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
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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.
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
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.
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.
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.
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.
High-performance High-Speed Doors
High Performance Doors are automatic doors used for fast access between internal and external areas of buildings.
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.
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
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…
An Exclusive Interview With Nandakumar Narasimhan
The Little Red Train
A Room for Dad
Before Mom passed, I made a promise to her
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.
WOUNDS AND THE WOMB
JULIE PETERS explores how to heal a relationship with the sacred womb, a place of death, life, and possibilities.
Giant squirrels, giant lessons? Animal chaplain SARAH BOWEN explores what squirrels can show us about mindfulness.
E8 Caste and the Indian Tech Ivies
IIT grads are highly sought after in Silicon Valley. Are they bringing deep-rooted prejudices with them?
I was happily married, happily employed, just plain happy. Until the accident
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.
When the Signal Goes Out
Government-ordered internet shutdowns are becoming more frequent
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.