Steel Industry

Essar Steel

Essar Steel is a global producer of steel with a footprint in India, Canada, USA, the Middle East and Asia. Essar Steel is one of India's largest exporters of flat products, exporting to the highly demanding US and European markets, and to the growing markets of South East Asia and the Middle East.

A number of major client companies have approved Essar steel for their use, including Caterpillar, Hyundai, Swaraj Mazda, the Konkan Railway, and Maruti Suzuki. Essar Steel has acquired extensive quality accreditations and their lean team has enabled them to achieve highest productivities and lowest manpower costs among steel plants internationally.

Their supply chain has been aligned to meet their business objectives and structured as follows

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Figure 1: Essar Supply Chain Goal Alignment

Essar Supply Chain - Strategic Advantage

A major strategic advantage is their high level of forward and backward integration. They are totally integrated – from raw material to finished products – adding value at every stage of the manufacturing process. Their areas of operation include: 

Iron Ore Beneficiation

They have an 8 MTPA plant at Bailadilla (Chhattisgarh) and a 12 million ton per annum (MTPA) plant at Dabuna (Odisha), both strategically established to leverage the rich iron ore deposits of the respective states. The plants pump the iron ore slurry to Essar Steel pellet plants at Visakhapatnam (Andhra Pradesh; 267 km pipeline) and Paradip (Odisha; 253 km pipeline) respectively.

Pelletization 

They have an 8 MTPA pelletization plant at Visakhapatnam and a 6 MTPA pellet plant at Paradip, both of which provide vital raw material to the steel plant at Hazira (Gujarat).

Iron and Steel 

They have a fully integrated world-class facility at Hazira, housing the world's fourth largest single-location steel plant. It has a steel-making capacity of 10 MTPA, holds ISO: 9001:2000, IS 9002 and TUV, and ISO 140001 certification and is India Chiller Energy...