STEEL INDUSTRY

INTRODUCTION

TRENDS AND DEVELOPMENTS IN STEEL SECTOR• India continues to remain the 4th largest producer of crude steel in the world as against the 8th

position in 2003 and is expected to become the 2nd largest producer of crude steel soon.

• India remains to be the world’s largest producer of direct reduced iron (DRI) or sponge iron.

• The per capita steel consumption has risen from 38 kgs in 2005-06 to 59 kgs in 2011-12.

• Capacity for crude steel production expanded from 51.17 million tonnes per annum (mtpa) in2005-06 to 89.29 mtpa in 2011-12.

• Crude steel production grew at 8% annually [Compounded Annual Growth Rate (CAGR)] from46.46 million tonnes in 2005-06 to 73.79 million tonnes in 2011-12.

• Production for sale of finished steel stood at 73.42 million tonnes during 2011-12 as against 46.57million tonnes in 2005-06, an average annual CAGR growth of 7.9%.

• Real Consumption of finished steel has grown at a CAGR of 9.4% during the last six years.

• Export of finished steel during 2011-12 stood at 4.04 million tonnes while imports during 2011-12stood at 6.83 million tonnes.During April-December 2012, the following is the industry scenario as compared to same period oflast year:

• Production of crude steel during April - December 2012 was at 58.33 million tonnes, a growth of5.8% compared to April - December 2011. The Main Producers produced 18.34 million tonnesduring this period, which was a growth of 4.5% compared to last year. The Major Producersproduced 13.86 million tonnes during this period, which was a growth of 11.5% compared to lastyear. The rest i.e. 26.13 million tonnes was the contribution of the Other Producers, which was agrowth of 3.9% compared to last year.

• Pig iron production for sale in April - December 2012 was 4.601 million tonnes (a growth of5% compared to last year), after accounting for own consumption/IPT. The Main Producersaccounted for approximately 11% of the same, the rest (89%) being the share of the Majors andOther Producers.

• In case of total finished steel (alloy + non-alloy) during April – December 2012:Ø Production for sale stood at 56.72 million tonnes, a growth of 3.6% compared to last year.Ø Exports stood at 3.78 million tonnes, a growth of 24% compared to last year.Ø Imports stood at 5.79 mt, a growth of 16.2% compared to last year.Ø India remained a net importer of steel.Ø Real consumption stood at 53.53 mt, a growth of 3.7% compared to last year.

Steel is crucial to the development of any modern economy and is considered to be the backbone of human civilization. The level of per capita consumption of steel is treated as an important index of the level of socioeconomic development and living standards of the people in any country. 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. All major industrial economies are characterized by the existence of a strong steel industry and the growth of many of these economies has been largely shaped by the strength of their steel industries in their initial stages of development. Steel industry was in the vanguard in the liberalization of the industrial Sector and has made rapid strides since then. The new Greenfield plants represent the latest in technology. Output has increased, the industry has moved up i n the value chain and exports have raised consequent to a greater integration with the global economy. The new plants have also brought about a greater regional dispersion easing the domestic supply position notably in the western region. At the same time, the domestic steel industry faces new challenges. Some of these relate to the trade barriers in developed markets and certain structural problems of the domestic industry notably due to the high cost of commissioning of new projects. The domestic demand too has not improved to significant levels. The litmus test of the steel industry will be to surmount these difficulties and remain globally competitive.

ABSTRACT

Indian STEEL industry has seen a tremendous growth over the years. I have done an EIC and Technical analyses of top ten cement companies as per their net sales. It includes analyses of Indian economy, Industry analyses and company financial statement analyses and SWOT analysis of each company. I have also covered the technical analyses – moving crossover average to identify the trends.

Indian economy is the tenth largest economy in the world in terms of GDP. The GDP in India has expanded as compared to previous years. India Interest Rate averaged 6.56 Percent reaching an all-time high of 14.50 Percent in August of 2000 and a record low of 4.25 Percent in April of 2009. Inflation rate in India has come down. SWOT analysis of Indian economy includes like India has a stable growth even during recession (2008). The banking and credit system were able to survive. Opportunities will be development in rural areas. Threats may be terrorist.

INDUSTRY ANALYSIS

Domestic 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 2007-08 2008-09 2009-10 2010-11 2011-12*

Pig Iron 5.28 6.21 5.88 5.68 5.78

Sponge Iron 20.37 21.09 24.33 25.08 20.37

Total Finished Steel (alloy + non alloy) 56.07 57.16 60.62 68.62 73.42

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 year’s 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*

Total Finished Steel (alloy + non alloy) 7.03 5.84 7.38 6.66 6.83

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 year’s 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*

Total Finished Steel (alloy + non alloy) 5.08 4.44 3.25 3.64 4.04

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-the-art

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 world’s 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.

 

Industry Overview - Indian Steel Sector

India has emerged as the fourth largest steel producing nation in the world, as per the recent

figures release by World Steel Association in April 2012. In 2010, India was the 5th largest

producer, after China, Japan, USA and Russia had recorded a growth of 11.3% in steel

production as compared to 2009. Overall domestic crude steel production grew at a

compounded annual growth rate of 8.4% during 2005-06 to 2009-10. The Indian steel industry

accounted for around 5% of the world’s total production in 2011.

Total crude steel production in India for 2010-11 was around 69 million tonnes and it’s

expected that the crude steel production in capacity in the country will increase to nearly 110

million tonne by 2013-14. Further, if the proposed expansion plans are implemented as per

schedule, India may become the second largest crude steel producer in the world by 2015-16.

The demand for steel in the country is currently growing at the rate of over 8% and it is

expected that the demand would grow over by 10% in the next five years. However, the steel

intensity in the country remains well below the world levels. Our per capita consumption of

steel is around 110 pounds as compared to 330 Pounds for the global average. This indicates

that there is a lot of potential for increasing the steel consumption in India.

