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.doc  sail report by nesa.doc (Size: 2.1 MB / Downloads: 167)

Salem Steel Plant is a premium producer of international quality stainless steel in India. Commissioned in 1981, the plant has a capacity to roll 186000 tonnes of hot rolled carbon and stainless steel flat products and 70000 tonnes of cold rolled stainless steel sheets and coils per annum.
Its products have become a household name “SALEM STAINLESS” in domestic market and are exported. In hot rolled special grade carbon steels, SSP has been recognized as well-known manufacturer of boiler quality steel.
A Blanking Line, the first of its kind in India, was established in 1993, with an annual capacity to produce 3000 tonnes of Ferritic grade coin blanks or 3600 tonnes of utility blanks.
SSP has revalorized application of stainless steel in India both conventional and unconventional area. High tech industries like atomic power station prefer ‘Salem Stainless’ .it also chosen industrial sectors like dairy and food processing, chemical and fertilizer, heavy engineering, railways, automobiles, bulk solid handling, power, value added products, etc. The building and architecture segment which is growing at rapid pace sees ’Salem Stainless’ as the most dependable companies.

History of the Industry

The Indian steel industry is almost 110 years old now. Till 1990, the Indian steel industry operated under a regulated environment with insulated markets and large scale capacities reserved for the public sector. Production and prices were determined and regulated by the government, while SAIl and TATA steel where main producers, the latter being the only private player. In 1990, the Indian steel industry had a production capacity of 23MT. 1992 saw the onset of liberalization and the Indian economy was opened to the world. Indian steel sector also witnessed the entry of several domestic private players and large private players and large private investments flowed into the sector to add fresh capacities.
Steel industry in India is on an upswing because of the strong global and domestic demand. India’s rapid economic growth and soaring demand by sectors like infrastructure, real estate and automobiles, at home and abroad, has put Indian steel industry on the global map. According to the latest report by International Iron and Steel Institute (IISI), India is the seventh largest steel producer in the world.
The Indian steel industry is organized in three categories i.e main producers, other major producers and the secondary producers. The main producers and other major producers have integrated steel making facility plant capacities over 0.5MT and utilized iron ore and coal/ gas for production of steel. The main producers are TATA steel, SAIL and RINL, while the major producers ESSAR, ISPAT and JVSL.
Contribution of Countries to Global Steel Industry
The countries like India, china; Japan and South Korea are in the top of the above in steel production in Asian countries. China accounts for one third of total production i.e419MT, Japan accounts for 9% i.e118MT, India accounts for 53MT and South Korea is accounted for 49MT, which all totally becomes more than 50% of global production. Apart from this USA, BRAZIL, UK accounts for the major chunk of the whole growth.

Present Status of the Steel Industry
Indian economy growing at 8 to 9% is one of the fastest growing economics in the world.
The tenth plan investment in infrastructure has been envisaged at around Rs.880, 550 crores.
During eleventh plan (2007-08) to (2011-12), the projected investment toward infrastructure is likely to be Rs.2027000 crores, an increase of 180% over 10th plan.
Per capita consumption at 35kg low as compared to world average of 150kg and 300kg for China.
Lot of Steel project both Brown field and Green field likely to the come up and are in various stage of execution.
Due to infrastructure focus, production of long products is gradually increasing and ratio of flat to long products is narrowing.
With due focus on infrastructure on development and strong economic indicators, the demand for steel in India shall continue to remain robust.
Strengths of Indian Steel Industry
Low labour wage rates
Abundance of quality manpower
Mature production base
Positive stimuli from construction industry
Booming automobile industry

Weakness of Indian Steel Industry
Although India has modernized its steel making considerably, however nearly 6% of its crude steel is still produced using the outdated open-hearth process
Labour productivity in India is still very low.
Steel production in India is also hampered by power shortages.
India is deficient in raw materials required by the steel industry.
Insufficient freight capacity and transport infrastructure impediments to hamper the growth of Indian steel industry.

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