The document provides an overview of the Indian steel industry. It discusses that India is currently the 7th largest producer of crude steel globally. It notes that steel production and consumption in India has grown significantly from 1992 to 2008. The per capita steel consumption in India is still lower than global and developed country averages. The document also includes forecasts for future steel production growth in India and compares projections between major steel companies. It analyzes sales trends in the steel industry and major consuming sectors. Finally, it outlines the different strategies used by major players in the industry, with market leaders focusing on maintaining market share and challengers looking to increase share through acquisitions.
Copyright:
Attribution Non-Commercial (BY-NC)
Available Formats
Download as PPTX, PDF, TXT or read online from Scribd
The document provides an overview of the Indian steel industry. It discusses that India is currently the 7th largest producer of crude steel globally. It notes that steel production and consumption in India has grown significantly from 1992 to 2008. The per capita steel consumption in India is still lower than global and developed country averages. The document also includes forecasts for future steel production growth in India and compares projections between major steel companies. It analyzes sales trends in the steel industry and major consuming sectors. Finally, it outlines the different strategies used by major players in the industry, with market leaders focusing on maintaining market share and challengers looking to increase share through acquisitions.
Original Description:
A present on overall Key Aspects of Indian Steel Industry.
The document provides an overview of the Indian steel industry. It discusses that India is currently the 7th largest producer of crude steel globally. It notes that steel production and consumption in India has grown significantly from 1992 to 2008. The per capita steel consumption in India is still lower than global and developed country averages. The document also includes forecasts for future steel production growth in India and compares projections between major steel companies. It analyzes sales trends in the steel industry and major consuming sectors. Finally, it outlines the different strategies used by major players in the industry, with market leaders focusing on maintaining market share and challengers looking to increase share through acquisitions.
Copyright:
Attribution Non-Commercial (BY-NC)
Available Formats
Download as PPTX, PDF, TXT or read online from Scribd
The document provides an overview of the Indian steel industry. It discusses that India is currently the 7th largest producer of crude steel globally. It notes that steel production and consumption in India has grown significantly from 1992 to 2008. The per capita steel consumption in India is still lower than global and developed country averages. The document also includes forecasts for future steel production growth in India and compares projections between major steel companies. It analyzes sales trends in the steel industry and major consuming sectors. Finally, it outlines the different strategies used by major players in the industry, with market leaders focusing on maintaining market share and challengers looking to increase share through acquisitions.
Copyright:
Attribution Non-Commercial (BY-NC)
Available Formats
Download as PPTX, PDF, TXT or read online from Scribd
Download as pptx, pdf, or txt
You are on page 1/ 20
Indian Steel
Industry International School of Business & Media; Kolkata
5 Conclusion ndian Steel Industry Today India is in seventh position among all the crude steel producing countries
In 1992, India produced 14.33 million tones of finished carbon steels
and 1.59 million tones of pig iron. In 2008, India produced nearly 46.575 million tones of finished steels and 4.393 million tones of pig iron.
In 1992, the total consumption of finished steel was 14.84 million tones. In 2008, the total amount of domestic steel consumption was 43.925 million tones.
Steel production in India has increased by a compounded annual growth rate (CAGR) of 8 percent over the period 2002-03 to 2006-07. The per capita consumption of steel in India, at around 46 kg, is well below the world average (150 kg) and that of developed countries (400 kg). Indian demand is projected to rise to 200 million tones by 2015.
While steel continues to have a stronghold in traditional sectors such as construction,
housing and ground transportation, special steels are increasingly used in engineering industries such as power generation, petrochemicals and fertilizers. Industry Forecast
Source: IAS, CMIE
Industry Forecast
Source: IAS, CMIE
Production Forecast : Market Leader vs Market Challanger
Source: IAS, CMIE
Production Forecast : Market Leader vs Market Challanger SAIL
•The actual steel production of SAIL is varrying at a
higher rate than of the TATA STEEL •3 Yr & 5 Yr moving average of SAIL is showing almost same forecast. •Being a market leader SAIL is having much more production than of TATA STEEL.
TATA STEEL
• The actual production of TATA STEEL is growting
maintaining a constant growth rate and the fluctuation in production is less. •As compare to SAIL, TATA STEEL is having lower production volume . •In last two years i.e. 2008 & 2009 TATA STELL has managed to reduce the production gap with SAIL by maintaing a constant growth in their production. arket Share Analysis : 2007 - 2009
Source: IAS, CMIE
arket Share Analysis : 2007 - 2009
Assumption: We are assuming that these are the major steel manufacturing companies in India.
1.There is a slight fall down in the market
share of SAIL in recent years. 2.TATA STEEL is maintaing a constant market share and in recent years there is a slight growth in their overall market share. 3.Essar Steel faced a slight decline in their market share in 2009. 4.JSW Steel maintained a huge growth in 2008 market share but again in 2009 it falled down. Steel Industry & Major Consumers of Steel : Trends
Source: IAS, CMIE
Steel Industry & Major Consumers of Steel : Trends
1.The chart shows the co-relation between the YOY growth
of Steel and Various products of steel. 2. 3.For all the areas the co-relation is +ve which means that the steel production and the productions of steel dependent items have a very significant relationship. 4. 5.Hydro turbine, AC Generators and Automobile Industry is very highly co-related ( Value > 0.5) with steel production. In other words more we produce steel more is the scope of growth of these industries. SALES TREND ANALYSIS Steel Industry & Major Consumers of Steel : Trends
Source: IAS, CMIE
Steel Industry & Major Consumers of Steel : Trends
Source: IAS, CMIE
SALES STRATEGIES Strategies : Market Leader vs Market Challang
SAIL TATA STEEL
( Market Leader ) ( Market Challenger )
Hold its market share Increase market share to become the leader IL : Defensive Strategy Colaborati on with Posco , South Korea
Leveraging Producing marketing various network grades of auto steel .
SAIL
Plan value added Increase items in Cost the Competetiv product eness basket TA STEEL : Offensive Strategy Acquisitio n of Millennium Steel , Thailand in 2005
Accuisitio n of Corus TATA in 2007 STEEL
Acquisitio n of NatSteel , Singapore in 2004 . Conclusi on
qFrom the over all analysis of strategies we can
see that the market leader always try to defend its own position and market share. q qThe main objective of all the activities they perform is to be there in the market with their existing position.
qOn the other hand the market challenger always
try to increase the market share. The main thing they try to do is to get into various mergers and acquisitions so that they can create a strong industry base with the other existing players. THANK YOU!