Immense growth potential in Indian Steel Sector

Domestic crude steel production grew at a compounded annual growth rate of 8.4% in the

last few years.

Crude steel production capacity of the country is projected to be around 110 million tonne by

2013-14.

222 Memorandum of Understandings (MOU) have been signed with various states for planned

capacity of around 276 million tonnes by 2019-20.

Investments at stake are to the tune of $187 billion in the Steel sector.

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.

Demand of steel in the major industries like infrastructure, construction, housing, automotive,

steel tubes and pipes, consumer durables, packaging and ground transportation.

Target for $ 1 trillion of investments in infrastructure during the 12th Five Year Plan.

Infrastructure projects (like Golden Quadrilateral and Dedicated Freight Corridor) will give

boost to the demand in the steel sector in near future.

Projected New Greenfield & up-gradation of existing Airport shall keep the momentum up.

Increased demand of specialized steel in hi-tech engineering industries such as power

generation, automotive petrochemicals, fertilizers etc.

Financial Year '12

Overall the global steel industry witnessed steady growth during 2011. The growth in global steel demand was driven by increased demand from key steel end-user industries including infrastructure, construction and automotive, especially in the emerging markets; in spite of financial turbulence in the Eurozone, weak private demand in the United States and events in Japan and the Middle East.

In 2011, the global steel demand is estimated to have increased by 6% to reach a new high of 1,373 MT, 13% above the pre crisis levels in 2007. Global steel consumption grew from 1.302 MT in 2010 to 1373 MT. Emerging nations accounted for 72% of global consumption, at 980 MT in 2011 up from 928 MT in 2010. Growth was led by the emerging economies, notably China (6% up) and India (4% up), where new demand records were set. In the developed economies, demand levels remained 15-25% below 2007 levels. Europe saw steel demand increase by 5% and North America by 9% in 2011, but steel demand in Japan fell by 3%, as the impact of the earthquake and subsequent tsunami was felt on the manufacturing activity.

The growth in 2011 can be segregated in two halves. In the first half of 2011, global steel consumption grew relatively faster, underpinned by infrastructure construction and manufacturing activity. In the second half of 2011, steel consumption was lower than in the first half due to

moderate economic growth in China, the United States and Europe.

In 2011, global steel output reached 1.5 billion tonnes, an increase of 7% compared to 2010 and a new record for world crude steel production. All major steel producing countries apart from Japan and Spain showed growth in 2011. Growth was particularly strong in Turkey, South Korea and Italy.

Key Points

Supply With trade barriers having been lowered over the years, imports play an important role in the domestic markets. Currently India is net importer of steel.

Demand The demand is derived from sectors that include infrastructure, consumer durables and automobiles.

Barriers to entry High capital costs, technology, economies of scale, government policy.

Bargaining power of suppliers

Low for fully integrated players who have their own mines for raw materials. High, for non integrated players who have to depend on outside suppliers for sourcing raw materials.

Bargaining power of customers

High, presence of a large number of suppliers and access to global markets.

Competition High, presence of a large number of players in the unorganized sector.

Prospects

Government delays in allocating coal blocks for captive consumption by steel manufactures is seriously hurting the competitive edge of Indian steel sector. The same story is with iron ore. There are delays in allocating iron ore mines as well as approval for mining licenses. As a result no new investment on the ground in the steel sector is happening to add new steel capacities.

There are delays in land acquisition for Greenfield projects and environment approvals in India. There is thus delay in converting the intent into project on ground especially in the area of expansion and modernisation. This impedes growth of domestic steel capacity creation.

The Indian steel sector may face threat from cheap imports, now that the import duties on steel in India are amongst the lowest in the world. Import pressures could consequently lead to pressure on margins of the domestic companies on account of lower steel realisations. However, if the Indian government increases the import duty on steel products, domestic steel industry could get protection to an extent. But since India has already agreed to the WTO norms, it might become difficult for the government to increase duties substantially.

Looking ahead, global steel market developments are likely to remain generally positive, but with lower growth in 2012 compared to 2011. In the first few months of 2012, apparent steel demand remained muted due to the uncertain economic climate. For 2012 as a whole, global steel demand is forecast to grow by a further 4% to reach 1,422 MT. China, India and other emerging markets will continue to drive demand but recent market developments suggest likely slackening of demand. This is primarily due to the recent changes in the monetary policy in China to reduce bank credit and improve asset quality as well as lower growth forecast in India. While USA and Japan is expected to continue its recovery, steel demand in Europe is expected to fall.

Going forward, we remain apprehensive about the continuation of the strong performance by steel companies. We believe that volume growth would be visible in the years to come, largely due to the continuation of infrastructure spending (including housing), strong demand from the auto sector, which could help in driving demand for value added steel products like CR (cold roll) steel and exports. We expect realisations to remain under pressure on account of excessive supplies. However, a recovery in steel prices could be sooner if steel producers across the globe take continuous efforts at curtailing production.

Swot analysis

Strengths-

1. there is abundant supply of iron ore in India available.

2. there is very efficient as well as cheap labour available

3. country is filled with talented professionals providing strong managerial capacity

4. Indian steel industry is a Strongly globalised industry and with emerging global competitiveness

5. Modern new plants & modernised old plants

6. There are several regionally dispersed merchant rolling mills

WEAKNESS –

1.there is poor quality of infrastructure in the nation

2. there are very higher rates of taxes and import duties demotivating businesses.

3. several labour laws act as a restriction agent on abilities of companies

4.there is strong dependence on imports for steel manufacturing equipments & technology

5. There is issue of slow statutory clearances for development of mines

6.the quality of coking coal available in the country is very poor.

OPPORTUNITIES

• There is currently huge Infrastructure demand and growth going on.

