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• Objectives& the MarketingStrategy
• ProductPortfolio
• Generic Description of the ProductPortfolio
• CustomerSegments
• BusinessModel
• PricingStrategy
• Sample Target Customers & Competitive IndustryPosition
• Steel Industry Scenario Within India
• ProductGrades
PRESENTATION CONTENTS
Marketing Strategy for a Steel Manufacturing Company for the Maharashtra Region
W
Objectives of the Marketing Strategy
Build Topline
Revenue for
India Operations
Build Awareness
About India
Operations
Build an Image
for High Quality
Steel
W
Leverage on its Proprietary Steel Making Technologies by conduction Steel Industry Conferences and
Seminars and earning revenue in the process.
Leverage on its expertise with respect to the primary steel making process involving Blast Furnace
operations, and secondary steel making process involving EAF operations, by conducting industrial
process improvement trainings in steel plants within Maharashtra, and within India at large in high
tonnage producers like Tata Steel, Sail, JSW, RNIL, & Bhushan Steel.
With judicious investment in print media and other forms of media, build awareness about its
commencement of “high quality” steel operations within India at Maharashtra.
Marketing Strategy
WSell HR Coils & Sheets, CR Coils & Sheets and other flat products through the 4 selling lines of selling
directly to OEM and their Tier 1 vendors, selling directly OEM & their Tier 1 vendors through E Mart,
selling directly to Stockists & Distributors, and Exports through international trading firms like
Stemcor & Duferco.
Leverage on its Proprietary Steel Making Technologies by selling the Proprietary knowledge of these
technologies against Royalty to steel manufacturers within Maharashtra, and within India at large to
high tonnage producers like Tata Steel, Sail, JSW, RNIL, & Bhushan Steel.
Product Portfolio (An Assumption)
Key Features
① Widest Range of HR products: Thickness up to 25.4mm, Width up to 2050mm and Coil Weight up to36mt.
② Ultra-Low Carbon for IF & IFHS grade and Dual Phase steel requiring divide quench cooling for critical automobile applications.
③ One of the very few manufacturers in the world to manufacture X70 grade up to 20mm thickness for Line Pipe applications.
④ Higher reduction in finishing stands with transfer bar thickness up to55mm.
⑤ Level2 coiling temperature control to achieve desired cooling pattern and rates for controlof micro-structure Hyperlinkt
⑥ Full Service service centre available at the company’s end in order to meet “cut to length” customer specifications with respect
to HR & CR products.
o HR & CR ProductGrades
W
Hot Rolled (HR) & Cold Rolled (CR) Product Specifications
CR - Coils &
Sheets
.3 - 3.0
750 - 1650
HR - Coils & Sheets HR - Plates HR Pickled & Oiled
- Coils & Sheets
HR Skin Passed.
Pickled & Oiled –
Coils & Sheets
Thickness (mm) 1.2 - 25.4 8.0 - 25.4 1.6 - 6.0 1.2 - 2.6
Width (mm) 900 - 2050 1000 - 2050 900 - 1650 900 - 1650
Length (mm) 2000 - 12000
Bundle Weight (MT) 6
Product Portfolio (Generic Description)
Cold Rolled Sheet
Flat rolled products for which the required final thickness has been obtained by rolling at room temperature. To meet the various end use requirements,cold-rolled
sheet products are metallurgically designed to provide specific attributes such as high formability, deep drawability, high strength, high dent resistance, good
magnetic properties, enamelability and paintability.
Cold rolled steel sheet is used in a wide variety of end applications such as appliances refrigerators, washers, dryers and other small appliancePs,reapuatoremdobbyile
exposed as well as unexposed parts - electric motors, and bathtubs.
WHot Rolled Coil (HRC)
Hot rolled coil is rolled on a hot strip mill from slabs. It can be found on the market in coil or sheet form and is further processed into finished products by the
manufacturer. Hot rolled coil is typically 2-25mm thick and up to 2,250mm wide.
Hot rolled coil is produced as a feedstock for cold rolled coil and coated coil, but also for direct use in a variety of industrial applications including steel tubes used in
transport, construction, shipbuilding, gas containers, pressure vessels and energy pipelines. Hot rolled sheet with an anti-slip surface and a diamond or teardrop
pattern is typically used for stairs, industrial floors and tailboards for goods vehicles.
Cold Rolled Coil (CRC)
Cold rolled steel is a 'flat' steel product. The material is manufactured from hot rolled steel, the thickness of which is further reduced on a strip mill without the use
of heat. The resulting thinner and flatter material is known as cold rolled steel. Typical thickness is from 0.15 to 3 mm. Typical width is from 600 to 2,100 mm.
Finished cold rolled steel coil has excellent forming properties, electromagnetic properties, paintability and weldability It is suitable for fabrication by forming,
pressing and bending. Applications include domestic applications, automotive manufacturing, lighting fixtures, electrical components (stators,rotors), various kinds
of sections, roofing applications, profiled sheets, and wall elements.
Hot Dipped Galvanised Coil / Sheet
Obtained by passing cold rolled coil through a molten zinc bath, in order to coat the steel with a thin layer of zinc to provide corrosion resistance. Hot dipped
galvanized coil can be found on the market in coil or in sheets and is further processed into finished products by the manufacturer. Typical thickness is from 0.3 to 3
mm. Typical width is from 600 to 2,100mm.
Hot dipped galvanized coil has excellent forming properties and is suitable for fabrication by forming, pressing and bending. Applications include domestic
appliances, building applications (e.g. wall elements, roofing, automotive parts (e.g. underbody), lighting fixtures, drums and various kinds of sections and profiled
sheets.
Hot Rolled Plate
Hot rolled plate is produced by hot rolling a steel slab to form a plate. Typical thickness is between 2 to 20mm and maximum width is 1860 mm.
The material is used in the shipbuilding, pressure equipment and construction industries.
