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Indian Steel Industry
By: Group 7 Pallavi Agrawal
Luv Mishra
Gaurav Singh Sneh Srijan
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Indian Scenario
The demand for steel in India is expected to rise 7% in next fiscal year as compared to sluggish 5.5 %last year
India is currently the worlds 4th largest producer of
crude steel after China, Japan and the US with aproduction of 71.3 million tonns, registering agrowth rate of 4.4% over 2011
According to Joint Plant Committee (JPC)estimates, domestic finished steel consumptionposted a growth of 6.8% during 2011-12 to 70.92million tonns
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Market Concentration
Bhushan Power3%
Bhushan Steel4%
Essar Steel
6% Jindal Saw
2%
Jindal Stain.4%
JSW Steel
13%
Rashtriya Ispat
5%
S A I L
16%
Tata Steel
14%
Uttam Galva
2%
Visvesva. Iron0%
Others
31%
Chart Title
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SAIL
Is one of the largest state-owned steel-makingcompany based in New Delhi, India and one ofthe top steel makers in World
Turnover of 48,681 crore (US$8.4 billion) -top five
highest profit earning corporates of the country It is a public sector undertaking -by Government
of India
Annual production of 13.5 million metric tons
14th largest steel producer in the world
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Steel Authority Of India (SAIL)
Basic competitive strategy : Differentiation & CostLeadership
Complementary strategy : Alliances,Collaborative partnership , Join ventures, Mergers,
Expansion, Modernization
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TATA STEEL
Tata Steel was established by Indian Parsibusinessman Jamsedji Tata in 1907
Among the top 10 steel makers in the world
Annual crude steel capacity of over 28 milliontonnes per annum (mtpa).
Operations in 26 countries and a commercialpresence in over 50 countries.
Turnover of US$ 24.82 billion in FY 2012- 2013
It is having market share of around 21%
Has over 81,000 employees across five continentsand is a Fortune 500 company.
Larger production facilities include those in India, theUK, the Netherlands, Thailand, Singapore, China andAustralia.
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STRATEGY
Cost leadership & Broad differentiator
This it is trying to achieve through
Joint Ventures Ex: with Oman Lime Stone Project in 2008
Merger & Acquisition
Ex: acquisition of Corus in Rs.56150 crores in 2007
Outsourcing of value chain activities
outsourcing is done to subsidiaries
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Bhushan Steel limited
Bhushan Steel is the largest manufacturer of auto-grade steel in India
Incorporated in 1983 under the name Jawahar
Metal Industries Private Limited Producer of diversified and value-added steel flat
products
It spends Rs. 260 billion to expand its capacity to 12million tonnes annually
Supply primarily to automotive and consumerdurables manufacturing industry in India and also forexport
2 fully operational facilities-Sahibabad(U.P.) , Khopoli(Maharashtra)
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STRATEGY
Cost Leadership & Broad Differentiator
This is being achieved through
Backward/Forward Integration Increase production to benefit from Economies of
scale
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Jindal Steel Introduction
MISSION :- To strive to be a world class service center of stainlesssteel through constant learning & quality improvement.
VISION:- We are committed to provide world class ethical & quality
service for our customer delight.
Treat employees as 'partners' in progress
Be a good corporate citizen.
Creating value for all stakeholders.
Turnover over $3.5 bn
Market share of 12% in the domestic market
Employee strength over 4000
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Strategies For Jindal steel
Integration to Reduce Cost :-
They have followed forward and backward integration
strategies basically to reduce the cost.
Investment in cutting edge management practices:-
Innovation
Quality System
Diversifying investments
Increasing its productions capacities
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Conclusion
Since the industry has medium concentration andcompetitive, it is necessary for companies toestablish themselves as a cost leader.