Environment Scanning of Iron

and Steel Industry

Presented By:
Gautam Jha
Gaurav Dubey
Kamal Sharma
Vimal Singh
 CONTENTS
• INTRODUCTION
• HISTORY
• INDIAN STEEL GROWTH
• BASED ON OWNERSHIP
• INTERNATIONAL ANALYSIS
• CONCLUSION
• REFERENCES
 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.
 HISTORY

Stages in Global Production of Steel

INDIAN STEEL GROWTH Slowly and steadily
• Steel industry reforms – particularly in 1991 and 1992 – have led to strong
and sustainable growth in India’s steel industry.

• Since its independence, India has experienced steady growth in the steel
industry, thanks in part to the successive governments that have
supported the industry and pushed for its robust development.
40

36.5
35 Confidence
30

25 Stagnation 26.2
24.2

20

15 14.3
Decontrol12.02
10 9.36
6.75
5
Controlled 5.05
Regime 1.62
3.23
1981 2005+
1.1 1.1
0
1951
 BASED ON OWNERSHIP
PUBLIC PRIVATE
• TATA-CORUS
• SAIL • ESSAR
• VISAKHAPATNAM STEEL PLANT • ISPAT
• FERRO SCRAP NIGAM LIMITED • JSW STEEL LIMITED
• BIRD GROUP OF COMPANIES • MUKAND LIMITED
• SPONGE IRON INDIA LIMITED
• MECON LIMITED
• BHARAT REFRACTORIES LIMITED
 INTERNATIONAL ANALYSIS
5 point Impac Opport Remark
scale t unity/t
factor hreat

Global technology 4 +ve Opport •Requisite technical base

unity •Strong manufacturing base
•For the production of one tonne of steel, an integrated plant
consumes 4 tonnes of raw materials

legal framework 4 +ve Opport •Licensing requirement for capacity creation has been abolished.
unity •Steel industry has been removed from the list of industries reserved
for the state sector.
•Import tariff reduced from 105% in 1992/93, to 30% in 1996-97.
•Restrictions on external trade, both in import and export, have been
removed.
•Foreign equity investment in steel has been increased up to 74%
[Government of India 1999]

market 4 +ve Opport •The per capita consumption of 27 kg.

unity •Total consumption of 30 million tonnes
•domestic consumption increased by only 6% and 3.4% in 2002-03 and
April-Sept 2003.
financial system 3 +ve Opport • Raw material costs forms roughly about 62% of the total cost of
unity production.
•India is fortunate to be endowed with one of the largest iron ore
deposits in the world.
•India also possesses one of the biggest coal deposits (approximately
197 bn tonnes) in the world.
 INTERNATIONAL ANALYSIS
5 point Impact Opportunity/ Remark
scale factor threat

World bodies 3 +ve Opportunity •Steel production and prices are therefore closely
monitored by the OECD.
•The Customs duties in any case have to be
reduced to SAARC and Asian levels in view of the
Free Trade Agreements

World trade 4 +ve Opportunity •less than 5% of the global output of Finished Steel
and 1% of global trade.
•export of Finished steel rose by 36% in 2002-03
and 32% in April-Sept. 2003

Regional economic 4 +ve Opportunity •Globalisation has positive impact

blocks •Exploring and acquiring new mines are on rise.

Environmental issues 4 -ve Threat •Carbon Credit

•Reduce Carbon emission
 CONCLUSION
It is universally accepted that Indian economy is
growing at a very high rate presently and the
demand for steel is also showing an upward trend.
We believe, for the sake of country and growth of
economy, growth of iron & steel industry is a must.
This is possible only with the active support of the
Government. Efforts to make this sector more eco-
friendly will meet success only if competent
authorities take up the developmental jobs in proper
spirit.
 REFERENCES
• www.mysteel.com
• www.sail.com
• www.steelworld.com
• www.steel.nic.in
• www.worldsteel.org
Thank You