whole discription of a steel industry along with indian steel steel industry-an ideal ppt. on steel sector

1. STEEL SECTOR
PRESENTED BY:
Swagata sengupta
Priyanka goswami
Rupesh pradhan
Shashank shekher singh
STEEL SECTOR 1

2. INTRODUCTION
 Steel is crucial to the development of any modern
economy and is considered to be the backbone of
human civilisation.
 It is a product of a large and technologically complex
industry having strong forward and backward linkages
in terms of material flows and income generation.
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3. Segments of steel
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4. HISTORY
Source: IISI
Stages in Global Production of Steel
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5. Crude steel production
(in million tonnes)
RUSSIA, 68.7
INDIA, 72.2
UNITED
STATES, 86.2
JAPAN, 107.6
CHINA, 683.2
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6. OUTLOOK
 Indian Steel Co. acquiring stakes in the foreign firms to become global
leaders.
 Target to achieve an export ratio of around 25% of total production.
 Target of 110mT by 2020.
 Demand in automobile and infrastructure will lead to growth in steel
industry
 Per capita consumption is 40 kg compare to 150kg globally, which has
potential ahead.
 Shortage of Cocking coal will be huge challenge.
 World steel demand to double in next 25 years, a huge opportunities
for the steel industry.
 Upcoming Budget certainly will have great impact on steel industry
future.
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7. Steel production in india
 Indian steel industry is poised for rapid growth.
 Rapid rise in production has resulted in India becoming the
4th largest producer of crude steel and the largest producer
of DRI in the world
 Total crude steel production in India for 2010-11 was around
69 million tonnes and it’s expected to increase to nearly 110
million tonnes by 2012-13. Further, if the proposed expansion
plans are implemented, India may become the second largest
crude steel producer in the world by 2015-16.
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8. BASED ON OWNERSHIP
PUBLIC PRIVATE
 TATA-CORUS
 SAIL  ESSAR
 VISAKHAPATNAM STEEL  ISPAT
PLANT
 JSW STEEL LIMITED
 FERRO SCRAP NIGAM
LIMITED  MUKAND LIMITED
 BIRD GROUP OF COMPANIES
 SPONGE IRON INDIA LIMITED
 MECON LIMITED
 BHARAT REFRACTORIES
LIMITED
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9. TOP 5 STEEL PRODUCING COMPANIES
(GLOBAL) 2011
97.2
100
80
60 44.4 43.3 39.1 37.7
40
20
0
Arcelor Hebei group Baosteel POSCO Wuhan
Mittal group group
(IN MILLION TONNES)
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10. STEEL PRODUCTION (DOMESTIC)
2011
23.5
13.5
3 7.15
SAIL (mmt)
TATA steel(mt)
Rashtriya Ispat
Nigam JSW STEELS
(mt)
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11. Global Scenario
 In 2011 the world crude steel production reached
1518 million tonnes (mt) and showed a growth of
6.2% over 2010.
 China remained the world’s largest crude steel
producer in 2011 (684 mt) followed by Japan (108
mt), the USA (86.4 mt) and India (72.2 mt; prov)
at the 4th position (72.2 mt).
 Per capita finished steel consumption in 2011 is
estimated at 215 kg for world and 460 kg for China.
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12. Issues and concerns
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13. Job opportunities in steel sector
 General Managers 1. Support Managers:
 Plant Managers  Human Resources
 Production Managers  Purchasing
 Production Control  Finance
 Sales Managers  Information
 Sales Representatives Technology
 Technical Support
 Marketing managers
 A/c managers
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14. CHALLENGES FOR THE MANAGERS
SUPPLY
DEMAND
BARRIERS TO ENTRY
COMPETITION
BARGAINING POWER
OF THE CUSTOMERS
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15. Growth Drivers
 Key Growth Drivers:
Construction, Automobiles, Infrastructure, Consume
r durable, oil and Gas.
 Huge source iron ore, Cheap Labour, quality man
power.
 Mostly Steel plants are located near the Raw material
Sources.
 Reduction in custom duty in respect of non-alloy
steel production. STEEL SECTOR 15

16.  222 Memorandum of Understandings (MOU) have
been signed with various states for planned
capacity of around 276 million tonnes by 2019-20.
 Increase in the demand of steel in India is
expected to be 14% against the global average of 5-
6% due to its strong domestic economy, massive
infrastructure needs and expansion of industrial
production.
 Infrastructure projects (like Golden Quadrilateral
and Dedicated Freight Corridor) will give boost to
the demand in the steel sector in near future.
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17. SWOT ANALYSIS
Strengths Weaknesses
1. Availability of iron ore and coal 1. Unscientific mining
2. Low labour wage rates 2. Coking coal import dependence
3. Abundance of quality manpower 3. Low R&D investment
4. Mature production base 4. Inadequate infrastructure
Opportunities Threats
1. Unexplored rural market 1. China becoming net exporter
2. Growing domestic demand 2. Protectionism in the West
3. Exports 3. Dumping by competitors
4. Consolidation 4. Global economic slowdown
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18. • Investment in infrastructure is crucial to step up demand for
steel.
• Supply may have to be rationalized in line with the demand
(Dom + exports).
• Integrated Mills would hold the key in future growth of
Indian Steel supplies.
• New technologies to use indigenous natural resources would
have to be developed.
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19. • WSA(world steel authority)
• Ministry of steel
• http://www.steelpeople.com/special.html
• http://en.wikipedia.org/wiki/Steel
• Economic times
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20. THANK YOU
ANY QUESTIONS
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