Steel March 220313

Steel
MARCH
2013
For updated information, please visit www.ibef.org
Steel
MARCH
2013
Contents
Advantage India
Market overview and trends
Growth drivers
Success stories: TATA Steel, JSW Steel
Opportunities
Useful information
Steel
MARCH
2013
Advantage India
Increasing investments
Robust demand
Demand to be supported by growth

in the domestic market
Infrastructure, oil & gas, and

automotives will drive the growth
of the industry
Intended steel capacity build-up

in India is set to result in
investments in the range of
USD104.2 billion to USD208.3
billion by 2020
301 MoUs have been signed with

various states for planned
capacity of about 488.6 MT
2014E
Market value:
USD83 billion
Advantage
India
Competitive advantages
2009
Market value:
USD33 billion
India is the worlds fourth largest

producer of crude steel (up from
eighth in 2003); the country is
expected to become the second
largest producer by 2015
Easy availability of low cost
manpower and presence of abundant
reserves make India competitive in
the global setup
Policy support
100 per cent FDI through automatic

route is allowed in the sector
Large infrastructure projects in

Public-Private Partnership (PPP)
mode are being formed
National Steel Policy (NSP) to

encourage industry in reaching
global benchmarks
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
ADVANTAGE INDIA
Steel
MARCH
2013
Contents
Advantage India
Growth drivers
Opportunities
Useful information
Steel
MARCH
2013
Evolution of the Indian steel sector

1993-2012
1973-1992
1954-1964
1923-1948
1907-1918
Production of
steel started in
India (TISCO
was setup in
1907)
IISC was set up
in 1918 to
compete with
TISCO
Hindustan Steel
Ltd and Bokaro
Steel Ltd were
setup in 1954 and
Mysore Iron and
1964 respectively
Steel Company
was set up in 1923 In early 1990s, the
public sector
According to the
dominated the
new Industrial
steel production
Policy Statement
Private players
(1948) new
were in
ventures were
downstream
undertaken only
production, mainly
by the central
producing finished
government
steel using crude
steel products
SAIL was created in

1973 as a holding
company to oversee
most of India's iron &
steel production
In 1989 SAIL acquired
Vivesvata Iron and
Steel Ltd
In 1993, the
government set plans
in motion to partially
privatise SAIL
Foreign players started

entering the Indian
steel market
No license
requirement for
capacity creation
Export duty has been
imposed on iron ore,
thereby giving more
impetus on catering to
growing domestic
demand
Decontrol of domestic
steel prices
Launch of Scheme for
promotion of Research
and Development in
Iron & Steel sector
Notes: TISCO - Tata Iron and Steel Company,

IISC - Indian Iron & Steel Company, SAIL - Steel Authority of India Ltd
MARKET OVERVIEW AND TRENDS
Steel
MARCH
2013
Structure of the steel sector
Steel
Form
Liquid steel
Ingots
Semis
End use
Composition
Crude steel
Alloy
Finished steel
Structural
steel
Stainless
Low carbon
steel
Construction
steel
Silicon
electrical
Medium
carbon steel
Rail steel
High speed
High carbon
steel
Flat
Non flat
Non-alloy
steel
Source: Report on Indian steel industry by Competition Commission of India, Aranca Research
Steel
MARCH
2013
Steel production in India has been

growing 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 little 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)
80
Total finished steel production (million tonnes)

70
60
49.1
36.8
42.1
52.9
56
52.6
41.1
47.6
42.6
44.5
13.5
12.7
13.0
13.1
FY08
FY09
FY10
FY11*
43.4
42
40
28
20
17.1
16.4
16.7
17.0
0
FY08
FY09
Public sector
FY10
FY11*
14
12.3
FY12* (April
- Dec)
Private sector
Public sector
8.6
FY12* (April
- Dec)
Private sector
Source: Ministry of Steel, Aranca Research,

Notes: FY - Indian Financial Year (April - March), MT - Million Tonnes, * - Provisional, CAGR - Compound Annual Growth Rate
Steel
MARCH
2013
Shares in production: SAIL and Tata

lead 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 steel
production
India crude steel market share by production - FY12* (Apr-Dec)
India finished steel market share by production - FY12* (Apr-Dec)
7.8%
9.9%
13.5%
18.7%
TATA Steel
SAIL
4.0%
RINL
67.1%
4.3%
TATA steel
SAIL
RINL
Other
Other
74.7%
Source: Ministry of Steel, Aranca Research,

Notes: RINL - Rashtriya Ispat Nigam Limited, *Provisional
Steel
MARCH
2013
Growth in market value of the Indian

steel 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
Market value of the Indian steel sector (USD billion)

