...teelIRON AND STEEL INDUSTRY IN INDIA Corporate Catalyst India A report on Indian Iron and Steel Industry OVERVIEW 1.1 Background The Indian iron and steel industry is nearly a century old, with Tata Iron & Steel Co (Tata Steel) as the first integrated steel plant to be set up in 1907. It was the first core sector to be completely freed from the licensing regime (in 1990-91) and the pricing and distribution controls. The steel industry is expanding worldwide. For a number of years it has been benefiting from the exceptionally buoyant Asian economies (mainly India and China). The economic modernization processes in these countries are driving the sharp rise in demand for steel. The New Industrial policy adopted by the Government of India has opened up the iron and steel sector for private investment by removing it from the list of industries reserved for public sector and exempting it from compulsory licensing. Imports of foreign technology as well as foreign direct investment are freely permitted up to certain limits under an automatic route. This, along with the other initiatives taken by the Government has 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/greenfield steel plants have also come up in different parts of the country based on modern, cost effective, state of-the-art technologies. Soaring demand by sectors like infrastructure...
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...1. Introduction Steel is one of the most important industrial products of our life. It is used from power cables to safety pin. In tools, military weapons, making our homes and so and so on. Steel industry is considered backbone of industrial growth. Its sustained growth is vital given the cascading impact it has on the economic development in many sectors such as oil and gas, electrical and electronics, transport, shipbuilding, building and construction, fabrication, machinery and equipment as well as the national trade balance 2. Overview Malaysian steel industry contributes ~ 4% to the economy, employing ~150,000 people •There’s a ~ 22.4 MTA demand in ASEAN - 18.3 MTA for flat products. •A fully developed steel industry could contribute up to ~6.5% to the Malaysian economy by 2020. •Malaysia steel demand is the 4th largest in ASEAN (Thailand, Viet Nam, Indonesia) and growing at 6% for past 20 years. MITI presentation, SECOND NATIONAL MARINE INDUSTRIES FORUM 2012 (2NMIF) Production: Losses: The Economic Transformation Programme (ETP) initiated by the Malaysian Government has begun to show some positive results. As the ETP is rolled out in stages, the significant impact on steel demand will not be shown until after the full implementation of all these infrastructure and construction projects. However, the Economic Stimulus measures put in place by the Malaysian Government during the global financial crisis continued to stabilise the economy, helping businesses...
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...Iron is a shiny grey metal that is oxidized into a reddish-brown ferric oxide when exposed to moist air. It was discovered in 3500BC and is ranked as the fourth most abundant element by mass. The other major elements are sulfur and nickel. While iron is ingrained in most minerals, the primary iron is haematite. Nonetheless, iron is found engrained in other minerals such as taconite (Royal Society of Chemistry). Iron is produced commercially by heating the iron ores with carbon and limestone. The initial process results in an intermediate known as pig iron. Pig iron contains approximately 3% of carbon and other contaminants. It is utilized in the production of steel. The annual production of crude steel approximately about 1.3 billion tons (Royal Society of Chemistry). Pure iron crystals have a very soft texture. In order to enhance its strength, iron is either mixed with impurities such as carbon, or it is complexed with other metals as is...
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...Carnegie and the Age of Steel, I learned a lot about what steel manufacturing had to do with the Gilded Age time period in America. The film first opened by talking about how in the late 1800’s Andrew Carnegie was now the richest man in the United States. But how did he get to be that way? Well, that is what the film goes into next. New Englanders were faced with a crisis in these times, iron was too expensive, but iron was the thing that fueled the New Englanders industry. So the colony started to manufacture their own iron to try and cut costs. Many iron mills were created in the New England area, and some Americans, but many indentured servants from Europe worked in the iron mills. With America becoming a hub for producing iron, the British wanted to restrict the growth of the iron mills in the United States but ultimately failed, because by independence day, the United States now produced 1/4 of the worlds iron. Many cities emerged with the creation of the many iron mills in America, one being Pittsburg, which became iron’s capital. When Andrew Carnegie was a young boy, he was poor and worked as a telegrapher, until noticed and admired by Tom Scott, a man who was very knowledgable in the railroad and iron industry. Soon after Tom Scott discovered Carnegie, Carnegie became his assistant, and became very interested in iron and the use of it to build America’s many new railroads. However, while iron was a great industry for Carnegie, with the invention of steel in 1856, Carnegie...