• The country is experiencing rapid urbanisation

• There is Increasing demand for consumer durables

• There is vast untapped rural demand

• The nation is having Increasing interest of foreign steel producers .

THREATS

• The pace of growth in infrastructure development is very slow .

• There are sometime’s massive market fluctuations and and threat of China’s export possibilities affecting that of India’s.

• There is massive threat of Global economic slow down

ECONOMIC OVERVIEW

Against the backdrop of the Eurozone crisis, turmoil in West Asia and spike in crude prices, the fiscal year 2011-12 was a year of "recovery interrupted" for the Indian economy. India's GDP growth is estimated at 6.9% in 2011-12 - a sharp fall from 8.4% in the last year. 

While the estimated growth of 6.9% in the fiscal year 2011-12 can be considered reasonably healthy in view of the adverse global developments mentioned above, it would be unwise to ignore the fact that domestic factors like high inflation, depressed investment climate and unaddressed manufacturing bottlenecks also slowed down industrial activity. India's slowdown in 2011-12 can be attributed almost entirely too weak industrial growth with the good performance of the services and agricultural sectors. In 2011-12 the growth is estimated to be 2.5% in agriculture, 3.9% in industry and 9.4% in services. 

INDUSTRIAL OUTPUT 

Industrial growth however witnessed a sharp fall to 4.1% in February 2012 as against 6.7% growth in the corresponding month of the previous fiscal. The disappointing growth was mainly due to rather poor performance of the manufacturing sector especially consumer goods. As per the revised IIP data, the industrial production grew only by a marginal 1.1% during the year under review that too driven by the 4.1% growth in February 2012. The marginal uptrend in the growth towards the end of the year was witnessed due to increase in the consumption of processed foods in the food and beverages sector. 

EXPORTS / IMPORTS 

Owing to buoyant demand from diversified overseas markets, exports, according to provisional figures released by the Industry, Chemicals & Textiles Ministry, exceeded the targeted US$ 300 billion for the fiscal year 2011-12. The sectors that posted impressive growth included engineering, gems & jewelry, textiles and pharmaceuticals. 

Imports during 2011-12 clocked a high of US$ 485 billion mainly on account of rising global oil prices with oil imports touching US$ 150 billion. The trade deficit widened to US$ 185 billion and the Government faces a stiff challenge to keep it under control in the current fiscal. 

During the period April-December 2011, the Current Account Deficit (CAD) - an indication of the gap between foreign exchange inflows and outflows, surged to US$

53.7 billion (4% of the GDP) from 3.30% of GDP in the same period last year - reflecting higher trade deficit on account of imports of petrol, oil, lubricants, gold and silver. 

INFLATION 

Inflation which had raged at double digit levels over the last two years is now lower. The decline in inflation has provided some relief and the time is ripe therefore to boost investment in the economy. The Prime Minister's Economic Advisory Council has opined that inflation would drop further and hover around 5% to 6% in the current fiscal 2012-13. 

India has acquired a central position on the global steel map, on back of ever increasing demand from sectors like infrastructure, real estate and automobiles, at home and abroad. India was ranked the world's fourth largest crude steel capacity in 2011-12 and is expected to become the second largest producer of crude steel in the world by 2015-16. India is also the world's largest producer of sponge iron with a host of coal based units located in its mineral-rich states.

"With modernisation programmes of various public and private companies, the country will soon rise to second place," as per Dr Manmohan Singh, the Prime Minister of India.

India's steel making capacity is estimated to exceed 100 million tonnes (MT) by 2013 and the production is expected to reach 275 MT by 2020. The per capita steel consumption increased from 34 kilograms (kg) in 2004-05 to 59 kg in 2011-12.

Market Size

The World Steel Association has estimated steel consumption in India to grow at five per cent in 2013. "Steel producers may see a spurt in demand in the medium term if the Indian Government implements its US$ 1 trillion infrastructure investment plan," as per India Ratings. India's steel-making capacity is slated to cross 100 MT in 2013 that will require about 160-170 MT of iron ore.

The steel industry is expected to add 12.8 MT of capacity in the second half of 2012-13, with the major contributors identified as SAIL (3.4 MT), RINL (2.3 MT), Bhushan Steel (2.1 MT) and Jindal Steel (2 MT).

Indian crude steel production is estimated to grow at a compound annual growth rate (CAGR) of around 10 per cent during 2010-2013, whereas the finished steel consumption is estimated to grow at a CAGR of around 12 per cent during FY 2012-14, as per a RNCOS research report titled, 'Indian Steel Industry Outlook to 2012'.

In addition, the Indian Bureau of Mines estimates the current pelletisation capacity in India to be around 20 million tonnes per annum (MTPA).

Steel Authority of India Ltd (SAIL) has recorded a growth of 8 per cent during November 2012 compared to the same month last year. The public sector company produced 972,000 tonnes of saleable steel during November 2012

Bhilai Steel Plant has registered growth of 4.1 per cent, 5.3 per cent and 5.3 per cent in hot metal, crude steel and saleable steel production respectively during April-December 2012, as compared to the same period last year

Investments

SAIL plans to invest US$ 8 billion in Chhattisgarh. SAIL also plans to enhance the capacity of its Bhilai steel plant from 4 MTPA to 10 MTPA

JSW Steel and Japan-based JFE Steel Corporation have signed a joint agreement. JFE will provide technology for the production of non-oriented electrical steel sheets at the JSW Steel's Vijayanagar plant in Karnataka

The sinter plant at the upcoming IISCO Steel Plant (ISP) of SAIL commenced production. The Rs 704 crore (US$ 128.94 million) project is part of the 2.5 MTPA integrated steel plant under construction at Burnpur near Asansol in West Bengal

Mittal Corp is setting up a 1.5 MTPA pellet and beneficiation plant in Karnataka, while JSPL is in the process of setting up a 4 MTPA pellet plant in Orissa

Essar Projects has set up an 8 MTPA pellet plant in Vizag and 6 MTPA plant in Paradip for Essar Steel

Indian steel industry plays a significant role in the country’s 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-on-year 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 steel 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.