60
55.1
50
46.8
38.6
40
32.9
Over 2006-11, market value of the sector is estimated

to have posted a strong CAGR of 19.3 per cent
30
22.8
25.5
2006
2007
20
10
0
2008
2009
2010
2011E
Source: Datamonitor, Aranca Research

Note: E - Estimates
Steel
MARCH
2013
Demand has outpaced supply over the

last 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 per
cent GDP growth as envisaged by the Draft Approach
Paper of the 12th Five Year Plan), demand for steel is
set to rise to 113.3 MT by FY17
Consumption of steel (in million tonnes)
66.4
70.9
59.3
46.8
FY07
52.1
51.9
FY08
FY09
FY10
FY11
FY12*
Source: Ministry of Steel, Indian Steel Markets Conference,

Aranca Research
Notes: FY12* - Data for FY12 is provisional, MT - Million Tonnes
10
Steel
MARCH
2013
A consequence of demand outpacing

supply has been rising imports
With demand growth for steel outpacing growth in

domestic production over the last few years, import
dependency has increased
Steel exports and imports (in MT)

8.0
Imports have increased at a CAGR of 6.8 per

cent over FY07-12
Total imports in FY12 stood at about 6.8 MT
6.8
6.8
5.8
6.0
5.0
7.4
7.0
7.0
4.9
5.2
5.1
4.4
3.5
4.0
4.0
3.3
3.0
2.0
1.0
FY07
FY08
FY09
Imports
FY10
FY11
FY12*
Exports
Source: Ministry of Steel, Aranca Research

Notes: FY - Indian Financial Year (April - March)
*Data for FY12 is provisional
11
Steel
MARCH
2013
Construction and infrastructure: Key

consumers 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 construction
and infrastructure activity in the country over
the past decade
Capital goods is the next largest consumer, with 11

per cent of total consumption
Sector-wise steel consumption shares (2010)

Construction &
Infrastructure
12%
Capital goods
3%
5%
Autos
8%
61%
11%
Packaging
Consumer
durables
Others
Source: Crisil, Aranca Research
12
Steel
MARCH
2013
Key players in the industry

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
13
Steel
MARCH
2013
Notable trends in the Indian steel

industry
SAIL has undertaken modernisation and expansion of its integrated steel plants
in Bhilai, Bokaro, Rourkela, Durgapur, Burnpur and Salem
Growing investments
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)

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
Strategic alliances
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
Attracted by the growth potential of the Indian steel industry, several global
steel players have been planning to enter the market
Entry of international
companies
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
14
Steel
MARCH
2013
Key steel plants in India

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)
RINL steel plant in

Vishakhapatnam
Source: Company websites, Aranca Research
15
Steel
MARCH
2013
Contents
Advantage India
Growth drivers
Opportunities
Useful information
16
Steel
MARCH
2013
Strong demand and policy support

driving investments
Growing demand
Policy support
Growing demand
in the construction
industry
Increasing investments
100 per cent FDI in

steel sector
Resulting
in
Inviting
Growing demand
in the automotives
sector
Rising investments
from domestic and
foreign players
Government is
encouraging R&D
activities in the
sector
Increase in number
of MoUs signed to
boost investment in
steel
Reduced custom
duty and other
favourable
measures
Foreign investment
of nearly USD40
billion committed in
the steel sector
Notes: FDI - Foreign Direct Investment
GROWTH DRIVERS
17
Steel
MARCH
2013
Construction & infrastructure and

automotives driving steel growth
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-Year
Plan (2012-17), as compared to USD428 billion in the
11th Plan
This increase in investment in infrastructure is set to
raise steel demand by roughly 40 MTPA from FY13 to
FY17
Projected values of investment in infrastructure (USD billion)

250
216.6
191.3
200
168.7
148.5
150
110.1
129.0
100
50
0
FY12
FY13
FY14
FY15
FY16
FY17
Source: Planning Commission, Aranca Research

Notes: MTPA - Million Tonnes per annum
GROWTH DRIVERS
18
Steel
MARCH
2013
Automotives leading sector in driving

steel growth
Automotives production expanded at a CAGR of 22.2

per cent over FY09-12
Total production of automobiles in India (million units)
Commercial vehicles are the fastest growing segment

with a CAGR of 29.8 per cent over the same period
30
35
25
20
15
10
5
0
FY09
FY10
Passenger vehicles
FY11
FY12
FY16E
FY21E
Commercial vehicles
Three wheelers & two wheelers
Source: SIAM, Aranca Research

Notes: E - estimate; FY - Indian Financial Year (April - March)
GROWTH DRIVERS
19
Steel
MARCH
2013
Policy support aiding growth in the steel

sector
In view of the changed dynamics of the sector both globally as well as
National Steel Policy

2012
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

A new scheme named The scheme for the promotion of R&D in the iron and
R&D and innovation
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
Foreign direct
investment
The government hiked the export duty on iron ore to 30 per cent ad-valorem on
all varieties of iron ore* (except pellets)

