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11
Steel
For updated information, please visit www.ibef.org
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2013
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22
Contents
Advantage India
Market overview and trends
Growth drivers
Success stories: TATA Steel, JSW Steel
Opportunities
Useful information
For updated information, please visit www.ibef.org
SteelMARCH
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33
Steel
For updated information, please visit www.ibef.org ADVANTAGE INDIA
Advantage India
MARCH
2013
Advantage
India
Demand to be supported by growthin the domestic market
Infrastructure, oil & gas, andautomotives will drive the growthof the industry
Intended steel capacity build-upin India is set to result ininvestments in the range ofUSD104.2 billion to USD208.3billion by 2020
301 MoUs have been signed with
various states for plannedcapacity of about 488.6 MT
India is the worlds fourth largestproducer of crude steel (up fromeighth in 2003); the country isexpected to become the secondlargest producer by 2015
Easy availability of low costmanpower and presence of abundantreserves make India competitive inthe global setup
100 per cent FDI through automaticroute is allowed in the sector
Large infrastructure projects inPublic-Private Partnership (PPP)mode are being formed
National Steel Policy (NSP) toencourage industry in reachingglobal benchmarks
Market value:
USD83 billion
2014E
Market value:
USD33 billion
2009
Notes: FDI - Foreign Direct Investment, MT - Million Tonnes, MoUs - Memorandum of Understanding,
2014E - estimated figure for the year 2014; these estimates are from Data monitor
Robust demandIncreasing investments
Competitive advantages Policy support
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Contents
Advantage India
Market overview and trends
Growth drivers
Success stories: TATA Steel, JSW Steel
Opportunities
Useful information
For updated information, please visit www.ibef.org
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Evolution of the Indian steel sector
MARKET OVERVIEW AND TRENDS
Notes: TISCO - Tata Iron and Steel Company,
IISC - Indian Iron & Steel Company, SAIL - Steel Authority of India Ltd
Production ofsteel started in
India (TISCO
was setup in1907)
IISC was set up
in 1918 to
compete withTISCO
Mysore Iron and
Steel Company
was set up in 1923
According to the
new IndustrialPolicy Statement(1948) new
ventures were
undertaken only
by the centralgovernment
Hindustan Steel
Ltd and BokaroSteel Ltd were
setup in 1954 and
1964 respectively
In early 1990s, the
public sector
dominated thesteel production
Private players
were in
downstreamproduction, mainly
producing finished
steel using crudesteel products
SAIL was created in1973 as a holdingcompany to oversee
most of India's iron &
steel production
In 1989 SAIL acquired
Vivesvata Iron and
Steel Ltd
In 1993, the
government set plansin motion to partially
privatise SAIL
1907-1918
1923-1948
1954-1964
1973-1992
Steel
1993-2012
Foreign players started
entering the Indiansteel market
No license
requirement for
capacity creation
Export duty has been
imposed on iron ore,
thereby giving moreimpetus on catering to
growing domestic
demand
Decontrol of domestic
steel prices
Launch of Scheme for
promotion of Researchand Development in
Iron & Steel sector
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66For updated information, please visit www.ibef.org
Structure of the steel sector
MARKET OVERVIEW AND TRENDS
Source:Report on Indian steel industry by Competition Commission of India, Aranca Research
Steel
Steel
End use
Structuralsteel
Constructionsteel
Rail steel
Form
Liquid steel Crude steel
Ingots
Semis
Finished steel
Flat
Non flat
Composition
Non-alloysteel
Low carbonsteel
Mediumcarbon steel
High carbonsteel
Alloy
Stainless
Siliconelectrical
High speed
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13.5 12.7 13.0 13.18.6
42.6 44.547.6
52.9
43.4
0
14
