Iron and Steel Industry

11487 Words46 Pages
1. INTRODUCTION

1.1 Field Of Research

The field of research is to study the factors which affect the profitability of IRON AND STEEL industry, which is the most crucial element for the growth of any developed or developing economy. It acts as backbone of human civilisation. It is a product of a large and technologically complex industry having strong forward and backward linkages in terms of material flows and income generation. With regards to Indian Economy it is one of the most energy intensive sectors. Increase in productivity can be achieved through cleaner technologies and manufacturing process which will help in merging Economic, Social and Environmental Objectives. Many companies in the past many years have undergone mergers
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Export restrictions were eliminated 3. Import tariffs were reduced from 100 percent to 5 percent 4. Decontrol of domestic steel prices 5. Foreign investment was encouraged, and the steel industry was part of the high priority industries for foreign investments and implying automatic approval for foreign equity participation up to 100 percent. 6. System of freight ceiling was introduced in place of freight equalization scheme.

As a result, the domestic steel industry has since then, become market oriented and integrated with the global steel industry. This has helped private players to expand their operations and bring in new cost effective technologies to improve competitiveness not only in the domestic but also in the global market. Private sector contribution in the total output has since been increasing in India. Development of private sector has caused high growth in all aspects of steel industry that is capacity, production, export and imports. During the last decade more than 12 Mt of capacity has been added in the steel industry, this is mostly in the private sector. Recently, the steel industry is receiving significant foreign investments such as POSCO South Korean steel producer and Arcelor-Mittal Group UK/Europe based steel producer announcing plans for establishing about 12 Mt production units each in India.

2.2 AN OVERVIEW
Today IRON AND STEEL industry is facing a slowdown due

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