Growth Potential for Stainless Steel Industry in India

Transcription

1 Growth Potential for Stainless Steel Industry in India Presented by: N.C. Mathur Advisor Jindal Stainless Limited President : ISSDA (Indian Stainless Steel Development Association)

2 Contents.. Evolution of Stainless Steel Global Stainless Steel Scenario Indian Stainless Steel Scenario S.S. Growth Drivers in India Watch For Jindal Stainless Fuel for Growth Summing Up++ 2

3 Evolution of Stainless Steel Nickel 1751 Molybdenum 1778 Chrome Stainless Steel 1912

4 Evolution of Stainless Steel Axel Fredrik Cronsted (Sweden) discovers Nickel Carl Wilhelm Scheele (Germany) discovers Molybdenum Nicolas-Louis Vauquelin (France) discovers Chromium Eduard Maurer (Germany) is granted a Patent on Austenitic Stainless Steel Henry Brearly (UK) produces Martensitic Stainless Steel Elwood Haynes (US) is granted a Patent on Ferritic Stainless Steel Duplex Stainless Steel are initially produced (Sweden) It took 161 years to produce Stainless Steel, even after the discovery of Nickel 4

5 100 Years of Stainless Steel After four years of development work in Krupp s laboratories, the physicist Professor Benno Strauss and his coworker Dr. Eduard Maurer found the formula for non-rusting steels which are insensitive to water and humidity English metallurgist Harry Brearley invents Stainless Steel in his search for an alloy to protect cannon bores from erosion. During World War-I, Stainless Steel is used to manufacture valves for aircraft engines , Sheffield cutlers start regular production of Stainless Steel cutlery, surgical scalpels and tools The first Stainless Steel roof makes an appearance in America The first Stainless Steel Tanker is used for transporting 3,000 gallons of milk , the top seven arches of Chrysler Building are clad in Stainless Steel. This New York City landmark is one of the world s most recognized skyscrapers. This iconic building inspired new age architects to explore the potential of Stainless Steel in Architecture, Building and Construction worldwide.

6 100 Years of Stainless Steel In the year 1990, Jindal Stainless became the pioneer in developing and commercialize 200 Series (Chrome-Manganese) Stainless Steel in India Duplex Grade Stainless Steel is first produced in Sweden. The first Stainless Steel railway carriage appears in the US. Also, Rolls Royce produces the first Stainless Steel radiator grill and emblem. Stainless Steel Kitchen Sinks and furniture are introduced. Stainless Steel is used with increasing frequency in the automobile industry. The first Stainless Steel Razor Blades are produced. The first men on the moon (Apollo 11) are taken there by a Stainless Steel Saturn V Rocket. 6 Stainless Steel is used in the façade of the word s tallest building, the Burj Khalifa in Dubai, which was opened in 2010.

7 Global Stainless Steel Scenario 7

8 Stainless Steel Consumption Growth* (BRIC Countries Vs. Rest of the World) BRIC countries Market share >50% in 2011! Source: SMR 8

9 Global Stainless Steel Recovery In 2010, World Stainless Steel Industry recovers, but China accounts for all the Growth since Source: ISSF 9

10 2016 : Total World market will be over 40 mill. tonnes Source: SMR 10

11 Stainless Steel : Grade Structures Over 30 mill. tonnes of Finished Products in 2011 Source: SMR 11

12 World Per Capita Stainless Steel Consumption Low per capita consumption of Stainless Steel in India provides an interesting opportunity for growth Source: IMF (October 2010 Report), CRU International Limited - Stainless Steel Flat Products Quarterly February 2011 Note: All values for 2010, Size of the circles is proportional to the population count for

13 Indian Stainless Steel Scenario 13

14 Opportunities in Indian Infrastructure Structure India plans to spend US$1 Trillion on infrastructure in next five years. Indian airports require investments worth US$13 billion in next five years; private sector to contribute US$10 billion. Highways sector will attract investments worth US$123 billion in next 5years. US$300 billion planned to be spent on upgrading rail infrastructure (including new rail lines, double/multiple lines, high-speed rail) by Around $55 billion worth investments planned in major and nonmajor ports by

15 India poised for strong economic growth The Indian economy is poised for rapid growth: To reach USD 4 trillion by 2020 By 2020, estimates suggest that Indian GDP could rise to USD 4 trillion, taking India to fourth place behind the US, China and Japanbysizeofeconomy 4,500 3,000 USD Bn GDP-Gross Domestic Product (US$ Bn) 4,000 2,777 HighlevelofInfraspending 1,500 1,538 High consumer spending in areas like housing, auto and consumer durables Source: CIA World Factbook, IMF 15

16 Increasing Consumer Spent Driving Economic Growth Growth Consumption Spending by 2020 x times 2010 consumption spending GDP Per Capita on PPP basis (USD) Year 10-16E Construction sector expected to grow by 22% annually & would reach USD 335 billion by 2016 Auto component sector expected to rise 17% annually to reach USD 84 billion by 2020 Electronics sector CAGR to be around 23% to reach USD 363 billion by 2015 Source: Goldman Sachs Global Economics Research, IMF 16

17 Stainless Steel Consumption Pattern (%) India World (%)

18 India s SS consumption growth to exceed global growth 3,500 1,817 1,537 1,575 2, World SS consumption (Flat + Long) in 000 MT India SS consumption (Flat + Long) in 000 MT Indian SS consumption is expected to grow by 8-9% annually and would reach around 3.5 million tons by

