Steel industry
- 1. STEEL INDUSTRY PRESENTATION BY Pradeepthi Premanvi Vinay Sandeep Sai Krishna Shaik Shagufta Sai keerthi YashwanthVamshi GandrathiVamshiKrishna Kruthika Akhil Praveen
- 2. WHAT IS AN INDUSTRY??? Industry refers to an economic activity that is concerned with production of goods, extraction of minerals or the provision of services. Thus we have Iron and steel industry (production of goods), coal mining industry (extraction of coal) and tourism industry (service provider).
- 4. INTRODUCTION : Iron and Steel is a basic industry whose products are used as raw material for other industries. Manufacturing of steel
- 5. ✓According to historians and archaeologists, India was the first country to practice manufacturing metals, as early as 1600BCE. EARLYATTEMPTS: ➢1. Mr Duncan of East India company in 1808. ➢2. Josiah Marshall Heath at Porto Novo, Madras in 1830. ➢3. James Erskine in the jungles of kulti in 1870. ORIGININ INDIA: ➢ Tata iron and steel company (TISCO) in 1907. ➢ Indian iron and steel company (IISCO) in 1923. ➢ After Independence 3 big companies established: 1)Rourkela steel plant in Odissa. 2)Durgapur steel plant in West Bengal. 3)Bokaro steel plant in Bihar. ✓In 1973 Steel Authority of India Limited(SAIL) was launched.
- 6. STEEL is often called “THE BACKBONE OF MODERN INDUSTRY”
- 7. ROLE OF STEEL INDUSTRY ➢The steel industry’s products play a crucial role in the development of the sustainable society. ➢Competitive steel companies generate employment, export earnings, tax revenues and innovations. ➢ Production and consumption of steel can be directly linked to the socio- economic development of a country. ➢India’s crude steel consumptionrose from 22 million tonne in 1990 to 105 million tonne in 2018
- 8. ➢The steel industry generates prosperity and welfare ➢At present, Sweden’s steel industry employs about 26 000 persons in Sweden; partly in the steel companies themselves and partly in different supplier companies. ➢India is the third largest finished steel consumer in the world and is likely to surpass US to become the second largest in 2019.
- 9. Strengthening competitiveness is vital ➢The steel industry has to compete in a global marketplace. In this context, Swedish steel companies are world leaders within several different market niches with their advanced steels, but the competition is intense nonetheless. ➢A number of different factors affect the competitive position of the steel companies. ➢Input goods such as iron ore, scrap metal, alloying elements and energy must all be available on favourable terms and at competitive prices. ➢The operating conditions for the steel companies including taxes and charges, the availability of researchers and highly educated personnel etc must be comparable with those of their competitors.
- 10. Arcelor mittal is a mulitnational steel manufacturing company formed in 2006. The HQ of ArcelorMittal is in Luxembourg City, Luxembourg
- 11. ARCELOR MITTAL ARCELOR MITTAL Lakshmi Mittal (owner of Mittal Steel) is the chairman and CEO. His family owns 40% of the shares and voting shares in the company. After a $3 billion rights issue earlier in April 2016, the company by 21 April 2016 had a share value of 16,616 million euros, distributed in 3,065,710,869 sharesAnnual revenue: $53.3B
- 12. TAG LINE:TRANSFORMINGTOMMOROW LOGO: PRODUCTION: >The company is involvedin researchand development,mining, and steel.ArcelorMittalin 2016 produced around 90 milliontons of steel. EMPLOYMENT: Employees in 2020 were 2,80,000. As of 2012,the company had thousands of workers at 12 major facilities inthe United States, in states such as Indiana, Ohio and Pennsylvania.