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...SLAG - IRON AND STEEL December, 2014 16-1 SLAG - IRON AND STEEL 16 Slag - Iron and Steel S lag is a by-product generated during manufacturing of pig iron and steel. It is produced by action of various fluxes upon gangue materials within the iron ore during the process of pig iron making in blast furnace and steel manufacturing in steel melting shop. Primarily, the slag consists of calcium, magnesium, manganese and aluminium silicates in various combinations. The cooling process of slag is responsible mainly for generating different types of slags required for various end-use consumers. Although, the chemical composition of slag may remain unchanged, physical properties vary widely with the changing process of cooling. In an integrated steel plant, 2 to 4 tonnes of wastes (including solid, liquid and gas) are generated for every tonne of steel produced. A c c o r d i n g l y, t o d a y t h e e m p h a s i s i s o n t h e avoidance of waste generation, recycling and reuse of waste, and minimising the adverse impact of disposal on the environment. Among all the solid/liquid wastes, slags generated at iron making and steel making units are created in the largest quantities. With increasing capacities, disposal of large quantities of slag becomes a big environmental concern and a critical issue for steel makers. Over the last few years, with a better understanding of slags, its functions and improvements in process technologies have led ...
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...AN FINAL REPORT ON SALES AND DISTRIBUTION CHANNELS AT STEEL AUTHORITY OF INDIA LIMITED SUBMITTED BY: R.N.MUKHERJEE (07BS3134) STEEL AUTHORITY OF INDIA LIMITED AN FINAL REPORT ON SALES AND DISTRIBUTION CHANNELS AT STEEL AUTHORITY OF INDIA LIMITED SUBMITTED BY: R.N.MUKHERJEE (07BS3134) A Report Submitted In Partial Fulfilment Of The Requirements Of MBA Program Of ICFAI BUSINESS SCHOOL, HYDERABAD DISTRIBUTION LIST: PROF. SUBHASIS RAY (FACULTY MEMBER-MARKETING, IBS Hyderabad) MR. TANMOY SEN (SR. MANAGER (Mrkt-MS), SAIL, KOLKATA) 2 ACKNOWLEDGEMENTS I express my gratitude to Mr. M.R.Rath, Sr. Manager (HRD), Steel Authority Of India Limited (Kolkata) for giving me an opportunity to work with SAIL and for extending support in the form of knowledge and guidance. I would also like to thank my company guide, Mr. Tanmoy Sen, Sr. Manager (Mrkt-MS Division), Steel Authority Of India Limited (Kolkata) as well as other employees of Steel Authority Of India Limited, Kolkata, namely, Mr.R.M.Suresh, Mr. Pankaj Singh, Mr.D.K.Sinha, Mr. N.M.Padhy, Mr. H.Hembram and Mr. M.R.Rath for being a constant source of encouragement as well as for providing guidance throughout the project. I also sincerely acknowledge the guidance and esteemed advice extended by Prof. Subhasis Ray, Faculty Member - Marketing Area, IBS (Hyderabad). Finally, I would like to thank all those people who in the course of my project have knowingly or unknowingly helped me, especially the channel members I...
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...IRON & STEEL SECTOR ANALYSIS General View of World Economy The world economy changed especially after the global crisis in 2008 . Advanced economies known as the giant economies of western countries affected very deeply by the crisis. The results of the crisis affected particularly in Europe.Today, many European countries came to the brink of collapsefinancially especially Greece and Portugal.On the other hand, China and India continued to grow without experiencing any problem. For about 10 years, these two giant countries continues to grow were successful in the crisis period. According to official data from 2010,China became the world's second largest economy. India became one of the top 10 economy.In addition to this, Far Eastern countries such as Korea, Thailand, Vietnam were not affected by the crisis as much as European countries . According to IMF Report, In 2009 the total global GDP at current prices fell from $ 61.2 trillion to $ 57.9 trillion. Contraction in the world economy remained in a low level with 0.6% in constant prices. Downsizing is mainly originated from developed countries. In 2009, economies of developed countries shrank 3.2%, developing countries grew 2.4%.The growth of developing countries were originated by mostly Asian countries. Asian countries grew 6.6%.Middle and Eastern European countries shrank by 3.7%. The growth of China 8% and India 5.7% pulled down the global recession. European heavyweights, Germany's growth fell from estimate ...
