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Steel occupies a prominent place in Indian manufacturing sectors. Indian Steel Industry has been riding high on the resurgent economy and rising demand for steel.
The Government of India has released the National Steel Policy (NSP), 2017.
Key Features are as follows:
Create self-sufficiency in steel production by providing policy support & guidance to private manufacturers, MSME steel producers, CPSEs
Encourage adequate capacity additions
Development of globally competitive steel manufacturing capabilities
Domestic availability of iron ore, coking coal & natural gas
Facilitating foreign investment
Asset acquisitions of raw materials &
Enhancing the domestic steel demand
The policy projects crude steel capacity of 300 million tonnes (MT), production of 255 MT and a robust finished steel per capita consumption of around 160 Kgs by 2030 - 31.
The policy also envisages to domestically meet the entire demand of high grade automotive steel, electrical steel, special steels and alloys for strategic applications and increase domestic availability of washed coking coal so as to reduce import dependence on coking coal from about 85% to around 65% by 2030-31.
The Government of India is also providing preference to domestically manufactured iron & steel products in Government procurement.
MILESTONES & LANDMARKS:
In FY 2016-17, India became net exporter of steel, with 8.2 million tonnes of exports, registering a 102 % growth over steel exports in previous fiscal.
In FY 2016-17, imports were reduced by 37% at 7.42 million tonnes as a result of Government of India initiatives.
Indian Steel sector has been growing at steady Compound Annual Grwoth Rate (CAGR) of about 7% over the past three years with improvement in the overall capacity utilization even with enhanced capacity.
In 2015, India became 3rd largest producer of crude steel in the world as against its 4th position in 2014. India left behind USA to attain this position.
In new General Financial Rules (GFR) guidelines 2017, the concept of Life Cycle Cost has been included, which is likely to increase steel consumption.(Source: Ministry of Steel)
Imposition of MIP and anti-dumping duties in a phased manner, resulted in curbing unabated exports and unfair trade practices like predatory pricing by other countries.
Kanishk Steel is the largest steel manufacturer in south India since 1989 having of its Furnace Unit and Rolling Mill to produce various front-line Rolled Steel products. The products of the Company under the brand of "KANISHK STEELS" continue to deserve for Quality, Price and Delivery in the Indian Steel Market. The company continued its own focused improvements in the quality of products during the year and be moving ahead with the right market strategy. The opportunities and threats available for the company are briefly provided below:
The factors like fluctuating volatile raw materials prices, regional demand & supply imbalances, and INR Value against global currencies have impacted significantly the Indian steel industry. The high cost and short supply of power in India may hamper the steel industrys production level. Cheap import of steels products from neighboring countries may result in the lowering prices and making the market highly competitive. This may be improved in future.
Steel Demand of steel is expected to rise in future with economic and Industrial growth. Growing infrastructure like roads and highways, railways, aviation, shipping, energy, power or oil & gas will boost the demand for specialized steel and the Companys growth seems better in the future with economic and Industrial growth.