100 per cent FDI through the automatic route is allowed in the Indian steel sector
Notes: *w.e.f. 30th December 2011
GROWTH DRIVERS
20
Steel
MARCH
2013
Major initiatives taken by the Ministry

of Steel during the year
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 been
evolved 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 forthcoming
years is under finalisation

Notes: w.e.f - with effect from 30th December, 2011
GROWTH DRIVERS
21
Steel
MARCH
2013
Steel SEZs in India
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 Infrastructure

Development Corporation
Jajpur, Orissa
Metallurgical-based engineering and

ancillary/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
22
Steel
MARCH
2013
The sector witnessed rising investments

in the last decade
M&A scenario - details
Period: 1 January 2011 to 13 June 2012
Deal type
No of deals
Largest deal (USD million)
Inbound
Outbound
1.01
Domestic
474.4
Cumulative FDI inflows

Period: April 2000 to September 2012
Sector
Metallurgical industries
Per cent of total FDI inflow
USD6.7 billion
4.0
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
GROWTH DRIVERS
23
Steel
MARCH
2013
Planned capacity additions in different

states
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
SAIL
SAIL 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 integrated
steel plants at Bhilai, Bokaro, Rourkela, Durgapur, Burnpur and a special plant at Salem
NMDC
It is setting up a greenfield integrated steel plant of 3MTPA capacity in Nagarnar,

Chhattisgarh at an estimated cost of about USD3.2 billion
Source: Ministry of Steel, Annual report 2011-12,
Note: MTPA - Million Tonnes Per Annum, * - Estimated figures
GROWTH DRIVERS
24
Steel
MARCH
2013
Contents
Advantage India
Growth drivers
Opportunities
Useful information
25
Steel
MARCH
2013
TATA Steel: A compelling growth story

(1/3)
TATA Steel Limited
Projected crude steel capacity in the 12th Plan (million tonnes)
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)
25
Caters to - Automotive, Construction, Consumer goods,

Engineering, Packaging, Energy & Power, Ship Building, Rail,
and Defence and Security
15
20.0
20
17.5
15.1
11.0
9.2
10
6.8
Milestones
2009 - Tata Ryerson and HMPCL merge with Tata

Steel in 2009
2007 - Integration of Tata Steel and Corus was

accomplished at USD12 billion, making Tata Steel
one among the top ten steel producers globally
FY11
7.6
FY12
FY13
FY14
FY15
FY16
FY17
Source: Company website (www.tatasteel.com),

Planning Commission, Aranca Research
SUCCESS STORIES: TATA STEEL, JSW STEEL
26
Steel
MARCH
2013

(2/3)
Production and sales of steel division (million tonnes)

8
6.4 6.2
7
6
5
4.9 4.8
6.7
6.4
7.0
6.6
5.4 5.2
Financial growth (USD billion)

8
5.8
5.7
6
4.7
4.2
7.4
6.8
3
2
1
FY08
FY09
FY10
Production
FY11
FY12
Sales
0.9
1.0
1.1
1.1
1.4
1.4
FY07
FY08
FY09
NPAT
FY10
FY11
FY12
Gross revenue
Source: Company website (www.tatasteel.com), Aranca Research

Notes: NPAT - Net Profit After Tax
27
Steel
MARCH
2013

(3/3)
Developed
Developed products
products
Technological
upgradation
Iron making and

Iron making and
castings
castings
Capacity
expansion
(3 MT)
Diversification
(Coal injection
unit)
Alloy steel
Alloy steel
Wheel, tyre and
Wheel,
and
axle
plant tyre
(railways)
axle plant (railways)
FY12
USD7,445
million
turnover
Organic growth in
Steel
Pig iron and
1912
Production
capacity (1.6
Lakh tonnes)
steel ingots
M&A
(Tata-Corus)
FY06
USD3,625
million
turnover
Blast furnace
1994
1995
1996
1997
1998
1999
2000
2002
2004
2006
2008
2010
2011
2012
28
Steel
MARCH
2013
JSW Steel: Surging ahead on cost

competitiveness (1/3)
JSW Steel
Projected crude steel capacity in the 12th Plan (million tonnes)

20
Established in 1994, JSW Steel Ltd manufactures iron and steel

products in India and abroad
Products - Hot rolled coils, plates, and sheets; cold rolled coils
and 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 Award

instituted by CII
16
13.23
12
14.3
14.3
14.3
FY13
FY14
FY15
17.6
18.4
FY16
FY17
11.1
8
4
0
FY11
FY12
Source: Company website (www.jsw.in),

Planning Commission, Aranca Research
29
Steel
MARCH
2013

Product group-wise sales (in million tonnes)

