an overview of steel industry and essar steel

8/6/2019 An Overview of Steel Industry and Essar Steel

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An overview of Steel Industry and

Essar Steel


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Global Steel Industry: Outlook

Steel Consumption and GDP per Capita in 2004

10

100

1000

10000

0 10000 20000 30000 40000

GDP per capita (US$000 at PPP rates)

Steelconsumption(kg/ca

India

China USJapan

Other Africa


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Global Steel Demand

Million tons

1980

Decade of 1980s

582 582644 658

785 789834

887

1,1131,231

CAGR =

10%

2000 2001 2002 2003 2010E 2015E1985 1990 1995

CAGR = 2%

CAGR = 4.2%

Decade of

1990sDecade of 2000 Future outlook

CAGR =2.8%


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Global Steel Players


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Indian Steel Industry

GEOGRAPHICAL

CONCENTRATION

Manufacturing

Foundries


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Major Players

ARCELOR MITTAL

TATA

SAIL

JSW MITTAL STEEL

VIZAG

BHUSAN STEEL

ISPAT

ESSAR

POSCO

INDIAN IRON & STEEL


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Supply and Demand mismatchESTIMATED FOR FY2012

42

34

0

20

40

60

80

100

Current

Demand

Projected

Demand

Capacity

Addition (P)

Current

Supply

65

90

GAP


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Industry Drivers

AUTOMOBILE

MECHANICAL

ENGINEERING

CONSTRUCTION

COMPANIES


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CONSTRUCTION

COMPANIES

10 Million homes to be built each year till 2030

Growth is due to decreasing household size and rising incomes

Hospitality sector will build 40 hotels with 15000 beds

Continuous surge in the BPO sector which requires building

additional office spaces

Infrastructure projects in full swing such as airports, seaports,

railways, road building, etc

Additional surge from the government to build new stadiums

and sports facilities for Commonwealth Games, Cricket worldcup, etc


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AUTOMOBILE COMPANIES

Small proportion consumed but highest growth rate amongthe clients of steel

Upsurge due to high consumption levels , low costs and

increasing incomes of the middle class

MNC brands setting up manufacturing bases in India andalso using India as an export hub. Eg Hyundai motors and

Ford


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MECHANICAL

ENGINEERING

Demand is greatest for building machinery and

plastic-moulding machines as well as machine tools

and textile machinery

firms are making numerous investments inmodernising and expanding their machinery portfolio

Exports by the Indian mechanical engineering

industry rose recently by nearly 30% to USD 10 bn

The Engineering Exports Promotion Council

(EEPC) forecasts that Indian exports will be worthUSD 30 bn (+32% p.a.) (2008)


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Brief About Essar SteelEnterprise valuation ofUS$50 billion of EssarGroup

Establishments in Europe, North America, Caribbean, Africa

and South East Asia

One of a kind Bandhan loyalty program for purchaserswhere they can win washing machines, home theatre

systems, etc.

Hypermart is the hub whereas the expressmart is the

franchisee

Network of 100 hypermarts and 419 expressmarts


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Essar Steel officesin India


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Essar Global Footprint


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ESSARRETAIL

Mobile(TheMobile Store)

Electro icsFuel (Essar

Oil)Steel

(Hypermarts)


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Products offered by Essar

HOT ROLLED STEEL

Application:

Automobiles

Fabrication

General EngineeringInfrastructure


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Cold Rolled Steel

Application:

Automotive Body &

Components

Drums & Barrels

Pipes & Tubes

White Goods


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Prepainted

G

alvanizedSheets

Application:

Construction &

Infrastructure

White Goods

Automotive

Manufactured using high-quality

hot metal made out of best-in-class

and environment-friendlytechnology Essar colour coated

steel is available in a variety of

paint systems like

R

egular Modified Polyester(RMP)

SIlicon Modified Polyester (SMP)

Polyvinyl Di-Fluoride (PVDF)

offering proven benefits and

advantages to the end- user addingcolor to the world in the process


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Galvanized

Corrugated

Sheets

Application:

Barricading

Cladding

Facades

Roofing


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Steel Heavy Plates

Application:

Ship-building

Line pipe

Yellow GoodsBoilers and pressure vessels

Defense

Wind Engineering

General Engineering

Consruction


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Shot blasted plates

Application:

Ship and barge buildingpre-fabricated buildings

construction and railway

wagons

They are highly resistant to

extreme weather conditions

and are available with Red

Oxide or Zinc SilicatePrimer coatings


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TMT Bars

Application:all kinds ofRCC

structure


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PRODUCT USAGE

HOT

ROLLED

STEEL

Automobiles, Fabrication, General

Engineering, Infrastructure etc

COLD

ROLLED

STEEL

Automotive Body & Components, Drums &

Barrels, Pipes & Tubes and White Goods

GCSHEETS

Barricading, Cladding, facades and roofing.

