c



c
c  : Evaluation of performance of private sector compared
with public sector in steel industry in India.

 MGT 515

 Mr. Baljeet Singh

c

  :

    !"!  10/11/2010

#$
  21# E17B1

  

I declare that this term paper is my individual work. I have not copied from any
other student¶s work or from any other source, nor has any part been written for me
by another person.

Student¶s Signature: Rishu Sharma

Evaluator¶s comments:

__________________________________________________________________
_________

Marks obtained: ______________________ out of _________________________

%&'(  (

) *


+,-. /  c


I have taken efforts in this project. However, it would not have been
possible without the kind support and help of many individuals and
organizations. I would like to extend my sincere thanks to all of them.

I am highly indebted to Mr. Baljeet Singh for their guidance and

constant supervision as well as for providing necessary information
regarding the term paper & also for their support in completing the
project.

My thanks and appreciations also go to my colleague in developing the

term paper and people who have willingly helped me out with their
abilities.










%* ,00& *1
Yfter independence, successive governments placed great emphasis on
the development of a Indian steel industry. In FY 1991, the six major
plants, of which five were in the public sector, produced 10 million tons.
The rest of India steel production, 4.7 million tons, came from 180 small
plants, almost all of which were in the private sector. India's Steel
production more than doubled during the 1980s but still did not meet
demand in FY 1991, when 2.7 million tons were imported. In the mid-
1990s, the government is seeking private-sector investment in new steel
plants. Production is projected to increase substantially as the result of
plans to set up a 1 million ton steel plant and three pig-iron plants
totaling 600,000 tons capacity in West Bengal, with Chinese technical
assistance and financial investment.
Since its independence, India has experienced steady growth in the steel
industry, thanks in part to the successive governments that have
supported the industry and pushed for its robust development.
Further illustrating this plan is the fact that a number of steel plants were
established in India, with technological assistance and investments by
foreign countries.
In 1991, a substantial number of economic reforms were introduced by
the Indian government. These reforms boosted the development process
of a number of industries - the steel industry in India in particular -
which has subsequently developed quite rapidly.
The 1991 reforms allowed for no licenses to be required for capacity
creation, except for some locations. Ylso, once India¶s steel industry was
moved from the listing of the industries that were reserved exclusively
for the public sector, huge foreign investments were made in this
industry.
The Indian aluminum industry grew from 5,000 tons a year at
independence to 483,000 tons in FY 1992, of which 113,000 tons were
exported. Ynalysts believe the industry has a good long-term future
because of India's abundant supply of bauxite.
Yet another reform for India¶s steel industry came in 1992, when every
type of control over the pricing and distribution system was removed,
making the modern Indian Steel Industry extremely efficient, as well as
competitive.
Ydditionally, a number of other government measures have stimulated
the growth of the steel industry, coming in the form of an unrestricted
external trade, low import duties, and an easy tax structure.
India continually posts phenomenal growth records in steel production.
In 1992, India produced 14.33 million tones of finished carbon steels
and 1.59 million tones of pig iron. Furthermore, the steel production
capacity of the country has increased rapidly since 1991 - in 2008, India
produced nearly 46.575 million tones of finished steels and 4.393
million tones of pig iron.
Both primary and secondary producers contributed their share to this
phenomenal development, while these increases have pushed up the
demand for finished steel at a very stable rate.
In 1992, the total consumption of finished steel was 14.84 million tones.
In 2008, the total amount of domestic steel consumption was 43.925
million tones. With the increased demand in the national market, a huge
part of the international market is also served by this industry. Today,
India is in seventh position among all the crude steel producing
countries.
 # *1
India is the fifth largest producer of steel in the world. India Steel
Industry has grown by leaps and bounds, especially in recent times with
Indian firms buying steel companies overseas. The scope for steel
industry is huge and industry estimates indicate that the industry will
continue will to grow reasonably in the coming years with huge
demands for stainless steel in the construction of new airports and metro
rail projects. The government is planning a massive enhancement of the
steel production capacity of India with the modernization of the existing
steel plants.
*# 1
Government targets to increase the production capacity from 56 million
tons annually to 124 MT in the first phase which will come to an end by
2011 - 12. Currently with a production of 56 million tones India
accounts for over 7% of the total steel produced globally, while it
accounts to about 5% of global steel consumption. The steel sector in
India grew by 5.3% in May 2009. Globally India is the only country to
post a positive overall growth in the production of crude steel at 1.01%
for the period of January - March in 2009.
2
1
Ybout 50% of the steel produced in India is exported. India's export of
steel during Ypril - December 2008 was 64.4 MT as against 9.7 MT in
December 2007. In February 2009, steel export increased by 17% to
12.6 MT from 10.8 MT in the same month last year. More than 50% of
steel from India is exported to China. The Government's decision to
reduce export duty on iron ore lumps from 15% to 5% has given a major
boost to the export of steel.
% 1
j Power shortage hampers the production of steel
j se of outdated process for production
j ags behind in the production of stainless steel
j Deficiency of raw materials required by the industry
j abor productivity is low. It is 144 tons per worker per year
against 600 tons in Western Europe as per estimates
j Inadequate shipment capacity and transport structure