4.5
4.0
3.5
3.0
2.5
2.0
1.5
1.0
0.5
0.0
4.3
Financial growth (in USD million)

8,000
3.1
7221
6,000
1.6 1.7
1.5
5228
4,053
4,000
2,631
1.1
2,000
0.3 0.4
1,937
269
Semis
Rolled Flats
FY11
Rolled Longs
Value Added
Flat
FY12
3,162
360
96
421
419
339
0
FY07
FY08
FY09
Gross revenue
FY10
FY11
FY12
NPAT
Source: Company website (www.jsw.in)
30
Steel
MARCH
2013

Hot rolled
Capacity addition
7.8 MT
rolledand
IronCold
making
castings
JV formed to
explore, develop
& mine iron ore
with MML
Wire rods
Alloy steel
FY 12
USD7,221
million
turnover
1994
ISO Accreditations
TMT rebars
Wheel,
tyre and
axle plant (railways)
Organic Growth
& Integration
Galvanised
1994
Production
capacity
(1.25 MTPA)
product
FY06
USD1,417
million
turnover
Special steel bars

1994
1995
1996
1997
1998
1999
2000
2002
2004
2006
2008
2010
2011
2012
Notes: JV - Joint Venture TMT - Thermo Mechanically Treated, MML - Mysore Minerals Limited MTPA - Million Tonnes Per Annum
31
Steel
MARCH
2013
Contents
Advantage India
Growth drivers
Opportunities
Useful information
32
Steel
MARCH
2013
Opportunities (1/2)
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 increase
infrastructure
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 private

airports expected to
be set up
Development of Tier-II
city airports will

sustain consumption
growth
The estimated steel
consumption in
airport building is
likely to grow more
than 20 per cent over
next few years
Notes: Capex - Capital Expenditure
OPPORTUNITIES
33
Steel
MARCH
2013
Opportunities (2/2)
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
Power
Pipeline network for
liquid fuel
transportation is
likely to grow from
the present 16,800 km
to 22,000 km in 2014
The government is
aiming to add 71,0001,07,500 MW of

capacity during the
12th Five Year Plan
Both generation and
This would lead to an
increase in demand
of steel tubes and
pipes and hence
provides a lucrative
opportunity to the
steel industry
transmission
capacities will be
enhanced, thereby
raising steel demand
from the sector
Source: Planning Commission, Aranca research
OPPORTUNITIES
34
Steel
MARCH
2013
Contents
Advantage India
Growth drivers
Opportunities
Useful information
35
Steel
MARCH
2013
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: nissda@gmail.com
USEFUL INFORMATION
36
Steel
MARCH
2013
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
37
Steel
MARCH
2013
Disclaimer
India Brand Equity Foundation (IBEF) engaged Aranca to

prepare this presentation and the same has been
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Steel March 220313

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Steel March 220313

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Steel

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For updated information, please visit www.ibef.org

Demand to be supported by growth

Infrastructure, oil & gas, and

Intended steel capacity build-up

301 MoUs have been signed with

India is the worlds fourth largest

100 per cent FDI through automatic

Large infrastructure projects in

National Steel Policy (NSP) to

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For updated information, please visit www.ibef.org

Evolution of the Indian steel sector

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SAIL was created in

Foreign players started

Notes: TISCO - Tata Iron and Steel Company,

Structure of the steel sector

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MARKET OVERVIEW AND TRENDS

Steel production in India has been

Total finished steel production (million tonnes)

Source: Ministry of Steel, Aranca Research,

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MARKET OVERVIEW AND TRENDS

Shares in production: SAIL and Tata

India crude steel market share by production - FY12* (Apr-Dec)

India finished steel market share by production - FY12* (Apr-Dec)

Source: Ministry of Steel, Aranca Research,

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MARKET OVERVIEW AND TRENDS

Growth in market value of the Indian

In 2011, the total market value of the steel sector in

The sector has benefitted from rise in prices

Market value of the Indian steel sector (USD billion)

Over 2006-11, market value of the sector is estimated

Source: Datamonitor, Aranca Research

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MARKET OVERVIEW AND TRENDS

Demand has outpaced supply over the

Total consumption of steel exceeded production and

Consumption of steel (in million tonnes)

Source: Ministry of Steel, Indian Steel Markets Conference,

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MARKET OVERVIEW AND TRENDS

A consequence of demand outpacing

With demand growth for steel outpacing growth in

Steel exports and imports (in MT)

Imports have increased at a CAGR of 6.8 per

Source: Ministry of Steel, Aranca Research

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MARKET OVERVIEW AND TRENDS

Construction and infrastructure: Key

Construction & infrastructure is the largest

This is not surprising given the heavy use of

Capital goods is the next largest consumer, with 11

Sector-wise steel consumption shares (2010)

Source: Crisil, Aranca Research

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