A PROJECT REPORT ON “Analysis of Foreign Market Entry Strategies in Steel Industry with special reference to Tata Steel & SAIL” for the Partial fulfillment for the Degree of Masters in Business Administration (Session 2009-2011) - MBA (General), 4 th Sem. DCRUST, Murthal. 1
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A
PROJECT REPORT
ON
“Analysis of Foreign Market Entry Strategies in
Steel Industry with special reference to
Tata Steel & SAIL”
for the
Partial fulfillment for the Degree of
Masters in Business Administration
(Session 2009-2011) - MBA (General), 4th Sem.
DCRUST, Murthal.
Under the Supervision of: - Submitted By: -
Dr. Aarti Jyoti
(Faculty of Management deptt.) MBA (Gen), 4th Sem
DCRUST, MURTHAL 09092816
1
DECLARATION
I, Jyoti, student of MBA 4th Semester, studying at Deenbandhu Chhotu Ram University
of Science and Technology, Murthal, hereby declare that the project report on topic
“Analysis of Foreign Market Entry Strategies in Steel Industry with special
reference to Tata Steel & SAIL” submitted to DCRUST, Murthal in partial fulfillment
of Degree of Master’s of Business Administration is the original work conducted by
me. The information and data given in the report is authentic to the best of my
knowledge. This project report is not being submitted to any other University for award
of any other Degree, Diploma and Fellowship.
JYOTI
MBA 4th SEM.
09092816
2
ACKNOWLEDGEMENT
A successful project can never be prepared by the single person to whom the project is
assigned, but it also demands the help and guardianship of some conversant person who
helped the undersigned actively or passively in the completion of successful project.
It is my pleasure to be indebted to various people, who directly or indirectly contributed
in the development of this work and who influenced my thinking, behavior, and acts
during the course of study. I express my sincere gratitude to Prof. Rajbir Singh worthy
Principal for providing me an opportunity to undergo project report at Foreign Market
Entry Strategies. I am thankful to Dr Aarti (Guide) for his support, cooperation, and
motivation provided to me during the project for constant inspiration, presence and
blessings.
Lastly, I would like to thank the almighty and my parents for their moral support and my
friends with whom I shared my day-to-day experience and received lots of suggestions
that improved my quality of work.
JYOTI
MBA (GENERAL)
Roll no -09092816
3
To Whom It May Concern
This is to certify that Ms. Jyoti has completed her Project in partial fulfillment of the
requirement for the award of degree of Master of Business Administration (MBA) for
session 2009-2011 under the supervision of Dr. Aarti, Faculty of Department of
Management Studies, Deenbandhu Chhotu Ram University of Science and Technology,
Murthal. The project was “Analysis of foreign market entry strategy in steel industry
with special reference to Tata Steel & SAIL”. She has performed excellently on the
project assigned to her and on account of that I, Dr. Satpal Singh, hereby issuing her the
project completion certificate.
Authorized Signatory
( )
Dr.Aarti
Date of approval: April 28, 2011. Faculty of Management Deptt.
DCRUST, Murthal
4
Table Of Content
Chapter Particulars Page No.
Chapter 1 Introduction to Study 1-2
Chapter 2 Review of Literature 3-7
Chapter 3 Research Methodology
Objective of study
8-9
Chapter 4 Industry Profile:
World Steel Industry
Indian Steel Industry
Challenges and Opportunity
10-26
Chapter 5 Modes of Entry 27-36
Chapter 6 Company Profile
Tata steel Ltd.
SAIL
37-51
Chapter 7 Findings Suggestions and
conclusion
52-54
Chapter 8 Limitation 55
5
Chapter 9 Bibliography
CHAPTER-1
INTRODUCTION OF THE TOPIC
The world steel industry recorded a high growth rate in production as well as in
consumption over the past few years. The main reason is the increasing steel demand in
automobile and in construction sector before the recession and in recovery. The Asia-
Pacific Region- especially China and India is witnessing higher production and
consumption of steel.
India’s economic growth is contingent upon the growth of steel industry of India.
Consumption of steel is taken as the indicator of economic development. Steel industry
has been moving from strength to strength. India has emerged the third largest producer
of steel in the world and likely to become second largest producer of steel by 2014-15. In
2009-10, steel production was 60 million tones that is expected to double to 124 million
tones by 2012. The ministry of steel projected for the next five year the demand of steel
will grow at annual growth rate of 10%.
