up a stake in Thailand's largest stainless steel producer. The country's fourth-largest steelmaker, Essar Steel, will partner two state-run Vietnamese companies to build a US$ 527 million plant in that country. The company

has a 0.4 MT production facility in Indonesia, apart from the 4.6 MT plant in India. The UK-based speciality steel and engineering group, Caparo's new facilities are coming up in Chennai, Pitampur, Bawal, Noida and Gurgaon. Mumbai-based Essar Global has agreed to buy Canada's Algoma Steel for US $1.63 billion in the second largest Indian acquisition ever of a North American company. The deal will give Essar, India's fourth largest producer of the metal, a foothold in a lucrative developed market.

CHALLENGES AND OPPORTUNITIES

Challenges
Compared to the global average per capita consumption of 150 kgs, Indias per capita consumption of steel is still a mere 39 kgs. per head. Even by Asian standards India have a long way to go in the consumption of steel. Technologically, the main hurdles before Indian steel industry are the cost of power and non availability of metallurgical coke. Un-remunerative Prices Stagnating demand, domestic oversupply and falling prices in the last four years have hit Indian steel makers. Barring the sporadic rise in demand in the recent months, it has suffered from unremunerative prices to the extent that companies have been finding it difficult to maintain capital costs. Endemic Deficiencies These are inherent in the quality and availability of some of the essential raw materials available in India, eg, high ash content of indigenous coking coal adversely affecting the productive efficiency of iron-making and is generally imported. Advantage of high Fe content of indigenous ore is often neutralized by high basicity index. Besides, certain key ingredients of steel making, eg, nickel, ferromolybdenum are also unavailable indigenously. Systemic Deficiencies However, most of the weaknesses of the Indian steel industry can be classified as systemic deficiencies. Some of these are described here. High Cost of Capital Steel is a capital intensive industry; steel companies in India are charged an interest rate of around 14% on capital as compared to 2.4% in Japan and 6.4% in USA. Low Labour Productivity In India, the advantages of cheap labour gets offset by low labour productivity; eg, at comparable capacities labour productivity of SAIL and TISCO is 75 t/man year and 100 t/man year, for POSCO, Korea and NIPPON, Japan the values are 1345 t/man year and 980 t/man year. High Cost of Basic Inputs and Services High administered price of essential inputs like electricity puts Indian steel industry at a disadvantage; about 45% of the input costs can be attributed to the administered costs of coal, fuel and electricity, eg, cost of electricity is 3 cents in the USA as compared to 10 cents in India;

and freight cost from Jamshedpur to Mumbai is $50/ton compared to only $34 from Rotterdam to Mumbai. Added to this are poor quality and ever increasing prices of coking and non-coking coal. Other systemic deficiencies include: Poor quality of basic infrastructure like road, port etc Lack of expenditure in research and development. Delay in absorption in technology by existing units. Low quality of steel and steel products. Lack of facilities to produce various shapes and qualities of finished steel ondemand such as steel for automobile sector, parallel flange light weight

beams, coated sheets etc. Limited access of domestic producers to good quality iron ores which are normally earmarked for exports, and High level taxation.

Besides these Indian steel makers also lacked in international competitiveness on determinants like product quality, product design, on-time delivery, post sales service, distribution network, managerial initiatives, research and development, information technology and labour productivity etc. As is evident in Table 4, the weaknesses gets reflected in Indias poor standing in the global competitiveness as measured in terms of indicated parameters. Opportunities

The biggest opportunity before Indian steel sector is that there is enormous scope for increasing consumption of steel in almost all sectors in India. The following graph gives a glimpse of untapped potential of increasing steel consumption in India; eg, even to reach the comparable developing and lately developed economies like China and other Europe, a quantum jump in steel consumption will be required. India has rich mineral resources. It has abundance of iron ore, coal and many other raw materials required for iron and steel making. It has the fourth largest iron ore reserves (10.3 billion tonnes) after Russia, Brazil, and Australia. Therefore, many raw materials are available at comparatively lower costs. It has the third largest pool of technical manpower, next to United States and the erstwhile USSR, capable of understanding and assimilating new technologies. Considering quality of workforce, Indian steel industry has low unit labour cost, commensurate with skill.