28
42
56
70
FY08 FY09 FY10 FY11* FY12* (April
- Dec)
Public sector Private sector
For updated information, please visit www.ibef.org
Steel production in India has beengrowing at a fast pace
Total crude steel production grew at a CAGR of 6.6 per cent over FY08-11 to 69.6 MT; production in the first nine
months of FY12 is a litt le more than three-fourth of FY11 levels and is estimated to touch 128.1 MT by FY17
Finished steel production stood at 66.0 MT in FY11, recording a CAGR of 4.2 per cent over the above-mentioned
period; analysts expect production figures to shoot up in the next five years with the Ministry of Steel forecasting
production levels at 115.3 MT by FY17
Total crude steel production (million tonnes)
MARKET OVERVIEW AND TRENDS
Steel
Source: Ministry of Steel, Aranca Research,
Notes: FY - Indian Financial Year (April - March), MT - Million Tonnes, * - Provisional, CAGR - Compound Annual Growth Rate
17.1 16.4 16.7 17.012.3
36.842.1
49.152.6
41.1
0
20
40
60
80
FY08 FY09 FY10 FY11* FY12* (April
- Dec)
Public sector Private sector
Total finished steel production (million tonnes)
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Shares in production: SAIL and Tatalead the way
SAIL is the leading player in the steel sector in India; it accounted for 18.7 per cent of crude steel production in
the country in the first nine months of FY12 and had a 13.5 per cent share in finished steel production in that
period
TATA Steel, another household name in the country, leads private sector activity in the steel sector; during April -
December 2011, the firm accounted for 9.9 per cent of crude steel production and 7.8 per cent of finished steelproduction
India crude steel market share by production - FY12* (Apr-Dec)
MARKET OVERVIEW AND TRENDS
Steel
Source: Ministry of Steel, Aranca Research,
Notes: RINL - Rashtriya Ispat Nigam Limited, *Provisional
7.8%
13.5%
4.0%
74.7%
TATA steel
SAIL
RINL
Other
India finished steel market share by production - FY12* (Apr-Dec)
9.9%
18.7%
4.3%67.1%
TATA Steel
SAIL
RINL
Other
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99For updated information, please visit www.ibef.org
Growth in market value of the Indiansteel sector has also been strong
In 2011, the total market value of the steel sector in
India was estimated to be USD55.1 billion
The sector has benefitted from rise in prices
and production, especially since the beginning
of the millennium
Over 2006-11, market value of the sector is estimated
to have posted a strong CAGR of 19.3 per cent
Market value of the Indian steel sector (USD billion)
Source: Datamonitor, Aranca Research
Note: E - Estimates
MARKET OVERVIEW AND TRENDS
Steel
22.8 25.5
38.6
32.9
46.8
55.1
0
10
20
30
40
50
60
2006 2007 2008 2009 2010 2011E
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1010For updated information, please visit www.ibef.org
Demand has outpaced supply over thelast five years
Total consumption of steel exceeded production and
grew to 70.9 MT in FY12 as against 66.4 MT in FY11;
over FY07-12, consumption has expanded at a CAGR
of 8.7 per cent
In the most likely economic growth scenario (9 percent GDP growth as envisaged by the Draft Approach
Paper of the 12thFive Year Plan), demand for steel is
set to rise to 113.3 MT by FY17
Consumption of steel (in million tonnes)
Source: Ministry of Steel, Indian Steel Markets Conference,
Aranca Research
Notes: FY12* - Data for FY12 is provisional, MT - Million Tonnes
MARKET OVERVIEW AND TRENDS
Steel
46.852.1 51.9
59.3
66.470.9
FY07 FY08 FY09 FY10 FY11 FY12*
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1111For updated information, please visit www.ibef.org
A consequence of demand outpacingsupply has been rising imports
With demand growth for steel outpacing growth in
domestic production over the last few years, import
dependency has increased
Imports have increased at a CAGR of 6.8 per
cent over FY07-12
Total imports in FY12 stood at about 6.8 MT
Steel exports and imports (in MT)