There are many opportunities in world steel industry for the growth of economy. To
exploit these opportunity there are many market entry strategies which a firm adopt to
6
enter in to world steel industry. It includes- a) what market to enter? b) what is the mode
of entry?
While entering in foreign market we considering a particular foreign market, its
economic, political-legal and cultural characteristics, Whether to do business in few or
many countries, To decide in which particular market to enter, How to enter the market
that is through direct exports, joint venture or direct investment, The extent to which their
product, price, promotion, distribution should be adapted to individual foreign markets.
Expansion into foreign markets can be achieved via the following mechanisms
Exporting
Licensing
Joint venture
Franchising
Turnkey Operations
Wholly Owned Subsidiary
Mergers & Acquisitions
Strategic Alliances
There are many Public and Private Steel Companies in India like Tata Steel Ltd., SAIL,
Jindal Steel and Power Ltd., Bhushan Steel Ltd. All have different foreign market entry
strategies. The purpose of my study is to analyze the market entry strategies of Tata Steel
Ltd. And SAIL and to find out which strategy is best to enter in foreign market.
7
CHAPTER-2REVIEW OF LITERATURE:-
How to find appropriate mode and what will be the critical factors considering
choose of entry mode into foreign market? It has been an interesting topic for the
researchers in area of international business study. From the result of our literature
search, we have found many good academic articles and researches, and have adapted
them to be more specific and suitable for investigate the select topic as following.
Pan & Tse, (2000)
He argued that although entry modes have been modeled into two ways: 1) model as
continue increasing level from export to wholly owned subsidiaries (Chu and Anderson,
1992); 2) the comparison between one baseline mode and other modes (Agarwal and
Ramaswami, 1992). The choice of entry modes also can be revealed from a hierarchical
perspective: at first managers can found a multi-level entry modes hierarchy from equity
to non-equity modes, then consider critical factors for each level and reach the
appropriate one. This article provided us an opportunity insight the process entry mode
choice.
Doole and Lowe (2001)
8
They suggest that a firm’s attitude and commitment to international expansion is crucial
to the success of the operation. The size of a firm can also hinder or enhance international
development as firms rely on the capability of staff for planning. When firms endeavour
to commit to international expansion, the lack of consistent information, adaptation of the
marketing mix variables and market segmentation are factors which need to be
considered in detail. The host country’s government can have a proactive role to play in
setting legislation and creating barriers to entry for international firms which may either
support or impede a firm’s market entry strategy.
Eicher & Kang (2005)
He examined MNCs’ optimal entry modes into foreign markets, they found that factors
of market size, FDI fixed costs, tariffs and transport costs forms important criteria during
the process of mode choice. The result highlight SMEs prefer JVs but large countries are
more likely to attract acquisition. Choice of entry mode depends on many factors, here
we summarize a general model for choosing entry mode from previous studies, and this
model contains three parts: company variables, target market and target country
environment variables. This research contributed the study emphasis for our research.
Anderson and Gatignon 1986; Domke-Damonte 2000
Firms entering new foreign markets choose from a variety of different forms of entry,
ranging from licensing and franchising, through exporting (directly or through
independent channels), to foreign direct investment (FDI) (joint ventures, acquisitions,
mergers, and wholly owned new ventures). Entry modes vary in the degree of control the
firm has over invested tangible and intangible resources and the transactions costs
associated with that resource commitment. From another perspective, entry involves two
interdependent decisions--location and mode of control. Exporting is located
domestically and is controlled administratively; foreign licensing is foreign located and is
controlled contractually; and FDI is foreign located and is controlled administratively.
Transaction costs theory views each choice of entry mode as an individual transaction
that involves a trade-off between control and resource commitment
9
Daniels and Bracker 1989
In terms of the performance implications of internationalization, evidence supports the
idea that foreign market entry, regardless of mode, significantly increases returns on sales
and assets Other research has compared relative financial performance between and
within modes. For example, Tang and Yu's (1990) revenue maximization model
concluded that a wholly owned subsidiary is the optimal strategy because it generates the
highes economic profit and maximizes control of critical knowledge indefinitely. This
conclusion was based on a mathematical model that determined transfer prices in other
entry strategies are higher than marginal costs, making subsequent operations inefficient.
