Presented by: N.C. Mathur Adviser – Jindal Stainless Limited President : ISSDA (Indian Stainless Steel Development Association) Review of Global Stainless Steel Industry : Way Forward for India Stainless Steel Centenary Celebration (1912-2012) October 9, 2012 – New Delhi
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Stainless Steel Centenary Celebration (1912-2012) · Review of Global Stainless Steel Industry : ... Market share >50% in 2011 ! Global Stainless Steel Recovery In 2010, World Stainless
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Presented by: N.C. Mathur
Adviser – Jindal Stainless Limited President : ISSDA (Indian Stainless Steel Development Association)
Review of Global Stainless Steel Industry : Way Forward for India
Stainless steel production for first half of 2012 reaches 17.2 million tonnes.
Stainless Steel Consumption Growth* (BRIC Countries Vs. Rest of the World)
Source: SMR 9
BRIC countries
Market share
>50% in 2011 !
Global Stainless Steel Recovery
In 2010, World Stainless Steel Industry recovers, but China accounts for all the Growth since 2000.
Source: ISSF 10
2016 : Total World market will be over 40 mill. tonnes
Source: SMR 11
Stainless Steel : Grade Structures Over 30 mill. tonnes of Finished Products in 2011
Source: SMR 12
World Per Capita Stainless Steel Use
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 2010
Low per capita consumption of Stainless Steel in India provides an interesting opportunity for growth
13
Indian Stainless Steel Scenario
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 5 years.
US$300 billion planned to be spent on upgrading rail infrastructure (including new rail lines, double/multiple lines, high-speed rail) by 2020.
Around $55 billion worth investments planned in major and non-major ports by 2020.
15
To reach USD 4 trillion by 2020
480
810
1,538
2,777
4,000
0
1,500
3,000
4,500
GDP- Gross Domestic Product (US$ Bn)
The Indian economy is poised for 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
Source: CIA World Factbook, IMF
USD Bn
India poised for strong economic growth
16
Growth Consumption Spending by 2020
Source: Goldman Sachs Global Economics Research, IMF
x times 2010 consumption spending
0 1 2 3 4 5 6
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
GDP Per Capita on PPP basis (USD) Year 10-16E
Increasing Consumer Spent Driving Economic Growth
17
1,537 1,575 1,817
2,100
3,500
2007 2008 2009 2010 2015
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 2015. Over Capacity for next 5 years
2007 2008 2009 2010 2015
World SS consumption (Flat + Long) in ‘000 MT
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India’s SS consumption growth to exceed global growth