NEW ASPECTS OF INDIAS STAINLESS INDUSTRY

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NEW ASPECTS OF INDIAS STAINLESS INDUSTRY

• PRESENTATION
• ON BEHALF OF JPC
• BY
• Y P S SURI
• www.steelrx.com

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(No Transcript)
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INDIAN STAINLESS STEEL INDUSTRY 2002
INTRODUCING STAINLESS INDIA

• LARGEST STABLE DEMOCRACY
• OVER 1 BILLION PEOPLE
• MORE THAN HALF OF THEM FORMALLY LITERATE
• PERCAPITA INCOME OF 1800 ( PPP BASIS )
• URBAN POPULATION 27
• INDIAN REPUBLIC COMPLETED 52 YEARS
• SELF RELIANCE IN 1950 TO RAPID REFORMS IN
  1991

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INDIAN STAINLESS STEEL INDUSTRY 2002
TRACKING FOOTSTEPS OF SS INDUSTRY

• STEEL INDUSTRY STARTED IN 1907
• 9th LARGEST IN THE WORLD TODAY 27million
  tons
• SS PRODUCTION STARTED IN LATE SIXTIES ASP
• 60,000 tons to 250,000 TONS IN EIGHTIES
• THREE IMPORTANT DEVELOPMENTS in End
  Eighties
• ISSDA , Ni PRICES LOW Ni SS
• SS PROD 700,000 TONS by 2000.
• GROWTH RATE 18 in nineties , 3 TIMES GLOBAL
  AVG
• SS NOT ELITIST ANYMORE IN INDIA
• PERCAPITA USAGE 700 gms.

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INDIAN STAINLESS STEEL INDUSTRY 2002
INTERESTING INDIAN STAINLESS
FACTS

• SS PRODUCTION IS 3 OF TOTAL STEEL PRODN27m
  
• SS LP SHARE 86 as against GLOBAL SHARE 20
  
• SHEETS made from FLAT BARS
• Low Ni High Mn AUSTENITIC STAINLESS
• Chemistry VS Enduse STANDARDISATION
• SS GLASS 12 cents VS CERAMIC 17 cents
• DINNER SET for one person COSTS US 2

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INDIAN STAINLESS STEEL INDUSTRY 2002
Low Nickel STAINLESS ACCEPTED GLOBALLY

• KITCHEN/TABLE/HOUSEWARES EXPORTS 80000
  TONS
• VALUE 17 MILLION US

• MIDDLE-EAST 35
• USA 25
• AFRICA 15
• EUROPE 10
• LATIN AMERICA 10
• FAR-EAST JAPAN 5

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INDIAN STAINLESS STEEL INDUSTRY 2002
INDIAN STAINLESS STEEL DEVELOPMENT ASSOCIATION

• FOUNDED BY SS PRODUCERS IN 1989
• To ENLARGE MARKETS FOR SS USAGE
• To PROMOTE NEW APPLICATIONS
• With POSITIVE SUPPORT AND LEARNINGS FROM NiDi AND
  SSDAs

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www.stainlessindia.org
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INDIAN STAINLESS STEEL INDUSTRY 2002
SUPPLY IN 2001-02

• SS MILL PRODUCTS 750000 TONS
• UNITS WITH MELTING AND REFINING 650,000
  TONS
• UNITS WITH INDUCTION MELTING FACILITY
  150,000 TONS
• SALEM STEEL PLANT 50,000 TONS FROM
  PURCHASED SLABS

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INDIAN STAINLESS STEEL INDUSTRY 2002
MELTING AND REFINING UNITS
JINDAL STRIPS EAF-AOD-CCB/S L-FBFP D SHAH
ALLOYS IF-AOD-CCB/S LPFBFP D PANCHMAHAL EAF
-AOD-CCB LP- WR D MUKAND STEEL EAF-AOD-CCB LP-
WR C ALLOY STEEL PLANT EAF-VOD-SLAB LP C ISIBA
R EAF-AOD-CCB LP D FACOR EAF-VOD-CCB LP
C VIRAJ ALLOYS IF-AOD-CB LP D CHANDAN
STEEL IF-AOD-CCB LP D KALYANI
STEELS EAF-VOD-CCB LP C MUSCO EAF-VOD-CCB LP
C SUNFLAG EAF-VOD-CCB LP C
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INDIAN STAINLESS STEEL INDUSTRY 2002
TOTAL SUPPLY BY PRODUCERS in 2001-02
LOW Ni /300 SERIES 400 SERIES
AGEOF ( AUSTENITIC ) (
FERRMART ) 400 SERIES FLAT PRODUCTS
75000 27000 26 LONG PRODUCTS
85000 13000 13 FLAT BARS for Sheets
550000 -- - TOTAL 710000
40000 5
THE GLOBAL SHARE OF 400 SERIES IS 25
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INDIAN STAINLESS STEEL INDUSTRY 2002
SS USAGE