TMT BARS all kinds of RCC structures

STEEL

HEAVY

PLATES

Shipbuilding, Line pipe, yellow goods, Boilers

and Pressure Vessels, Defense, Wind

Engineering, General Engineering,

Construction


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Carbon/Mild Steel A look

The American Iron and Steel Institute (AISI) defines carbon steel as:

"Steel is considered to be carbon steel when no minimum content is

specified or required for chromium, cobalt, niobium, molybdenum,

nickel, titanium, tungsten, vanadium or zirconium, or any other element

to be added to obtain a desired alloying effect; when the specified

minimum for copper does not exceed 0.40 percent; or when the

maximum content specified for any of the following elements does not

exceed the percentages noted: manganese 1.65, silicon 0.60, copper

0.60."


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Plain carbon

Contains:

Manganese

Phosphorus

SulfurSilicone

Limitations of Plain Steel

The hardenability is low.

The physical properties (Loss

of strength and embrittlement)are decreased by both high

and low temps

Subject to corrosion in mostenvironments


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Low Carbon Steel

Has less than 0.3% carbon. Usually ferrite and pearlite.

Lacks hardenability because carbon content helps this.

Advantages

Posses good formability

Posses good weldability:

best of all metals

Lowest cost and should beconsidered first

Rated at 55-60%

machinability

U

ses

0.1%-0.2%: chain,

stampings, rivets, nails,

wire, pipe, and where

very soft, plastic steel isneeded.

0.2-0.3%: structural

steels, machine parts,

soft and tough steels.


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Medium Carbon Steel

Advantages

Machinability is 60-70%; therefore cut slightly

better than low carbon steels

Good toughness and ductility.

This is optimum carbon level where high

toughness and ductility (of the low carbon steels) is

compromised with the strength and hardness of the

increased carbon.

Extremely popular and have numerous

applications.

Fair formability

Responds to heat treatment but is often used in the

natural condition

Uses

0.3-0.4%: lead screws, gears, worms,

spindles, shafts, and machine parts.

0.4-0.5%: crankshafts, gears, axles,

mandrels, tool shanks, and heat-treatedMachine parts.

0.6-0.7%: called low carbon tool

steel and is used where a keen edge is

not necessary, but where shock strength

is wanted. Drop hammers dies, set

screws, screwdrivers, and arbors.

0.7-0.8%: tough and hard steel. Anvilfaces, band saws,hammers, wrenches,

cable wire, etc.

0.3% - 0.8% Carbon content


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High Carbon Steel

Disadvantages

Toughness and formability

and hardenability are quite

low.

Not recommended for

welding. Usually joined by brazing

with low temperature silver

alloy making it possible to

repair or fabricate tool-steel

parts without affecting their

heat treated condition.

Advantages

Hardness is high

Wear resistence is high

Fair formability

Uses:0.8-0.9%: punches for metal, rock

drills, shear blades, cold chisels,

rivet sets, and many hand tools.

0.9-1.0%: used for hardness and

high tensile strength, springs,

cutting tools, press tools, andstriking dies.

