Because of the essential role that Iron and steel play in infrastructure and general economic growth, the steel sector is frequently seen as an indication of economic advancement.
There were over 500,000 steelworkers in the United States in 1980. By 2000, the number of steelworkers had dropped to 224,000. In recent years, the economic expansion in China and India has resulted in a tremendous increase in steel consumption.
According to the British Geological Survey, China was the biggest steel producer in 2005, accounting for almost one-third of global output; Japan, Russia, and the United States followed, in that order. Steel was first traded as a commodity on the London Metal Exchange in 2008.
The Indian iron and steel industry dates back over a century, with Tata Iron & Steel Co (Tata Steel) establishing the first integrated steel mill in 1907. It was the first key industry to be totally exempt from licensing requirements. The Government of India’s New Industrial Policy has removed the iron and steel industry off the list of industries reserved for public investment, making it available for private investment.
Rising demand from industries such as infrastructure, real estate, and autos both at home and abroad has put India’s steel industry on the global map. The steel titan Tata Steel, whose purchase of the UK-Dutch steel business Corus is the country’s largest buyout, dominates the Indian horizon.
The Indian iron and steel industry is organized into two major sectors: public and private.
The Indian steel industry may be classified into two groups of producers based on their manufacturing routes:
Those who transform iron ore into steel. Steel Authority of India Limited, Tata Iron and Steel Company Limited, and Rashtriya Ispat Nigam Limited are the three biggest integrated steel companies in India.
These are micro steel plants (MSPs), which manufacture steel by melting scrap, sponge iron, or a combination of the two. The main secondary steel manufacturers are Essar Steel, Ispat Industries, and Lloyds Steel.
According to current policy, iron and steel goods are freely importable. Previously, India imported around 1.5 million tonnes per year. The Advance Licensing Scheme provides for the duty-free import of raw materials for export. Similar to the import rules for iron and steel products, these can also be freely exported. To encourage exports, the government established the Duty Entitlement Pass Book Scheme. Under this arrangement, exporters are allocated due credits based on declared entitlement rates, allowing them to import duty-free products in exchange.
Tata Steel, Asia’s first steel firm, was founded in 1907. Despite the fact that the firm is situated in Jamshedpur, Jharkhand, its headquarters are in Mumbai. Previously, Tata Steel Limited was known as Tata Iron and Steel Company Limited (TISCO).
With an annual crude steel capacity of more than 30 million tonnes, the firm is Europe’s second-largest producer. Tata Steel Limited, a company of the Tata group, decreased market rivalry by purchasing Bhushan Steel Limited in 2018-19, as well as Usha Martin Ltd.
JSW Group, the parent company of JSW Steel, is one of India’s leading steel production enterprises. It has substantial activities not just in India, but also in worldwide markets.
JSW Steel Limited began in the early 1980s with a single steel factory in Mumbai and has since expanded to include steel factories in Karnataka, Tamil Nadu, and Maharashtra.
Essar Steel India Limited, founded in 1998, has grown to become one of India’s largest steel-producing enterprises. It is well-known for producing high-quality steel products made from high-value graded steel.
In India, Essar Steel‘s goods are used in a variety of industries. Several sectors rely on Essar Steel Ltd for steel, including the auto industry, power plants, hydrocarbon industry, and many more.
Steel Authority of India Limited (SAIL) is an Indian government-owned steel production firm. With competition from the commercial sector, SAIL rose to become one of India’s leading government steel enterprises.
SAIL is involved in both iron and steel manufacture, with various units located in the country’s eastern and central areas. In India, SAIL manufactures and distributes a wide range of steel products.
Jindal Steel & Power Limited is not just a steel manufacturer, but also a well-known power generation firm. Its operations are not restricted to India; the majority of its business is conducted worldwide as well.
JS and Power recently recorded sales of roughly 2.3 million tonnes, the most in a quarter. In FY22, the business set an annual sales record of 7.63 million tonnes. Regardless of where it ranks on the list, Jindal Steel has the potential to become the steel industry’s dominant player within a few years.
In India, NMDC is a government-owned iron and steel producing firm. NMDC is not only interested in iron and steel, but also in mining mineral resources such as iron, magnesium, and diamond. NMDC has made major contributions to the mining industry over the last few decades, earning it public sector status under Schedule-A.
Because of its diverse business structure, NMDC is also an excellent investment opportunity. Sponge Iron India Limited is a subsidiary of the corporation that is doing well in the industry.
VISA’s revenue in 2019 was anticipated to reach $3 billion, or INR 300 crores. VISA Steel, which was founded in 2003, has grown into a major steel factory and is now one of India’s top steel corporations.
VISA Steel has manufacturing operations in three locations with a production capacity of around a million metric tonnes per year. It is ranked eighth among India’s top ten steel firms, although it is a major participant in the special steel, ferrochrome, and metallurgical coke industries.
Electro Steels Limited was established in 1955 with interests not just in steel but also in other metals. With a production capacity of 280,000 metric tonnes per year, Electro Steel Limited is one of the major manufacturers of ductile iron pipes.
Electro Steel purchased Vedanta Limited, and they are now striving to raise production and profitability. The corporation plans to invest a massive INR 4,000 – 5,000 crores over the next two years to quadruple the capacity of its Bokaro factory.