Driscoll (1920)
He proposed that the key characteristics of the entry modes methods are level of control,
dissemination risk, resource commitment, flexibility and ownership. These characteristics
are also supported by many authors such as Agarwal and Ramaswami 1992; Anderson
and Gatignon 1986; Douglas and Craig 1989; and etc.As Driscoll argues that control is
the key functionality for a firm to maximize its economic efficiency and return of
investment in international markets. This was also supported by Hill et al. (1990) where
control allows firm to directly manage its operation and decision making which would
ensures desired level of achievement in its whole operation and target market
International Determinents Of Foreign Market Entry Strategy, Jody Evans
Past studies of the determinants of entry strategy choice have produced conflicting
results. In particular, the relationship between cultural or psychic distance and entry
strategy has been quite contentious. Some research has found that psychic distance is
associated with high cost/high control entry strategies, while other research has found
that psychic distance is related to the use of low cost/low control entry strategies. The
results of this study indicate that psychic distance is a key determinant of entry strategy
choice and that it is, in fact, associated with low cost/low control strategies. The study
also investigates a number of other internal determinants, such as centralisation of
decision-making, organisational culture, firm size and international experience. Of these
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organisational factors, international experience was found to be the most important
predictor of entry strategy and centralisation of decision-making was also found to have a
significant affect on entry strategy selection.
The Tata Group: Challenges in Managing a Large Portfolio, Srinivasan and
Mishra,(2007)
According to this an M&A might be undertaken for horizontal acquisition to retain/gain
market leadership or to get a foothold onto international markets (market entry) or to
leverage on synergies. A market entry strategy can be used to tap the more advanced
markets that help the company move up the value chain thereby deriving higher margins.
This was the major reason why Tata Steel decided to acquire Corus as it helped Tata
Steel enter the value added steel market in Europe. In a merger / acquisition, the Tata
Group brings along with it accumulated production experience, cost effectiveness of
production processes and ability to differentiate products. Going forward, the Tata Group
is expected to pursue vigorously the M&A route to growth. Some of the markets which
the group is looking at for inorganic growth include South East Asia, South Africa,
United States and Europe.
Market Entry Strategy and Trend, S. K. Verma
When starting a new venture, it is very important to evaluate the risk involved and to plan
out a strategy. It is therefore very important to plan a market entry strategy that can help
you to take the right decisions related to your business and increase the growth prospects.
Good planning can help you to survive in the long run and can also help your business to
grow. Hiring a market consultant for this can be quite efficient as it helps you to learn
about the market trend and other things that can help your business.
Trends And Patterns Of Overseas Acquisitions By Indian Multinationals, Jaya
Prakash Pradhan, October 2007,
This study deals with the recent phenomena of rising overseas acquisitions undertaken by
Indian multinationals. It studies the trends, patterns and locational determinants of Indian
overseas acquisitions. This study shows that Indian multinationals have increasingly
started adopting acquisition as a global growth strategy to serve a variety of their firm‐specific objectives like accessing new markets, foreign strategic assets, and trade‐supporting infrastructure. As part of the locational analysis, a set of factors such as host
country market, skill endowment and import intensity from India, came out to be
important cross‐country pull factors for Indian overseas acquisitions.
Entry Modes For International Markets International Review of Business, Donglin
Wu* and Fang Zhao
This paper identified three modes to enter a foreign market: Export entry
modes,Contractual entry modes, Investments modes. To achieve the objective of
internationalization, a company should take three factors into account and then choose
appropriate entry modes. These three factors are firm factors, environmental factors and
moderators. The desired entry mode was actually decided by host market environment
condition and firm factors, while the industry characteristics play an important role in
foreign market entry mode choice.
Foreign market entry: a theoretical analysis, By Arijit Mukherjee and Soma
Mukherjee
This paper considers investment strategies of a foreign firm in a host country. The foreign
firm apprehends that knowledge spillover will encourage entry in the host country.
Weshow that foreign firm delays its investment for sufficiently lower threat of entry. If
threat of entry is sufficiently strong, it invests at the beginning with its superior
technology. For intermediate threat of entry, we find that foreign firm brings its relatively
inferior technology initially and superior technology in future when threat of entry has
been eliminated. If inferior technology of foreign firm too creates threat of entry, it
reduces effectiveness of introducing technologies sequentially. Further, we show that
there may be a conflict between foreign firm’s optimal decision and welfare of the host
country.
