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The steel industry in India has been moving from strength to strength
and according to the Annual Report 2009-10 by the Ministry of
Steel, India has emerged as the fifth largest producer of steel in the
world and is likely to become the second largest producer of crude steel by 2015-16.

Led by strong demand for autos and engineering services, the domestic steel demand in India
remains robust, as per Moody's sectoral analysis on Asia's steel sector. According to the analysis,
the outlook for the domestic operating environment is positive, driven by robust growth in
infrastructure, autos and construction and constrains on additional supply by 2011.

Recently, Mr Virbhadra Singh, Minister for Steel, said that India will become the world's
second-largest steel producer by 2012, with a capacity of 124 million tonnes (MT) as part of the
push being given to assist overall infrastructure development.

 

India's steel production during 2009-10 was 64.88 million tonne (MT), up 11 per cent from a
year ago, according to Mr A Sai Pratap, Minister of State for Steel.

During the second quarter ended September 2010, steel majors Tata Steel and Steel Authority of
India Ltd (SAIL) reported a high growth in steel sales. SAIL registered sales of 3.17 MT in the
period under review, while Tata Steel's total sales for the quarter stood at 1.66 MT which is
around 14 per cent higher than the corresponding quarter last year.

Meanwhile, JSW Steel's production during the quarter grew by 8 per cent to 3.14 MT on the
back of a steady rise in demand.

 

The domestic steel consumption grew by 9.8 per cent to 29.82 MT during April-September 2010
over the year-ago period, on the back of steady demand from sectors like automobile and
consumer durables. As per the provisional data from the Ministry of Steel, consumption was at
27.15 MT in the same period a year ago. In September 2010, steel consumption rose 4.1 per cent
to 4.72 MT, against 4.53 MT in the year-ago period.
  

A host of steel companies have lined up major investment proposals. Furthermore, with an
expanding consumer market, the Indian steel industry is likely to receive huge domestic and
foreign investments.

The domestic steel sector has attracted a staggering investment of about US$ 238 billion,
according to Mr A Sai Prathap, Minister of State for Steel. This consists of nearly 222 MoUs
signed between the investors and various state governments mostly in the states of Orissa,
Jharkhand, Chhattisgarh and West Bengal.

Tata Steel plans to invest US$ 226.17 million to commission its proposed ferroalloys plant and
bar mill at its industrial park at Gopalpur and a greenfield steel plant at Kalinga Nagar.

Essar Steel plans to expand its exclusive steel showrooms, Hypermart and retail outlet,
Expressmart in Madhya Pradesh.

JSW Steel plans to invest US$ 17 billion over the next 10 years to ramp up capacity from 7.8
million tonne per annum (MTPA) to 32 mtpa through greenfield and brownfield projects.

Jindal Steel has completed the acquisition of Oman-based Shadeed Iron and Steel Co LLC for
US$ 464 million.

Japan's Nippon Steel will begin a manufacturing operation in India making steel pipes for use in
automobiles and plans to invest US$ 37 million on production and sales operations.

   

As per the Press Information Bureau (PIB), during 2009, the government took a number of fiscal
and administrative steps to contain steel prices. Central value added tax (CENVAT) on steel
items was reduced from 14 per cent to 10 per cent with effect from February 2009.

Moreover, in the Union Budget 2010-11, the government has allocated US$ 37.4 billion to the
infrastructure sector and has increased the allocation for road transport by 13 per cent to US$ 4.3
billion which will further promote the steel industry.

Exchange rate used: 1 USD = 42.21 INR (as on October 2010)

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Salem Steel Plant at Tamil Nadu

Bhilai Steel Plant at Chattisgarh
Durgapur Steel Plant at West Bengal
Alloy Steel Plants at West Bengal
Visvesvaraya Iron and Steel Plant in Karnataka
Rourkela Steel Plant at Orissa
Bokaro Steel Plant at Jharkhand


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Ö c  !  (Öc) (BSE: 532286) is the

most valuable private steel producer in India, with an annual
turnover of over US $2.1 billion (Rs. 10,000 crore), Jindal
Steel & Power Limited (JSPL) forms a part of the US $12
billion (over Rs. 60,000 crore) Jindal Group. JSPL is a leading
player in Steel, Power, Mining, Oil & Gas and Infrastructure. Mr. Naveen Jindal, the youngest
son of the late Shri. O P Jindal, drives JSPL and its group companies Jindal Power Ltd, Jindal
Petroleum Ltd., Jindal Cement Ltd. and Jindal Steel Bolivia. The company professes a belief in
the concept of self-sufficiency. The company produces steel and power through backward
integration from its own captive coal and iron-ore mines.

However, in terms of tonnage, it is the third largest steel producer in India. The company
manufactures and sells sponge iron, mild steel slabs, ferro chrome, iron ore, mild steel, structural,
hot rolled plates and coils and coal based sponge iron plant. The company is also involved in
power generation.

Jindal Steel and Power is a part of the Ö , founded by O. P. Jindal (1930±2005). In
1969, he started V
    
    , one of the earlier incarnations of his business
empire. After Jindal's death in 2005, much of his assets were transferred to his wife, Savitri
Jindal. Jindal Group's management was then split among his four sons with Naveen Jindal as the
Managing Director of Jindal Steel and Power Limited. His elder brother, Sajjan Jindal, is
currently the head of ASSOCHAM, an influential body of the chambers of commerce, and the
head of JSW Group, part of O.P. Jindal Group.

On June 3, 2006, Bolivia granted development rights for one of the world's largest iron ore
reserves in the El Mutún region to Jindal Steel. With an initial investment of US$ 1.5 billion, the
company plans to invest an additional US$ 2.1 billion over the next eight years in the South
American country.

Savitri Jindal, the widow of O. P. Jindal, is ranked as the 19th richest Indian person according to
Forbes.
The Jindal family established Vidya Devi Jindal School, a residential school for girls in Hisar,
India, in 1984. Although not marketed as such, it is widely known to cater to the wealthy through
its private location and remarkable array of activities. The school's student body comprises girls
from affluent business and political families of India.
STOCK POSITION OF JINDAL STEEL AS A WHOLE-