- 13. STRENGTHS- 1.Expertise in acquisition& turnaround 2. Security of supply of raw material 3. Strong Research &Development team 4. Worldwide reach to optimize service across the company etc.. Weaknesses: 1. Dependence on subsidiaryto meet obligations 2. Cost of environmentalha OPPURTUNITIES: I.Continue investment in miningoperations 2. Acquisitionsand joint ventures in developing countries like India and China THREATS: 1.Government and environment regulations 2.Cost price squeeze SWOT ANALYSIS:
- 14. SALES: ✓In 2019, ArcelorMittal had revenues of U.S.$70.6 billion and crude steel production of 89.8 million metric tonnes, while iron ore production reached 57.1 million metric tonnes____________ EXPORTS: The company’s steel product sales totally exported 4.5 million tonnes in 2018,of which just 22% was sold domestically,the report showed. Steel shipments in 2019 totalled84.5million tonnes______________ IMPORTS:ArcelorMittal has welcomed the Mexican government's decision to further extend a 15% tariff imposedon imports of certain steel goods_________
- 15. MISSION STATEMENT:To deliver sustainableshareholder value by driving high performance, world-class, cost competitive assets capable of delivering value in all market conditions and achieving superior results through : Reliable and safe management of assets Sustainable development Effective supply of raw materials to customers. Vision statement : TRANSFORMING TOMMOROW______ To be leaders in providing recreationand learning facilities and opportunities which promote stakeholder wellness.
- 16. STRATEGY: The strategy is designed to maintain the position as the world’s leading steel and mining company for the long-term, enabling to deliver value to shareholders and all stakeholders through the cycle in a rapidly changing world. COMPETITORS: The top 10 competitors in Arcelor Mittal's competitive set are Tata Steel, U. S. Steel, Nucor, Voestalpine,POSCO, SAIL, Baosteel, JSW, Jindal Steel, AK Steel, Timken Steel , BHP, Exxaro , British Steel and Micom Systems.
- 17. • Nippon Steel Corporationwas formed in 2012 by the merger of the old NipponSteel and Sumitomo Metal. • The old NipponSteel Corporationwas established in 1970. • Nipponsteel Corporation is the third largest steel maker in the world. • Nipponsteel was created by the merger of two giants, yawatairon &steel &fuji iron and steel.
- 18. • Eiji Hashimoto,president of Nipponsteel corporation TAG LINE : “in the leading edge” Nipponsteel Head quarters: • Chiyoda • Tokyo Awards: • Fray International SustainabilityAward • Derwent to 100 global innovator2021 award
- 19. Products: • Steel plate, steel sheets, structural steel, pipes &tubes, titanium, StainlessSteel. • Production : • In 2019, the japanese steel producer Nippon Steel Cooperation earned approximately 5.92 trillion Japanese yen of revenues, down from about 6.18 trillion yen in the previous fiscal year. • By May 2020, NipponSteel has announcedthat it would suspend operationsof four furnaces, of which one for permanently, as it booked an annualloss in FY 2019. NipponSteel's employees: • Nippon Steel Corporationemployed about 83 thousand people In 2012 fiscal year. • In fiscal year 2019, The Employees of Nipponsteel corporation employed approximately106.6 thousandpeople.
- 20. Vision Create innovative steel products and processesthat surpass our customersneeds today and for the future. Mission Our NipponSteel team creates innovative,high qualitysteel solutionsfor our customers in a safe, responsible and profitablemanner.
- 21. Environmental record • In 2005 the Nippon Steel corporation made a plan to step up its capacity for recycling waste plastics into coke by 30%. • Coke is main resource in steel production to manage the load they have invested 4billion to install equipment at oita mill&set up second furnace at Kyushu facility.
- 22. SWOT analysis Strengths : 1. Best product line up in industry 2. Robust financial growth 3. Highly advanced research and development and Technological competitiveness 4. Employee strength of nearly 60,000 people 5. One of the top 5 producers of steel in the world Weaknesses : 1. Dependence on Japanese markets and limited global penetration 2. Increasing Raw material prices affected operations
- 23. Oppertunites : 1. Increase capacity and operations 2. Mergers & Acquisitions in Asia 3. Global tie-ups and alliances to increase global operations Threats: 1. Production of less no. of automobiles 2. Rising costs of coking coal & iron ore 3. Natural disasters and calamities Competitors : The top 4 Nippon Steel competitors: 1. JFE holding 2. POSCO 3. Baoshan Iron & Steel Co 4. Arcelor Mittal
- 24. DOMESTIC SCENARIO: • The Indian steel industry has entered into a new development stage, post de regulation,ridinghigh on the resurgenteconomy and risingdemand for steel. Rapid rise in production has resulted in India becoming the 2nd largestproducer of crude steel during 2018 and 2019,from its 3rd largest status in 2017.The country was also the largestproducer of Sponge Iron or DRI in the worldand the 2nd largest finishedsteel consumer in the world after China & USAin 2019,based on rankings released by the World Steel Association. • In a de-regulated, liberalizedeconomic/marketscenariolike India the Government's role is that of a facilitator whichlays down the policy guidelines and establishes the institutional mechanism/structurefor creating conducive environmentfor improvingefficiency and performanceof the steel sector.