Source: Ministry of Steel, Aranca Research
Notes: FY - Indian Financial Year (April - March)
*Data for FY12 is provisional
MARKET OVERVIEW AND TRENDS
Steel
4.9
7.0
5.8
7.4 6.8 6.8
5.2
5.14.4
3.3
3.5 4.0
-
1.0
2.0
3.0
4.0
5.0
6.0
7.0
8.0
FY07 FY08 FY09 FY10 FY11 FY12*
Imports Exports
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2013
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1212For updated information, please visit www.ibef.org
Construction and infrastructure: Keyconsumers of steel in India
Construction & infrastructure is the largest
consumer of steel in India, accounting for 61 per cent
of total consumption in 2010
This is not surprising given the heavy use of
steel in this sector and soaring constructionand infrastructure activity in the country over
the past decade
Capitalgoods is the nex t largest consumer, with 11
per cent of total consumption
Sector-wise steel consumption shares (2010)
Source: Crisil, Aranca Research
MARKET OVERVIEW AND TRENDS
Steel
61%11%
8%
5%
3%
12%
Construction &
Infrastructure
Capital goods
Autos
Packaging
Consumer
durables
Others
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Key players in the industry
MARKET OVERVIEW AND TRENDS
Steel
Company Products
Tata Steel Ltd Finished steel (non-alloy steel)
SAIL Finished steel (non-alloy steel)
J S W Steel Ltd Hot rolled coils, strips, sheets
Jindal Steel & Power Ltd Iron and steel
Ispat Industries Ltd Hot rolled coils, strips, sheets
Welspun-Gujarat Stahl Rohren Ltd Tubes and pipes
Bhushan Steel Ltd Cold rolled coils, strips, sheets
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1414For updated information, please visit www.ibef.org
Notable trends in the Indian steelindustry
MARKET OVERVIEW AND TRENDS
Growing investments
SAIL has undertaken modernisation and expansion of its integrated steel plants
in Bhilai, Bokaro, Rourkela, Durgapur, Burnpur and Salem
It is in the process of expanding its crude steel production capacity to 21.4 MTPA
Completed mega expansion of Rashtriya Ispat Nigam Limited (RINL) to more
than double capacity of plant (from 2.9 MT to 6.3 MT)
Strategic alliances
International Coal Ventures Pvt. Ltd., comprising of SAIL, RINL, CIL, NTPC, and
NMDC, has been set up for acquisition of coal mines overseas The consortium of SAIL and National Fertilizer Limited (NFL) has been
nominated for revival of Sindri Unit of Fertilizer Corporation of India Limited
RINL, Vishakhapatnam Steel Plant and Power Grid Corporation of India Ltd.
(POWERGRID) signed an MoU to set up a joint venture company for
manufacturing of Transmission Line Towers and Tower Parts including R&D of
new high-end products
Entry of international
companies
Attracted by the growth potential of the Indian steel industry, several globalsteel players have been planning to enter the market
National Mineral Development Corporation (NMDC) has signed an MoU with
Russias third-largest steelmaker, Severstal for a greenfield steel plant in
Karnataka
Posco Steel to invest USD12 billion for setting up 12 MT project in India
Source: Ministry of Railways, Aranca Research
Notes: MOUs - Memorandum of Understanding, MT - Million Tonnes
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15
Source: Company websites, Aranca Research
Steel
Key steel plants in India
RINL steel plant in
Vishakhapatnam
Steel integrated plants
under SAIL (Bhilai,
Rourkela, Bokaro,
Durgapur and Burnpur)
Biggest steel plant of Tata
Steel in Jamshedpur
Alloy and special steel
plants under SAIL
(Bhadrawati and Salem)
MARCH
2013
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1616
Contents
Advantage India
Market overview and trends
Growth drivers
Success stories: TATA Steel, JSW Steel
Opportunities
Useful information
For updated information, please visit www.ibef.org
SteelMARCH
2013
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1717For updated information, please visit www.ibef.org GROWTH DRIVERS
Strong demand and policy supportdriving investments
