Cover Story

India's Fastest Growing Steel Companies 2013

November 2013
Weak demand has affected the performance of major steel firms. Steel consumption grew just 0.3 per cent in the first five months of the current fiscal 2013-14 to 30.345 million tonne, as compared to 30,240 million tonne in the corresponding period a year ago. Besides, steel imports fell 28.2 per cent to 2.410 million tonne in the five months through August 31 from 3.357 million tonne in the same period last fiscal. Despite the muted demand, major producers of steel in India expect a 7 per cent per annum growth in consumption in the ongoing fiscal, which is higher than the rate at which the industry grew in the last financial year. It is being hoped that the recent reforms announced by the Government as well as the RBI's easing of the monetary policy could accelerate growth in the sector. According to the Planning Commission of India, the country's steel production is expected to grow steadily to around 60 million tonne during the Twelfth Five-Year Plan. As per the report of the Working Group on Steel for the Twelfth Plan, there exists potential to raise the profile of per capita steel consumption in the country, currently estimated at 55 kg (provisional). This is to be achieved on the back of infrastructure investment of nearly a trillion dollars, a projected growth of manufacturing from the current 8 per cent to 11-12 per cent, increase in urban population to 600 million by 2030 from the current level of 400 million, and emergence of the rural market for steel currently consuming around 10 kg per annum. Based on current ongoing projects, both in greenfield and brownfield, authorities have said that crude steel capacity could touch 140 million tonne by 2016-17 and reach 149 million tonne if all requirements are adequately met. According to government data, steel production is expected to reach 200 million tonne by 2020 from the 71 million tonne recorded last year. With the US economy showing signs of recovery, the general feeling is that the Indian steel industy will rally in 2013-14 on the back of proposed infrastructure projects like highways, power plants and freight corridors. The optimism also stems from the fact that both public and private sector companies - SAIL, Tata Steel and JSW - are now looking to raise production capacity.