1.0-1.1%: drills, taps, milling

cutters, knives

1.1-1.2%: drills, taps, knives,

cold cutting dies, wood working

tools 1.2-1.3%: files, reamers, knives,

tools for cutting wood and brass

1.3-1.4%: used where a keen

cutting edge is necessary, razors,

saws, and where wear resistance is

important

0.8% - 2.11% Carbon content


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Path of Steel Products

Manufacturer

Intermediary

/Dealer

Steel Mills

Steel Merchant

CONSUMER


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Essar Steels Model

Essar steelManufacturing

PlantEssar

HypermartEssar

ExpressmartCONSUMER

CONSUMER


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Path to Purchase for a Construction

Builder

Pre-purchase

Find outabout Steelmerchants

numbers

Callmerchants

Take 4-5

quotationsand makebest possibledecision

Find outabout Steelmerchants

numbers

Callmerchants

Take 4-5

quotationsand makebest possibledecision

Purchase

Take deliveryfor storage oruse

(deliveredwithin 2days)

MakePayment(within 30days)

Take deliveryfor storage oruse

(deliveredwithin 2days)

MakePayment(within 30days)

Post Purchase

Contactfabricators

Give order tofabricatoraccording tospecificationsrequired

Makepayment

Takedelivery

Contactfabricators

Give order tofabricatoraccording tospecificationsrequired

Makepayment

Takedelivery


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A look at Arcelor Mittal steel


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Arcelor Mittal tie-ups/partnerships

ACCESS STEEL

SOFTWARE COMPANIESFIRE SAFETY ENGINEERING COMPANY


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ACCESS STEEL

Access Steel has been specifically tailored for construction professionals

and their clients to offer guidance through project initiation, scheme

development and detailed design. It is easily searchable and free to all

registered users. It offers harmonised, quality assured information in

English, French, German and Spanish, with comprehensive coverage of

Single and Multi-storey Buildings and Residential Construction. Special

attention is given to the new opportunities for Fire Safety Engineering in

the Eurocodes.

The Access Steel website also includes over 50 interlinked modules on the

detailed design of elements, with step-by-step guidance, full supportinginformation and worked examples, to give a thorough understanding of

how the Eurocodes should be used.


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Software CompaniesGRAITEC

Our mission is to be the world leader in CAD* / CAE* /

CAM* software products for the construction industry.

We will reach this objective with continued innovation in

products and services that automate work and improve

construction industry productivity.

With significant investment in R&D, we have developed a

BIM (Building information Modeling) technology that

features a rules based secure synchronized process between

CAD and Analysis.

This ensures continuous and correct project communication

up and downstream from design to construction tosubstantially reduce turnaround time and potential errors.

The highly technical nature of the ongoing development

requires significant resources that few organizations can

provide. GRAITECs world class technology platform is

supported by a regional service network and product

specification specialists that ensure conformity to local

market requirements.


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Nemetschk

Nemetschek has been one of the leading

companies for information technology in

the AEC sector (Architecture,

Engineering, Construction). More than

270,000 customers in 142 countries workwith the innovative products offered by

our subsidiaries. The integrated software

solutions create synergies and optimize

the complete life cycle of buildings in

terms of quality, cost and time.


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Auto Desk

Products

Building Design Entertainment Creation

Factory Design

General Design

Plant Design

Product Design

All Suites Products

AutoCAD

AutoCAD Civil 3D

AutoCAD LT

3ds Max

Inventor Maya

Revit Architecture

All Products

Easy Home Designs

Autodesk Homestyler

Industries

Architecture, Engineering & ConstructionAutomotive & Transportation

Education

Government

Manufacturing

Media & Entertainment

Utilities & Telecommunications


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Tekla Solutions

We drive the evolution of digital information models withour software, providing a growing competitive advantage to

our customers in the construction, infrastructure and energy

industries.

Each Tekla Solution is a productized set of Tekla software

applications and services for a certain customer group. In

the core of the solution is the industry-specific productmodel which contains key infrastructure and business data.

High-level process support for the customer tasks is

provided by industry applications with built-in GIS

functionality. Solution capabilities include high-end

interoperability with other systems and excellent support for

the customer service of our customers.

Tekla Solutions cover various customer processes

Implementation of Tekla Solutions is fast, fluent and secure


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FIRE SAFETY ENGINEERING

Secure with SteelSecure with Steel is dedicated to engineering offices who

wish to develop in

structural fire design. The aim of this network, which was

built up by ArcelorMittal, is to create a worldwide core of

SFSE specialists and to support them in the development oftheir competencies through experience sharing, know-how

transfer and trainings.

Secure with Steel offers engineering offices not only the

support of an

international network of engineering offices (for experience

sharing, case studies, etc.) but also the support of local SFSEspecialists (technical centres, research centres and

universities) and ArcelorMittal in terms of technical

assistance and trainings.

an overview of steel industry and essar steel

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