• is DERIVED FROM
• UTILITY / COST ASPECTS OF S S PRODUCTS
• FUNCTION OF MACRO ECONOMIC FACTORS
• APPLICATION FACTORS INHERENT IN ITS PROPERTIES

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INDIAN STAINLESS STEEL INDUSTRY 2002
USAGE / APPLICATION PATTERN BY END USER SECTOR
SECTOR WORLD AVG INDIA UTENSILS
36.5 76.0 CONSTRUCTION 11.6
1.0 TRANSPORT
14.9 0.3 PROCESS 19.4
14.2 TUBING 11.8 1.9
OTHERS 5.8 6.6
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INDIAN STAINLESS STEEL INDUSTRY 2002
PROMINENT MANUFACTURERS / EXPORTERS
WIRE RODS PANCHMAHAL , MUKAND ,ISIBARS CF
BARS PANCHMAHAL, MUKAND , ISIBARS , VIRAJ ,
FACOR WIRES RAJRATNA , KEI Ind , VENUS ,
MUKAND HR/CR COIL JINDAL STRIPS, SALEM STEEL
PLANT HR PLATES JINDAL STRIPS, SALEM STEEL ,
SHAH ALLOYS HOUSEWARES AISSIA Mumbai and many
others
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INDIAN STAINLESS STEEL INDUSTRY 2002
DOWNSTREAM PROCESSORS
SEAMLESS TUBES 5000 tons WELDED TUBES 8000
tons organised sector 3000 tons WIRE DRAWING
UNITS over 30000 tons BRIGHT BARS 45000
tons FORGING UNITS 5000 tons FASTENER UNITS
4000 tons
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INDIAN STAINLESS STEEL INDUSTRY 2002
END USAGE last year

• 1. INDUSTRIAL END USER 210000
  TONS
• 2. UTENSIL SEGMENT 400000
  TONS
• EXPORTS
  180000 TONS
• PROJECTIONS
• 2001-02 2003-04
• INDUSTRIAL (300/400) 190,000
  240,000 TONS
• UTENSIL 570,000
  600,000 TONS
• TOTAL IN TONS 760,000
  840,000 TONS

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INDIAN STAINLESS STEEL INDUSTRY 2002
NEW PLANNED DEVELOPMENTS
1. ABC SECTOR 2. TRANSPORTATION 3. STAINLESS
STEEL LPG CYLINDERS 4. NO RUST REBAR FOR
INFRASTRUCTURE PROJECTS 5. PIPES AND TUBES
6. APPLIANCES AND UTENSILS
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ARCHITECTURE BUILDING
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CONSTRUCTION
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RAILWAYS EMERGING BIG USER
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TRANSPORTATION
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SS AUTO LPG TANKS AUSTRALIAN JOINT VENTURE in
India
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STAINLESS IS BEAUTIFUL
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INDIAN STAINLESS STEEL INDUSTRY 2002
STRENGTHS

• RACING AHEAD IN LOW COST AUSTENITIC SS
• ABUNDANT RAW MATERIALS AVAILABILITY
• PROCESS TECHNOLOGY PRODUCTS OF GLOBAL
  STANDARDS
• SKILLED MANPOWER INNOVATIVE PROFESSIONALS
• PRESENCE OF INDIAN STAINLESS STEEL
  DEVELOPMENT ASSN
• STRONG DEMAND EMERGING ON DOMESTIC FRONT
• EVER SUPPORTIVE MINISTRY OF STEEL

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INDIAN STAINLESS STEEL INDUSTRY 2002
WEAKNESS

• RELIABLE DISTRIBUTION CHANNELS NON EXISTENT
• DEMAND FOR INDUSTRIAL GRADES SLUGGISH
• SLOW GROWTH OF MANUFACTURING IN GDP

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INDIAN STAINLESS STEEL INDUSTRY 2002
OPPORTUNITIES

• EXPORT POTENTIAL DUE TO PRICE
  COMPETITIVENESS
• INFRASTRUCTURE DEV usage of
  REBARS/STRUCTURALS
• POTENTIAL FOR JV PARTNERSHIPS - BOELLINGHAUS
• Value add capacities in WIRE ROD , WIRES ,
  CFBARS , FORGINGS , HR/CR COILS ,
  HOMEWARES etc.
• DOWNSTREAM INTEGRATION / CONSOLIDATION- JSL
• SS DEMAND GROWTH RATE SUSTAINED AT 8 - 10
  

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INDIAN STAINLESS STEEL INDUSTRY 2002
THREATS

• NICKEL PRICE VOLATILITY Non-affordability
  for industrial use
• PROTECTIONIST TRENDS IN DEVELOPED COUNTRIES
• DEVALUATION OF CURRENCIES FROM COMPETING
  NATIONS

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THANKYOU

• BEHIND US ARE ALL THE ACCOMPLISHMENTS AND
  CHALLENGES CONQUERED
• BEFORE US LIE NEW HORIZONS FILLED WITH ENDLESS
  STAINLESS POSSIBILITIES
• YOU ARE WELCOME AS PARTNER
• IN SUSTAINABLE GROWTH