19 SS Growth Drivers in India 19

20 SS Growth Drivers in India ABC SS roofing sheets Decorative and color coated SS Street furniture Escalators, elevators Claddings Railings Airports Railway station up gradation ART Luxury Bus bodies Auto chassis, trims, suspension parts, fuel tanks, catalytic convertors Railway wagons and coaches Metro coaches Process & Engineering Nuclear grade SS for fuel containment and waste handling Super critical boilers in power plants Water treatment and drinking water supply Desalination applications Consumer Durables India as hub for white goods manufacturing SS used as components 20

21 Stainless Steel in Railways Railways New Stainless Steel Wagons & Coaches Refurbishing Railway Stations with world class facilities Development of Metro Rail projects and street infrastructure Delhi Metro 21

22 Stainless Steel in Railways Railways Railway Stations : Cladding, Roofing, Structures, Decoration, Selling Carts, Display Boards, Ticketing Area, Seating Space,Floor Tiles. 22

23 Stainless Steel in Architecture, Building & Construction (ABC) ABC Urban Renewal in the form of Street furniture e.g. Bus Shelters Shopping Malls, organized retail is growing at rapid pace. Modular kitchens Airports Delhi Bus Shelter 23

24 Stainless Steel in Architecture, Building & Construction (ABC) SS Modular Kitchen New age applications in Household Kitchen Applications Bathroom Accessories White Goods Lifestyle Products Interior Decoration 24

25 Stainless Steel in Architecture, Building & Construction (ABC) Airports Wall Cladding, Roofing, Check in Area, Seating Spaces, Immigration Area, Railings, Display Boards, Lounge, Booths, Duty Free Area, Signage, Decorative, Elevators, Escalators, Travelators, Food Courts. 25

26 Stainless Steel in Industrial Applications Industrial Applications Power Process Industry 26

27 Stainless Steel in Auto and White Goods Automotive and White goods India a leading automobile hub in S.Asia, specially for two wheelers and small cars Increase usage of Stainless Steel in exhaust, wheel rims etc. Large middle class driving White Goods market 27

28 Indian Automotive : Growth Prospects Source : FICCI Nov mill 11.2 mill 8.5 mill 9.7 mill 11.1 mill 10.8 mill India destined as a major Automotive hub in South Asia. A large manufacturing base for Two wheelers / Small cars / Steel and Stainless Steel components for automobiles. 28

29 What Next??? 29

30 Applications - Arriving shortly ( India ) Bus Body LPG Cylinder Cycle Rim Plumbing Hospital Furniture Water Tanks Railway Passenger Coaches 30

31 Applications - Arriving shortly ( India ) Bicycle Rim & Gas Cylinder 31

32 Applications - Arriving shortly ( India ) Plumbing 32

33 Applications - Arriving shortly ( India ) Water Storage Tank 33

34 Applications - Arriving shortly ( India ) Hospital Accessories 34

35 Applications - Arriving shortly ( India ) Railway Passenger Coaches 35

36 But??? 36

37 Challenges Ahead Inadequate Infrastructure Energy, logistics, ports etc. not conducive to growth of manufacturing sector Infrastructure projects subject to delays and financial constraints Budget constraints Vs. Life Cycle benefits of Stainless Steel Dependence on imports for certain raw material Nickel, SS Scrap, Moly. 37

38 Watch For. 38

39 Changes in the Market Place Railway Increasing ABC applications India as export hub for Metro in major cities Railway Wagons Coach Up-gradation SS usage in Platforms Selective Rebar's Door &Windows Cladding Signage's Street Furniture Fasteners Life Style products Auto Components Appliances Mill Products High Quality Value Added Engineering Products 39

40 Movements in environment RM Price Fluctuations ( Ni, Cr, Scrap ) Grade / Series Substitution in Industry Standardization (IKEA/ Whirlpool / Electrolux moving to 400 Series) 40

41 Fuel for growth 41

42 Jindal Stainless: India s Largest Integrated SS Mill Advanced Stainless Steel melting & Hot Rolling Technology State of Art cold rolling facilities in India and Indonesia Ferro Alloys Manufacturing & Power Generation Global distribution network with own service centers Mining ventures and ore linkages MINES TO MINT Leader in Domestic Market with wide product range 42

43 Hisar Plant : Pioneer of Stainless Steel HisarPlant with 780,000 tons Stainless Steel capacity Facilities Capacity (MT) SMS 780, ,000 MT 2011 HR-Steckel 720,000 HR -Tandem Strip Mill 250,000 HRAP & Plate 235, ,000 MT 250,000 MT Till 2000 Till 2004 Cold Rolling 275,000 Special Products 25,000 Coin Blanking 10,000 Ferro Chrome Vizag plant (Integrated with Sukhindachrome mines) 40,000 World s largest producer of Razor Blade Steel 43

44 OdishaPlant : The Future of Stainless Steel OdishaPlant with 1,000,000 MT Stainless Steel capacity Facilities Capacity (MT) 1.0 Mill SMS 1, 000,000 HotStrip Mill 1,600, Mill Mill Plate & AP 100,000 HAPL 950,000 Cold Rolling 450,

45 Indian Stainless Steel Industry Outlook Prospects High growth economy Increasing SS consumption Growth Area ABC (Architecture, Building & Construction) Automobile Railways Challenges Indian Infrastructure China Capacities Raw Material Volatility 45

46 Summing up ++ 46

47 Summing Up++ Indian Stainless Steel Market SS Production will go up to 3.5 Million Tons by 2015 Overcapacity in the market.. export boost up Scope for high growth in SS Consumption (Growth in SS Consumption is about 1.2 Times GDP ) New applications will emerge very fast Opportunities for business in downstream industries SS will change the face of India 47

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