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An Overview of India's Growing Steel Industry.


DUBLIN, Ireland -- Research and Markets (http://www.researchandmarkets.com/reports/c44004) has announced the addition of Indian Steel Industry: An Analysis to their offering.

This report contains a detailed study of the Indian Steel Industry and its various segments. India occupied the eighth position in terms of worldwide crude steel output. India's per capita [Latin, By the heads or polls.] A term used in the Descent and Distribution of the estate of one who dies without a will. It means to share and share alike according to the number of individuals.  steel consumption is low at 30 kg compared to global standards for developed countries at 400 to 500 kg. The report employs Micheal Porters Five Forces Analysis model and also uses the PEST Analysis framework for analysis.

The report also profiles the leading firms of the industry namely Steel Authority of India (SAIL), Tata Steel, ESSAR Steel and JSW JSW Japan Steel Works
JSW Joint Space Width
JSW Joint Standoff Weapon
 Steel and also compares their competitive positioning. It also talks about the strategies adopted by these firms in detail. Moreover, the report includes a brief financial analysis to ascertain the performance of the competing firms. The report finally ends with a broad future outlook regarding the industry and its performance overall.

1. Introduction

1.1 Industry Definition

The Indian steel industry comprises producers of finished steel, semi-finished steel, stainless steel, stainless,
n a steel that contains a minimum of 12% chromium and approximately 0.5% carbon to resist corrosion.
 steel and pig iron. The private sector controls almost two-thirds of the steel market, while the public sector producers have the remaining one-third market share.

1.2 Industry Segments

The industry can be classified into the following categories:

Iron Ore

Pig Iron

Sponge Iron

Flat Steel

Long Steel

Alloy Steel

2. Market Dynamics

2.1 Market Overview

India occupied the eighth position in terms of worldwide crude steel output. India's per capita steel consumption is low at 30 kg compared to global standards for developed countries at 400 to 500 kg.

2.2 Market Trends

Low Per Capita Consumption

Rise of the Private Sector

Public Sector versus Private Sector

Gradual Industry Consolidation

2.3 Key Drivers

Huge Investment in Infrastructure

Booming Industrial Production

2.4 Major Issues and Implications

Rising Raw Material Prices

High Cost of Imported Coking Coal

Low R&D Expenditure

Inefficient Mining of Iron Ore

Demand-Supply Gap

3. PEST Analysis

3.1. Political Factors

Recommendations on Captive Mines

National Steel Policy to Remove Bottlenecks

3.2. Economic Factors

GDP GDP (guanosine diphosphate): see guanine.  Growth Rate

Reduction in Customs Duty

3.3. Social Factors

Rural-Urban Divide

Higher Disposable Income disposable income

Portion of an individual's income over which the recipient has complete discretion. To assess disposable income, it is necessary to determine total income, including not only wages and salaries, interest and dividend payments, and business profits, but also
 

3.4. Technological Factors

Popularity of Steel Portals

Application of SML 1. SML - Standard ML.
2. SML - Small Machine Language. Barnes, ICI 1969. Real-time language, an ALGOL variant, and the predecessor of RTL. "SML User's Guide", J.G.P. Barnes, ICI, TR JGPB/69/35 (1969).
 (Steel Markup Language)

4. Michael Porters Five Forces Analysis

4.1 Buyers' Power

Increasing Demand for Steel

Fragmented Coke Suppliers

4.2 Suppliers' Power

High Raw Material Prices

Lack of Captive Source Hurting Steel Producers

Lack of Transportation

Backward Integration Backward Integration

A form of vertical integration that involves the purchase of suppliers in order to reduce dependency.

Notes:
A good example would be if a bakery business bought a wheat farm in order to reduce the risk associated with the dependency on flour.
 

4.3 Intensity of Competition

Competition from Foreign Players

Spurt in Merger and Acquisition Activities

4.4 Threat of New Entrants

High Cost of Basic Inputs and Services

4.5 Threat of Substitutes

Use of Aluminum/Plastic

5. Competitive Landscape

The section profiles the top four players in the country namely Steel Authority of India (SAIL), Tata Steel, ESSAR Steel and JSW Steel

5.1 Competitive Positioning

Competitive positions have been compared based on:

Product Range

Production capacity

Capacity expansion plans

Production

Major Customers

Manufacturing Plants

Captive Mines

5.2 Competition Strategies

The section reflects the strategies adopted by SAIL, Tata Steel, ESSAR Steel and JSW Steel

5.3 Financial Analysis

5.3.1 Income Statement Analysis

The income statement analysis is based on revenues, net income and profitability ratios Profitability ratios

Ratios that focus on how well a firm is performing. Profit margins measure performance with relation to sales. Rate of return ratios measure performance relative to some measure of size of the investment.
 

5.3.2 Balance sheet Analysis

Analysis is done using of liquidity ratios, performance ratios and debt to equity ratios

5.4 Stock Performance

The section compares stock performance of SAIL, Tata Steel, ESSAR Steel and JSW Steel over a period of one year

6. Industry Outlook

The steel industry is in the growth phase. Indian steelmakers plan to increase annual steel production capacity to 81.4 million tonnes by FY10, larger than the domestic consumption forecast of 65 million.

Appendix I: International Conferences and Annual Meetings

Appendix II: Industry Associations and Organizations

Tables

Figures

Companies Profiled:

SAIL, Tata Steel, Essar Steel, JSW Steel, Indian Iron and Steel Company (IISCO IISCO Indian Iron and Steel Company ), Jindal Iron and Steel Company (JISCO JISCO Jindal Iron and Steel Company Ltd ), Jindal Vijayanagar Steel Limited (JVSL JVSL Jindal Vijayanagar Steel, Ltd. (India) ), ISPAT ISPAT Investment Support and Promotion Agency of Turkey , Bhushan Steels & Strips, Uttam Galva, Mukand, ISMT ISMT Indoor Simulated Marksmanship Trainer
ISMT Integrated System Maintenance Trainer
ISMT Information System Management Tool
 

For more information visit http://www.researchandmarkets.com/reports/c44004
COPYRIGHT 2006 Business Wire
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2006, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

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Publication:Business Wire
Date:Oct 24, 2006
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