COMPANY ANALYSIS

The following companies- top 10 by magnitude of sales

Company Revenue in 2012 (in crores)

Tata Steel Ltd 119734.10

Steel Authority of India (SAIL) Ltd 43556.87

JSW Steel Ltd 24184.27

Jindal Steel & Power Ltd 13193.60

JSW Ispat Steel Ltd 8551.63

Welspun Corp Ltd 8042.04

Jindal Stainless Ltd 7534.42

Bhushan Steel Ltd 7072.89

Uttam Galva Steels Ltd 5035.27

Jindal Saw Ltd 4224.30

Tata steel ltd

Tata Steel has always believed that the principle of mutual benefit - between countries,

corporations, customers, employees and communities - is the most effective route to

profitable and sustainable growth.

Established in 1907, Tata Steel is among the top ten global steel companies with an annual crude steel capacity

of over 28 million tonnes per annum (mtpa). It is now one of the world's most geographically-diversified steel

producers, with operations in 26 countries and a commercial presence in over 50 countries.

 The Tata Steel Group, with a turnover of US$ 26.13 billion in FY 2011- 2012, has over 81,000 employees across

five continents and is a Fortune 500 company.

 Tata Steel’s vision is to be the world’s steel industry benchmark through the excellence of its people, its

innovative approach and overall conduct. Underpinning this vision is a performance culture committed to

aspiration targets, safety and social responsibility, continuous improvement, openness and transparency.

 Tata Steel’s larger production facilities include those in India, the UK, the Netherlands, Thailand, Singapore,

China and Australia.  Operating companies within the Group include Tata Steel Limited (India), Tata Steel

Europe Limited (formerly Corus), NatSteel, and Tata Steel Thailand (formerly Millennium Steel).

Tata Steel Limited (NSE: TATASTEEL, BSE: 500470) (formerly Tata Iron and Steel Company Limited (TISCO)) is an Indian multinational steel-making company headquartered in Mumbai, Maharashtra, India, and a subsidiary of the Tata Group. It is the 12th-largest steel producing company in the world, with an annual crude steel capacity of 23.8 million tonnes, and the largest private-sector steel company in India measured by domestic production.[3][4]

Tata Steel has manufacturing operations in 26 countries, including Australia, China, India, the Netherlands, Singapore, Thailand and the United Kingdom, and employs around 81,600 people.[5] Its largest plant is located in Jamshedpur, Jharkhand. In 2007 Tata Steel acquired the UK-based steel maker Corus in what was the largest international acquisition by an Indian company to date.[6]

Tata Steel is listed on the Bombay Stock Exchange, where it is a constituent of the BSE SENSEX index, and the National Stock Exchange of India.[7] It is ranked 401st in the 2012 Fortune Global 500 ranking of the world's biggest corporations.[8] It is the eighth most-valuable Indian brand according to an annual survey conducted by Brand Finance and The Economic Times in 2010.[9][10]

SWOT Analysis

Strength

1. Raises over 14 million tonnes of ores from its captive collieries, iron ore mines and quarries

2. Adaptability of company in the fast changing environment

3. Excellent integration with Corus which has more than 2000 metallurgists

4. Control over raw materials

5. Economies of scale

6. Strong backing of Tata brand name7. Operations in 26 countries and a commercial

presence in over 50 countries

Weakness

1. Operational efficiency are not as good as international leaders

2. Slightly lagging in technological front

Opportunity

1. Newer technologies- The Corex process, The Hismelt process, Direct iron ore smelting

2. Public private partnership

3. Acquisition of coal blocks in Asia, Africa etc.

Threats

1. Rising coking coal prices

2. India is plagued with violent agitation against land acquisition

3. Government & regulatory norms

4. International competition

SAIL

Steel Authority of India Limited (SAIL) is one of the largest state-owned steel-making company based in New Delhi, India and one of the top steel makers in World. With a turnover of 48681 crore (US$9.0 billion), the company is among the top five highest profit earning corporates of the country. It is a public sector undertaking which trades publicly in the market is largely owned by Government of India and acts like an operating company. Incorporated on January 24, 1973, SAIL has more than 1 lakh employees. During 2010-11, the manpower of SAIL reached a level of 110794 (as on 31.3.2011) from 116950 (as on 1.4.2010) The company's current chairman is C.S Verma. With an annual production of 13.5 million metric tons, SAIL is the 14th largest steel producer in the world.

Major plants owned by SAIL are located at Bhilai, Bokaro, Durgapur, Rourkela, Burnpur (near Asansol) and Salem.SAIL is investing Rs 21000 crore in West Bengal, to set up a wagon factory.[3] SAIL is a public sector company, owned and operated by the Government of India. According to a recent survey, SAIL is one of India's fastest growing Public Sector Units.Besides, it has R&D centre for Iron & Steel (RDCIS), Centre for Engineering and Technology (CET), Management Training Institute (MTI) and SAIL Safety Organization (SSO) located at Ranchi capital of Jharkhand.

SWOT Analysis

Strength

1. Strong employee workforce with over 130,000 employees

2. Technical & managerial expertise in the industry3. Strong raw material supply chain management

4. Strong financial resources owing to being a Govt enterprise

5. It has an annual production of over 13million tonnes

6. Partnerships with NTPC, Bokaro Steel etc has strengthened its market position

Weakness

1. Govt and political intervention affects operational efficiency

2. Higher profit margins are not allowed

Opportunity

1. Expansion & growth2. Globalization with tie-ups with international

players3. Mergers & Acquisitions

Threats

1. Change in Government policies & economy trend2. Emerging & existing private sector players

3. Technological developments in outside world

Jsw ltd

JSW Steel Ltd. (BSE: 500228, NSE: JSWSTEEL) is an Indian steel company owned by the JSW Group based in Mumbai, Maharashtra, India.[2] JSW Steel is among India's largest steel producers, with a capacity of 10 MT as of 2011.