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...STEEL INDUSTRY ANALYSIS 1. Industry trends: Indian and Global perspectives, recent happenings. Steel is the back bone of human civilization, it is very crucial in development of a modern economy. The per capita consumption of steel shows the living standard of people in any country. Global Perspective: The industry directly employs about more than two million people worldwide, with a further two million contractors and four million people in the supporting industries. Considering steel’s position as the key product supplier to industries such as automotive, construction, transport, power and machine goods, and using a multiplier of 25:1, the steel industry is at the source of employment for more than 50 million people. World crude steel production has increased from 851 mega tonnes (Mt) in 2001 to 1,527 Mt in 2011. (It was 28.3 Mt in 1900).World average steel use per capita has steadily increased from 150 kg in 2001 to 215 kg in 2011. India, Brazil, South Korea and Turkey have all entered the top 10 steel producers list in the last 40 years. World Steel in Figures 2012 The World Steel Association (world steel) has published the 2012 edition of World Steel in Figures. World Steel in Figures provides essential facts and statistics about the global steel industry. The book contains comprehensive information on crude steel production, apparent steel use, pig iron production, steel trade, iron ore production and trade, and scrap trade. World Steel in Figures lists major...
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...18 Market Overview The metal industry is a key sector in the Indian economy as it meets the requirements of a wide range of important industries such as engineering, electrical and electronics, infrastructure, automobile and automobile components, packaging etc. The metal industry consists of two major groups: ferrous metals and non-ferrous metals. Non-ferrous metals, which include aluminium, copper, zinc, lead, nickel and tin, are used to make alloys, castings, forgings, extrusions, wires, cables, pipes, etc., and find their application in a number of sectors such as agriculture, infrastructure facilities like power plants, automobiles, railways, telecommunications, building and construction and in engineering and chemical plants. There are significant reserves of non-ferrous metal ores in India. India is rich in bauxite (aluminium ore) and has grades of zinc, lead and copper reserves. Copper, lead and zinc are also imported as scrap or concentrates to be processed by secondary/custom smelters. Nickel and tin are also imported by India. Ferrous metals primarily consist of iron and different varieties of steel. Indian steel industry has shown strong performance in the recent past in terms of production, capacity utilisation, exports and consumption. India is now a major competitor among steel producers in the world. The sSteel industry contributes 1.3 per cent to India’s GDP and accounts for 10 per cent in Excise Duty collections. The industry provides employment to 0.4 million...
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...Profile of Steel Industry in India (Managerial Economics) CONTENTS Introduction Market Size Investments Government Initiatives Steel Prices Supply and Demand Analysis Cost of production Production Functions and Input: Fixed & Variable Inputs: Total & Average cost: Calculating Average Total Cost Average cost and Economics of Scale: Market Structure of steel industry: Price Discrimination in the Steel Market SWOT Analysis of Steel Industry: Indian Steel Industry a Bright Future Understanding the Steel industry using Michael Porter’s Five Forces Model Suggestions Road Ahead Major Steel Producers Introduction India has acquired a central position on the global steel map with its giant steel mills, acquisition of global-scale capacities by players, continuous modernisation, and improvement in energy efficiency. Steel companies from across the world have shown interest in the Indian steel industry due to its phenomenal performance. In India, the steel industry plays a significant role in the economic growth. India is world's fourth largest crude steel producer in 2011-12 with 89 million tonnes (MT) as per provisional data 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...
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...“In our industry today only a strong company with a global reach can ensure long-term employment and provide acceptable returns for shareholders.” – Lakshmi Narayan Mittal Table of Contents 1. How has Mittal managed to expand from a marginal position to become the largest steel producer in the world? 1 2. Compare Mittal’s economics per ton of crude steel with its competitors. 2 3. What threats does Mittal face? 3 4. To what extent is profitability driven by global scale? What else is relevant? 5 5. Is vertical integration a value driver for Mittal? Why? 6 6. How would a merger of Arcelor with Mittal add value? 8 Appendix I 10 1. How has Mittal managed to expand from a marginal position to become the largest steel producer in the world? Mittal Steel advanced from being a marginal company to become one of the largest steel producers in the world through its early investment in new steel making technology and strategic mergers and acquisitions. In the 1970s, 45% of the steel market was comprised of mini-mills which used scrap metal in production (p 3). Scrap metal was inexpensive but lower quality compared to other forms of production which made it difficult for mini-mills to cater to the demands of the most high-end but demanding customer in the steel industry, the automotive industry (p 3). Direct Reduced Iron (DRI) produces a substitute at minimal cost but without the quality issues associated with scrap (p 3). Lakshmi Narayan Mittal (लक्ष्मी...