1 •Cold Rolling and Galvanizng Applications Segment
2 •Drawing and Press Forming Applications Segment
3 •Welded Tubes and Pipes Segment
4 •Structural and General Engineering Segment
5 •High Tensile Structural Applications Segment
6 •Automobile and other Engineering Applications Segment
7 •LPG Cylinder Segment
8 •Boiler Tubes and Pressure Vessels Segment
9 •Atmospheric Corrosion Resistance Segment
10 •Containers Segment
11 •Deck Plates Segment
12 •Truck Frames (Chassis) Segment
13 •Automobile Wheels Segment
14 •Steel Racks Segment
15 •Electrical Stampings and Forming Applications Segment
16 •Line Pipes Segment
1 •Automobiles Segment
2 •White Goods Segment
3 •CR Formed Sections Segment
4 •Drums & Barrels Segment
5 •Furniture Segment
Customer Segments
HR Coils & Sheets CR Coils & Sheets
W
Selling Directly to Original Equipment Manufacturers & their Tier 1 Vendors
Selling Directly to Original Equipment Manufacturers and their Tier 1 Vendors through E Mart
Selling Directly to Stockists & Distributors
OEM LineE MartLine
Stockist/
Distributor
Sales Lines for HR Coils/Sheets & CR Coils/ Sheets
Selling Directly to International Trading Firms **
Exports
** International Trading Firms like Stemcor &
Duferco which are operating in India as well.
W
1 •Cold Rolling and Galvanizng Applications Segment
2 •Drawing and Press Forming Applications Segment
3 •Welded Tubes and Pipes Segment
4 •Structural and General Engineering Segment
5 •High Tensile Structural Applications Segment
6 •Automobile and other Engineering Applications Segment
7 •LPG Cylinder Segment
8 •Boiler Tubes and Pressure Vessels Segment
9 •Atmospheric Corrosion Resistance Segment
10 •Containers Segment
11 •Deck Plates Segment
12 •Truck Frames (Chassis) Segment
13 •Automobile Wheels Segment
14 •Steel Racks Segment
15 •Electrical Stampings and Forming Applications Segment
16 •Line Pipes Segment
SMC
SMC Stockists &
Distributors
Selling Directly to Original Equipment Manufacturers
& their Tier 1 Vendors
Selling Directly to Original Equipment Manufacturers
and their Tier 1 Vendors through E Mart
Selling Directly to Stockists
& Distributors
Business Model for HR Coils & Sheets
Forward Selling by Stockists / Distributors to the End
User Customers
International
TradingFirms
Like Stemcor
& Duferco
Exports
2
3
4
1 W
SMC
SMC
Selling Directly to Original Equipment Manufacturers
& their Tier 1 Vendors
Selling Directly to Original Equipment Manufacturers
and their Tier 1 Vendors through E Mart
Selling Directly to Stockists
& Distributors
Business Model for CR Coils & Sheets
1 •Automobiles Segment
2 •White Goods Segment
3 •CR Formed Sections Segment
4 •Drums & Barrels Segment
5 •Furniture Segment
Stockists &
Distributors
Forward Selling by Stockists / Distributors to the End
User Customers
International
TradingFirms
Like Stemcor
& Duferco
1
2
3
4
Exports
W
50000
45000
40000
35000
30000
25000
20000
15000
10000
5000
0
Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15
Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15
Hot Rolled Coil 37500 37000 37000 37000 36000 36000 35500 34500 33000 33000 33000 31600
Hot Rolled Plate 37500 37500 37500 37500 36500 36500 36500 36500 36500 36000 35500 35000
Cold Rolled Coil 42500 42500 42500 42500 42500 42500 42500 41500 40700 38440 38100 36500
Hot DippedGalvanisedCoil 47500 47400 47400 47400 47400 47400 47400 45700 45700 42400 42400 41600
Trend of Flat Steel Prices Within India (Rs/Tonne)
Pricing Strategy
later stage.
Hot Rolled Coil Hot Rolled Plate Cold Rolled Coil Hot DippedGalvanisedCoil
Given that SMC is a relatively late entrant within the Indian Steel Industry which has the presence of well established Flat Steel manufacturing companies like Tata Steel,
SAIL, RNIL, JSW, Bhushan Steel & Essar Steel, SMC will have to aggressively price itself at least in the near short term. Having had built a presence within the Indian steel
consuming market on doing so, by leveraging later on its image of being a high quality steel manufacturing company, SMC could revert to uncompromised pricing at a
W
Cut-To-Length Facility CTL 1 CTL 2
Capacity (tons/annum) 1,25,000 3,00,000
Thickness (mm) 1.60 -7.00 3.00 -10.00
Width (mm) 800 -1,600 1,500
Length (mm) 1,000 -7,000 2,500 -12,000
Bundle Weight (tons) 7 7
Length Tolerance
Length (mm) Tolerance(mm)
Upto 2000 5
> 2000 8
≤ 4000 >4000 10
≤ 7000
Diagonal Tolerance
Length (mm) Tolerance(mm)
> 1000 3
≤ 2000 >2000 5
≤ 4000 >4000 8
≤ 7000
Slitting Facility
Annual Production (tons) 2,50,000
Line Speed(mpm) 150
Thickness (mm) 1.60 -7.0
Input Material Specifications
Inner Diameter of Coil (mm) 610/710 -760
Outer Diameter of Coil (mm) 800 -2,000
Weight of Coils max. (tons) 30
Width of Coil (mm) 900 -1650
Output Material Specifications
Inner Diameter of Coil (mm) 740
Outer Diameter of Coil (mm) 800 -2,000
Weight of Coils max. (tons) 30
Minimum Slit Width (mm) 100
Company Owned Hot Rolled (HR) & Cold Rolled (CR) Service Centre
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Sample Target Customers Within the Maharashtra Region for HR Coils & Sheets
Construction Equipments & Cranes Manufacturing Segment
Mumbai Pune Nashik
Spartan Engineering Deccan Construction Equipments & Machine Marsman India Ltd
JCB India Bhushan Industries Rhishikesh Engineers Pvt Ltd
Winget Construction Equipment Pvt Ltd Hyundai Construction Equipment India Private Limited Essey Engineering Company
Larsen & Toubro Ltd Eddycranes Engineers Private Limited Ultratech Earthmoving Equipments
Mukand Ltd Elmech Engineers
Mahindra Construction Equipment Schmalz India Private Limited
Gamzen Plast Pvt Ltd Mrc Transolutions Private Limited
Multiquip Construction Equipment Pvt Ltd Jay Engineering Company
Taurus Engineering Wirtgen India Pvt Ltd
PSB Corporation Sany Heavy Industry India Pvt Ltd
Tata Hitachi Construction Machinery Co Ltd National Earth Movers
Skyline Millars Ltd Kone Cranes India Pvt Ltd
Atlas Copco India Ltd Demag Cranes & Components (I) Pvt.Ltd
Mekaster Engineering Ltd Cosmos Construction Machineries & Equipments Pvt Ltd
Doosan Heavy Industries & Construction Co Ltd
BN Industries
Pranav Construction Systems Pvt Ltd
Universal Construction Machinery & Equiopment Ltd
Gujarat Apollo Industries Ltd
ABG Cranes PvtLtd
Burhani Commercial Corporation
Smaco Engineering Pvt Ltd
Preclift Hoists Pvt Ltd
Hindustan Hoist & Crane Industries Ltd
W
Hiigh Pressure Gas Cylinder Manufacturing Segment
Mumbai Nashik Aurangabad
Everest Kanto Cylinder Limited Interal Appliances Pvt. Ltd Everest Kanto Cylinder Limited
Lizer Cylinders Limited
Maharashtra Cylinders Pvt.