Horstmann and Markusen (1987)
12
They have argued that a foreign firm may prefer to invest in a host-country quickly if
foreign investment pre-empts entry of domestic firm. In contrast, we show that foreign
firm may prefer to delay its investment to eliminate threat of domestic-entry. Delayed
investment by foreign firm reduces profit of the domestic firm and pre-empts domestic-
entry when discounted total profit of the domestic firm does not cover its cost of entry.
Further, possibility of multiple foreign technologies might induce foreign firm to
introduce technologies sequentially in the host-country.
Earlier, Buckley and Casson (1981) have argued how market size of the host country
can influences timing of foreign investment. In this paper we have included a new
element, viz., knowledge spillover, which affects either timing of foreign investment or
choice of technology to be used in the host-country
CHAPTER-3RESEARCH METHODOLOGY
“Research Methodology comprises of defining & redefining problems, collecting,
organizing & evaluating data, making deductions & researching to conclusions.”
Research Design:-
There are different types of researches:
Exploratory research
Descriptive research
From the above researches I have selected descriptive research, as it is concerned with
finding out the general nature of the problem and variables that relate to it.
SAMPLING UNIVERSE:
Sampling Universe of this study is Public and Private Companies in Steel Industry-
a) Tata Steel b) SAIL
SAMLING TECHNIQUES:
The type of sampling being used for this research work is convenience sampling, which
13
is one of the types of non-probability sampling because it help in collecting the study
material easily.
SAMPLING SIZE
Sample size is 2 Companies.
SOURCES OF DATA
There are two sources of data collection:-
Primary Data
Secondary data
Secondary data is used in this research. The data is collected from internet, Books, Articles,
Journals & Magazines, Research Paper.
II. OBJECTIVES OF THE PROJECT
The main objective of this study is to know the different foreign market entry
strategies in steel industry with special reference to Tata Steel Ltd. and SAIL.
To know the challenges and opportunity in steel industry.
To explain the differences between direct and indirect export strategies.
14
CHAPTER-4INDUSTRY PROFILE
WORLD STEEL INDUSTRY:
The current global steel industry is in its best position in comparison to last decades. The
price has been rising continuously. The demand expectations for steel products are
rapidly growing for coming years. The shares of steel industries are also in a high pace.
The steel industry is enjoying its 6th consecutive years of growth in supply and demand.
And there is many more merger and acquisitions which overall buoyed the industry and
showed some good results. The subprime crisis has lead to the recession in economy of
different countries, which may lead to have a negative effect on whole steel industry in
coming years. However steel production and consumption will be supported by
continuous economic growth.
The countries like China, Japan, India 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.e. 419m
ton, Japan accounts for 9% i.e. 118m ton, India accounts for 53m ton and South Korea is
15
accounted for 49m ton, 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.
Figure 3: Share of world crude steel production 2009, 2010
16
The annual production for Asia was 897.9 mmt of crude steel in 2010, an increase of
11.6% compared to 2009. Its share of world steel production decreased to 63.5% in 2010
from 65.5% in 2009. China's crude steel production in 2010 reached 626.7 mmt, an
increase of 9.3% on 2009. China's share of world crude steel production declined from
46.7% in 2009 to 44.3% in 2010. Japan produced 109.6 mmt in 2010, 25.2% higher than
2009. In 2010, South Korea's crude steel production was 58.5 mmt, a 20.3% growth
compared to 2009.
The EU recorded an increase of 24.5% compared to 2009, producing 172.9 mmt of crude
steel in 2010. However, crude steel production in the UK and Greece continued to decline
in 2010.
In 2010, crude steel production in North America was 111.8 mmt, an increase of 35.7%
on 2009. The US produced 80.6 mmt of crude steel, 38.5% higher than 2009.
