Indian Stainless Steel Industry on the Move >>>>>>> Nirmal Mathur Senior Advisor, Jindal Stainless Limited

Transcription

1 Indian Stainless Steel Industry on the Move >>>>>>> Nirmal Mathur Senior Advisor, Jindal Stainless Limited

2 Contents Global SS Industry Raw Materials India Stainless Showcase What next Jindal Stainless An overview The Curvy Backbone The Shining story Delhi Metro The Indian Uprising Fuel for Growth

3 Global SS Industry An Overview

4 Stainless Steel Crude Production by Regions 1,000 tonnes 35,000 30,000 25,000 20,000 15,000 10, % +7.8% +10.4% 22,840 19,187 20, % -0.1% 24,570 24, , % 28, % -5.0% 26,218 24, , ,110p 5, (p) China Asia w/o China W. Europe/Africa Americas Central + East Europe 4 Source : ISSF

5 Stainless Steel Crude Production by Grade Category % Series Series Series Series Others Source : ISSF

6 China : The Change Driver Source : ISSF

7 Stainless Steel : Global End Use pattern Source : SMR

8 Top 20 SS Flat Producers, 2011 Source : SMR Source : SMR 8

9 Raw Materials The Curvey Backbone

10 Raw Materials : Ni Trend (USD/MT) 60,000 50,000 40,000 30,000 20,000 10,000 - Source : Metalprices 10

11 Raw Materials : Ferro Chrome Trend HC FeCr Prices, USD/MT Source : Metalprices 11

12 Raw Materials : Scrap Trend Scrap Prices : USD/ MT Source : Metalprices 12

13 Metals Price Volatility,Since 1990 Source : Metalytics Nickel (key Raw Material for Stainless Steel) trades over a wider Price Range than other base Metals. 13

14 Stainless Steel Raw Materials : Price Volatility : ( ) Over the last 10 years, Raw Materials Prices and Volatility have increased tremendously. Source : ISSF 14

15 India The Shining Story

16 India Poised for Strong Economic Growth The Indian economy is poised for rapid growth : By 2020, estimates suggest that Indian GDP could rise to USD 4 trillion, taking India to fourth place behind the US, China and Japan by size of economy High level of Infra spending High consumer spending in areas like housing, auto and consumer durables 4,500 3,000 1,500 0 USD Bn 480 To reach USD 4trillion by 2020 GDP- Gross Domestic 4,000 Product (US$ Bn) 810 1,538 2,777 Source: CIA World Factbook, IMF 16

17 Increasing Consumer Spend Driving Economic Growth Growth Consumption Spending by x times 2010 consumption spending 6,000 5,000 4,000 3,000 2,000 1, ,339 GDP Per Capita on PPP basis (USD) Year 10-16E 3,608 3,893 4,214 4,571 4,965 5, 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 17

18 Global Stainless Steel Consumption per Capita Stainless Steel Consumption Per Capita (Kg) China: 7.5 India: 2.1 Korea: 24.1 Italy: 16.8 Japan: 12.7 Taiwan: 33.5 Singapore: 16.8 Germany: 13.8 Switzerland: 10.9 Canada: 4.2 USA: 3.9 Low per capita consumption of SS in India is an opportunity for growth World Avg. 4 kg GDP Per Capita at PPP, USD Source: IMF, CRU Reports, Note: All values for 2010, Size of the circles is proportional to the population count for

19 Stainless Steel Consumption Pattern (%) India World

20 Stainless Showcase Delhi Metro

21 Stainless Showcase : Delhi Metro

22 Stainless Showcase : Delhi Metro

23 Stainless Showcase : Delhi Metro

24 Stainless Showcase : Delhi Metro

25 Stainless Showcase : Delhi Metro

26 Stainless Showcase : Delhi Metro

27 What Next The Indian Uprising

28 India s SS Consumption Growth to Exceed Global growth 3,335 23,817 22,150 21,200 25,641 34,126 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 9.7% annually and would reach around 3.4 million tons by

29 New Development Areas for Stainless Steel 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 29

30 18.00% Sector Growth : Auto (Production) Production % CAGR (fy05 - fy11) 16.26% 14.00% 12.00% 12.70% 13.41% 13.48% 2.7 Mill 10.00% 0.72 Mill 8.00% 0.68 Mill 6.00% 12.1 Mill 4.00% 2.00% 0.00% Two Wheelers Commercial Vehicles Three Wheelers Passenger Vehicles Source : SIAM 30

31 Passenger Traffic : Indian Railways CAGR ( ) 4.6% CAGR ( ) 10.8% 3,000 2,500 2,391 2,000 1,500 1, (e) Passenger kms (Billion) Source : Research Design & Standards Organization (RDSO) 31 31

32 Freight Traffic : Indian Railways CAGR ( ) 3.8% CAGR ( ) 12.4% 3,000 2,500 2,387 2,000 1,500 1, (e) Tonnes (Million) Source : Research Design & Standards Organization (RD 32 32

33 Emerging Applications Buildings Building Interiors, Gates, Windows, Decorative Kitchen Appliances, Cook top, Chimney, Tiles Street Furniture Bus Shelter, Seating Spaces, Railings

34 Jindal Stainless Fuel for Growth

35 Jindal Stainless : India s Largest Integrated Stainless 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 35

36 Hisar Plant : Pioneer of Stainless Steel Hisar Plant with 780,000 tons Stainless Steel capacity Hisar Plant Facilities Capacity (MT) 780,000 MT SMS 780,000 HR-Steckel 720, ,000 MT 250,000 MT Till 2004 Till HR - Tandem Strip Mill 250,000 HRAP & Plate 235,000 Cold Rolling 275,000 Special Products 25,000 Coin Blanking 10,000 Ferro Chrome Vizag plant (Integrated with Sukhinda chrome mines) 40,000 World s largest producer of Razor Blade Steel 36

37 Odisha Plant : The Future of Stainless Steel SMS 1,000,000tpa Hot Strip Mill 1,600,000tpa (Expandable to 4,000,000tpa) Mill Plate &AP 100,000tpa HAPL 950,000tpa CRAP 450,000tpa 37

38 Odisha Plant : An Overview

39 Integration with extensive coverage PT Jindal Stainless (Indonesia) Cold Rolling Unit Jindal Stainless Steelway Ltd Stainless Steel Service Centers Jindal Architecture Ltd Turnkey solutions in SS for ABC, JSL Lifestyle Ltd Lifestyle Products Iberjindal (Spain) International SS Service centre 39

40 Jindal Stainless - Fuel for Growth High Level of Integration from Mining to Manufacturing State of the Art Technologies the QUALITY Advantage Wise Spectrum of productss Precision Strips, Blade Steels & Coin Blanks Market development of new appalications 40

41 Indian Stainless Steel Industry Outlook Prospects High growth economy Increasing SS consumption Growth Area ABC (Architecture, Building & Construction) New Applications Challenges Indian Infrastructure China Capacities RM Volatility 41

42 Thank You