Ltd, Nagpur
Nitin Cylinders Limited Super Industries
Euro India Cylinders Limited
Khara Gas Equipments Pvt.
Ltd, Nagpur
Expo Gas Containers Pvt.Ltd OM Containers
Hans Gas Appliances Pvt. Ltd Tee Kay Pvt.Ltd
Confidence Cylinders and
Petrochem Pvt.Ltd.
Ship Building Segment
Maharashtra Goa Gujarat
Mazagon Dock Limited-Mumbai Goa Shipyard Limited
L&T Shipbuilding Limited,
Hazira
Naval Dockyard (Bombay) Dempo Engineering Works, Goa
Pipavav Shipyard (currently
Pipavav Defence and
Offshore Engineering
company Limited)
Jawaharlal Nehru Port Trust Mandovi Drydocks, Goa
SI VI SHIPPING
CORPORATION PVTLTD
ABG Shipyard Limited, Girgaon Nigel Shipyard Private Limited
Bharati Shipyard Limited, Mumbai
Siddarth Engineering & Shipbuilding
Co. Pvt. Ltd. Cumbharjua,Goa
Deena Engineering Works,
Mumbai
Timblo Drydocks Private Limited
Modest Infrastructure Ltd,
Mumbai
Timblo Shipyards Limited
NorthStar Shipbuilding Pvt
Limited, Mumbai
West Coast Shipyard, Loutolim, Goa
Shoft Shipyard Pvt. Ltd. Western India Shipyard Limited, Goa
SSR marine services pvt.ltd,
Mumbai
Sample Target Customers Within the Maharashtra Region for HR Coils & Sheets
W
Automobile Manufacturing Segment
Location Company Automotive Segment
Pune, Baramati Piaggio & C.SpA Two wheelers
Pune, Ahmednagar Kinetic Engineering Limited Two wheelers
Pune, Talegaon Dabhade General Motors India Private Limited Passengervehicles
Pune, Talegaon Dabhade Case New Holland India Agriculture Equipment,combines
Pune, Ranjangaon Tata Motors Passengervehicles
Pune Fiat India Automobiles Limited Passengervehicles
Pune, Chakan Mercedes-Benz India Passengervehicles
Pune, Chakan Volkswagen India Private Limited Passengervehicles
Pune, Chakan Force Motors Commercialvehicles
Pune, Chakan Mahindra Navistar Commercial vehicles
Pune, Chakan Force Motors Commercial vehicles
Pune, Pimpri-Chinchwad Premier Automobiles Limited Passengervehicles
Pune, Pimpri-Chinchwad Jaguar & Land Rover Passengervehicles
Pune, Pimpri-Chinchwad Premier Automobiles Limited Commercial vehicles
Pune, Pimpri-Chinchwad Bajaj Auto Commercial vehicles
Pune, Bhandara Ashok Leyland Commercial vehicles
Nashik Mahindra & Mahindra Passengervehicles
Aurangabad Audi India Passengervehicles
Aurangabad Skoda Auto India Private Limited Passengervehicles
Mumbai Mahindra & Mahindra Passengervehicles, Farm Tractors
Nagpur, Maharashtra Mahindra & Mahindra FarmTractors
Consumer Durables Manufacturing
Segment (Refrigerators, Washing
Machines and Other Home Appliances)
Mumbai Pune
Godrej Industries Ltd LG Electronics India
Siemens Whirlpool India Limited
Videocon Industries,
Chandrapur, Maharashtra
Electrolux India
Videocon Industries, Nagpur,
Maharashtra
General Electric India
Voltas Ltd, Thane, Maharashtra Haier India
Sharp India Ltd
Target Customers Within the Maharashtra Region for CR Coils & Sheets
W
HR
Coils/Sheet
s
SteelManufacturer
Galvanized
Steel
CR
Coils/Shee
ts
Stainless
Steel
AlloySteel
(Long)
Coated
Steel
Competitive Position of SMC Amidst the Leading Steel Producers
Having Steel Plants Within Maharashtra
JSW Ispat
(3 Mln Ton / Annum)
Uttam Galva
(.5 Mln Ton / Annum)
Lloyds Steel
(.5 Mln ton / Annum)
Viraj Profiles
(.5 Mln Ton / Annum)
Mukand Ltd
(.5 Mln Ton / Annum)
Kalyani Steels
(.5 Mln Ton / Annum)
Sona Alloys
(.5 Mln Ton / Annum)
Mahindra Ugine
(.03 MlnTon / Annum)
Tata Blue Scope
(.25 Mln Ton / Annum)
SMC
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Construction
35%
Infrastructure
20%
Automobiles
12%
Pipes &Tubes
10%
CapitalGoods
8%
Others
15%
General Consumption Pattern of Steel Within Maharashtra
W
Production, Import of Export of Steel From India
60.62
68.62
75.7
81.68
87.67
0
10
20
30
40
50
60
70
80
90
100
2009-10 2010-11 2011-12 2012-13 2013-14
Production of Total Finished Steel Within
India(Alloy + Non Alloy) (Mln Ton)
7.38
6.66
6.86
7.93
5.45
3.25
3.64
4.59
5.37
5.98
0
1
2
3
4
5
6
7
8
9
2009-10 2010-11 2011-12 2012-13 2013-14
Import of Total Finished Steel Within India (Alloy + Non
Alloy) (Mln Ton)
Export of Total Finished Steel From India (Alloy + Non
Alloy) (Mln Ton)
W
Indian steel industry : Production for Sale (in million tonnes)
Category 2009-10 2010-11 2011-12 2012-13 2013-14
April-
December 2014-15*
Pig Iron 5.88 5.68 5.371 6.87 7.95 6.081 (5.868)
Sponge Iron 24.33 25.08 19.63 14.33 18.2 13.276 (13.413)
Total Finished Steel (alloy + non
alloy)
60.62 68.62 75.7 81.68 87.67 65.197 (64.190)
Source: Joint Plant Committee; *provisional; figure in () is value in same period of last year
Overall Scenario of the Steel Industry in India
WDomestic Scenario
The Indian steel industry has entered into a new development stage from 2007-08, riding high on the resurgent economy and rising demand for steel. Rapid
rise in production has resulted in India becoming the 4th largest producer of crude steel and the largest producer of sponge iron or DRI in the world. As per
the report of the Working Group on Steel for the 12th Five Year Plan, there exist many factors which carry the potential of raising the per capita steel
consumption in the country. These include among others, an estimated infrastructure investment of nearly a trillion dollars, a projected growth of
manufacturing from current 8% to 11-12%, increase in urban population to 600 million by 2030 from the current level of 400 million, emergence of the rural
market for steel currently consuming around 10 kg per annum buoyed by projects like Bharat Nirman, Pradhan Mantri Gram Sadak Yojana, Rajiv Gandhi Awaas
Yojana among others.