#)(1
There are many strong points of the industry that makes it one of the
leading names in the global steel industry. The rate of labor wage in
India is among one of the lowest in the world thereby making large scale
production feasible. The boom witnessed in the automobile industry has
ensured that the demand for steel is increasing gradually and will
continue to do so in the near future. There is huge manpower in India
which is another reason why steel production in India is high and the
industry is doing pretty well both nationally and internationally.

01

Numerous steel companies some major projects in the pipeline to invest
in India Steel industry. Steel companies have earmarked more than 100
million SD for the setting up of sponge iron units in Koppal and
Bellary in Karnataka. Ys per Investment Commission of India more than
30 billion SD are in the pipeline for investment over the next five
years.

#  
0 1
There are 82 companies of steel in India under private sector which is
shown as following: -

j Y Ylloys - Producer of steel

j Yhmedabad Steel Craft - Manufacturer of steel doors, windows &
ventilators
j Ymbhe Ferro Metal Processors - Manufacturer of reinforcement
steel bars
j Ymbica Steel - Manufacturer of stainless, alloy & carbon steel
j Ynchor Engineers' Files - Manufacturer of engineers' steel files
j Ypollo Tubes - Steel pipes and tubes manufacturer
j Beehive Kowtha Group - Steel buildings, castings and towers
supplier
j Bengal Industries - Stainless steel corrugated hoses manufacturer
j Bhalaria Metal - Manufacturer of stainless steel items
j Bharat Impex - Stainless steel kitchenware manufacturer
j Bokaro Steel Plant - Manufacturer of steel
j Buyao Info - Rerolled iron and steel products manufacturer
j Centre for Engineering & Technology - Engineering and
consultancy unit of SYI
j Chheda Industries - Manufacturer of stainless steel chafing dishes
and restaurant utensils
j ColdFab - Pre fabricated steel buildings manufacturer
j Datre - Ylloy steel casting & precision valve manufacturer
j Devson Steels - Storage tanks fabrication
j Eastern Steel - Ylloy steel manufacturers, film production &
financial services
j Echjay Forgings - Manufacturer of steel forgings
j Essar Steel - Manufacturer of steel, iron ore pellets & sponge iron
j Garg Steel - Mild steel flats, channels and angles manufacturer
j Gaysons - Manufacturer of steel rolls
j Goodluck Steel Tubes - Stainless steel pipes manufacturer
j Gopal dyog - Stainless steel and iron scrap buyers
j Govind Steel - Grey and ductile iron manufacturer
j Hanuman Metal Industries - Stainless steel utensils manufacturer
j Hisar Metal - Cold rolled stainless steel coils & strips manufacturer
j Indian Iron and Steel Company - Manufacturer of steel & allied
products
j Isibars - Manufacturer of bright bars, rollings & wires
j Ispat Industries - Manufacturer of sponge iron, steel coils & sheets
j J P Steel, Yhmedabad - Steel products sourcing & export
j Jindal Iron & Steel - Galvanised steel products manufacturer
j Jindal Steel & Power - Sponge iron, mild steel slabs & power
producer
j Kamdhenu Ispat - HSD steel bars manufacturer
j Kanoi Group - Stainless steel sheets, coils and plates dealer
j loyds Steel - Steel coils and corrugated sheets manufacturer
j MSTC India - Canalising agency for carbon steel melting scrap
j Mahamaya Steel Industries - Steel and steel rods manufacturer
j Mahavir Steel - Iron & steel manufacturer
j Metalman Industries - Manufacturer of flat and tubular steel
products
j Minex Metallurgical - Manufacturer of speciality alloys &
injection metallurgy products
j Mittal Steel - Manufacturer of steel products
j Mukand Group - Manufacturer of kitchen ware, surgical
instruments, gears, industrial fasteners etc
j Murugan Exports - Manufacturer of stainless steel & brass wares
j N Gandhi & Co - Steel balls trader
j National General Industries, Mandi Gobindgarh - Steel rounds
manufacturer
j Nevatia Steel - Stainless steel wires manufacturer
j ètto India - Coking, gasification and allied services to steel
industry
j Padia Exports - Manufacturer of stainless steel products
j Pishey Industries - Flamecut steel plates supplier
j Plastomet - Galvanised steel wire manufacturer
j Popular Group - Manufacturer of steel wires
j Ëuality Foils - Stainless steel cold rolled coils manufacturer
j Rampra - Steel bars manufacturer
j Ramsarup - Galvanized iron, steel wires and rods manufacturer
j Rana Steels, Muzaffarnagar - Manufacturer steel bars and rounds
j Ransal - Stainless steel sheet metal fabrications manufacturer
j Real Strips - Stainless steel coil & strips manufacturer
j SMT Machines - Steel rolling mill plants manufacturer
j Shree Precoated Steels - Manufacturer of coated galvanised steel &
aluminium sheets
j Shyam Steel - Steel manufacturer
j Siddhartha Group, Indore - Corrugated steel tubes manufacturer
j Soorajmull Baijnath - Iron & steel trader
j Steel Yuthority of India - Producer of iron & steel
j Steel Corporation - Manufacturer of spring & alloy steel strips
j Steel Mart - ènline steel trading exchange
j Steelcast - Manufacturer of steel & alloy castings
j Steeltube Ygencies - Steel pipes and fittings distributor
j Steelwallah - Industry news, events and jobs
 j Suncity Ylloys - Stainless steel sheets manufacturer
j Sunflag Iron & Steel - Manufacturer of automobile spring steel
j Sunjary Steels, Bhavnagar - Stainless steel bars manufacturer
j Surya Roshni - Manufacturer of lighting products and steel pipes
j Tata Inc - Trading of steel and allied raw material

