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8/2/2019 Final Ppt Steel Project Vishal Dadhich
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Vishal Dadhich(P1006)Ravi Kumar Swami(P1050)
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Research Objectives: To study the behavior of importers.
To study and identify the opportunity in metalmarket.
To analyses the documentation.
To study the traffics on port.
To identify the challenges in importing of metal
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The research methodology for the project completed in
two phases:
First Phase is the collection of Secondary Data:
This involves the collection of Secondary data using
internet and internal sources. This also involves talking
to managers of the banks and employees who are
working for the banks.
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Second Phase is Collection of Primary Data and
Analysis:
After collecting the Secondary data the next phase will
be collection of primary data using Questionnaires. The
questionnaire will be filled by around 100 respondents
who are the importers of steel. The data collected will
be then entered into SPSS (software) and MS-excel for
analysis of the data collected.
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Descriptive research
The nature of the research will be descriptive in
nature. The sources of information are both primary
and secondary. The secondary data has been taken byreferring to internet and by visiting the yards of the
traders and their websites. The objective of the
descriptive research study is typically concerned with
determining the frequency with which somethingoccurs. A well structured questionnaire will be
prepared for the primary research and personal
interviews will be conducted to collect the responses
of the target population.
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Timeline Top Companies
Size and Composition
Statistics
Growth drivers
Globalization
SWOT Analysis
Government Policies
Foreign Direct Investment
Technology
Privatization
Competition
Future growth and Recommendations
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Future Trends
Post
Liberalization
AfterIndependence
Ancient
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Ahmedabad Steel Craft
Bengal Industries
Bokaro Steel Plant
Central Steel Corporation Essar Steel
Devson Steels
Buyao Info
Jindal Steel & Power
Lloyds Steel
Steel Authority of India
Tata Steel
Vizag Steel
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India is ranked 5th among the top steel producers - 53MT.
The steel industry of India has capital investments of more than Rs
100, 000 crores.
The total employment in the industry is more than 2 million(including direct and indirect employment).
Steel production grew at 1.2 per cent in the January-March
quarter of 2008-09 over the same period last year.
Out of Indias annual iron ore production of more than 200 MT,
about 50 per cent is exported.
Accounts for over 7 per cent of the world's total production.
Accounts for around 5 per cent of the global steel consumption.
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Top Five Consumer Countries of
Steel
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Skilled Human Resources Abundant Iron Ore
Government Policy
Huge Potential for Demand
High GDP growth rate of 8%
1.2 billion population
Low per capita steel consumption of 49kg (World av. 150 kg)
Reserves 10.3 billion tonnes
Stable currency
Easing of regulations
Strong Banking & judicial
system
Growth
factors
Encouraging trade relations with
ASEAN and other countries
Infrastructure building
Exploring new Energy resources
Indian Potential for Steel
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New Policies
Included in highpriority list forForeign Investment
Withdrawal of importand Exportrestrictions
Positive
Outcomes New Channels
Opened
EnhancedEfficiency
National SteelPolicy
Negative
Outcomes Non-Tariff Barriers
Availability ofCheaper Steel
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StrengthsIncrease DemandAvailability of labour at low wageratesHuge Resources Of Raw materialEnvironment laws
Weaknesses
High cost of capital Lack of infrastructure Slow decision making Low labour productivity Insufficient transport system
OpportunitiesHigh potential to be tapped Unexplored rural market Export market penetration Consolidation
ThreatsCheap Imports Slow Industry GrowthTechnological change Price sensitivity and demand volatilityThreat from substitutesHuge bottlenecks in foreign invested
projects
S.W.O.T ANALYSIS
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Industrial and Trade Policy Resolutions in 1991 with regard to the Steelindustry:
Licensing requirement for capacity creation has been abolished.
Steel industry has been removed from the list of industries reserved for the
state sector. Automatic approval granted for foreign equity investment in steel has been
increased up to 74%.
Price and distribution controls were removed from January 1992.
Restrictions on external trade, both in import and export, have been
removed. Import tariff reduced from 105% in 1992/93, to 30% in 1996-97.
Other policy measures like convertibility of rupee on trade account,
permission to mobilize resources from overseas financial markets, and
rationalization of existing tax structure.
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Big Barons like ArcellorMittal and Posco enter India
Investments projected to the tune of US$ 30 billion
Bottleneck:
Why Still they are in slippery ground?
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Reduction in economies of scales
Less capital requirement per tone of capacity
Less operating cost
Improved quality.
Increased labour productivity.
Increased export
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The market share of public sector SAIL has now come down to
around 34 per cent.
The government of India encouraged Tatas, Mittals, Essar and
Jindals to develop and expand their capacity. There was full
autonomy to take decisions by these companies.
Effects:
Increase in profitability.
Improvement in infrastructure. Increase in employment.
Indias emergence as a global player.
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Company Production of Steel(inmillion tonnes)
Market share(inpercentage terms)
SAIL 13.5 32
TISCO 5.2 11
RNIL 3.5 8
ESSAR, ISPAT,JSWL 8.4 19
OTHERS 14.5 30TOTAL 45.1 100
Market Share of Leading Players in Iron and Steel
Industry
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Its predicted that the steel production will double to 120
billion tonnes by 2010 and will become 280 billion tonnes by
2015.
Energy savings potentials.
Environment friendly production- Greenfields
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Further liberalization towards tariff structure, full convertibility
of Indian currency, more equity participation by foreign partners,
rationalization of tax structure etc. will be required.
R&D focus is to be increased substantially.
Firms must do technological forecasting.
Resource utilization must be more effective to improve on theproductivity.
Investment in infrastructure is crucial to step up demand for steel.
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