At the time of its release, the National Steel Policy 2005 had envisaged steel production to reach 110 million tonnes (mt) by 2019-20. However, based on the
assessment of the current ongoing projects, both in greenfield and brownfield, the Working Group on Steel for the 12th Five Year Plan has projected that
domestic crude steel capacity in the county is likely to be 140 mt by 2016-17 and has the potential to reach 149 mt if all requirements are adequately met.
The National Steel Policy 2005 is currently being reviewed keeping in mind the rapid developments in the domestic steel industry (both on the supply and
demand sides) as well as the stable growth of the Indian economy since the release of the Policy in 2005.
Production
Steel industry was delicensed and decontrolled in 1991 & 1992 respectively.
Today, India is the 4 th largest crude steel producer of steel in the world.
In 2013-14, production for sale of total finished steel (alloy + non alloy) was 87.67 mt and 65.197 mt during April-December 2014-15 (provisional).
Production for sale of Pig Iron in 2013-14 was 7.95 mt and 6.08 mt during April-December 2014-15 (provisional).
India is the largest producer of sponge iron in the world with the coal based route accounting for 89% of total sponge iron production in the country.
Data on production for sale of pig iron, sponge iron and total finished steel (alloy + non-alloy) are given below for last five years and April-December 2014-15:
Demand - Availability Projection
Demand – Availability of iron and steel in the country is projected by Ministry of Steel in its Five Yearly Plan documents.
Gaps in availability are met mostly through imports.
Interface with consumers by way of a Steel Consumers’ Council exists, which is conducted on regular basis.
Interface helps in redressing availability problems, complaints related to quality.
Steel Prices
Price regulation of iron & steel was abolished on 16.1.1992. Since then steel prices are determined by the interplay of market forces.
Domestic steel prices are influenced by trends in raw material prices, demand – supply conditions in the market, international price trends among others.
An Inter-Ministerial Group (IMG) is functioning in the Ministry of Steel, under the Chairmanship of Secretary (Steel) to monitor and coordinate major steel
investments in the country.
The Government earlier took various fiscal and other measures for stabilizing steel prices like significant reduction in import duties on steel, major raw
materials, including mineral products and ores and concentrates in last few years. Also, excise duty for steel is currently at 12% and there is no export duty on
steel items. The government has also imposed export duty of 30% on all forms of iron ore and 5% on iron ore pellets in order to control ad-hoc exports of the
mineral and conserve it for long term requirement of the domestic steel industry.
For ensuring quality of steel several items have been brought under a quality control order issued by the Government.
Further, a Steel Price Monitoring Committee has been constituted by the Government with the aim to monitor price rationalization, analyze price fluctuations
and advice all concerned regarding any irrational price behavior of steel commodity.
Imports
Iron & steel are freely importable as per the extant policy.
Data on import of total finished steel (alloy + non alloy) is given below for last five years and April-December 2014-15 (provisional):
Indian steel industry : Imports (in million tonnes)
Category 2009-10 2010-11 2011-12 2012-13 2013-14
April-December
2014-15*
Total Finished Steel (alloy +
non alloy)
7.38 6.66 6.86 7.93 5.45 6.492 (4.122)
Source: Joint Plant Committee; *provisional; figure in () is value in same period of last year
Overall Scenario of the Steel Industry in India
W
Exports
Iron & steel are freely exportable.
Data on export of total finished steel (alloy + non alloy) is given below for last five years and April-December 2014-15 (provisional).:
Indian steel industry : Exports (in million tonnes)
Category 2009-10 2010-11 2011-12 2012-13 2013-14
April-December
2014-15*
Total Finished Steel (alloy + non
alloy)
3.25 3.64 4.59 5.37 5.98 4.066 (4.355)
Source: Joint Plant Committee; *provisional; figure in () is value in same period of last year
Opportunities for growth of Iron and Steel in Private Sector
The New Industrial Policy Regime
The New Industrial policy opened up the Indian iron and steel industry for private investment by (a) removing it from the list of industries reserved for
public sector and (b) exempting it from compulsory licensing. Imports of foreign technology as well as foreign direct investment are now freely permitted
up to certain limits under an automatic route. Ministry of Steel plays the role of a facilitator, providing broad directions and assistance to new and existing
steel plants, in the liberalized scenario.
The Growth Profile
(i)Steel : The liberalization of industrial policy and other initiatives taken by the Government have given a definite impetus for entry, participation and growth
of the private sector in the steel industry. While the existing units are being modernized/expanded, a large number of new steel plants have also come up in
different parts of the country based on modern, cost effective, state of-the-art technologies. In the last few years, the rapid and stable growth of the demand
side has also prompted domestic entrepreneurs to set up fresh greenfield projects in different states of the country.
Crude steel capacity was 101 mt in 2013-14 and India, the 4th largest producer of crude steel in the world, has to its credit, the capability to produce a
variety of grades and that too, of international quality standards. The country is expected to become the 2nd largest producer of crude steel in the world
soon, provided all requirements for creation of fresh capacity are adequately met.
(ii)Pig Iron: India is also an important producer of pig iron. Post-liberalization, with setting up several units in the private sector, not only imports have
drastically reduced but also India has turned out to be a net exporter of pig iron. The private sector accounted for 93% of total production for sale of pig
iron in the country in 2013-14. The production for sale of pig iron has increased from 1.6 mt in 1991-92 to 7.95 mt in 2013-14.