Notes: FDI - Foreign Direct Investment
Steel
Policy support
100 per cent FDI insteel sector
Government isencouraging R&Dactivities in the
sector
Reduced customduty and other
favourablemeasures
Growing demand
Growing demandin the construction
industry
Increasing investments
Rising investmentsfrom domestic and
foreign players
Increase in numberof MoUs signed to
boost investment in
steel
Foreign investmentof nearly USD40
billion committed inthe steel sector
Inviting Resulting
in
Growing demandin the automotives
sector
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1818For updated information, please visit www.ibef.org GROWTH DRIVERS
Construction & infrastructure andautomotives driving steel growth
Steel
Source: Planning Commission, Aranca Research
Notes: MTPA - Million Tonnes per annum
Projected values of investment in infrastructure (USD billion) Investment in infrastructure is expected to expand at
a CAGR of 14.5 per cent over FY12-17 by the Planning
Commission
The Planning Commission expects total investment in
infrastructure to be USD1 trillion in the 12th
Five-YearPlan (2012-17), as compared to USD428 billion in the
11thPlan
This increase in investment in infrastructure is set to
raise steel demand by roughly 40 MTPA from FY13 to
FY17
110.1129.0
148.5
168.7
191.3
216.6
0
50
100
150
200
250
FY12 FY13 FY14 FY15 FY16 FY17
MARCH
2013
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1919For updated information, please visit www.ibef.org GROWTH DRIVERS
Steel
Source: SIAM, Aranca Research
Notes: E - estimate; FY - Indian Financial Year (April - March)
Total production of automobiles in India (million units) Automotives production expanded at a CAGR of 22.2
per cent over FY09-12
Commercial vehicles are the fastest growing segment
with a CAGR of 29.8 per cent over the same period
Automotives leading sector in drivingsteel growth
0
5
10
15
20
25
30
35
FY09 FY10 FY11 FY12 FY16E FY21E
Passenger vehicles Commercial vehicles
Three wheelers & two wheelers
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2013
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2020For updated information, please visit www.ibef.org
National Steel Policy
2012
In view of the changed dynamics of the sector both globally as well as
domestically, Ministry of Steel has initiated the process of drafting the new
National Steel Policy in place of the existing National Steel Policy in 2005
The government has set up a committee headed by the Steel Secretary for
monitoring the progress on formulation of the new National Steel Policy
Four task forces have been constituted to study, analyse, consult and formulate
draft policy documents on different aspects of the policy
R&D and innovation
A new scheme named The scheme for the promotion of R&D in the iron and
steel sector has been approved with budgetary provision of USD24.6 million to
initiate and implement the provisions of the scheme as per the 11th Five Year
Plan
A total amount of USD8.5 million has been spent under the scheme upto
December 2011
Steel Innovation Council for promotion of innovative ideas in the steel sector has
been set up by the Ministry of Steel
Increased export duty on
iron ore
The government hiked the export duty on iron ore to 30 per cent ad-valorem on
all varieties of iron ore* (except pellets)
Steel
Foreign direct
investment 100 per cent FDI through the automatic route is allowed in the Indian steel sector
GROWTH DRIVERS
Source: Ministry of Steel, Aranca Research
Notes: *w.e.f. 30th
December 2011
MARCH
2013
Policy support aiding growth in the steelsector
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2121For updated information, please visit www.ibef.org
Source: Ministry of Steel, Aranca Research
Notes: w.e.f - with effect from 30thDecember, 2011
Steel
Export duty on iron ore has been increased to 30
per cent ad-valorem on all varieties of iron ore
(except pellets), in order to preserve iron ore
resources for domestic use
As per the Government decision, 51 per cent
