Top 10 Best Steel Manufacturing Company In India In 2022
Steel Manufacturing Company
In January-December 2019, India was the world’s second-largest producer of crude steel, producing 111.245 million tonnes (MT) of crude steel, up 1.8 per cent from the same time last year (CPLY).
From January to December 2019, India was the world’s top producer of Direct Reduced Iron (DRI) or Sponge Iron, generating 36.86 million tonnes, an increase of 7.7% over the same last year (CPLY).
According to the World Steel Association’s Short-range Outlook, published in October 2019, the country is expected to become the second-largest consumer of completed steel in 2019, trailing only China (2019: 900mt).
The following is the industry scenario:
Crude steel production increased by 0.4 per cent to 82.192 million tonnes. SAIL, RINL, TSL, Essar, JSWL, and JSPL combined produced 46.752 Million Tonnes, a 57 per cent share and a 0.4 per cent decrease. Other Producers contributed the remaining 35.44 million tonnes, up 1.5 per cent.
The Private Sector led crude steel production with an 81 per cent share, producing 66.85 million tonnes (up 1.2 per cent), compared to the PSUs’ 19 per cent contribution.
Pig iron production fell 14.3 per cent to 4.314 million tonnes. The private sector accounted for 88 per cent of the total, with the public sector accounting for the remaining 12 per cent.
When entire finished steel (non-alloy + alloy/stainless) is used:
- Production increased by 1.8% to 76.33 million tonnes.
- Exports increased by 39.4% to 6.52 million tonnes.
- Imports totalled 5.51 million tonnes, down 6.7 per cent from the last year.
- India was a net exporter of completed goods.
- Consumption increased by 3.8 per cent to 75.05 million tonnes.
Establishment of a Project Development Cell (PDC) in India to Attract Investment
To facilitate and encourage investment in the steel business, the Ministry of Steel has established a Project Development Cell. Prospective investors will contact PDC through a single point of contact. PDC will also focus on getting potential investors and assisting them through the stages of the investment process.
2 MAKE IN INDIA INITIATIVES FOR INVESTING IN THE INDIAN STEEL SECTOR:
Some of the causes that will raise steel demand in India and motivations to invest in the Indian steel sector are as follows:
- On May 8, 2017, the Union Cabinet approved the National Steel Policy (NSP) 2017. The government’s long-term aim for boosting the steel sector is enshrined in the new Steel Policy. It aims to increase domestic steel demand while ensuring high-quality steel production and establishing a technologically advanced and globally competitive steel sector. The programme anticipates a crude steel capacity of 300 million tonnes (MT), an output of 255 MT, and per capita steel consumption of 160 kg by 2030, up from the current level of roughly 60 kilograms, with infrastructure, vehicles, and housing sectors accounting for the majority of demand.
- By 2030-31, the policy aims to meet the entire demand for high-grade automotive steel, electrical steel, special steels, and alloys for strategic applications domestically, and increase domestic availability of washed coking coal, reducing import dependence on coking coal from about 85 per cent to around 65 per cent.
- On October 23, 2018, a Mega Conclave on ‘Capital Goods for Steel Sector: Manufacture in India’ was held in Bhubaneswar, bringing together relevant Central Ministries and State Governments, global technology providers and the World Steel Association, Indian capital goods manufacturers and major Indian Steel Companies, R&D institution/IIT, and MECON as the knowledge partner to promote domestic manufacturing of capital goods for the steel sector in India in the wake of opportunities arising from NSP.
- Several Memorandums of Understanding (MOUs) were signed for technology collaboration in many areas of the iron and steel industry and the manufacture of capital goods for the steel sector in India. The Union Cabinet approved a policy in 2017 to give preference to domestically manufactured iron and steel products in government procurement. The policy was last updated on May 29, 2019, and will be updated again on December 31, 2020. When the value of iron and steel products purchased by the government exceeds Rs 5 lakh, this rule gives precedence to domestically produced iron and steel. For notified iron and steel goods that are covered by preferential procurement, minimum domestic value addition of 20% to 50% has been made required.
