MAKE IN INDIA & INDIAN STEEL INDUSTRY

Transcription

1 MAKE IN INDIA & INDIAN STEEL INDUSTRY Jayant Acharya Director(Commercial & Marketing) JSW STEEL,INDIA

2 GLOBAL ECONOMY & INDIA Global Economic growth continues to be fragile,india remains a Global Bright Spot WEO:GDP:Oct 16 2

3 Indonesia GLOBAL STEEL Emerging Market Economies Advanced Market Economies World Korea 73% 181-Kgs 27% 316-Kgs 1,499-MnT Taiwan China Turkey Japan Canada Thailand Russia Italy Germany Australia France USA Africa India Brazil Mexico Bubble-Size : Steel Demand-2015 (MnT) X-Axis : GDP-PPP Per Capita ($) Y-Axis : Per-Capita Steel Demand. (Kgs.) Emerging Market Economies driving Global Steel Demand 3

4 INDIAN ECONOMIC TRANSFORMATION 52% 39% 10% 19% 15% 27% 35% 28% 31% Manufacturing 28% 25% % 30% 36% 46% 54% 53% 55% 17% 25% 1950s 1970s 1990s 2000s * * Ref : Central Statistical Org, National Manufacturing Policy,India Services Industry Agri Country s Growth to be fostered by Manufacturing 4

5 MAKE IN INDIA : OBJECTIVE Protect Intellectual Property Investment in Manufacturing Facilitate FDI & Investment Employment Skill Development Make in India World Class Infrastructure Global Recognition to Indian Economy Competitive Industrial Environment Ref : Make In India Program,India 5

6 Taiwan Italy France South Africa Germany Singapore UK US Russia Canada THE MSME STORY Argentina Brazil India Taiwan Italy France South Africa Germany Singapore UK US Russia Canada Argentina Brazil India GDP Contributes 8% Projected to increase to 15% by 2020 Employment share 25% With present workforce of 110-Mn Manufacturing Contributes 45% To country s industrial production Export Contributes 40% To country s total exports MSME contribution to Employment MSME contribution to GDP 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Ref: KPMG A Strong foundation of MSME vital for success of Make-In-India 6

7 SIGNIFICANCE OF STEEL : MAKE IN INDIA Steel is vital for the success of manufacturing led economic growth with thrust on Infrastructure and construction Developed countries with their prominent industries witnessed economic development and growth at the back of a robust and sustainable domestic steel industry Direct and In-Direct usage of steel across sectors and industries To build India, Steel - Made-In-India is need of the hour 7

8 MT INDIAN STEEL INDUSTRY DOMESTIC DEMAND RESOURCES LAND TECHNOLOGY MANPOWER Year Indian steel industry has large potential for robust and sustainable growth Ref : Joint Plant Committee-report, World Steel Association 8

9 OPPORTUNITIES DOMESTIC DEMAND Demographic Advantage Rurbanization Infrastructure & Manufacturing TECHNOLOGY Technological Alliance State of the Art Facilities Value Added Products COMPETITVENESS Amongst the lowest cost producers Entrepreneurship 9

10 DEMAND DRIVERS AUTOMOBILE AUTO COMPONENTS CONSTRUCTION RAILWAYS Contributes 7.1% to GDP and expected to ~12% by 2026 Expected to be Worlds 3 RD largest auto market by 2026 >6 million hybrid vehicles by 2026 Commercial Vehicle to grow to 2 Mill by 2026 Two wheelers 50.6 million units by 2026 GDP contribution to increase from 2.35% to ~7% by 2026 CAGR of 14%, Turnover to increase 5x to $200 Billion by 2026 Exports to grow 7x to $80 Billion,2026 Investments of $40 Billion by 2026 Contributes >8% to GDP 100 Smart Cities and 500 AMRUT Cities to invite investment of $30 Billion in the next five years $9.25 Billion. would be invested under Swachh Bharat Mission (SBM) in urban areas USD 650 Billion will be required for urban infrastructure over the next 20 years Contributes 2% to GDP Investment of $131 billion in the next 5 years Dedicated Freight Corridor are under construction PAN India Eastern Freight Corridor 1840 KM Western Freight Corridor 1540 KM Ref : Make In India Program,India Investment potential of $4.7 Trillion through Make in India 10

11 DEMAND DRIVERS (Contd) ROADS & HIGHWAYS RENEWABLE DEFENCE OIL & GAS Contributes 6% to GDP Announced Projects include Bharatmala, Sagarmala and other NHAI projects covering Length : ~44000 Estimated Cost: ~$97.20 billion Highway traffic to reach around 13,000 billion tonne km (btkm) by 2030 Renewable energy contributes 14.7% of the total installed capacity 175 GW of renewable power by GW of Solar, 60 GW of Windpower and 15 GW of Biomass and small Hydro India's Annual Solar installations to grow over 4x by 2017 Budget allocation ~$35 Billion in % Defence requirement is met through imports 100% FDI under various options Contractual offset obligations worth $4.5 billion due in next 6 years Refining capacity to increase from 231 MT to 257 MT in next 5 years Completion of gas grid construction of 15,000 km of gas pipeline underway 326 cities to be connected under city gas distribution network (CGD) by 2022 RLNG capacity to be increased from 22MT to 48 MT Investment potential for Infrastructure estimated at $1.07 Trillion 11

12 CHALLENGES STRUCTURAL DEFICIENCY RAW MATERIAL Finance Cost Cost of Infrastructure and Logistics Availability of high grade Iron Ore, Coking Coal, Fluxes REFORMS Land and Labour Laws Ease of Doing Business IMPORTS Threat from imports at Predatory Pricing 12

13 Thank You