(iii)Sponge Iron: India is the world’s largest producer of sponge iron with a host of coal based units, located in the mineral-rich states of the country. Over
the years, the coal based route has emerged as a key contributor and accounted for 89% of total sponge iron production in the country. Capacity in sponge
iron making too has increased over the years and stood at 45 mt in 2013-14.
Overall Scenario of the Steel Industry in India
W
Marketing Strategy a Steel Manufacturing Company, w.r.t. the Maharashtra Region
Thank You!
W

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Marketing Strategy for a Steel Manufacturing Company

  • 1. • Objectives& the MarketingStrategy • ProductPortfolio • Generic Description of the ProductPortfolio • CustomerSegments • BusinessModel • PricingStrategy • Sample Target Customers & Competitive IndustryPosition • Steel Industry Scenario Within India • ProductGrades PRESENTATION CONTENTS Marketing Strategy for a Steel Manufacturing Company for the Maharashtra Region W
  • 2. Objectives of the Marketing Strategy Build Topline Revenue for India Operations Build Awareness About India Operations Build an Image for High Quality Steel W
  • 3. Leverage on its Proprietary Steel Making Technologies by conduction Steel Industry Conferences and Seminars and earning revenue in the process. Leverage on its expertise with respect to the primary steel making process involving Blast Furnace operations, and secondary steel making process involving EAF operations, by conducting industrial process improvement trainings in steel plants within Maharashtra, and within India at large in high tonnage producers like Tata Steel, Sail, JSW, RNIL, & Bhushan Steel. With judicious investment in print media and other forms of media, build awareness about its commencement of “high quality” steel operations within India at Maharashtra. Marketing Strategy WSell HR Coils & Sheets, CR Coils & Sheets and other flat products through the 4 selling lines of selling directly to OEM and their Tier 1 vendors, selling directly OEM & their Tier 1 vendors through E Mart, selling directly to Stockists & Distributors, and Exports through international trading firms like Stemcor & Duferco. Leverage on its Proprietary Steel Making Technologies by selling the Proprietary knowledge of these technologies against Royalty to steel manufacturers within Maharashtra, and within India at large to high tonnage producers like Tata Steel, Sail, JSW, RNIL, & Bhushan Steel.
  • 4. Product Portfolio (An Assumption) Key Features ① Widest Range of HR products: Thickness up to 25.4mm, Width up to 2050mm and Coil Weight up to36mt. ② Ultra-Low Carbon for IF & IFHS grade and Dual Phase steel requiring divide quench cooling for critical automobile applications. ③ One of the very few manufacturers in the world to manufacture X70 grade up to 20mm thickness for Line Pipe applications. ④ Higher reduction in finishing stands with transfer bar thickness up to55mm. ⑤ Level2 coiling temperature control to achieve desired cooling pattern and rates for controlof micro-structure Hyperlinkt ⑥ Full Service service centre available at the company’s end in order to meet “cut to length” customer specifications with respect to HR & CR products. o HR & CR ProductGrades W Hot Rolled (HR) & Cold Rolled (CR) Product Specifications CR - Coils & Sheets .3 - 3.0 750 - 1650 HR - Coils & Sheets HR - Plates HR Pickled & Oiled - Coils & Sheets HR Skin Passed. Pickled & Oiled – Coils & Sheets Thickness (mm) 1.2 - 25.4 8.0 - 25.4 1.6 - 6.0 1.2 - 2.6 Width (mm) 900 - 2050 1000 - 2050 900 - 1650 900 - 1650 Length (mm) 2000 - 12000 Bundle Weight (MT) 6
  • 5. Product Portfolio (Generic Description) Cold Rolled Sheet Flat rolled products for which the required final thickness has been obtained by rolling at room temperature. To meet the various end use requirements,cold-rolled sheet products are metallurgically designed to provide specific attributes such as high formability, deep drawability, high strength, high dent resistance, good magnetic properties, enamelability and paintability. Cold rolled steel sheet is used in a wide variety of end applications such as appliances refrigerators, washers, dryers and other small appliancePs,reapuatoremdobbyile exposed as well as unexposed parts - electric motors, and bathtubs. WHot Rolled Coil (HRC) Hot rolled coil is rolled on a hot strip mill from slabs. It can be found on the market in coil or sheet form and is further processed into finished products by the manufacturer. Hot rolled coil is typically 2-25mm thick and up to 2,250mm wide. Hot rolled coil is produced as a feedstock for cold rolled coil and coated coil, but also for direct use in a variety of industrial applications including steel tubes used in transport, construction, shipbuilding, gas containers, pressure vessels and energy pipelines. Hot rolled sheet with an anti-slip surface and a diamond or teardrop pattern is typically used for stairs, industrial floors and tailboards for goods vehicles. Cold Rolled Coil (CRC) Cold rolled steel is a 'flat' steel product. The material is manufactured from hot rolled steel, the thickness of which is further reduced on a strip mill without the use of heat. The resulting thinner and flatter material is known as cold rolled steel. Typical thickness is from 0.15 to 3 mm. Typical width is from 600 to 2,100 mm. Finished cold rolled steel coil has excellent forming properties, electromagnetic properties, paintability and weldability It is suitable for fabrication by forming, pressing and bending. Applications include domestic applications, automotive manufacturing, lighting fixtures, electrical components (stators,rotors), various kinds of sections, roofing applications, profiled sheets, and wall elements. Hot Dipped Galvanised Coil / Sheet Obtained by passing cold rolled coil through a molten zinc bath, in order to coat the steel with a thin layer of zinc to provide corrosion resistance. Hot dipped galvanized coil can be found on the market in coil or in sheets and is further processed into finished products by the manufacturer. Typical thickness is from 0.3 to 3 mm. Typical width is from 600 to 2,100mm. Hot dipped galvanized coil has excellent forming properties and is suitable for fabrication by forming, pressing and bending. Applications include domestic appliances, building applications (e.g. wall elements, roofing, automotive parts (e.g. underbody), lighting fixtures, drums and various kinds of sections and profiled sheets. Hot Rolled Plate Hot rolled plate is produced by hot rolling a steel slab to form a plate. Typical thickness is between 2 to 20mm and maximum width is 1860 mm. The material is used in the shipbuilding, pressure equipment and construction industries.