This gets reflected in the lower production cost of steel in India compared to many advanced countries . Unexplored Rural Market The Indian rural sector remains fairly unexposed to their multi-faceted use of steel. The rural market was identified as a potential area of significant steel consumption way back in the year 1976 itself. However, forceful steps were not taken to penetrate this segment. Enhancing applications in rural areas assumes a much greater significance now for increasing per capital consumption of steel. The usage of steel in cost effective manner is possible in the area of housing, fencing, structures and other possible applications where steel can substitute other materials which not only could bring about advantages to users but is also desirable for conservation of forest resources. Other Sectors Excellent potential exist for enhancing steel consumption in other sectors such as automobiles, packaging, engineering industries, irrigation and water supply in India. New steel products developed to improve performance simplify manufacturing/installation and reliability is needed to enhance steel consumption in these sectors. Main objective here have to be improvement of quality for value addition in use, requirement of less material by reducing the weight and thickness and finally reduction in overall cost for the end user. Latest technology must be adopted by Indian steel manufacturers for production of superior quality of steel for these applications. For example, pre-coated sheets can be used in manufacture of appliances, furnishings, electric goods and public transport vehicles. Production and supply of superior grades of steel in desired shapes and sizes will definitely increase the steel consumption as this will reduce fabrication need; thereby reduce cost of using steel. Export Market Penetration It is estimated that world steel consumption will double in next 25 years. Quality improvement of Indian steel combined with its low cost advantages will definitely help in substantial gain in export market.

Michael Porter five force analysis

Entry barriers: High

Capital Requirement: Steel industry is a capital intensive business. It is estimated that to set up 1 mtpa capacity of integrated steel plant, it requires between Rs 25 bn to Rs 30 bn depending upon the location of the plant and technology used. Economies of scale: As far as the sector forces go, scale of operation does matter. Benefits of economies of scale are derived in the form of lower costs R& D expenses and better bargaining power while sourcing raw materials. It may be noted that those steel companies, which are integrated, have their own mines for key raw materials such as iron

ore and coal and this protects them for the potential threat for new entrants to a significant extent. Government Policy: The government has a favorable policy for steel manufacturers. However, there are certain discrepancies involved in allocation of iron ore mines and land acquisitions. Furthermore, the regulatory clearances and other issues are some of the major problems for the new entrants. Product differentiation: Steel has very low barriers in terms of product differentiation as it doesnt fall into the luxury or specialty goods and thus does not have any substantial price difference. However, certain companies like Tata Steel still enjoy a premium for their products because of its quality and its brand value created more than 100 years back. Bargaining power of buyers: Unlike the FMCG or retail sectors, the buyers have a low bargaining power. However, the government may curb or put a ceiling on prices if it feels the need to do so. The steel companies either sell the steel directly to the user industries or through their own distribution networks. Some companies also do exports. Competition: High

The steel industry is truly global in terms of competition with large producing countries like China significantly influencing global prices through aggressive exports. Steel, being a commodity it is, branding is not common and there is little differentiation between competing products. It is medium in the domestic steel industry as demand still exceeds the supply. India is a net importer of steel. However, a threat from dumping of cheaper products does exist. Bargaining power of suppliers: High The bargaining power of suppliers is low for the fully integrated steel plants as they have their own mines of key raw material like iron ore coal for example Tata Steel. However, those who are non-integrated or semi integrated has to depend on suppliers. An example could be SAIL, which imports coking coal. Globally, the Top three mining giants BHP Billiton, CVRD and Rio Tinto supply nearly two-thirds of the processed iron ore to steel mills and command very high bargaining power. In India too, NMDC is a major supplier to standalone and nonintegrated steel mills.