- Private agencies acquiring iron and steel products as part of an EPC contract and capital items need to manufacture iron and steel products are also covered by the policy. By increasing the manufacturing base, exchanging know-how, developing new goods, and transferring technology through multi-lateral collaboration. This will also encourage international technology suppliers and critical steel plant manufacturers to shop in India.
- ChintanShivir: Towards a Vibrant, Efficient and Globally Competitive Indian Steel Sector
- The Chintan Shivir event, which took place on September 23, 2019, in New Delhi, was organized around a clear theme in line with the vision and objectives of “Towards a Vibrant, Efficient, and Globally Competitive Indian Steel Sector” and drew over 900 people from the government (central and state), CPSEs, private sector, research institutes, and banking sectors. The following is the brief:
- Domestic Capacity Expansion with Special Reference to the Secondary Steel Sector: India’s secondary steel sector presently accounts for more than 40% of overall capacity. It will be critical if the country is to attain 300 MT capacity. This debate aimed to identify constraints to capacity expansion in the country, with a particular focus on secondary steel, and to offer solutions to these difficulties.
- Demand Generation: Despite being the world’s third-largest steel consumer, India’s per capita steel consumption is barely one-third that of the rest of the world. As a result, the purpose of this session was to discuss, ponder, and identify proposals for increasing steel consumption per capita in the country.
- High-Grade Steel Production: Despite accounting for a small percentage of total imports, alloy and stainless steel make up a disproportionately large component of the import bill in terms of value. As a result, this session delved into intriguing difficulties in the special steel business and highlighted viable solutions to help India become a major in high-grade steel production.
The Top 10 Steel Manufacturing Companies in India in 2022 are shown below.
1. Tata Steel Ltd.
Tata Steel Limited, headquartered in Mumbai, Maharashtra, India, is an Indian multinational steel-making corporation centred in Jamshedpur, Jharkhand. The Tata Group owns the company.
Tata Steel, originally Tata Iron and Steel Company Limited, is one of the world’s largest steelmakers, having a capacity of 34 million tonnes of crude steel per year. With activities and commercial presence worldwide, it is one of its most geographically diverse steel makers. In the financial year 2020, the group had a consolidated turnover of US$19.7 billion, after Steel Authority of India Ltd, India’s second-largest steel company (measured by domestic production) with an annual capacity of 13 million tonnes (SAIL).
Tata Steel employs over 80,500 people in 26 countries, with main activities in India, the Netherlands, and the United Kingdom. Jamshedpur, Jharkhand, houses the company’s largest plant (10 MTPA capacity). Tata Steel bought Corus, a steel company based in the United Kingdom, in 2007. The 2014 Fortune Global 500 ranking of the world’s largest firms was rated 486th. According to Brand Finance, it was the ninth most valuable Indian brand in 2013.
Tata Steel Kalinganagar (TSK) was named to the World Economic Forum’s (WEF) Global Lighthouse Network in July 2019.
Great Place to Work has named Tata Steel one of India’s Best Workplaces in Manufacturing for 2022. This award, which is being given for the sixth time, recognizes its continued commitment to cultivating a culture of high trust, integrity, growth, and caring for its employees. Tata Steel has also been accepting LGBTQ employees, and under the new HR policy, LGBTQ employees’ partners are eligible for health insurance coverage.
2. Steel Authority of India Limited (SAIL)
SAIL is an Indian government-owned steel company headquartered in New Delhi. With an annual turnover of INR 68,452 Crore (US$9.32 billion) for the fiscal year 2020–21, it is owned by the Ministry of Steel, Government of India. It was founded on January 24, 1973, and currently employs 62,620 people (February 1 2022). SAIL is the world’s 20th largest steel producer and India’s largest, with 16.30 million metric tonnes annual output. The company’s Hot Metal manufacturing capacity will continue to grow to reach 50 million tonnes per year by 2025. SAIL’s current Chairman is Smt Soma Mondal.
