IRON AND STEEL

INDUSTRY
PARVATHY C SUBRAMANIAN
MEENU MUKUNDAN
NASEEF.C.P
INTRODUCTION

The iron and steel industry is one of the most important

industry in India.
 India is the second largest producer of raw steel and
largest producer of sponge iron.
 Most iron and steel in India is produced from iron ore.
 The Indian Ministry of Steel concerned with the
coordination and planning of the growth and development
of Iron and Steel Industry.
 Most of the public sector under takings market their steel
through the Steel Authority of India Limited(SAIL).
IRON AND STEEL PLANTS
 Mini steel plants are small, have electric furnaces, used steel
scraps and sponge iron. There are around 650 mini steel
plants in India.
eg: ISPAT, Lloyds Steel, ESSAR steel
 Integrated steel plants are large, handle everything in one
complex from putting together raw material to steel making,
rolling and shaping.
eg: Tata Iron and Steel Company(TISCO), SAIL
IMPORTANCE
Iron and steel industry forms backbone of the economy. It is
important because it provides base for all other industry.
 The level of per capita consumption of steel is treated as one
of the important indicator of socio-economic development
and living standard of the people in any country.
 Competitive steel companies generate employment, export
earnings, tax revenues and innovations.
 It is one of the fastest growing sector and most important
components required for the infrastructure development in
the country.
▪ It contributes around 2% of the Gross Domestic Product.
▪ Easy availability of low cost manpower and presence of
abundant iron ore reserves make India competitive in the
global setup.
NATIONAL STEEL POLICY 2017

The new steel policy enshrines the long term vision of the
government to give impetus to the steel sector. It seeks to
enhance domestic steel consumption and ensure high
quality steel production and create a technologically
advanced and globally competitive steel industry.
KEY FEATURES OF NSP

 Create self sufficiency in steel production by providing

policy support and guidance.
 Cost-efficient production.
 Development of globally competitive steel manufacturing
capabilities.
 Enhancing domestic steel demand.
 Facilitating foreign investment.
STRENGTHS
 Abundance of iron ore and coal.
 Fourth largest iron ore reserves.
 Third largest pool of technical man power.
 Low unit labour cost.
 Developed transportation and shipping system.
WEAKNESS
 High cost of capital, basic inputs and services.
 Quality issues and less expenditure on R&D.
 Inability to adopt technological advancement.
 High cost of manufacturing.
 High rate of taxes.
 Limited access of domestic producers to good quality of
iron ores which are normally earmarked for exports.
OPPORTUNITIES
 Unexplored rural market and other sectors.
 Export penetration and increase in demand.
 Huge infrastructure demand.
 Increasing interest of foreign steel producers in India.
 Rapid urbanisation.
THREATS
 Slow industrial growth.
 China factor : dumbing of low price steel.
 Inability to tune production in line with the market
demand fluctuations.
 Threats of substitutes like plastic, aluminium etc…
 Technological changes.
SUGGESTIONS
 Improvement and upgradation of technologies.
 Diversification of production.
 Adoption of efficient management of public sector steel
units.
 Arrangement of proper training for workers.
 Development of small factories.
CONCLUSION
Today iron and steel industry operate high level business
complexity. Today there is need that they eliminate all
unnecessary complexity and segregate their focus on
selected products and markets to achieve as in many other
industries.
THANK YOU !