Threat of substitutes: Low

Plastics and composites pose a threat to Indian steel in one of its biggest markets automotive manufacture. For the automobile industry, the other material at present with the potential to upstage steel is aluminium. However, at present the high cost of electricity for extraction and purification of aluminium in India weighs against viable use of aluminium for the automobile industry. Steel has already been replaced in some large volume applications: railway sleepers (RCC sleepers), large diameter water pipes (RCC pipes), small diameter pipes (PVC pipes), and domestic water tanks (PVC tanks). The substitution is more prevalent in the manufacture of automobiles and consumer durables. Bargaining power of Consumers: Mixed Some of the major steel consumption sectors like automobiles, oil & gas, shipping, consumer durables and power generation enjoy high bargaining power and get favorable deals. However, small and retail consumers who are scattered and consume a significant part do not enjoy these benefits.

Conclusion: After understanding all the above view points and the current global scenario, we believe that the domestic steel industry will likely to maintain its momentum in the long term. However, the growth may get affected in short run. Investors need to focus on companies that are integrated, have economies of scale and sell premium quality products

SWOT ANALYSIS OF THE INDUSTRY

Strengths 1. Availability of iron ore and coal 2. Low labour wage rates 3. Abundance of quality manpower 4. Mature production base

Weaknesses 1. Unscientific mining 2. Low productivity 3. Coking coal import dependence 4. Low R&D investments 5. High cost of debt 6. Inadequate infrastructure

SWOT

Opportunities 1. Unexplored rural market 2. Growing domestic demand 3. Exports 4. Consolidation

Threats 1. China becoming net exporter

2. Protectionism in the West

3. Dumping by competitors

Climate change risks and opportunities for Indian Steel sector

The Indian steel industry have entered into a new development stage from 2005-06. Driven by rapid development of Indian economy; Indias steel consumption will continue to grow at nearly 16% rate annually, till 2012. Steel production in the financial year 2009-10 was 60-61 million tonnes. Demand of Steel is rapidly growing due to increasing construction projects and automobile industry. The National Steel Policy has envisaged steel production to reach 110 million tonnes by 2019-20 (It is around 293 million tonne as per the estimates based on status of MOUs signed by the private producers with the various State Governments). The Indian steel industry plays an important role in the countrys economic growth. Consumption of Steel is taken to be an indicator of economic development. The demand of steel is growing in the country although the per capita steel consumption is only 40 kg in India as compared to 150 kg across the world and 250 kg in China. Steel industry is a significant contributor to manmade greenhouse gas emissions. Steel making consumes large amount of energy which mainly derived from the coal a dirtiest fossil fuel on the earth. Green House Gas coming from the fossil fuel combustion in the major process contributes in climate change. Climate Change is one of the most important issues facing the world today. Growing concern on the climate change, the impact of human activities on the earths climate has been receiving increasing attention from the world.

GHG emission by Indian Steel Sector India is now the worlds third largest emitter of greenhouse gases, ranking behind China. Indias Ministry of Environments and Forests released its greenhouse gas inventory of 2007 emissions in May 2010. As per the inventory report, Indias emissions have grown at an average annual rate of 3.3 percent, increasing from 1.25 billion tons in 1994 to 1.9 billion tons in 2007. The report analyzes emissions from Electricity use, Agriculture, Iron and Steel industry, Transportation, land use change and other industries. Iron and Steel sector solely contributed 117.32 million tons of carbon dioxide equivalents in 2007 which is 26.79 million tons higher than the year 1994. It is due to the growth of steel sector and its high energy intensive operations. Following graph shows the sector wise comparison of GHG emissions between 1994 and 2007; Finance Minister Pranab Mukherjee proposed to invest 1.73 trillion rupees on infrastructure in Indias budget for 2010-11 which will further trigger steel requirement in great extent.