Out of a total annual global steel production of over 1.4 billion metric tons, the
contribution of China has almost been 45% in 2010, whereas India, sadly, is around one
tenth only of China. Major steel producing nations' output has somewhat recovered post
global meltdown in 2010 and has been as follows:
Top 5 steel producing countries as on Saturday, 22 Jan 2011
Rank Country 2010 2009Change
1 China 626.7 573.69.3
2 Japan 109.6 87.525.2
3 United States 80.6 58.238.5
4 Russia 67.0 60.011.7
17
5 India 66.8 62.8 6.4
(Source: Crude steel statistics 2010- World Steel Association)
Out of a total of annual production of around 56 million metric tonnes in 2010, India
produces more than one third ( 20.6 mtpa ).
If India has to maintain its rate of economic growth, huge investments in infrastructure
including Power Generation are inescapable. All this is possible and would need
commensurate growth in steel capacity. While China has already peaked in its steel
production, becoming a net exporter recently, India has a long way to go. Even if 500
mtpa would appear to be beyond comprehension at this stage, a modest target of 100-150
mtpa in the next 10-15 years (National Steel Policy envisages 180 mtpa by 2020 ) would
need an addition of almost 5 mtpa each year on a continuing basis.
In addition to these two major factors, a cost-push is coming from raw material suppliers.
Hence, steel manufacturers have to contend with strong demand on one hand, and cost-
push on the other. The outlook for the domestic industry looks bright, since India has
good iron ore deposits, skilled manpower and growing demand for steel. There is an
apprehension that if China slows down, it may dump its surplus steel into India. An
analysis of global data shows that even if an economy slows down, steel consumption
does not fall dramatically. In the case of China, a slowdown can mean that the growth
rate may fall from 19-20% to a lower level. But that doesn‘t means growth will not take
place. China produced around 470 million tonnes (mt) of steel last year, out of which, 66
mt was exported and the rest was consumed within the country. The measures undertaken
by the Chinese government recently will reduce exports significantly in the current year.
There is also a change in the consumption pattern. For instance, if construction activity
slows down, the consumption of white goods will pick up and demand for flat steel
products will go up. The new capacities coming up in China are on the flat products side
and not on the long products side. Overall, the impact on the supply side will be less.
Similarly, the cost of production is very high — it costs around $500 per ton to produce
18
more than 100 mt of steel in China. Since the cost of production is very high and exports
are not allowed, many of these plants will be closed down by ‘09-10.This will reduce the
supply of steel.
There‘s a feeling that India doesn‘t have much iron ore, considering the recent capacity
expansion plans of domestic and foreign steel companies in India. There is a possibility
that if we continue exporting iron ore, we may run out of reserves. Currently, we export
90- 100 mt every year and this is steadily increasing. Ideally, we should increase our steel
production capacity — we are a net importer of steel — so that rather than exporting iron
ore, we can add value to it. India should also look at investing in exploring new mines.
INDIAN STEEL INDUSTRY
India has traditionally been one of the major producers of steel in the world. The Indian
Steel Industry is almost 100 years old now. Till 1990, the Indian Steel Industry operated
under a regulated environment, insulated markets & large scale capacities reserved for
public sector.. After the economic reforms of the early 1990s, the Indian steel industry
has evolved significantly to conform to global standards.
In 2009-10, steel production was 60 million tones that is expected to double to 124
million tones by 2012. The ministry of steel projected for the next five year the demand
19
of steel will grow at annual growth rate of 10%. The steel consumption rose 8% in the
year ended at March 2010. The steel consumption increase to 56.3 million tones in 2009-
10 compared to 52.3 to previous year. India has emerged the third largest producer of
steel in the world and likely to become second largest producer of steel by 2015-16. In
2009-10, steel production was 60 million tones that is expected to double to 124 million
tones by 2012. The ministry of steel projected for the next five year the demand of steel
will grow at annual growth rate of 10%. India has set a vision to be an economically
developed nation by 2020.
Major developments that occurred at the time of liberalization were:
1. Large plant capacities that were reserved for public sector were removed;
2. Export restrictions were eliminated;
3. Import tariffs were reduced from 100 percent to 5 percent;
4. Decontrol of domestic steel prices;
5. Foreign investment was encouraged, and the steel industry was part of the high
priority industries for foreign investments and implying automatic approval for foreign
equity participation up to 100 percent; and
6. System of freight ceiling was introduced in place of freight equalization scheme.
The two major aspects that are expected to play a significant role in the growth of the
steel industry in India are -
Abundant availability of iron ore in the country
The country as well established facilities for steel production. Steel production
in India has grown from 17 MT in 1990 to 36 MT in 2003. It is expected that by
2011, the steel production in India will grow to 66 MT.
