Steel Sector Analsis

BUSINESS ENVIRONMENT

AN ANALYSIS OF THE INDIAN STEEL INDUSTRY

PRESENTED TO PROF. SANDEEP HEGDE

BY:

NITIN JAISINGHANI - 37

PRAJAKTA SHIKARKHANE - 42

SMRITI AGRAWAL - 49

VIJAY SINGH - 55

ABHIMANYU PARIKH – 61

INTRODUCTION

Steel is crucial to the development of any modern economy and is considered to be the backbone of human civilization. The level of per capita consumption of steel is treated as an important index of the level of socioeconomic development and living standards of the people in any country. It is a product of a large and technologically complex industry having strong forward and backward linkages in terms of material flows and income generation. All major industrial economies are characterized by the existence of a strong steel industry and the growth of many of these economies has been largely shaped by the strength of their steel industries in their initial stages of development.

Steel industry was in the vanguard in the liberalization of the industrial

Sector and has made rapid strides since then. The new Greenfield plants represent the latest in technology. Output has increased, the industry has moved up in the value chain and exports have risen consequently to a greater integration with the global economy. The new plants have also brought about a greater regional dispersion easing the domestic supply position notably in the western region. At the same time, the domestic steel industry faces new challenges. Some of these relate to the trade barriers in developed markets and certain structural problems of the domestic industry notably due to the high cost of commissioning of new projects. The domestic demand too has not improved to significant levels. The litmus test of the steel industry will be to surmount these difficulties and remain globally competitive.

HISTORY OF STEEL

Steel was discovered by the Chinese under the reign of Han dynasty in 202 BC till 220 AD. Prior to steel, iron was a very popular metal and it was...