Although steel contributes in the development of the country, its production process will emit huge amount of Green House Gases in the atmosphere. Its a big concern to India to grow as a low carbon economy. In addition, India has announced plans to reduce emissions intensity by 20 25 % between 2005 and 2020. India wants to achieve this target without affecting the growth and it will not be possible without indigenous action plans to curb the GHG emissions. It requires balancing between economic growth and environment sustainability while planning roadmap for 8-9 % growth rate.

National Action Plan on Climate Change Regulatory framework to mitigate risks induced by the climate change is necessary. India is not behind in bringing climate change regulation and it is found that there have been significant developments in legislation and regulation regarding climate change in the country. Mainly it includes National Action Plan of Climate Change (NAPCC) of India introduced in 2008. NAPCC envisage to use of 15% renewable energy by 2020 and making energy efficiency mandatory. NAPCC proposed eight national missions and some other mission for the mitigation and adaptation of climate change. It includes Renewable Energy Certificates (REC), Perform Achieve and Trade (PAT) under the National Mission on Enhanced energy Efficiency with other national mission that integrates climate change policies in the main development goals. International legislation such as Kyoto protocol, Regional Greenhouse Gas Initiative (RGGI) in Northeast and Mid-Atlantic states, the California Global Warming Solutions Act of 2006, the Western Climate Initiative, and the Midwestern Greenhouse Gas Reduction Accord, Australias Carbon tax etc are already in place to address the issue of climate change. In India at present, there is no regulation with regard to GHG emission. However, Government of India being signatory to Kyoto Protocol is emphasizing on state-of-the-art technologies for energy efficiency and carbon mitigation. Climate change is a massive challenge for the steel industry. Considering the risks and opportunities due to the climate change to the heavy energy intensive industries, Electricity Act 2003 introduced Renewable Purchase Obligations for the fossil fuel based energy consumers. As the steel industry uses captive power plants for the power generation (mostly uses Coal as a fuel), it comes under Renewable Purchase Obligations. It means Steel Industries that have fossil fuel based power generation have to comply with RPO under the EA act 2003. If the obligated steel industries doesnt comply with their obligations under the RPO, they will be penalized under the EA act.

Either they can generate renewable power or can buy Renewable Energy Certificates from the renewable energy project developers.

Global Climate Regulations Seventeenth climate change conference (COP 17) successfully organized at Durban. Outcome of the conference is remained uncertain in many things but the developed countries are agreed to participate in a second commitment period of the Kyoto Protocol. The second commitment period would start from 1st January 2013 and would extend up to either 2017 or 2020 (to be decided COP 18 Qatar next year). Developed countries clearly mentioned in the conference that they will sign the treaty on legally binding GHG emission reduction targets only after the developing countries like India and China take emission cuts. European Union also wanted developing nations to do more than just business as usual.As per the Durban agreement, the participating countries have agreed to decide on the modalities and procedures of the second commitment period by 2015 and implement it from 2020. Thus, it is anticipated that the big emitters like China, India and USA will have legal emission commitments post 2020. The major risks associated with climate change for steel industry in India would be during post Kyoto scenario with possible new emissions regulatory regime. There may be the emissions caps for developing countries like China and India. Steel industry is GHG emission intensive due to its huge energy uses. If the future climate change regulations in India put GHG emission caps on steel industry, it will definitely affect the steel business and growth of the industry. In addition, NAPCCC envisages voluntary emission cuts and hence all GHG emission intensive industries including steel sector will require to embrace low emission technologies and subsequently be prepared for the stronger climate change regulations. Another threat induced by the climate change to the Steel sector is restricted availability of Natural resources. Steel industry need natural resources mainly iron ore, coal, natural gas and dolomite. India is coming up with Mines and Minerals (Development and Regulation) Act 2010, which has stringent environment clearance laws. Indian government is more concerned about deforestation. Mining resulted in deforestation and it significantly contributes to climate change. There is possibility to restrict new mining grants for these minerals in near future due to the regulations. As the major resources of the steel industry come from mining activities, it can affect the steady supply of these minerals. In addition, natural disasters like floods and storms as result of climate change can affect productivity of the mines. Recent example is flooding in the coal mines areas in Australia restricted the supply of coal. It increases the coal

price which has led to considerable reduction in steel production. (Also see Impact of Climate Change on Global Coal Production Emphasis on Indonesia)