Sajjan Jindal led enterprise JSW Group is one of the largest business conglomerates in India with a strong presence in the core economic sector. It had grown from a steel rolling mill in 1982 and is presently a multi business conglomerate worth US$5 billion.[3]

As part of the US$10 billion O. P. Jindal Group, JSW Group has diversified interests in steel, energy, minerals and mining, aluminium, infrastructure and logistics, cement and information technology.[3]

JSW Steel, the flagship company of the JSW Group, is the largest integrated private steel manufacturer in India in terms of installed capacity. JSW's history can be traced back to 1982, when the Jindal Group acquired Piramal Steel Limited, which operated a mini steel mill at Tarapur in Maharashtra and renamed it as Jindal Iron and Steel Company (JISCO).[4]

The Group set up its first steel plant in 1982 at Vasind near Mumbai. Soon after, it acquired Piramal Steel Ltd., which operated a mini steel mill at Tarapur in Maharashtra. The Jindals, who had wide experience in the steel industry, renamed it as Jindal Iron and Steel Co. Ltd. (JISCO). In 1994, in order to achieve the vision of moving up the value chain and building a strong, resilient company, Jindal Vijayanagar Steel Ltd. (JVSL) was set up, with its plant located at Toranagallu in the Bellary-Hospet area of Karnataka, the heart of the high-grade iron ore belt and spread over 3,700 acres of land. It is just 340 km from Bangalore, and is well connected with both the Goa and Chennai ports. In 2005, JISCO and JVSL merged to form JSW Steel Ltd.

JSW Steel is one of the lowest cost steel producers in the world. It has established a strong presence in the global value-added steel segment with the acquisition of steel mill in US and a service center in UK. JSW Steel has also formed a joint venture for setting up a steel plant in Georgia. The Company has also tied up with JFE Steel Corp, Japan for manufacturing the high grade automotive steel. JSW Steel has recently acquired a majority stake in Ispat Industries Ltd. This will make JSW Steel India's largest steel producer with a combined capacity of 14.3 MTPA by March 2011. The Company has also acquired mining assets in Chile, USA and Mozambique.

JSW Steel offers the entire gamut of steel products – Hot Rolled, Cold Rolled, Galvanized, Galvalume, Pre-painted Galvanised, Pre-painted Galvalume, TMT Rebars, Wire Rods & Special Steel Bars, Rounds & Blooms. JSW Steel has manufacturing facilities at Toranagallu in Karnataka, Vasind & Tarapur in Maharashtra and Salem in Tamil Nadu.

By 2020, the Company aims to produce 34 million tons of steel annually with Greenfield integrated steel plants coming up in West Bengal near Salboni about 35 km from Kharagpur and Barenda in Ranchi district of Jharkhand.

SWOT Analysis

Strength

1. India’s third largest steelmaker with a combined capacity of 14+ MTPA hence enjoys economies of

scale

2. High growth prospects with a consistently increasing revenue and strong financial position

3. One of the lowest cost steel producers in the world

4. First steel producer in the world to use Corex Technology for producing hot metals

5. Operates in both upstream as well as downstream sectors

Weakness

1. Limited portfolio diversification compared to industry leaders

2. Less number of mines under its hood affects availability of raw materials

3. Capacity utilization is not cent percent

Opportunity

1. Increase in demand from all sectors in Indian & Global world

2. Mergers & Acquisition to keep steady supply of raw materials

3. Product development by investing more in R&D

Threats

1. Cyclical nature of steel industry needs to have efficient process of production

2. Competition from existing and foreign players

3. Government and environment regulations

4. Changes in the prices of raw materials & end products

Jindal Steel and Power Limited (JSPL) (BSE: 532286, NSE: JINDALSTEL) is an Indian steel and energy company based in New Delhi, India and a

division of Jindal Group conglomerate. With annual turnover of over US$4 billion, Jindal Steel & Power Limited (JSPL) is a part of about US$17 billion diversified O. P. Jindal Group. JSPL is a leading player in steel, power, mining, oil and gas and infrastructure. Naveen Jindal, the youngest son of the late O P Jindal, drives JSPL and its group companies Jindal Power Ltd, Jindal Petroleum Ltd., Jindal Cement Ltd. and Jindal Steel Bolivia. The company professes a belief in the concept of self-sufficiency. The company produces steel and power through backward integration from its own captive coal and iron-ore mines.

However, in terms of tonnage, it is the third largest steel producer in India. The company manufactures and sells sponge iron, mild steel slabs, ferro chrome, iron ore, mild steel, structural, hot rolled plates and coils and coal based sponge iron plant. The company is also involved in power generation.

Jindal Steel and Power is a part of the Jindal Group, founded by O. P. Jindal (1930–2005). In 1969, he started Pipe Unit Jindal India Limited at Hisar, India,[2] one of the earlier incarnations of his business empire. After Jindal's death in 2005, much of his assets were transferred to his wife, Savitri Jindal. Jindal Group's management was then split among his four sons with Naveen Jindal as the Chairman of Jindal Steel and Power Limited. His elder brother, Sajjan Jindal, is currently the head of ASSOCHAM, an influential body of the chambers of commerce, and the head of JSW Group, part of O.P. Jindal Group.

