Steel Industry in India

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India Industry Latest News And Updates

Tata Steel posts Rs.3,926 crore loss for 2014-15
May 21, 2015 10:25 AM
Tata Group-owned Tata Steel on Wednesday said that under global subdued demand in steel consuming industries and increasing steel imports from China, it has incurred a consolidated loss of Rs.3,926 crores in 2014-15 compared to a profit of Rs.3,596 crore in 2013-14. Even as its net consolidated revenues declined by 6.1 percent at Rs.139,504 crore during the period under review against Rs.148,614 crore in 2013-14, steel deliveries also fell marginally to 26.32 million tonnes during 2014-15 against 26.56 million tonnes in 2013-14. "It has been a very challenging year for the steel industry with several macro headwinds at play. Steel realisations fell sharply during the second half of the year due to the deluge of imports combined with sluggish domestic demand. In addition, our performance was impacted by mining disruptions during the year," managing director T.V. Narendran said in a statement. Source: IANS
Modi opens India's largest blast furnace plant
May 11, 2015 10:22 AM
Prime minister Narendra Modi on Sunday inaugurated in Burnpur the upgraded steel plant of IISCO that has the country's largest blast furnace and has been modernised at a cost of Rs.16,000 crore. After modernisation, the plant's production capacity has increased from 0.85 million tonnes per annum (mtpa) to 2.9 mtpa. "This steel plant has been reborn and has the nation's largest blast furnace with a capacity to produce 2.9 million tonnes of steel. In times to come, the capacity of this steel plant will be increased," Minister of Steel Narendra Singh Tomar said during the plant's inauguration. Source: IANS

India is the fifth largest producer of steel in the world. India Steel Industry has grown by leaps and bounds, especially in recent times with Indian firms buying steel companies overseas. The scope for steel industry is huge and industry estimates indicate that the industry will continue will to grow reasonably in the coming years with huge demands for stainless steel in the construction of new airports and metro rail projects. The government is planning a massive enhancement of the steel production capacity of India with the modernization of the existing steel plants.

Industry Statistics

Government targets to increase the production capacity from 56 million tones annually to 124 MT in the first phase which will come to an end by 2011 - 12. Currently with a production of 56 million tones India accounts for over 7% of the total steel produced globally, while it accounts to about 5% of global steel consumption. The steel sector in India grew by 5.3% in May 2009. Globally India is the only country to post a positive overall growth in the production of crude steel at 1.01% for the period of January - March in 2009.

Export

About 50% of the steel produced in India is exported. India's export of steel during April - December 2008 was 64.4 MT as against 9.7 MT in December 2007. In February 2009, steel export increased by 17% to 12.6 MT from 10.8 MT in the same month last year. More than 50% of steel from India is exported to China. The Government's decision to reduce export duty on iron ore lumps from 15% to 5% has given a major boost to the export of steel.

Hurdles

Power shortage hampers the production of steel
Use of outdated process for production
Lags behind in the production of stainless steel
Deficiency of raw materials required by the industry
Labor productivity is low. It is 144 tons per worker per year against 600 tons in Western Europe as per estimates.

Inadequate shipment capacity and transport structure
Strengths

There are many strong points of the industry that makes it one of the leading names in the global steel industry. The rate of labor wage in India is among one of the lowest in the world thereby making large scale production feasible. The boom witnessed in the automobile industry has ensured that the demand for steel is increasing gradually and will continue to do so in the near future. There is huge manpower in India which is another reason why steel production in India is high and the industry is doing pretty well both nationally and internationally.

Investments

Numerous steel companies some major projects in the pipeline to invest in India Steel industry. Steel companies have earmarked more than 100 million USD for the setting up of sponge iron units in Koppal and Bellary in Karnataka. As per Investment Commission of India more than 30 billion USD are in the pipeline for investment over the next five years.

Map showing Steel Industry

India steel industry
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Last Updated on June 25, 2015