shareholding of Government of India in Eastern
Investments Company Limited (EIL) under Bird
Group of Companies was transferred to RINL
New Research and Development policy for Steel
Sector has been finalised/adopted for
implementation
New techno-economic benchmarks have beenevolved on international pattern for improvement in
performance of steel PSUs and its implementation is
being monitored closely
The Joint Plant Committee (JPC) under the
Ministry studied 300 districts, 1500 villages, 4500
manufactures and 8000 retailers spread over all
the 35 states and union territories of the company
to assess the steel demand in the rural areas and
examine the potential of increasing the level of
steel consumption
Steel Innovation Council for promotion of
innovative ideas in the steel sector has been set
up by the Ministry of Steel
New National Steel Policy for the forthcomingyears is under finalisation
Major initiatives taken by the Ministryof Steel during the year
MARCH
2013
GROWTH DRIVERS
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Steel SEZs in India
Steel
Developer Location Product
Viraj Profiles Ltd Thane, Maharashtra Stainless steel engineering products
Jindal Steel Ltd Kalinganagar Stainless steel
SAIL Salem SEZ Pvt Ltd Salem, Tamil Nadu Steel
Orissa Industrial InfrastructureDevelopment Corporation
Jajpur, Orissa Metallurgical-based engineering andancillary/downstream industry
Source: Formal approvals granted in the Board of Approvals after the SEZ rules coming into force, Special Economic Zones in India website,
www.sezindia.nic.in
GROWTH DRIVERS
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2013
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2323For updated information, please visit www.ibef.org
The sector witnessed rising investmentsin the last decade
Steel
M&A scenario - details
Period: 1 January 2011 to 13 June 2012
Deal type No of deals Largest deal (USD million)
Inbound - -
Outbound 1 1.01
Domestic 7 474.4
Source: Thompson ONE Banker, Fact Sheet On Foreign Direct Investment (FDI), Department of Industrial
Policy and Promotion; JSW - JFE Partnership Press Meet Presentation, Press releases; and Ministry of Steel,
Government of India, Annual Report 2009-10
Cumulative FDI inflows
Period: April 2000 to September 2012
Sector
Metallurgical industries USD6.7 billion
Per cent of total FDI inflow 4.0
GROWTH DRIVERS
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2013
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2424For updated information, please visit www.ibef.org
Steel
State MoUs signed Capacity addition (MTPA)
Orissa 63 81.2
Jharkhand 49 105.1
Chhattisgarh 76 60.0
West Bengal 16 39.4
Karnataka 57 173.0
Andhra Pradesh 18 11.8
Other states 22 18.2*
Total 301 488.6
Capacity addition plans
Company Plans
SAILSAIL is planning to invest USD27.3 billion to increase capacity from 21.4MTPA to 45MTPA. In
its recent expansion plan, it has undertaken modernisation and expansion of its integratedsteel plants at Bhilai, Bokaro, Rourkela, Durgapur, Burnpur and a special plant at Salem
NMDCIt is setting up a greenfield integrated steel plant of 3MTPA capacity in Nagarnar,Chhattisgarh at an estimated cost of about USD3.2 billion
GROWTH DRIVERS
Source:Ministry of Steel, Annual report 2011-12,
Note: MTPA - Million Tonnes Per Annum, * - Estimated figures
MARCH
2013
Planned capacity additions in differentstates
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2525
Contents
Advantage India
Market overview and trends
Growth drivers
Success stories: TATA Steel, JSW Steel
Opportunities
Useful information
For updated information, please visit www.ibef.org
SteelMARCH
2013
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2626For updated information, please visit www.ibef.org
TATA Steel: A compelling growth story (1/3)
SUCCESS STORIES: TATA STEEL, JSW STEEL
Steel
Source: Company website (www.tatasteel.com),
Planning Commission, Aranca Research