Opportunities Kyoto regime brought lot of monitory benefits to the GHG emission reduction project developers. Kyoto protocol which is the international treaty on the climate change introduced Clean Development Mechanism (CDM). CDM is an arrangement under the Kyoto Protocol allowing industrialized countries (called Annex 1 countries) with a GHG emission reduction targets to invest in projects that reduce emissions in developing countries as an alternative to more expensive emission reductions in their own countries. Such projects can earn Carbon Credits in the form of GHG emission reductions (One carbon credit is equivalent to one ton of carbon dioxide). As discussed earlier, Renewable Energy Certificates (REC) and Perform Achieve and Trade (PAT) are the Indias domestic mechanism partially similar like GHG emission trading scheme. REC mechanism allows trading of REC (one REC produce when one mega watt hour of electricity generates) and Energy Saving Certificates (ESCrts) under the PAT mechanism to the obligated entities on Indian power exchanges. Project developers with renewable energy and energy efficiency projects can earn additional revenue through these mechanisms. In addition, The Bombay Stock Exchange (BSE) has launched the first ever Carbon Indexing Project in collaboration with the UK government recently. This project will use data from the recently released Carbon Disclosure Project (CDP) Report 2011 India 200 to rate BSElisted companies on the basis of their carbon emissions and compare it to their performance on the stock exchange. It can help organizations with low carbon footprint to build their brand image among the industry.

Conclusion
In virtually every phase of our lives, steel plays an essential role. The rails, roads and vehicles that make up our transport systems use steel. Steel provides a strong framework and connections in the buildings where we work, learn and live. It protects and delivers our water and food supply. It is a basic component in technologies that generate and transmit energy. Steel plays a critical role simply because no other material has the same unique combination

of strength, formability and versatility. Consequently, as nations around the world seek to improve their standards of living and lift populations out of poverty, it is inevitable that the demand for steel will increase. Even as it addresses the needs and challenges of todays economic environment, the steel industry is looking ahead at the challenges that are just over the horizon. Materials that are stronger and meet higher environmental standards will be needed. New generations of steel continue to be developed that make it possible for manufacturers and builders to implement durable, lightweight designs. Furthermore, steel can be endlessly recycled without loss of strength, durability or any of its other distinctive properties. In the year to come, we will see witness an exponential growth in the demand and production of steel all over the world. Especially, India will become a great consumer of steel because of the continued emphasis of the Indian Government on sectors such as Infrastructure, Power, Automobiles and so on. Both, the Public and Private players in the Indian Steel Industry will step up their productions in order to met the booming domestic demand. Currently ranked 5th, the Indian Steel Industry is still to witness its peak because the Indian Steel Industry is a giant in the awakening. The term paper reviews the Indian Steel industry in depth. The Indian Steel Industry has taken the world by storm and still has a long way to go. There were limitations with regard to the research tools used for gathering data which are as follows: Secondary data is obtained from some other organization than the one instantaneously interested with current research project. Secondary data was collected and analyzed by the organization to convene the requirements of various research objectives. When using secondary research, one must exercise caution when using dated information from the past. With companies competing in fast changing industries, an out-of-date research reports many have little or no relevance to the current market situation.

Bibliography
http://www.steel-suppliers-guide.com/steel-industry-of-India.html http://steel.nic.in/overview.htm http://www.economywatch.com http://fsnl.nic.in/ www.sebi.in www.sec.gov www.business-standard .com