The major sectors where consumption of steel is expected to grow in the coming years
are -
Construction
20
Housing
Ground transportation
Hi-tech engineering industries such as power generation, petrochemicals,
fertilizers
Figure 2.3: Major consumer of steel in 2005-06 (in %)
The current scenario of the Indian steel industry indicates that there is huge growth
potential in this industry. The per capita-consumption of steel in India, according to latest
available estimates, is only 29 kg. This is much less compared to the global average of
140kg. The per capita consumption level of developed nations like the United States of
America is 400kg. In this respect, one of the major initiatives that need to be taken is to
focus on increasing the consumption of steel in the rural areas of India. The potential for
the growth of consumption of steel in the rural areas of India for purposes like rural
housing, rural infrastructure, etc is high which needs to be tapped efficiently.
Most developed countries have regulations that are aimed to protect the domestic steel
industry. The Indian steel industry has comparatively much lesser protection through
regulations. Proper regulatory measures should be adopted by the government to protect
the domestic steel industry.
21
The industry recorded the highest growth rate in the period from 2004-2005, when the
growth rate of the steel sector was 4%. The increased consumption of the finished steel
products in the domestic market acted as a positive catalyst in the growth process of the
Indian steel industry. The favorable market condition has helped the companies operating
in Indian steel industry to expand their operations and earn huge profit.
Figure 2.4. Steel Production in India
Production of steel:
India continually posts phenomenal growth records in steel production. In 1992, India
produced 14.33 million tones of finished carbon steels and 1.59 million tones of pig
iron. Furthermore the steel production capacity of the country has increased rapidly since
1991 – in 2008, India produced nearly 46.575 million tones of finished steels and 4.393
million tones of pig iron.
Consumption of steel:
In 1992, the total consumption of finished steel was 14.84 million tones. In 2008, the
total amount of domestic steel consumption was 43.925 million tones. With the increased
demand in the national market, a huge part of the international market is also served by
this industry.
Industry Structure:-
22
Indian Iron and steel Industry can be divided into two main sectors Public sector and
Private sector. Further on the basis of routes of production, the Indian steel industry can
be divided into two types of producers:-
a) Integrated producers
Those that convert iron ore into steel. There are three major integrated steel players in
India, namely Steel Authority of India Limited (SAIL), Tata Iron and Steel Company
Limited (TISCO) and Rashtriya Ispat Nigam Limited (RINL).
b) Secondary producers
These are the mini steel plants (MSPs), which make steel by melting scrap or sponge iron
or a mixture of the two. Essar Steel, Ispat Industries and Lloyd’s steel are the largest
producers of steel through the secondary route.
Types of Steel
Steel is an iron based mixture containing two or more metallic and/or non metallic
elements usually dissolving into each other when molten. Since it is an iron based alloy—
as per its end use requirements—other than iron it may contain one or more other
elements such as carbon, manganese, silicon, nickel, lead, copper, chromium, etc.
23
The following chart depicts various types of steel products according to different
categories-
\
24
Non-Alloy Steel
Non-Alloy Steel
Alloy SteelAlloy Steel
Form/size/ Shape
Form/size/ Shape
End UserEnd UserCompositionComposition
SteelSteel
Medium carbonsteel
Medium carbonsteel
Silicon-electricalsteel
Silicon-electricalsteel
Low carbon orMild steel
Low carbon orMild steel
Stainless SteelStainless Steel
High speedsteel
High speedsteel
High carbonsteel
High carbonsteel
Liquid SteelLiquid Steel
Crude SteelCrude Steel
IgnotsIgnots
SemisSemis
Finished SteelFinished Steel
Non-Flat ProductsNon-Flat Products
Structural steel
Structural steel
Construction steel
Construction steel
Deep drawingsteel
Deep drawingsteel
Rail steelRail steel
Foreign qualitysteel
Foreign qualitysteel
Flat ProductFlat Product
Export And Import
In last five years (2003-04 to 2007-08) imports are growing at much faster rate than
exports. As a result net trade in steel is getting narrower (see Table 2.1). While imports
have grown by CAGR of 24.49 percent, exports have grown just by a CAGR of 2.16
percent in last five years. Overall net trade in steel has managed to be in surplus till 2006-