Projected crude steel capacity in the 12thPlan (million tonnes)TATA Steel Limited
Established in 1907, by the visionary-founder JN Tata, Tata Steel
is among the top ten global steel companies with an annual
crude steel capacity of over 28 million tonnes per annum
(MTPA)Caters to - Automotive, Construction, Consumer goods,
Engineering, Packaging, Energy & Power, Ship Building, Rail,
and Defence and Security
Milestones
2009 - Tata Ryerson and HMPCL merge with TataSteel in 2009
2007 - Integration of Tata Steel and Corus was
accomplished at USD12 billion, making Tata Steelone among the top ten steel producers globally
6.87.6
9.2
11.0
15.1
17.5
20.0
0
5
10
15
20
25
FY11 FY12 FY13 FY14 FY15 FY16 FY17
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2013
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TATA Steel: A compelling growth story (2/3)
SUCCESS STORIES: TATA STEEL, JSW STEEL
Steel
Financial growth (USD billion)Production and sales of steel division (million tonnes)
0.9 1.0 1.1 1.11.4 1.4
4.24.7
5.7 5.8
6.87.4
-
2
4
6
8
FY07 FY08 FY09 FY10 FY11 FY12
NPAT Gross revenue
Source: Company website (www.tatasteel.com), Aranca Research
Notes: NPAT - Net Profit After Tax
4.95.4
6.46.7
7.0
4.85.2
6.2 6.46.6
-
1
2
3
4
5
6
7
8
FY08 FY09 FY10 FY11 FY12
Production Sales
MARCH
2013
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2828For updated information, please visit www.ibef.org
Steel
SUCCESS STORIES: TATA STEEL, JSW STEEL
1994 1995 1996 1997 1998 1999 2000 2002 2004 2006 2008 2010 2011 2012
Blast furnace
Wheel, tyre and
axle plant (railways)
Alloy steel
Iron making and
castings
Developed products
Organic growth in
Steel
Capacity
expansion
(3 MT)
M&A
(Tata-Corus)
Technological
upgradation
1912
Production
capacity (1.6
Lakh tonnes)
Diversification
(Coal injection
unit)
TATA Steel: A compelling growth story (3/3)
FY06
USD3,625
millionturnover
FY12USD7,445
million
turnover
Pig iron and
steel ingots
Wheel, tyre and
axle plant (railways)
Alloy steel
Iron making and
castings
Developed products
MARCH
2013
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2929For updated information, please visit www.ibef.org SUCCESS STORIES: TATA STEEL, JSW STEEL
Steel
Source: Company website (www.jsw.in),
Planning Commission, Aranca Research
Projected crude steel capacity in the 12thPlan (million tonnes)JSW Steel
Established in 1994, JSW Steel Ltd manufactures iron and steel
products in India and abroad
Products - Hot rolled coils, plates, and sheets; cold rolled coilsand sheets; galvanised sheets and coils; pre-painted galvanised
coils, sheets, and galvanised corrugated sheets
Achievements -
2011 - National Sustainability Award by Indian
Institute of Metals
2009 - Gold Award in Metal and Mining Sector
2008 - National Energy Management Awardinstituted by CII
11.1
13.2314.3 14.3 14.3
17.6 18.4
0
4
8
12
16
20
FY11 FY12 FY13 FY14 FY15 FY16 FY17
MARCH
2013
JSW Steel: Surging ahead on costcompetitiveness (1/3)
St lMARCH
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3030For updated information, please visit www.ibef.org SUCCESS STORIES: TATA STEEL, JSW STEEL
Steel
JSW Steel: Surging ahead on costcompetitiveness (2/3)
1,937
2,6313,162
4,053
5228
7221
269 360 96421 419 339
0
2,000
4,000
6,000
8,000
FY07 FY08 FY09 FY10 FY11 FY12
Gross revenue NPAT
Source: Company website (www.jsw.in)
0.3
3.1
1.1
1.6
0.4
4.3
1.5
1.7
0.0
0.5
1.0
1.5
2.02.5
3.0
3.5
4.0
4.5
Semis Rolled Flats Rolled Longs Value Added
Flat
FY11 FY12
MARCH
2013
Product group-wise sales (in million tonnes) Financial growth (in USD million)
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3131For updated information, please visit www.ibef.org
Notes: JV - Joint Venture TMT - Thermo Mechanically Treated, MML - Mysore Minerals Limited MTPA - Million Tonnes Per Annum
Steel
SUCCESS STORIES: TATA STEEL, JSW STEEL
JSW Steel: Surging ahead on costcompetitiveness (3/3)
2013
1994 1995 1996 1997 1998 1999 2000 2002 2004 2006 2008 2010 2011 2012
Special steel bars
Wheel, tyre and
axle plant (railways)