#  
 1

j # (* .

Steel Yuthority of India imited (SYI
(NSE: SYI, SE: SYD is
one of the largest state-owned steel makers in India. With a turnover of
48,681 crore (S$10.81 billion
, the company is among the top five
highest profit earning corporates of the country. It is a public sector
undertaking which trades publicly in the market is largely owned by
Government of India and acts like an operating company. Incorporated
on January 24, 1973, SYI has more than 131,910 employees. The
company's current chairman is C.S erma. With an annual production of
13.5 million metric tons, SYI is the 16th largest steel producer in the
world.
Steel Yuthority of India imited
Type State-owned enterprise
Public (NSE: SYI, SE: SYD
Industry Steel
Founded 1954
Headquarters Ranchi, India[1]
Key people Chandra Shekhar erma (Chairman

Revenue $9.629 billion (2010
[2]
Net income 1.520 billion (2010
[2]
Total assets $15.655 billion (2010

Employees 131,910 (2006

Website www.sail.co.in
 341
#.) #  
j Rourkela Steel Plant (RSP
in èrissa set up with German
collaboration (The first integrated steel plant in the Public Sector in
India, 1959

j Bhilai Steel Plant (BSP
in Chhattisgarh set up with Soviet
collaboration (1959

j Durgapur Steel Plant (DSP
at Durgapur, West Bengal set up with
British collaboration (1965

j Bokaro Steel Plant (BS
in Jharkhand (1965
set up with Soviet
collaboration (The Plant is hailed as the country¶s first Swadeshi
steel plant, built with maximum indigenous content in terms of
equipment, material and know-how

 j IISCè Steel Plant (ISP
at Burnpur, West Bengal

#
 #  
j Steel Yuthority of India imited (SYI
, Kanpur, ttar Pradesh
j Ylloy Steels Plants (YSP
, Durgapur, West Bengal
j Salem Steel Plant (SSP
, Tamil Nadu
j isvesvaraya Iron and Steel imited ( IS
, at Bhadravathi,
Karnataka

# 

j Maharashtra Elektro-smelt imited (ME
in Maharashtra

 4
j Centre for Engineering and Technology
j Research and development centre for iron and steel
j Management Training Institute
j SYI safety organization
j Raw materials division
j Central Marketing èrganization
j SYI consultancy organization