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...(i) commonly used in construction industry, (ii) rarely / sparingly used materials in the construction industry, (iii) materials that are not used but can be used in the construction industry (b) Visit the Sports Complex and the Community Centre at IIT Madras and find out the materials used for construction and prepare a report. Materials commonly used in the construction industry * Concrete – Cement, Lime, Sand, Aggregates, Fly Ash, Water * Wood, Bamboo, Timber * Stones – Granite, Basalt, Limestone, Marble, Quartizite, Shale, Slate * Silt, Clay, Mud, Moorum, Puzzolona, Thatch * Gypsum * Brick, Crushed Bricks * Metals – Aluminum, Bronze, Copper, Nickel * Galvanized Iron, cast Iron, Ductile Iron, Stainless Steel, Mild Steel * Asbestos * Glass * Gypsum Plaster * PVC, HDPE, Plastics * Ceramics, Mosaic * Epoxy Coating * Paint * PTFE Roofing, Terracotta Tiles * Coal Tar, Bitumen * Plaster Boards * Fabric, Rubber, Foam Board, Plywood * Admixtures – Lignosulphonates, Vinyl Polymers, Polycarboxylate Ethers * Plaster Boards * Epoxy, Neoprene Materials rarely / sparingly used in the construction industry * Stones – Flag Stones * Asphalt * Metals – Chromium, Titanium, Gold, Silver * Silica Fumes * Glass Fiber * Fiber Cement Sheeting * Ice * Aluminum Composite Wall Claddings Materials not used but can be used in the construction industry * Rise Husk ash * Coke...
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...Group Research Project Jindal Steel Works Ltd. & Steel Authority of India Ltd. Executive Summary This report provides an elaboration of the steel industry of India as well highlights the comparison parameters of the current and prospective profitability, liquidity and financial stability of two major players of the industry – Jindal Steel Works Ltd. and Steel Authority of India Ltd. The analysis of the players includes trend prevalent in the industry, horizontal and vertical analysis of the organizations as well as ratios such as Interest Coverage, Solvency, Profitability and Performance. Other calculations include Z-Score analysis, Financial Statements Case analysis and Total Assets and earnings per share to name a few. All calculations can be found in the attached excel files. Results of data analyzed show that SAIL has had a drastic downturn for the last five years whereas JSW has improved its value in the market by adoption of certain new technologies at timely intervals. The report finds the prospects of the companies in their respective current positions are not positive. The major areas of weakness require further investigation and remedial action by management. Some challenges that are being faced by the company as discovered during the Qualitative Analysis of the organizations are, There have been multiple fluctuations in the market and the numerous possibilities of China's entrance into the exporting markets Thought the domestic demand...
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...Introduction to the industry Metals have accompanied mankind since ancient ages, and steel, if we begin to follow it from the moment of its historically famed damascene form - for some millennia. From the era of craftsman-like small-scale production to today's form of industrial mass production, steel has covered an intricate path lined with significant innovations in production processes, development of range and quality of products, and perpetually growing productivity of labour, improving economies and ecological load. In addition, a radical change in relationship to the customers is occuring at the end of this century, namely by a pronounced shift of readiness towards the needs and requirements of these customers. Steel's indisputable significance is confirmed by the fact that it has become the second most mass-produced commodity after cement production, attaining the world-wide production volume of approx. 750 mil tons yearly. The art of iron production from ore arose in connection with the practices of copper and lead technologies in Anatolya, in northern Syria and possibly also in part of Iran. Iron ores were added as fluxes for treatment of sulphide copper ores. Iron drops, which the local manufacturers identified already 3000 years BC, comparing these with meteoritic iron, already hinted at the existence of the possibility of producing iron, but this only occurred practically 15 centuries later. Since that time, it is necessary to reckon that only small amounts of this...
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...Renz Erick R. Delgado BSCE 4 200810163 “STEEL” BASIC STRUCTURE OF THE MATERIAL Steel is an alloy that consists mostly of iron and has carbon content between 0.2% and 2.1% by weight, depending on the grade. It also consists of small quantities such as manganese, chromium, nickel, molybdenum, copper, tungsten, cobalt, or silicon. It is generally hard, strong, durable, malleable alloy and depending on the desired alloy properties, the constituents in steel vary. The density of steel varies based on the alloying constituents, but usually ranges between 7,750 and 8,050 kg/m3 (484 and 503 lb/cu ft), or 7.75 and 8.05 g/cm3 (4.48 and 4.65 oz/cu in). Carbon is the most common alloying material for iron, but various other alloying elements are used, such as manganese, chromium, vanadium, and tungsten. Carbon and other elements act as a hardening agent, preventing dislocations in the iron atom crystal lattice from sliding past one another. Varying the amount of alloying elements and the form of their presence in the steel (solute elements, precipitated phase) controls qualities such as the hardness, ductility, and tensile strength of the resulting steel. Steel with increased carbon content can be made harder and stronger than iron, but such steel is also less ductile than iron. Though steel had been produced by various inefficient methods long before the Renaissance, its use became more common after more-efficient production methods were devised...
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