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Industry Overview Steel is an alloy consisting mostly of iron, with aSteel is an alloy consisting mostly of iron, with a

carbon content between 0.2% and 2.14% bycarbon content between 0.2% and 2.14% byweight.weight.

India is the 10th largest steel producer in theIndia is the 10th largest steel producer in the

world, but with only a 2% share in the globalworld, but with only a 2% share in the globaltrade.trade.

SAIL and TATA Steel have traditionally been theSAIL and TATA Steel have traditionally been themajor steel producers of India.major steel producers of India.

Steel is mostly used for construction of bridges,Steel is mostly used for construction of bridges,buildings, automobiles production etc.buildings, automobiles production etc.

With the developing Indian economy steel isWith the developing Indian economy steel isdemanded more & more by many sectors.demanded more & more by many sectors.

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Market StructurePEST Analysis

Political

Political stability

Trade regulations

Tax policies such as import & export duties

Industrial safety and environmental regulations

Employment laws

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ContinuedEconomic

Inflation rate

Interest rates

Exchange rates

Labor costs

Government expenditure

Consumer spending

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ContinuedSocial

Consumer Behavior

Income Distribution

Living Standards

Health & Safety measures

Fashion & Lifestyle changes

Employment Opportunities

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ContinuedTechnological

Technological Developments

New Inventions

Automation

Information Technology

Infrastructure Development

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Recent Trend JINDAL Steel unit to set up 1600 MW Power Plant.

TATA Steel is in talks with Toyota to supply high-grade steel skin panels for the car maker'sproposed small car project.

Prices have been raised by 500 rupees ($10.4) to750 rupees per tonnes, based on marketconditions.

JSW Steel bags Golden Peacock for CSR initiatives.

ESSAR Steel sets up processing facility inChennais auto belt.

BHUSHAN Steel acquires 9.5% stake in OrissaSponge Iron & Steel.

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Continued

Tata Steel is about to launch Indias first organizedTata Steel is about to launch Indias first organizedsteel retail store selling steel with its first pilot storesteel retail store selling steel with its first pilot storeSteel Junction in Kolkata.Steel Junction in Kolkata.

Tata Steel hopes that Steel Junction would be aTata Steel hopes that Steel Junction would be a

platform that would bring together vendors &platform that would bring together vendors &manufacturers.manufacturers.

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Indian Steel Industry- Major Players

SAIL

22%Others

40%

RINL

7%

Tata Steel

9%

Essar8%Ispat

6%

JSWL

8%

Company 08-09

(MT)

SAIL 9.15

Tata Steel 3.8

RINL 3.0

ESSAR 3.3

ISPAT 2.6

JSWL 3.5

OTHERS 17.2

Total 42.7

Finished Steel Production 2008-09

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SWOT AnalysisStrengths

1. Availability of iron ore andcoal2. Low labour wage rates

3. Abundance of qualitymanpower4. Mature production base

Weaknesses

1. Unscientific mining2. Coking coal import dependence3. Low R&D investment

4. Inadequate infrastructure

Opportunities

1. Unexplored rural market2. Growing domestic demand3. Exports4. Consolidation

Threats

1. China becoming net exporter2. Protectionism in the West3. Dumping by competitors4. Global economic slowdown

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Conclusion Indian Government targets to increase the

production capacity from 56 million tonnesannually to 124 million tonnes by 2011-2012.

Numerous steel companies are willing to invest inthe Indian Steel Industry.

As per Investment Commission of India more than30 billion USD are in the pipeline for investment

over the next five years.

With an expanding consumer market, the IndianSteel Industry is likely to receive huge domestic &foreign investments.