SAIL owns and runs five integrated steel mills, including Bhilai, Rourkela, Durgapur, Bokaro, and Burnpur (Asansol) and three special steel plants in Salem Durgapur and Bhadravathi. Chandrapur also owns a Ferro Alloy facility. The company is conducting a development and modernization initiative as part of its global ambition, including updating and developing new facilities focusing on cutting-edge green technologies. According to a recent poll, SAIL is one of India’s fastest expanding public sector units. It also has a Research and Development Centre for Iron and Steel (RDCIS) and a Centre for Engineering in Ranchi, Jharkhand.
3. Essar Steel
The steel manufacturing companies of the Essar Group of Companies were known as Essar Steel. Essar Steel India Limited, a fully integrated flat carbon steel company headquartered in Mumbai, owned and operated a steel factory in Hazira, Gujarat’s Surat district. It also has pellet plants in Visakhapatnam, Andhra Pradesh, Paradeep, Odisha, and a beneficiation factory at Bailadilla, Chhattisgarh. ArcelorMittal Nippon Steel India Limited acquired Essar Steel India Limited after going bankrupt. ArcelorMittal Nippon Steel’s Chairman is Aditya Mittal, while Dilip Oommen’s CEO.
Essar Steel is a global steel company in India, the Middle East, and Asia and is one of the best steel firms in India on our list. The company is a fully integrated flat carbon steel producer from iron ore to market-ready steel products.
The company’s current capacity is 10 million tonnes per year (MTPA). They primarily sell completed steel products to affluent industries like engineering, construction, white goods, automotive, and shipbuilding. Essar Steel is a significant exporter of flat steel products to highly competitive Europe and the United States.
Hyundai, Swaraj Mazda, the Konkan Railway, Maruti Suzuki, and Caterpillar are some of the steel company’s clientele. The company owns 8 MTPA units at Bailadilla (Chhattisgarh) and a 12 MTPA plant in Dabuna (Odisha), strategically located to take advantage of the respective states’ significant iron ore reserves.
4. JSW Steel Ltd
JSW Steel Ltd, a subsidiary of the JSW Group, is an Indian multinational steel manufacturing firm situated in Mumbai, India.
JSW Steel has merged with ISPAT Steel to become India’s second-largest private steel firm. The JSW Group, a $13 billion conglomerate with operations in India, the United States, South America, and Africa, is a subsidiary of the O.P. Jindal Group and has a substantial presence in core economic areas, including steel, energy, infrastructure, cement, ventures, and sports. JSW’s origins date to 1982, when the Jindal Group purchased Piramal Steel Limited, a small steel company in Tarapur, Maharashtra, and renamed it Jindal Iron and Steel Company (JISCO).
In 1982, the business opened its first steel mill in Vasind, near Mumbai, shortly after the acquisition. Jindal Vijayanagar Steel Ltd. (JVSL) was founded in 1994, with a mill in Toranagallu, Ballari, Karnataka, in the high-grade iron ore region’s heart, covering the high-grade iron ore region 10,000 acres (40 kilometers2). It is well connected to the Goa and Chennai Ports and is about 340 kilometres from Bengaluru. JISCO and JVSL combined in 2005 to form JSW Steel Ltd. The JSW Ballari factory is the sixth-largest steel plant in the world.
JSW Steel has created a joint venture in Georgia to build a steel mill. JFE Steel Corp. of Japan has also partnered to produce high-grade automobile steel. JSW has also purchased mining properties in Chile, the United States, and Mozambique.
5. Rashtriya Ispat Nigam Ltd.
Vizag Steel, commonly known as Rashtriya Ispat Nigam Limited (RINL), is a government-owned steel producer in Visakhapatnam, India. It is owned by the Ministry of Steel of the Government of India.
Visakhapatnam Steel Plant (VSP), India’s first shore-based integrated steel plant developed with cutting-edge technology, is managed by RINL. VSP is a plant with a capacity of 7.3 MTPA. It was built in 1992 and had a liquid steel capacity of 3.0 MTPA. In April 2015, the government enterprise completed a capacity extension to 6.3 MTPA, followed by a capacity expansion to 7.3 MTPA in December 2017.