On 3 June 2006, Bolivia granted development rights for one of the world's largest iron ore reserves in the El Mutún region to Jindal Steel. With an initial investment of US$1.5 billion, the company plans to invest an additional US$2.1 billion over the next eight years in the South American country.[3] Jindal Steel is most likely to terminate the contract of investing $2.1 billion in setting up a steel plant in Bolivia, due to non-fulfilment of contractual obligations by the Bolivian government.[4] Savitri Jindal, the widow of O. P. Jindal, is ranked as the 19th richest Indian person according to Forbes.

The Jindal family established Vidya Devi Jindal School, a residential school for girls in Hisar, India, in 1984. Although not marketed as such, it is widely known to cater to the wealthy through its private location and array of activities.[citation needed] The school's student body comprises girls from affluent business and political families of India.[5]

SWOT Analysis

Strength

1. Produces economical and efficient steel and power through backward and forward integration

2. Sports a product portfolio that caters to varied needs in the steel market

3. Operates the largest coal - based sponge iron plant in the world

4. Has force of innovation, adaptation of new technologies and the collective skills of its 15,000

strong, committed workforce

5. Has an enterprising spirit and the ability to discern future trends

6. Has operations in Steel, iron, electricity generation and distribution

Weakness

1. Shortage of coking coal and is largely dependent upon its import

2. Weak performance on the back of the higher raw material cost and the power & fuel cost

Opportunity

1. Venture into new businesses by leveraging its core capabilities

2.  Increase production capacity to meet the global steel demand

3. Diversify investments to distribute risk in business

Threats

1. Hike in the export duty on iron ore fines and lumps

2. Project implementation and raw material security

3. Issues related to land acquisition, raw material linkages and environmental clearances

Jsw ispat

JSW Ispat Steel Ltd (JISL) (BSE: 500305, NSE: ISPATIND) was set up as Nippon Denro Ispat Limited in May 1984 by founding chairman Mr M L Mittal.[2] It has steadily grown into a Rs9,400-crore company having operations in iron, steel, mining, energy and infrastructure. It has two integrated steel plants, located at Dolvi and Kalmeshwar in the state of Maharashtra. The 1,200 acres (4.9 km2) Dolvi complex houses the 3 million tonne per annum hot rolled coils plant, which combines the latest technologies – the Conarc process for steel making and the compact strip process (CSP) – introduced in Asia. The company is listed on Bombay Stock Exchange and National Stock Exchange of India. It is headquartered at Mumbai and employs about 3000 people. Ispat Industries was ranked 5th among major next to Tata steel and JSW steel companies in India for the year 2008 by Business World.[3]

Strength:1. JWS has good reputation in steel market. This is the result of long experience ofaround 3 decades in the steel industry.2. The major strength of JSW lies with the price.

3. State-of-art technology. The Corex process makes it a low cost production ofsteel in the industry.4. Production Quality is the strength of the JSW.5. Exemptions from sales tax as major dispatches are made from plant site.6. JSW is having 60% of market share in south India.

Weakness:1. Transportation costs are high due to non-availability of trucks and other meansof transportation easily.2. JSW is far away from the main market and it is difficult for them to dispatch theproducts because they don’t have good transport facilities.3. Problems with efficient Warehousing and out bound transportation.

Opportunity:1. Located in the centre of Bellary-Hospet region, a high grade iron belt.2. Easy access to the major parts of Goa, Chennai and Mumbai.3. It lies in the vicinity of large potential and unexplored market of southern India.Threats:1. Tough competition from the players such as TISCO (TATA integrated steelcorporation), SAIL (Steel Authority of India Limited), Essar steels.2. Foreign company like Mittal steels and POSCO entering Indian steel.3. Price war may result due to close competition and price being the mainconstraint in steel marketing.4. Dumping of metal from countries like Korea and China is another major threat.

Welspun Corp LtdFrom Wikipedia, the free encyclopedia

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Welspun Corp Ltd is the second largest manufacturer of large diameter pipes in the world[3]

[4] based in Mumbai, Maharashtra.[5] Its a flagship company of the $3 billion ( 129 billion) Welspun Group.[6] It operates a 1.65 mtpa plant in Anjar, Gujarat, which is being increased to 2.1 mtpa.[7]

Welspun Corp Ltd. (WCL), the flagship company of Welspun Group,is today one of the Largest Large Diameter Line PipeCompany in the World. It was ranked as the 2nd Largest (Large Diameter) Pipe Producer by Financial Times UK and awarded 'The ‘Emerging Company of the Year' by Economic Times, 2008, respectively. With a strong culture of ‘Engineering Excellence' WCL takes pride in manufacturing and supplying some of the most critical pipelines in the world from its plants in India and USA which have an installed line pipe capacity of nearly 2.285 MTPA.

  The company has supplied pipes for the world’s deepest pipeline project (Independence Trail', Gulf of Mexico), highest pipeline project (Peru LNG), longest pipeline (Canada to US) and the heaviest pipeline project (Persian Gulf). WCL has an esteemed clientele which includes Transcanada, Enterprise, Kinder Morgan, Texas Gas, Hunt Oil, Saudi Aramco, Elpaso, Exxon Mobil, PTTEP, Qatar Petroleum and DOW, to name a few.

 

Strengths: 1. Welcorp is the world’s largest distributor of pipes.

2. MSK Projects top help diversification of the business.

3. It has marquee Customer relationship.

4 .It has executed brilliant projects including the World’s deepest pipeline project in the Gulf of Mexico, U.S.A, heaviest pipeline project in the Persian Gulf, highest LNG pipeline project in Peru and longest pipeline project from Canada to the US

Weaknesses: 1 .Steel is a working capital-intensive industry as projects are of long duration in terms of execution of the order. Average execution period for a normal order takes 9-12 months.

2. There is higher dependence on government spending on account of connecting the resources to the final consumers via pipeline network and thrust on infrastructure development.

3. There are large number of unorganized players leading to tough competition amongst the peers.

Opportunities: 1. There are rising oil prices to help growth in the oil gas pipeline business.

