The Need Of The Hour
Epc World|November 2019
The tariff war unleashed by US and the European Union and the retaliatory steps being planned by neighbouring steel producing countries will have ripple effect on the domestic steel industry. The domestic steel industry fears the excess steel producing countries will dump their products in the Indian market and to keep its ships floating the Indian steel manufacturers have asked the government to impose safeguard duties.

Steel is one of the core sectors whose consumption has a direct relation with the growth of infrastructure industry in India. According to IBEF report India is slated to surpass USA to become the world’s second largest steel consumer in 2019. In FY18, India produced 104.98 million tonnes and 103.13 million tonnes of finished steel and crude steel, respectively. Crude steel production between April 2018-February 2019 reached 97.15 million tonnes. In FY18 India was also a net exporter of steel. According to a report by CARE Ratings, the finished steel production in India increased by 5.9 percent to 100.9 million tonnes during the period April 2018-February 2019 compared to the corresponding period a year ago where the output stood at 95.3 million tonnes. Demand for steel in India grew by 7.4 percent y-o-y to 88.1 million tonnes during April 2018-February 2019. India which was net exporter of steel during the period April 2017-February 2018 turned net importer of steel in the current financial year. The country’s imports exceeded exports by 1.4 million tonnes during the period April 2018-February 2019. While imports increased by 1.9 percent y-o-y to 7.1 million tonnes, exports declined by a sharp 35.2 percent to 5.8 million tonnes. Higher domestic consumption coupled with higher domestic prices is believed to have limited outbound shipments during the year.

FY2019 can be rightly summarized as the year of consolidation for the Indian steel industry. Tata Steel consolidated its market share by acquiring debt-laden Bhushan Steel for ₹ 35,000 crore after paying two-third of the loan Bhushan Steel owned to lenders. Tata Steel acquired Bhushan Steel through its wholly-owned subsidiary Bamnipal Steel and renamed it Tata Steel BLS Ltd. It also acquired Usha Martin for around ₹ 4,600 crore. Usha Martin is amongst the largest wire rope manufacturers in the world and a leading speciality steel producer in India. On the international front, Tata Steel’s European joint venture with Thyssenkrupp fell through on account of strong objection from European Union anti-trust regulators. JSW Steel acquired 88 percent stake in Monnet Ispat through the insolvency courts for ₹ 2,875 crore in a consortium with AION Investments. On the international front JSW Steel acquired Italy’s second largest steel plant Aferpi from the Algerian Cevital for ₹ 441 crore and is planning to acquire all the assets of British Steel. JSW Steel has also acquired Piombino Steel from JSW Techno Projects Management. Recently, it has received approval from National Company Law Tribunal, Mumbai Bench for the Scheme of Amalgamation of its four units - Dolvi Minerals & Metals (DMMPL) and Dolvi Coke (DCPL), JSW Steel Processing Centres ( JSPCL) and JSW Steel (Salav) with JSW Steel. Vedanta acquired management control of debt-laden Electrosteel Steels after paying ₹ 5,320 crore in an escrow account of Electrosteel Steels. ArcelorMittal has transferred Rs. 7,000 crore to an escrow account with State Bank of India to pay off Uttam Galva and KSS Petron’s dues and is exploring to take ownership of these two debt-laden companies. ArcelorMittal is ahead in the race to acquire Essar Steel, and has told National Company Law Appellate Tribunal that it would pay ₹ 42,000 crore, including a minimum of guarantee of ₹ 2,500 crore as working capital, for acquiring debtladen Essar Steel under the insolvency process.

Government initiatives spurring production and modernisation

Continue reading your story on the app

Continue reading your story in the magazine

MORE STORIES FROM EPC WORLDView All

Tepid Demand: Awaiting Projects Execution

The industry has a tepid demand in 2019. However, towards the end of the year there were signs of revival and the industry is hopeful to clock 8-10 percent growth in FY2020-21. But, it all depends on how sooner the government’s projects are put on track.

8 mins read
Epc World
February 2020

We have lined up few capexes, the payback period are quite attractive

In FY19, our Satna cluster’s utilization levels were at 90 percent, says VIJAY AGGARWAL, Managing Director, Prism Johnson

5 mins read
Epc World
February 2020

Ready for Future: India's warehousing sector

The warehousing sector in India is at the threshold of a new era. From simple godowns and sheds it is evolving into an organised sector with highly automated warehouse mechanism catering to the distinctive needs of each industry.