- 25. • Tata Steel ltd-Foundedby Jamsetji Tataandestablishedby Dorabji 1.Tata Steel Limited is an Indian multinational steel-makingcompany based in Jamshedpur, Jharkhand, and is headquartered in Mumbai, Maharashtra,India. It is a subsidiary of the Tata Group. 2.Formerly knownas Tata Iron and Steel Company Limited (TISCO), Tata Steel is among the top steel producing companies in the world with an annual crude steel capacity of 34 milliontonnes per annum. It is one of the world's most geographically-diversifiedsteel producers,with operations and commercial presence across the world. 3.Tata Steel operates in 26 countries with key operations in India, Netherlands and United Kingdom,and employs around 80,500 people. Its largestplant (10 MTPA capacity) is located in Jamshedpur, Jharkhand. In 2007,Tata Steel acquired the UK- based steel maker Corus. It was ranked 486thin the 2014 Fortune Global 500 ranking of the world's biggest corporations.Itwas the seventh most valuable Indian brand of 2013 accordingto Brand Finance.[
- 26. • Iron and Steel Company Limited-Foundedby Jamsetji Tata and establishedby Dorabji Tata • CEO: T.V.Narendran TAGLINE: "Values stronger than steel.“ LOGO: VISION STATEMENT: We aspireto be the global steel industry benchmark for Value Creation and Corporate Citizenship
- 27. • MISSION STATEMENT: Consistentwith the vision and values of the founder,Tata Steel strives to strengthen India's industrial base through the effective utilisation of staff and materials. START-UP YEAR: 25 August,1907 LOCATION: The headquarters of Tata Steel limited is in Mumbai, Maharashtra.
- 28. STRENGTHS: 1.Market position 2.Diversified product profile 3.Global footprint 4.Trust of Tata 5.Adaptability of companyin the fast changing environment 6.Low cost and effective labour forces WEAKNESSES: 1.Over dependence on Europe 2.Disintegratedoperations in Europe 3.Mistry fiasco has hurt the image OPPURTUNITIES 1.Increasing demand for steel in India 2.Adapt newer technologies 3.Growing manufacturing, construction and automotiveindustry around the world THREATS: 1.Intense competition2.Governmentand environmental regulations3.Decreasingglobal steel prices
- 29. • PRODUCTION:-Companyhas several downstream product extensions with manufacturingfacilities for wires,tubes. • Currently,Tata Steel's consolidatedIndia crude steel production capacity stands at 19.6 MnTPA with manufacturingfacilities inJamshedpur inJharkhand, Kalinganagar andDhenkanal in Odisha, Sahibabad in UttarPradeshand Khopoli in Maharashtra. • SALES:-Thesales volume of the Steel divisionof Tata Steel limitedamounted to over 12.3 millionmetrictons in 2020.,bearings,agricultural equipments and much more EXPORTS: ■ Developednew market in China. ■ Increased exports to the neighboring countries by more than 82% compared to last year .■ Enhanced exports of value added products like tinplate by almost70% over last year. IMPORTS:• Increased waste reuse and recyclingAnnual production had reached at 5000 thousands ton per year• Annual income reached at 4000 Corrore Rupees..
- 30. • EMPLOYMENT:- • During 2020,the number of permanent employees was over 32 thousand.-Company spent over 2.5 billion Indian rupees for employees training and development. • COMPETITORS:- • The major competitors of Tata Steel include Arcelor Mittal,Essar Steel,Jindal Steel,JSW Steel, Nippon Steel, SAIL and VISA Steel. •STRATEGY: • Strategyat Tata Steel is driven by continuousefforts to stayalert to changingmarket requirementsand to respond throughinitiativesthat drives change.