2. There is strong order book of $ 1.0 billion.

3. There is always scope for capacity Expansion.

4. There is always scope for backward integration to increase profitability.

5. MSK projects to give access to infrastructure sector.

Threats: 1. There was promoters’ involvement in stock rigging scam.

2. There are fluctuations in foreign exchange and dependence on high imports of Raw Materials and exports to the countries across the globe.

3. There is vast competition from China in terms of cost but restricted to seamless and ERW pipes.

Jindal Stainless Limited, formerly JSL Stainless Limited, is an

India-based stainless steel manufacturer. The Company’s product range includes ferro alloys, stainless steel slabs and blooms, hot-rolled coils, plates, cold-rolled coils, and specialty products, such as razor blade steel, precision strips and coin blanks. It produces stainless steel flat products in austenitic, ferritic, martensitic and duplex grades. Its manufacturing facilities in India, are located at Hisar in the State of Haryana, Jajpur in the State of Odisha and Vizag in the State of Andhra Pradesh. The facilities include chromite mines, ferro alloy facilities, thermal power plants and stainless steel melting, hot rolling, cold rolling and downstream facilities. As on March 31, 2012, the Company had 17 direct and step down subsidiaries, including Jindal Stainless UK Limited and PT Jindal Stainless Indonesia. In March 2013, Jindal Overseas Holding Ltd raised its stake to 13.573% from 6.934% in the Company.

Bhushan steel ltd

Bhushan Steel Ltd formerly known as Bhushan Steel & Strips Ltd. is a globally renowned

one of the leading prominent player in Steel Industry. Backed by more than two decades,

of experience in Steel making, Bhushan Steel is now India’s 3rd largest Secondary Steel

Producer company with an existing steel production capacity of 2 million tones per

annum’s (approx.). Given a vibrant Steel industry dynamics in India, we are on a course to

become a fully Integrated Steel & Power Company with market leading offerings in value

added Steel in Automotive and White Good Segment with the quality  been approved by

ISO 9002 and QS 9000.

It was the vision of the founder; Brij Bhushan Singal, that the first stake was driven into the

soil of Sahibabad (Uttar Pradesh) in 1987. His vision helped BSL overcome several periods

of adversity and strive to improve against all odds.

The company is “centralized source” for wide variety of products such as Cold Rolled Closed

Annealed, Galvanized Coil and Sheet, High Tensile Steel Strapping, Corrugated Sheets, Galume

Sheets and Coils, Hardened & Tempered Steel Strips , Billets, Sponge Iron and Precision Tubes.

manufactured in its various plants. BSL has the distinction of being the only producer In

India of the widest width CR Sheet, besides being a preferred supplier of automotive grade

steel sheets for inner and outer panels to all leading 4-wheeler and 2-wheeler

manufacturers in the country.

The company has three manufacturing units in the state of Uttar Pradesh (Sahibabad Unit) Maharashtra (Khopoli unit) Orissa (Meramandali unit)

Bhushan Steel is the largest manufacturer of auto-grade steel in India[1] and is spending Rs. 260 billion to expand its capacity to 12 million tonnes annually,[2][3] from the present installed capacity of around one million tonnes.[

SWOT ANALYSIS

strengths

BSL is one of the India’s largest CR Coil and GP/GC Sheet

producers of flat steel products.

The company has a strong location advantage as it’s plant is

located in Maharashtra (near Mumbai)

The Company is working towards backward integration in key raw

materials like HR Coil, iron, ore and coal.

The company has strong clientele base, which includes all major

players in user industries like automobiles, consumer durables and

engineering.

Bhushan Energy’s efforts for becoming Independent power

producer will also boost the profitability of parent company.

Focus on value addition makes the company less vulnerable to

price fluctuation

One of the most efficient steel plant in India

Adaptation latest world class technologies and equipment-first in

the country.

Technical tie-up with Sumitomo Metals, Japan.

Leader in high value added segment (Automobile & white goods

sector)

Largest colour Coated Line in the Country & first to manufacture

Galume Sheets.

Plants situated near to consuming centers of Northern and

Western Region – saving in freight cost

Near port facility – Export competitiveness

Economy of scale – total cold rolled capacity of one million tons

BSL has managed and controlled its leverage efficiently Captive

power (48 MW) – low energy cost

9. Matching customer requirement – introduced service centre

concept.

WEAKNESS

No backward integration for HR Coil (only value addition)

Capacity utilizations are still below its maximum level

Ability to handle large projects

US slowdown may impact export market

Rupee appreciation

No more emphasis in local market in the field of galvanized

products.

Irregularity in the supply of raw materials from suppliers and

dealers.

OPPORTUNITIES

Strong Economy growth (second fastest growing Economy after

China)

Booming infrastructure sector (Roads, Ports,Airports, SEZs,

Power)

Strong demand in automobile sector, consumer durables sector

and engineering goods sector.

Robust demand in construction and retail industry

Low per capita steel consumption offers a higher growth

Rich Geological Resource base

Large consumer base

Low labor cost and high productivity

Growing Skilled and Technical Human Capital.

Enter in the field of hot rolled steel, to maintain the continuous

supply of raw material to cold rolled steel plant.

Bhushan group is putting up a plant in Maharastra, near Khopoli,

on Pune Express Highway. This plant will produce CRCA coils and

sheets, galvanized coils and sheets which prove to be s good

opportunity for this company and its growth.

Bhushan Group is also planning to put up an integrated steel plant

of three million tones capacity in near future to produce hot rolled

coils to meet out for captive use of group companies as will for the

domestic and international markets.

