With a production of 9.9 MT in August 2021, India was the world's second-largest crude steel producer. In FY21, the total crude steel produced was 102.49 million tonnes, with 94.66 million tonnes of finished steel produced. Rising customer demand will increase India's crude steel production by 18 per cent to 120 million tonnes in FY22.
The availability of raw materials (such as iron ore) and low-cost labour have aided India's steel industry. As a result, the steel industry in India has made a significant contribution to the country's manufacturing output.
India's steel industry is cutting-edge, with cutting-edge steel mills. It has always worked hard to modernise older plants and increase energy efficiency. There are three kinds of steel producers in India: major producers, primary producers, and secondary producers.
The crude steel production in FY21 was 102.49 MT, while the finished steel production was 94.66 MT. According to CARE Ratings, crude steel production in FY22 may become 112-114 MT (million tonnes), an increase of 8-9% year-on-year. Finished steel consumption was 93.43 MT in fiscal year 21 (FY21). The total finished steel produced in May 2021 was 7.8 million tonnes.
SAIL's crude steel production was 1.30 MT in June 2021, and its salable steel production was 1.27 MT. In FY22, finished steel exports and imports totalled 3.5 MT and 1.16 MT, respectively (until June 2021). Compared to the same month in 2020, India's exports increased by 121.6 per cent in April 2021. India exported 8.24 MT of finished steel in the fiscal year 2020.
Top Steel Manufacturers in India
Investments and Development of Steel manufacturers in India
The recent years have brought significant investments and developments in the steel industry and its associated mining and metallurgy sectors. Between April 2000 and June 2021, Indian metallurgical industries received $16.0 billion in FDI, according to DPIIT data.
Due to increased construction activity, steel demand may rise by 17% to 110 million tonnes in FY22. The following are some major investments in the Indian steel industry:
- In FY22, Tata Steel plans to invest Rs. 8,000 crore (US$ 1.08 billion) in capital expenditures to expand its operations in India.
- ArcelorMittal has announced plans to expand its capacity in Gujarat by investing Rs. 1 lakh crore (US$ 13.48 billion).
- Over the next three years, Tata Steel plans to invest Rs. 3,000 crore (US$ 404.46 million) in Jharkhand.
- Jindal Steel & Power Ltd. has announced plans to invest $2.4 billion in capacity expansion to meet rising customer demand over the next six years.
- Shyam Steel Industries has committed to a brownfield expansion project worth $95 million.
- AM/NS India, a joint venture between ArcelorMittal and Nippon Steel, plans to increase capacity to 30 MT by investing Rs. 85,000 crore (US$ 11.40 billion) as well as inflows of $14.74 billion in foreign direct investment into India's metallurgical industries.
- JSW Steel plans to invest Rs 47,457 crore (US$ 6.36 billion) over the next three years to expand the steel plant capacity in Vijayanagar by 5 MTPA and build mining infrastructure in Odisha.
- Shyam Metalics and Energy Ltd. (SMEL) announced in June 2021 that it plans to expand its production capacity over the next three to four years by brownfield expansion at two of its units at the cost of Rs. 2,894 crores (US$ 389.72 million).
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- The South Korean steel giant, POSCO, plans to build an integrated steel plant in Odisha for US$ 12 billion, making it India's largest FDI project. Mr Shin Bongkil, South Korean Ambassador to India, announced this investment at a virtual roundtable conference hosted by the Indian Chamber of Commerce in April 2021.
- JSW Steel announced in May 2021 that it would increase steel production at its Vijayanagar plant by 5 MT per year to 17 MT per year by the end of the fiscal year.
- Bhushan Power and Steel Ltd. has been acquired by JSW Steel, bringing the company's total output to 21.5 mtpa. With the addition of BPSL and a doubling of capacity at its Dolvi steel mill to 10 mtpa, JSW Steel's current capacity of 18 mtpa will increase to more than 26 mtpa.
Government Initiatives for Steel manufacturers in India
- The Union Cabinet has approved the production-linked incentive (PLI) scheme for speciality steel. The plan aims to increase speciality steel capacity by 25 million tonnes (MT) to 42 MT in FY27, up from 18 MT in FY21, and invest Rs. 400 billion.
- The 'Mission Purvodaya' initiative aims to accelerate development in India's eastern states by establishing an integrated steel hub in Kolkata, West Bengal. Eastern India has the capacity to add more than 75% of India's new steel capacity. In total, the expectation is to produce more than 200 MT.
- JSW Steel, CSIR-National Chemical Lab (NCL), Scottish Development International (SDI), and the India H2 Alliance (IH2A) will collaborate to commercialise hydrogen in the steel and cement industries.
- The Union Budget for 2020-21 allocated Rs. 39.25 crore (US$ 5.4 million) to the Ministry of Steel. The budget prioritises infrastructure and manufacturing to help the economy. Steel consumption would rise with increased spending in key sectors like defence, railways, roads, transportation, and highways.
- India's Ministry of Steel and Japan's Ministry of Economy, Trade, and Industry signed a Memorandum of Cooperation (MoC) to strengthen the steel sector through joint activities as part of the India–Japan Steel Dialogue.
- Mr Dharmendra Pradhan, India's Minister of Petroleum, Natural Gas, and Steel, has urged scientists to Innovate for India (I4I) and create competitive advantages to help the country achieve its goal of becoming an "Aatmanirbhar" nation by December 2020.
- The Ministry of Steel will outline a framework policy for developing steel clusters in the country.
- According to the Directorate General of Foreign Trade, steel manufacturers in the country will be able to take advantage of duty drawback benefits on steel supplied through their service centres, distributors, dealers, and stockyards.
- To reduce imports, the government implemented a Steel Scrap Recycling Policy.
There are enormous growth opportunities for the Indian steel sector due to:
- India's low per capita steel consumption
- Anticipated consumption increase resulting from thriving infrastructure, automobile, and railway sectors
Thus, Steel manufacturers in India see a bright future ahead and are very forward in their investments. For any amount of taxable profit, excessive financial accounting burdens business owners. OkCredit is a financial accounting service that provides various business-specific services that allow you to focus on your business's growth. At the same time, OkCredit takes care of your financial problems.
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Q. Who is the largest producer of steel in India?
Ans. Tata Steel is India’s largest steel producer.
Q. Which states are involved with the manufacturing of steel?
Ans. Western/southern and northern India have prosperous states. Raw materials (iron ore) and proximity to markets (Odisha, Chhattisgarh, Jharkhand, and Karnataka) (Maharashtra and Gujarat) are factors that drive the steel production centres. Maharashtra and Tamil Nadu, both auto hubs, are the two states that use the most steel.
Q. Which city is associated with steel?
Ans. Although one can find steel plants in many cities across India, the "Steel City of India" is Jamshedpur in Jharkhand, home to TATA's first steel plant.
Q. Which is the biggest steel plant in India?
Ans. Bhilai Steel Plant is the biggest one in India.
Q. How many steel factories are there in India?
Ans. There are approximately 3647 steel plants in India.
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