Alloy steel
Iron making and
castings
Organic Growth
& Integration
1994
ISO Accreditations
Capacity addition
7.8 MT
1994
Production
capacity
(1.25 MTPA)
FY06
USD1,417
millionturnover
FY 12USD7,221
million
turnover
Galvanised
product
TMT rebars
Wire rods
Cold rolled
Hot rolled
JV formed toexplore, develop
& mine iron ore
with MML
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3232
Contents
Advantage India
Market overview and trends
Growth drivers
Success stories: TATA Steel, JSW Steel
Opportunities
Useful information
For updated information, please visit www.ibef.org
SteelMARCH
2013
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3333For updated information, please visit www.ibef.org OPPORTUNITIES
Opportunities (1/2)
Notes: Capex - Capital Expenditure
Steel
Automotive
The size of the
automotives industry
is forecasted to grow
between USD122
billion and USD159
billion by 2016
With increasing
capacity addition by
the automotives
industry, demand for
steel from the sector
is expected to be
robust
Capital goods
Capital goods
accounts for 11 per
cent of steel
consumption, and has
the potential to
increase in tonnage
and market share
Corporate Indias
capex is expected to
grow and generate
greater demand for
steel
Infrastructure
The government aims
to increaseinfrastructure
spending from 8.4
per cent of GDP in
FY11 to 10.7 per cent
of GDP by FY17
Due to such a huge
investment in
infrastructure the
demand for long
products of steel will
be increasing in years
ahead
Airports
More and more
modern and privateairports expected to
be set up
Development of Tier-II
city airports will
sustain consumption
growth
The estimated steelconsumption in
airport building is
likely to grow more
than 20 per cent over
next few years
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3434For updated information, please visit www.ibef.org OPPORTUNITIES
Opportunities (2/2)
Steel
Railways
Dedicated Rail Freight
Corridor (DRFC)
network expansion
will be enhanced in
future
Gauge conversion,
setting up of new
lines, and
electrification will
drive steel demand in
the near future
Oil and gas
Pipeline network for
liquid fuel
transportation is
likely to grow from
the present 16,800 km
to 22,000 km in 2014
This would lead to an
increase in demand
of steel tubes and
pipes and hence
provides a lucrative
opportunity to the
steel industry
Power
The government is
aiming to add 71,000-1,07,500 MW of
capacity during the
12thFive Year Plan
Both generation and
transmission
capacities will be
enhanced, thereby
raising steel demand
from the sector
Source: Planning Commission, Aranca research
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3535
Contents
Advantage India
Market overview and trends
Growth drivers
Success stories: TATA Steel, JSW Steel
Opportunities
Useful information
For updated information, please visit www.ibef.org
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3636For updated information, please visit www.ibef.org USEFUL INFORMATION
Industry associations
Indian Stainless Steel Development Association
L-22/4, DLF Phase - II
Gurgaon, Haryana - 122 002
Phone: 91-124-4375501
Fax: 91-124-4375509
E-mail: [email protected]
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3737For updated information, please visit www.ibef.org
Glossary
CAGR Compound Annual Growth Rate
FDI Foreign Direct Investment
FY Indian Financial Year (April to March)
So FY10 implies April 2009 to March 2010
JV Joint Venture
MoU Memorandum of Understanding
MT Million tonnes
MTPA Million tonnes per annum
NPAT Net Profit After Tax
SEZ Special Economic Zone
TMT Thermo Mechanically Treated
USD US Dollar
Conversion rate used: USD1= INR48
Wherever applicable, numbers have been rounded off to the nearest whole number
USEFUL INFORMATION
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Neither Aranca nor IBEF shall be liable for any direct or
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Steel 2013
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