4 mins read
Epc World
February 2020

Policy and regulatory push needed for logistics sector

After entering the spotlight in 2018, the logistics and warehousing sector had an average 2019 due to the overall economic slowdown and global headwinds.

5 mins read
Epc World
February 2020

Over the next decade, business opportunities in logistics and industrial parks are going to be robust - Dr. Niranjan Hiranandani CMD, Hiranandani Communities

As India’s new-age economy – including e-commerce and organized retail - morph into the larger quantum of growth, in sync with the same, we have seen commercial real estate throw up some surprises.

2 mins read
Epc World
February 2020

Green Cement: A Step Closure to Sustainable Construction Green Cement

Cement is a strong binding agent or adhesive, which serves as the primary ingredient in concrete.

4 mins read
Epc World
February 2020

High-performance High-Speed Doors

High Performance Doors are automatic doors used for fast access between internal and external areas of buildings.

2 mins read
Epc World
February 2020

Komatsu, L&T and Scania reaffirm commitment to the CE Industry

Komatsu, Scania and L&T Construction Equipment (LTCEL) have put up a panoramic display of 19 machines, making it one of the most comprehensive displays of Construction, Earthmoving and Road Machinery.

1 min read
Epc World
February 2020

Addressing the Warehousing & Logistics Woes

Budget 2020 gave the warehousing and logistics sector the much-needed oxygen through monetary support and supportive policy measures, explores EPC World

7 mins read
Epc World
February 2020

Budget 2020: A Mixed Bag of Hits & Misses

While the Union Budget has brought in several reasons for India’s infrastructure and construction industry to cheer and applaud, voices from the market draw out mixed sentiments from the stakeholders. Veena Kurup writes…

7 mins read
Epc World
February 2020
RELATED STORIES

An Exclusive Interview With Nandakumar Narasimhan

The Little Red Train

10+ mins read
Lens Magazine
March 2021

A Room for Dad

Before Mom passed, I made a promise to her

8 mins read
Guideposts
April 2021

THE DANGAL IN THE JUNGLE, PART 1

YOU KNOW YOU’RE SOMEBODY WHEN YOU’VE APPEARED ON AN INDIAN DANGAL POSTER — IN OTHER WORDS, IN A WRESTLING ADVERTISEMENT.

6 mins read
Black Belt
April/May 2021

WOUNDS AND THE WOMB

JULIE PETERS explores how to heal a relationship with the sacred womb, a place of death, life, and possibilities.

8 mins read
Spirituality & Health
Mar/Apr 2021

BE SQUIRRELY

Giant squirrels, giant lessons? Animal chaplain SARAH BOWEN explores what squirrels can show us about mindfulness.

4 mins read
Spirituality & Health
Mar/Apr 2021

E8 Caste and the Indian Tech Ivies

IIT grads are highly sought after in Silicon Valley. Are they bringing deep-rooted prejudices with them?

10+ mins read
Bloomberg Businessweek
March 15, 2021

Life Changing

I was happily married, happily employed, just plain happy. Until the accident

8 mins read
Guideposts
February 2021

IN SEASON Chickpeas (GARBANZO BEANS)

Chickpeas appear in early recordings in Turkey well over 5000 years ago. India produces the most chickpeas worldwide but they are grown in more than 50 countries. An excellent source of carbohydrates, protein, fiber, B vitamins, and some minerals, they are a nutritious staple of many diets. The name chickpea comes from the Latin word cancer, referring to the plant family of legumes, Fabaceae. It is also known by its popular Spanish-derived name, the garbanzo bean. Kidney beans, black beans, lima beans, and peanuts are other familiar foods found in this legume family.

1 min read
Alternative Medicine
February 2021

When the Signal Goes Out

Government-ordered internet shutdowns are becoming more frequent

3 mins read
Bloomberg Businessweek
February 15 - 22, 2021

Giving More, Taking Less

FRANCOIS BOUDERLIQUE learnt about the basic principle of Nature – to give more than you take – when he left a high-powered banking job in Paris to live and farm in Kutch, India. He realized that his understanding of eco farming was colored by his past and he needed to open his eyes to a new reality.

3 mins read
Heartfulness eMagazine
February 2021