  • 6. 1 •Cold Rolling and Galvanizng Applications Segment 2 •Drawing and Press Forming Applications Segment 3 •Welded Tubes and Pipes Segment 4 •Structural and General Engineering Segment 5 •High Tensile Structural Applications Segment 6 •Automobile and other Engineering Applications Segment 7 •LPG Cylinder Segment 8 •Boiler Tubes and Pressure Vessels Segment 9 •Atmospheric Corrosion Resistance Segment 10 •Containers Segment 11 •Deck Plates Segment 12 •Truck Frames (Chassis) Segment 13 •Automobile Wheels Segment 14 •Steel Racks Segment 15 •Electrical Stampings and Forming Applications Segment 16 •Line Pipes Segment 1 •Automobiles Segment 2 •White Goods Segment 3 •CR Formed Sections Segment 4 •Drums & Barrels Segment 5 •Furniture Segment Customer Segments HR Coils & Sheets CR Coils & Sheets W
  • 7. Selling Directly to Original Equipment Manufacturers & their Tier 1 Vendors Selling Directly to Original Equipment Manufacturers and their Tier 1 Vendors through E Mart Selling Directly to Stockists & Distributors OEM LineE MartLine Stockist/ Distributor Sales Lines for HR Coils/Sheets & CR Coils/ Sheets Selling Directly to International Trading Firms ** Exports ** International Trading Firms like Stemcor & Duferco which are operating in India as well. W
  • 8. 1 •Cold Rolling and Galvanizng Applications Segment 2 •Drawing and Press Forming Applications Segment 3 •Welded Tubes and Pipes Segment 4 •Structural and General Engineering Segment 5 •High Tensile Structural Applications Segment 6 •Automobile and other Engineering Applications Segment 7 •LPG Cylinder Segment 8 •Boiler Tubes and Pressure Vessels Segment 9 •Atmospheric Corrosion Resistance Segment 10 •Containers Segment 11 •Deck Plates Segment 12 •Truck Frames (Chassis) Segment 13 •Automobile Wheels Segment 14 •Steel Racks Segment 15 •Electrical Stampings and Forming Applications Segment 16 •Line Pipes Segment SMC SMC Stockists & Distributors Selling Directly to Original Equipment Manufacturers & their Tier 1 Vendors Selling Directly to Original Equipment Manufacturers and their Tier 1 Vendors through E Mart Selling Directly to Stockists & Distributors Business Model for HR Coils & Sheets Forward Selling by Stockists / Distributors to the End User Customers International TradingFirms Like Stemcor & Duferco Exports 2 3 4 1 W
  • 9. SMC SMC Selling Directly to Original Equipment Manufacturers & their Tier 1 Vendors Selling Directly to Original Equipment Manufacturers and their Tier 1 Vendors through E Mart Selling Directly to Stockists & Distributors Business Model for CR Coils & Sheets 1 •Automobiles Segment 2 •White Goods Segment 3 •CR Formed Sections Segment 4 •Drums & Barrels Segment 5 •Furniture Segment Stockists & Distributors Forward Selling by Stockists / Distributors to the End User Customers International TradingFirms Like Stemcor & Duferco 1 2 3 4 Exports W
  • 10. 50000 45000 40000 35000 30000 25000 20000 15000 10000 5000 0 Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Hot Rolled Coil 37500 37000 37000 37000 36000 36000 35500 34500 33000 33000 33000 31600 Hot Rolled Plate 37500 37500 37500 37500 36500 36500 36500 36500 36500 36000 35500 35000 Cold Rolled Coil 42500 42500 42500 42500 42500 42500 42500 41500 40700 38440 38100 36500 Hot DippedGalvanisedCoil 47500 47400 47400 47400 47400 47400 47400 45700 45700 42400 42400 41600 Trend of Flat Steel Prices Within India (Rs/Tonne) Pricing Strategy later stage. Hot Rolled Coil Hot Rolled Plate Cold Rolled Coil Hot DippedGalvanisedCoil Given that SMC is a relatively late entrant within the Indian Steel Industry which has the presence of well established Flat Steel manufacturing companies like Tata Steel, SAIL, RNIL, JSW, Bhushan Steel & Essar Steel, SMC will have to aggressively price itself at least in the near short term. Having had built a presence within the Indian steel consuming market on doing so, by leveraging later on its image of being a high quality steel manufacturing company, SMC could revert to uncompromised pricing at a W
  • 11. Cut-To-Length Facility CTL 1 CTL 2 Capacity (tons/annum) 1,25,000 3,00,000 Thickness (mm) 1.60 -7.00 3.00 -10.00 Width (mm) 800 -1,600 1,500 Length (mm) 1,000 -7,000 2,500 -12,000 Bundle Weight (tons) 7 7 Length Tolerance Length (mm) Tolerance(mm) Upto 2000 5 > 2000 8 ≤ 4000 >4000 10 ≤ 7000 Diagonal Tolerance Length (mm) Tolerance(mm) > 1000 3 ≤ 2000 >2000 5 ≤ 4000 >4000 8 ≤ 7000 Slitting Facility Annual Production (tons) 2,50,000 Line Speed(mpm) 150 Thickness (mm) 1.60 -7.0 Input Material Specifications Inner Diameter of Coil (mm) 610/710 -760 Outer Diameter of Coil (mm) 800 -2,000 Weight of Coils max. (tons) 30 Width of Coil (mm) 900 -1650 Output Material Specifications Inner Diameter of Coil (mm) 740 Outer Diameter of Coil (mm) 800 -2,000 Weight of Coils max. (tons) 30 Minimum Slit Width (mm) 100 Company Owned Hot Rolled (HR) & Cold Rolled (CR) Service Centre W
  • 12. Sample Target Customers Within the Maharashtra Region for HR Coils & Sheets Construction Equipments & Cranes Manufacturing Segment Mumbai Pune Nashik Spartan Engineering Deccan Construction Equipments & Machine Marsman India Ltd JCB India Bhushan Industries Rhishikesh Engineers Pvt Ltd Winget Construction Equipment Pvt Ltd Hyundai Construction Equipment India Private Limited Essey Engineering Company Larsen & Toubro Ltd Eddycranes Engineers Private Limited Ultratech Earthmoving Equipments Mukand Ltd Elmech Engineers Mahindra Construction Equipment Schmalz India Private Limited Gamzen Plast Pvt Ltd Mrc Transolutions Private Limited Multiquip Construction Equipment Pvt Ltd Jay Engineering Company Taurus Engineering Wirtgen India Pvt Ltd PSB Corporation Sany Heavy Industry India Pvt Ltd Tata Hitachi Construction Machinery Co Ltd National Earth Movers Skyline Millars Ltd Kone Cranes India Pvt Ltd Atlas Copco India Ltd Demag Cranes & Components (I) Pvt.Ltd Mekaster Engineering Ltd Cosmos Construction Machineries & Equipments Pvt Ltd Doosan Heavy Industries & Construction Co Ltd BN Industries Pranav Construction Systems Pvt Ltd Universal Construction Machinery & Equiopment Ltd Gujarat Apollo Industries Ltd ABG Cranes PvtLtd Burhani Commercial Corporation Smaco Engineering Pvt Ltd Preclift Hoists Pvt Ltd Hindustan Hoist & Crane Industries Ltd W