- 31. VIZAG STEEL • Visakhapatnam Steel Plant, popularly known as Vizag Steel is one of the major steel producers in India . • Founded in 1971,Kurupam Zamindras donated 6000 acres of land for Vizag Steel Plant.22000 acres of land were acquired for 68 Villages. • 1992 Vizag steel plant is Inaguared by P.V.Narasimha Rao. • The plant focuses on producing value-added steel, with 214,000 tonnes produced in August 2010, out of 252,000 tonnes total of saleable steel produced. • Expenditure for the financial year 2009-10 Rs 1840 Crores.
- 32. • On 20 May 2009, Prime Minister Manmohan Singh launched the expansion project of Visakhapatnam Steel Plant from a capacity of 3.6 MT to 6.3 MT per annum with a total investment of Rs.12,300 crore. • 2015, The company has planned to expand its production capacity further by one more MTPA which requires an investmentof Rs.4,500 crore. • RINL, a Navratna PSE, is the corporate entity of Visakhapatnam Steel Plant- the country’s first shore- based integrated with current production capacity of 7.3 MTPA liquid steel at Visakhapatnam. • P.V. Sindhu is Brand Ambassedorof Vizag Steel Plant. • Chairman of Vizag steel is “P.K.Rath”from 1st June 2018. Production • Iron and steel making with finished products such as Squares, Wire Rods, Rebars, Rounds, Channels, Angles and Pig Iron. • 3rd largest Medical Oxygensupplier in India. • Major Export of Vizag steel main to Bangladesh and Thailand Manpower: 33,000 • Permanent employees = 18,000 • Contract base employees =15,000
- 33. • Physical Performance: The details of production: (in million tonnes) Item 2018-19 2019-20 Hot Metal 5.7 5.2 Liquid Steel 5.5 5.0 Crude Steel 5.2 4.8 Saleable Steel 5.0 4.5 • Profit Before Tax(PBT) and Profit After Tax(PAT): (Rs.in Crore) Item 2018-19 2019-20 PBT 307 4339 PAT 97 3974
- 34. Strengths: • Availability of funds. • Availability of lands and infrastructure facilities for extending up to 20 million tonnes. • Imageas value for money supplier. • Superior basic steel making Technology. • Strong committedworkforce. Weaknesses: • Lack of inhouse captive raw materials mines in high cost of raw materials. • Lack of higher levels of automation. • Capital repairs, upgradation and modernization due to major facilities.
- 35. Opportunities: • High to moderate rates of economic growth projected and strong demand forecast for Steel. • Commissioning of Gangavaram port will enhance port advantage for Vizag steel plant. Threats: • Shift of value chain towards raw materials rising input cost. • Massive expansion plans of existing competitors. • Entry of international players. • Dependency on single supplier for source of iron ore. • Privatization. Competitors: • Tata Steel • JSW Steel • SAIL • POSCO Steel
- 36. Mission: • To attain 20 Mt liquid steel capacity through technological up-gradation, operational efficiency and expansion; augmentationof assured supply of raw materials; to produce steel at international Standards of Cost & Quality; and to meet the aspirations of stakeholders. Vision: • To be a continuously growing world-class company. • We shall achieve excellence in enterprise management. • Delivery high quality and cost competitive products and be the first choice of customers. • Hardness our growth potential and sustain profitable growth. • Be a respective corporate company and ensure clean and green environment around us. Strategies: • HRD initiatives for multi- skilled training and constantlearning • Maintain the role as corporate citizen by focusing on community welfare schemes. • Acknowledgment of commitment and collective efforts of employees
- 37. CONCLUSION: ✓The Indian steel industry is among the upcoming industries of the world. ✓It has a number of iron ores, which means that it has plenty of resources from which to draw its raw materials. ✓The rate of production of steel in India has been going up at a steady rate in the last few years. ✓There are also a number of steel companies in India like Tata and Arcelor Mittal that are either coming up or have established themselves as prominent forces in the world steel scenario. ✓India is also supposed to have the best growth potential in the context of steel and is preceded only by China, which is a prominent steel producing and consuming country of the world.