THREATS

Steel prices are almost at their peak and downward turn in prices

can’t be ruled out in near future

Bureaucratic nature of Government - Socio-Political interventions

(in leasing mines)

Rising interest rates could affect expansion programmers (High

cost of Finance)

Rising interest rates could affect expansion programmers (High

cost of Finance)

From the government policies, this results in up and down in steel

prices.

High cost of Energy

Big ticket investment by POSCO and Mittal could swallow the

market (specifically export)

Cyclical nature of Steel Industry

Deficit infrastructure

From competitors in galvanised steel and cold rolled steel.

Raw material supply of the company is depending on the others.

Its irregularity can make irregularity in the supply in the supply of

finished goods.

Uttam Galva Steels Ltd

BSE: 513216 | NSE: UTTAMSTL | ISIN: INE699A01011 Market Cap: [Rs.Cr.] 968 | Face Value: [Rs.] 10Industry: Steel - Large

Discuss this stock

Company Profile

With a modest beginning in the year 1988 with a Wet-Flux Galvanizing line in technical collaboration with M/s John Lysaght of B.H.P. Australia, today Uttam Galva Steels Ltd. has three modern galvanizing lines with a total capacity of 350,000 tons/year. UGSL has its own cold rolling facility with a capacity of 500,000 tons/year. Balance of CR are converted to value added grades in CRCA coils, cut to length sheets and also sold as Full Hard CR in overseas markets. The company, was, incorporated in March 1985 as Uttam Galva Steels subsequently the companies name was to changed to Uttam Steel in March 1993 and once again the companies name was changed to Uttam Galva Steel Ltd in 13th June 2002. The Company commenced operations in April 1985. Uttam Galva Steels Ltd is a manufacturer of Cold Rolled Annealed and Unannealed Sheets & Coils, Galvanised Plain and Corrugated Sheets. The company has its plant located at Raigad district of Maharashtra. Uttam Galva is an established player for the supply of CRCA to most of the manufacturers of automobiles, white goods, general engineering, Drums & Barrels segments of the Industry. It is also a large supplier of Galvanized coils and sheets to the construction industries The company has received a Certficate of ISO 9002 for all its plant. In Technical Collaboration with John Lysaght, Australia, the company set up a unit in the Raigad District of Maharashtra to manufacture 35,000 tpa of galvanised plain/corrugated (GP/GC) Sheets. The companies Rs. 18.8 crore plant started production in January 1988. Uttam Galva also set up a captive plant to manufacture 50,000 tpa of thin guage cold-rolled strips. The company tapped the capital market in October 93 with a public issue to part finance the Rs. 10 crore expansion plan by issue of 8700700/- 15% Secured Fully Convertible Debentures of Rs. 50/- each for cash at par aggregating to Rs. 435035000 and rights issue of 5630145 - 15% Secured Fully Convertible Debentures of Rs. 50/- each for cash at par aggregating Rs. 281507250 to the existing Equity Shareholders of the company. The company diluted its shareholding in uttam galva Exports Ltd in December 2004 and by virtue of which the Uttam galva exports is no longer a subsidiary of the company.

MAJOR ACHIEVEMENTS.

• Export of 1 MILLION Tons in a span of 6 years (completed in Sep 2004)

• Export of 2ND MILLION Tons in a span of 2 years 8 months (completed in Jun 07)

• Export of 3rd MILLION Tons in a span of 2 years 6 months (completed in Dec 09)

• Recipient of “Export Excellence ” Award for 14 consecutive years from Engineering Export Promotion Council – Govt. of India

• ISO-9001 Accredited Company

• ISO/TS/16949 Accredited Company for Automobile Sector

• ISO 14001 for Environmental Control is currently under implementation

• IS 277:2003 Accredited Company for Galvanized products

JINDAL SAW LTD

Jindal SAW Ltd. is a part of the USD $ 16.5 billion O.P. Jindal Group, one of the country's

topmost industry houses and the foremost indigenous steel producers and exporters. It

started operation in the year 1984, when it became the first company in India to manufacture

Submerged Arc Welded (SAW) Pipes using the internationally acclaimed U-O-E technology.

Jindal SAW Ltd. is in a commanding position in India’s tubular market, being the undisputed

leader with a turnover in excess of Rs. 7500 Crore.

With integrated facilities at multiple locations and an ever expanding market opportunity,

Jindal SAW Ltd. has diversified from a single product company to a multi-product company,

manufacturing large diameter submerged arc pipes and spiral pipes for the energy

transportation sector; carbon, alloy and stainless steel seamless pipes and tubes

manufactured by conical piercing process used for industrial applications; and Ductile iron

(DI) pipes for water and wastewater transportation. Besides these, the company also provides

various value added products like pipe coatings, bends and connector castings to its clients.

Over the years Jindal SAW has continued to gain the confidence and trust of its stakeholders -

from employees, associates, shareholders and people whose lives have benefitted by the

company's endeavours.

With its vision of sustainable development firmly in place, Jindal SAW has played a leading

role in developing livable cities across the world - that in turn has helped transform the lives

of people staying in them.

Ensuring timely transportation of oil, gas and water, Jindal SAW helps residents and

organizations in numerous cities function efficiently. The pipes produced by the company are

energy efficient, reduce dependence on fossil fuels, and help conserve natural resources like

water.

At the very core of Jindal SAW is imprinted the conviction of never being content with the

success attained and it is constantly striving for newer horizons. New boundaries, new

challenges and new opportunities keep the company driven to surge ahead. Venturing forward

into different areas of businesses with Jindal ITF, a subsidiary of Jindal SAW, the company is

making rapid progress in urban services sectors with:

Water, Wastewater and Solid Waste Management

Domestic Transport and Logistics

Transportation Equipment Fabrication

Having identified the immense potential offered by these sectors for the future, JITF has

diversified into five business verticals in these areas: JITF Ecopolis, JITF Aquasource, JITF

Vector, JITF Shipyards, and Jindal Rail Infrastructure.