  • 13. Hiigh Pressure Gas Cylinder Manufacturing Segment Mumbai Nashik Aurangabad Everest Kanto Cylinder Limited Interal Appliances Pvt. Ltd Everest Kanto Cylinder Limited Lizer Cylinders Limited Maharashtra Cylinders Pvt. Ltd, Nagpur Nitin Cylinders Limited Super Industries Euro India Cylinders Limited Khara Gas Equipments Pvt. Ltd, Nagpur Expo Gas Containers Pvt.Ltd OM Containers Hans Gas Appliances Pvt. Ltd Tee Kay Pvt.Ltd Confidence Cylinders and Petrochem Pvt.Ltd. Ship Building Segment Maharashtra Goa Gujarat Mazagon Dock Limited-Mumbai Goa Shipyard Limited L&T Shipbuilding Limited, Hazira Naval Dockyard (Bombay) Dempo Engineering Works, Goa Pipavav Shipyard (currently Pipavav Defence and Offshore Engineering company Limited) Jawaharlal Nehru Port Trust Mandovi Drydocks, Goa SI VI SHIPPING CORPORATION PVTLTD ABG Shipyard Limited, Girgaon Nigel Shipyard Private Limited Bharati Shipyard Limited, Mumbai Siddarth Engineering & Shipbuilding Co. Pvt. Ltd. Cumbharjua,Goa Deena Engineering Works, Mumbai Timblo Drydocks Private Limited Modest Infrastructure Ltd, Mumbai Timblo Shipyards Limited NorthStar Shipbuilding Pvt Limited, Mumbai West Coast Shipyard, Loutolim, Goa Shoft Shipyard Pvt. Ltd. Western India Shipyard Limited, Goa SSR marine services pvt.ltd, Mumbai Sample Target Customers Within the Maharashtra Region for HR Coils & Sheets W
  • 14. Automobile Manufacturing Segment Location Company Automotive Segment Pune, Baramati Piaggio & C.SpA Two wheelers Pune, Ahmednagar Kinetic Engineering Limited Two wheelers Pune, Talegaon Dabhade General Motors India Private Limited Passengervehicles Pune, Talegaon Dabhade Case New Holland India Agriculture Equipment,combines Pune, Ranjangaon Tata Motors Passengervehicles Pune Fiat India Automobiles Limited Passengervehicles Pune, Chakan Mercedes-Benz India Passengervehicles Pune, Chakan Volkswagen India Private Limited Passengervehicles Pune, Chakan Force Motors Commercialvehicles Pune, Chakan Mahindra Navistar Commercial vehicles Pune, Chakan Force Motors Commercial vehicles Pune, Pimpri-Chinchwad Premier Automobiles Limited Passengervehicles Pune, Pimpri-Chinchwad Jaguar & Land Rover Passengervehicles Pune, Pimpri-Chinchwad Premier Automobiles Limited Commercial vehicles Pune, Pimpri-Chinchwad Bajaj Auto Commercial vehicles Pune, Bhandara Ashok Leyland Commercial vehicles Nashik Mahindra & Mahindra Passengervehicles Aurangabad Audi India Passengervehicles Aurangabad Skoda Auto India Private Limited Passengervehicles Mumbai Mahindra & Mahindra Passengervehicles, Farm Tractors Nagpur, Maharashtra Mahindra & Mahindra FarmTractors Consumer Durables Manufacturing Segment (Refrigerators, Washing Machines and Other Home Appliances) Mumbai Pune Godrej Industries Ltd LG Electronics India Siemens Whirlpool India Limited Videocon Industries, Chandrapur, Maharashtra Electrolux India Videocon Industries, Nagpur, Maharashtra General Electric India Voltas Ltd, Thane, Maharashtra Haier India Sharp India Ltd Target Customers Within the Maharashtra Region for CR Coils & Sheets W
  • 15. HR Coils/Sheet s SteelManufacturer Galvanized Steel CR Coils/Shee ts Stainless Steel AlloySteel (Long) Coated Steel Competitive Position of SMC Amidst the Leading Steel Producers Having Steel Plants Within Maharashtra JSW Ispat (3 Mln Ton / Annum) Uttam Galva (.5 Mln Ton / Annum) Lloyds Steel (.5 Mln ton / Annum) Viraj Profiles (.5 Mln Ton / Annum) Mukand Ltd (.5 Mln Ton / Annum) Kalyani Steels (.5 Mln Ton / Annum) Sona Alloys (.5 Mln Ton / Annum) Mahindra Ugine (.03 MlnTon / Annum) Tata Blue Scope (.25 Mln Ton / Annum) SMC W
  • 17. Production, Import of Export of Steel From India 60.62 68.62 75.7 81.68 87.67 0 10 20 30 40 50 60 70 80 90 100 2009-10 2010-11 2011-12 2012-13 2013-14 Production of Total Finished Steel Within India(Alloy + Non Alloy) (Mln Ton) 7.38 6.66 6.86 7.93 5.45 3.25 3.64 4.59 5.37 5.98 0 1 2 3 4 5 6 7 8 9 2009-10 2010-11 2011-12 2012-13 2013-14 Import of Total Finished Steel Within India (Alloy + Non Alloy) (Mln Ton) Export of Total Finished Steel From India (Alloy + Non Alloy) (Mln Ton) W
  • 18. Indian steel industry : Production for Sale (in million tonnes) Category 2009-10 2010-11 2011-12 2012-13 2013-14 April- December 2014-15* Pig Iron 5.88 5.68 5.371 6.87 7.95 6.081 (5.868) Sponge Iron 24.33 25.08 19.63 14.33 18.2 13.276 (13.413) Total Finished Steel (alloy + non alloy) 60.62 68.62 75.7 81.68 87.67 65.197 (64.190) Source: Joint Plant Committee; *provisional; figure in () is value in same period of last year Overall Scenario of the Steel Industry in India WDomestic Scenario The Indian steel industry has entered into a new development stage from 2007-08, riding high on the resurgent economy and rising demand for steel. Rapid rise in production has resulted in India becoming the 4th largest producer of crude steel and the largest producer of sponge iron or DRI in the world. As per the report of the Working Group on Steel for the 12th Five Year Plan, there exist many factors which carry the potential of raising the per capita steel consumption in the country. These include among others, an estimated infrastructure investment of nearly a trillion dollars, a projected growth of manufacturing from current 8% to 11-12%, increase in urban population to 600 million by 2030 from the current level of 400 million, emergence of the rural market for steel currently consuming around 10 kg per annum buoyed by projects like Bharat Nirman, Pradhan Mantri Gram Sadak Yojana, Rajiv Gandhi Awaas Yojana among others. At the time of its release, the National Steel Policy 2005 had envisaged steel production to reach 110 million tonnes (mt) by 2019-20. However, based on the assessment of the current ongoing projects, both in greenfield and brownfield, the Working Group on Steel for the 12th Five Year Plan has projected that domestic crude steel capacity in the county is likely to be 140 mt by 2016-17 and has the potential to reach 149 mt if all requirements are adequately met. The National Steel Policy 2005 is currently being reviewed keeping in mind the rapid developments in the domestic steel industry (both on the supply and demand sides) as well as the stable growth of the Indian economy since the release of the Policy in 2005. Production Steel industry was delicensed and decontrolled in 1991 & 1992 respectively. Today, India is the 4 th largest crude steel producer of steel in the world. In 2013-14, production for sale of total finished steel (alloy + non alloy) was 87.67 mt and 65.197 mt during April-December 2014-15 (provisional). Production for sale of Pig Iron in 2013-14 was 7.95 mt and 6.08 mt during April-December 2014-15 (provisional). India is the largest producer of sponge iron in the world with the coal based route accounting for 89% of total sponge iron production in the country. Data on production for sale of pig iron, sponge iron and total finished steel (alloy + non-alloy) are given below for last five years and April-December 2014-15:
  • 19. Demand - Availability Projection Demand – Availability of iron and steel in the country is projected by Ministry of Steel in its Five Yearly Plan documents. Gaps in availability are met mostly through imports. Interface with consumers by way of a Steel Consumers’ Council exists, which is conducted on regular basis. Interface helps in redressing availability problems, complaints related to quality. Steel Prices Price regulation of iron & steel was abolished on 16.1.1992. Since then steel prices are determined by the interplay of market forces. Domestic steel prices are influenced by trends in raw material prices, demand – supply conditions in the market, international price trends among others. An Inter-Ministerial Group (IMG) is functioning in the Ministry of Steel, under the Chairmanship of Secretary (Steel) to monitor and coordinate major steel investments in the country. The Government earlier took various fiscal and other measures for stabilizing steel prices like significant reduction in import duties on steel, major raw materials, including mineral products and ores and concentrates in last few years. Also, excise duty for steel is currently at 12% and there is no export duty on steel items. The government has also imposed export duty of 30% on all forms of iron ore and 5% on iron ore pellets in order to control ad-hoc exports of the mineral and conserve it for long term requirement of the domestic steel industry. For ensuring quality of steel several items have been brought under a quality control order issued by the Government. Further, a Steel Price Monitoring Committee has been constituted by the Government with the aim to monitor price rationalization, analyze price fluctuations and advice all concerned regarding any irrational price behavior of steel commodity. Imports Iron & steel are freely importable as per the extant policy. Data on import of total finished steel (alloy + non alloy) is given below for last five years and April-December 2014-15 (provisional): Indian steel industry : Imports (in million tonnes) Category 2009-10 2010-11 2011-12 2012-13 2013-14 April-December 2014-15* Total Finished Steel (alloy + non alloy) 7.38 6.66 6.86 7.93 5.45 6.492 (4.122) Source: Joint Plant Committee; *provisional; figure in () is value in same period of last year Overall Scenario of the Steel Industry in India W
  • 20. Exports Iron & steel are freely exportable. Data on export of total finished steel (alloy + non alloy) is given below for last five years and April-December 2014-15 (provisional).: Indian steel industry : Exports (in million tonnes) Category 2009-10 2010-11 2011-12 2012-13 2013-14 April-December 2014-15* Total Finished Steel (alloy + non alloy) 3.25 3.64 4.59 5.37 5.98 4.066 (4.355) Source: Joint Plant Committee; *provisional; figure in () is value in same period of last year Opportunities for growth of Iron and Steel in Private Sector The New Industrial Policy Regime The New Industrial policy opened up the Indian iron and steel industry for private investment by (a) removing it from the list of industries reserved for public sector and (b) exempting it from compulsory licensing. Imports of foreign technology as well as foreign direct investment are now freely permitted up to certain limits under an automatic route. Ministry of Steel plays the role of a facilitator, providing broad directions and assistance to new and existing steel plants, in the liberalized scenario. The Growth Profile (i)Steel : The liberalization of industrial policy and other initiatives taken by the Government have given a definite impetus for entry, participation and growth of the private sector in the steel industry. While the existing units are being modernized/expanded, a large number of new steel plants have also come up in different parts of the country based on modern, cost effective, state of-the-art technologies. In the last few years, the rapid and stable growth of the demand side has also prompted domestic entrepreneurs to set up fresh greenfield projects in different states of the country. Crude steel capacity was 101 mt in 2013-14 and India, the 4th largest producer of crude steel in the world, has to its credit, the capability to produce a variety of grades and that too, of international quality standards. The country is expected to become the 2nd largest producer of crude steel in the world soon, provided all requirements for creation of fresh capacity are adequately met. (ii)Pig Iron: India is also an important producer of pig iron. Post-liberalization, with setting up several units in the private sector, not only imports have drastically reduced but also India has turned out to be a net exporter of pig iron. The private sector accounted for 93% of total production for sale of pig iron in the country in 2013-14. The production for sale of pig iron has increased from 1.6 mt in 1991-92 to 7.95 mt in 2013-14. (iii)Sponge Iron: India is the world’s largest producer of sponge iron with a host of coal based units, located in the mineral-rich states of the country. Over the years, the coal based route has emerged as a key contributor and accounted for 89% of total sponge iron production in the country. Capacity in sponge iron making too has increased over the years and stood at 45 mt in 2013-14. Overall Scenario of the Steel Industry in India W
  • 21. Marketing Strategy a Steel Manufacturing Company, w.r.t. the Maharashtra Region Thank You! W