steel march 220313

8/10/2019 Steel March 220313

1/38

11

Steel

For updated information, please visit www.ibef.org

MARCH

2013

8/10/2019 Steel March 220313

2/38

22

Contents

Advantage India

Market overview and trends

Growth drivers

Success stories: TATA Steel, JSW Steel

Opportunities

Useful information


SteelMARCH

2013

8/10/2019 Steel March 220313

3/38

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

8/10/2019 Steel March 220313

4/38

44

Contents

Advantage India


Growth drivers


Opportunities

Useful information


SteelMARCH

2013

8/10/2019 Steel March 220313

5/38

55For updated information, please visit www.ibef.org

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

MARCH

2013

8/10/2019 Steel March 220313

6/38


Structure of the steel sector


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

MARCH

2013

8/10/2019 Steel March 220313

7/3877

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


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)


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)

MARCH

2013

8/10/2019 Steel March 220313

8/3888For updated information, please visit www.ibef.org

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)


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

MARCH

2013

8/10/2019 Steel March 220313

9/38


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


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

MARCH

2013

8/10/2019 Steel March 220313

10/38


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


Steel

46.852.1 51.9

59.3

66.470.9

FY07 FY08 FY09 FY10 FY11 FY12*

MARCH

2013

8/10/2019 Steel March 220313

11/38


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


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

MARCH

2013

8/10/2019 Steel March 220313

12/38


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


Steel

61%11%

8%

5%

3%

12%

Construction &

Infrastructure

Capital goods

Autos

Packaging

Consumer

durables

Others

MARCH

2013

8/10/2019 Steel March 220313

13/38


Key players in the industry


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

MARCH

2013

8/10/2019 Steel March 220313

14/38


Notable trends in the Indian steelindustry


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

SteelMARCH

2013

8/10/2019 Steel March 220313

15/38

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

For updated information, please visit www.ibef.org MARKET OVERVIEW AND TRENDS

8/10/2019 Steel March 220313

16/38

1616

Contents

Advantage India


Growth drivers


Opportunities

Useful information


SteelMARCH

2013

8/10/2019 Steel March 220313

17/38

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

MARCH

2013

8/10/2019 Steel March 220313

18/38


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

MARCH

8/10/2019 Steel March 220313

19/38


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

MARCH

2013

MARCH

8/10/2019 Steel March 220313

20/38


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


Notes: *w.e.f. 30th

December 2011

MARCH

2013

Policy support aiding growth in the steelsector

MARCH

8/10/2019 Steel March 220313

21/38



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

MARCH

8/10/2019 Steel March 220313

22/38


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

MARCH

2013

MARCH

8/10/2019 Steel March 220313

23/38


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

MARCH

2013

S lMARCH

8/10/2019 Steel March 220313

24/38


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

8/10/2019 Steel March 220313

25/38

2525

Contents

Advantage India


Growth drivers


Opportunities

Useful information


SteelMARCH

2013

S lMARCH

8/10/2019 Steel March 220313

26/38


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

MARCH

2013

S lMARCH

8/10/2019 Steel March 220313

27/38




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


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

S l

MARCH

8/10/2019 Steel March 220313

28/38


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)


FY06

USD3,625

millionturnover

FY12USD7,445

million

turnover

Pig iron and

steel ingots

Wheel, tyre and


Alloy steel

Iron making and

castings

Developed products

MARCH

2013

St lMARCH

8/10/2019 Steel March 220313

29/38

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

8/10/2019 Steel March 220313

30/38

3030For updated information, please visit www.ibef.org SUCCESS STORIES: TATA STEEL, JSW STEEL

Steel


1,937

2,6313,162

4,053

5228

7221

269 360 96421 419 339

0

2,000

4,000

6,000

8,000


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)

St lMARCH

8/10/2019 Steel March 220313

31/38


Notes: JV - Joint Venture TMT - Thermo Mechanically Treated, MML - Mysore Minerals Limited MTPA - Million Tonnes Per Annum

Steel



2013

1994 1995 1996 1997 1998 1999 2000 2002 2004 2006 2008 2010 2011 2012

Special steel bars

Wheel, tyre and


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

8/10/2019 Steel March 220313

32/38

3232

Contents

Advantage India


Growth drivers


Opportunities

Useful information


SteelMARCH

2013

St lMARCH

8/10/2019 Steel March 220313

33/38

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

2013

SteelMARCH

8/10/2019 Steel March 220313

34/38

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

2013

8/10/2019 Steel March 220313

35/38

3535

Contents

Advantage India


Growth drivers


Opportunities

Useful information


SteelMARCH

2013

SteelMARCH

8/10/2019 Steel March 220313

36/38

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]

Steel 2013

SteelMARCH

8/10/2019 Steel March 220313

37/38


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

Steel 2013

SteelMARCH

8/10/2019 Steel March 220313

38/38

India Brand Equity Foundation (IBEF) engaged Aranca to

prepare this presentation and the same has been

prepared by Aranca in consultation with IBEF.

All rights reserved. All copyright in this presentation and

related works is solely and exclusively owned by IBEF.

The same may not be reproduced, wholly or in part inany material form (including photocopying or storing it in

any medium by electronic means and whether or not

transiently or incidentally to some other use of this

presentation), modified or in any manner communicated

to any third party except with the written approval of

IBEF.

This presentation is for information purposes only. While

due care has been taken during the compilation of this

presentation to ensure that the information is accurate to

the best of Aranca and IBEFsknowledge and belief, the

content is not to be construed in any manner whatsoever

as a substitute for professional advice.

Aranca and IBEF neither recommend nor endorse any

specific products or services that may have been

mentioned in this presentation and nor do they assume

any liability or responsibility for the outcome of decisions

taken as a result of any reliance placed on this

presentation.

Neither Aranca nor IBEF shall be liable for any direct or

indirect damages that may arise due to any act or

omission on the part of the user due to any reliance

placed or guidance taken from any portion of thispresentation.

Steel 2013

Disclaimer

steel march 220313

Documents