With a 51 per cent shareholding, the corporation has one subsidiary, Eastern Investment Limited (EIL), which has two subsidiaries, Orissa Mineral Development Company Ltd (OMDC) and Bisra Stone Lime Company Ltd. (BSLC). RINMOIL Ferro Alloys Private Limited and International Coal Ventures Limited are joint ventures in which the business owns 50 per cent and 26.49 per cent of the shares, respectively.
RINL now operates a steel plant in Visakhapatnam with a capacity of 7.3 million tonnes per year.
RINL intends to invest 60,000 crores (US$8.0 billion) by 2027 to raise capacity to 20 million tonnes.
The plant supplied 100 metric tonnes of liquid medicinal oxygen around the country via Oxygen Express trains during the COVID-19 pandemic.
6. Jindal Steel and Power Ltd (JSPL)
Jindal Steel and Power Limited (JSPL) is a steel and energy corporation headquartered in New Delhi. With a turnover of around 40000 crores (US$5.5 billion), JSPL is part of the diversified O.P. Jindal Group, which has a turnover of about 130000 crores. JSPL is a market leader in India’s steel, electricity, mining, oil and gas, and infrastructure industries. Backward integration from the company’s captive coal and iron-ore mines produces steel and electricity.
In terms of tonnage, it is India’s third-largest steel producer. Sponge iron, mild steel slabs, ferrochrome, iron ore, structural, hot rolled plates and coils, and a coal-fired sponge iron plant are all produced and sold. Jindal Steel and Power Limited began operations in 1979. It entered the power market in 1995, establishing Jindal Power as a subsidiary.
7. Electro Steel Castings Ltd.
Electrosteel Castings Limited is a Kolkata, India-based company.
It has a production capacity of 280,000 MT per year, making it one of the largest Ductile Iron (DI) Pipes in the Indian subcontinent. The company’s current turnover is $277 million dollars. Electrosteel was the first company to establish a Ductile Iron Spun Pipe Plant in India in 1994, and it is now one of the world’s top five producers of Spun Iron pipes.
Electrosteel exports almost half of its Ductile Iron Pipes and Fittings to Europe, the United States, and North and South Africa. Several overseas offices and subsidiary firms have been founded in France, Spain, the United Kingdom, the United States, Singapore, and Algeria.
Electrosteel manufactures ductile iron pipes and fittings to worldwide standards, and its quality is recognized in many nations. The British Standards Institute (“BSI”) granted the company a KITEMARK License for its DI Spun Pipes and Fittings. Electrosteel also got accreditation from Germany, the British Standards Institution (BSI), and several Middle Eastern official clearances. It also received approvals from NSF, UL, and FM in the United States and ACS/NF in France. In the United Kingdom, the Drinking Water Inspectorate (DWI) and the Water Regulation Advisory Scheme (WRAS) have both validated their products.
Electrosteel is an ISO 9001, ISO 14001 certified company and an SA8000 recognized socially responsible company.
8. Mideast Integrated Steel Limited (MISL)
Mideast Integrated Steel Ltd. (MISL) was founded in 1992 with assets in the eastern Indian state of Odisha. In 1996, it obtained the Roida iron ore mining lease in Odisha’s primary iron ore belt. MISL’s pig iron factory at Jajpur was commissioned in 2005 and has run continuously since then. MISL has a strategic partnership with Stemcor in the United Kingdom for marketing and funding.
It is also the first company in India to work with CMIEC, now known as Sino Steel in China, on a technological level. MISL now has a minuscule debt-to-equity ratio, making it the country’s only debt-free iron and steel company of this scale.
MISL’s plant in Kalinga Nagar, Odisha, currently has two 389 cubic metre Blast Furnaces, and the hot metal is cast as Pig Iron. It produces high-quality iron ore at its Roida mines. Iron Ore Fines, Calibrated Lump Ore, and Pig Iron are MISL’s major products. MISL’s factory is now undergoing a massive expansion. The development aligns with the firm’s goal of becoming a large, fully integrated steel producer in India.
The current expansion plan calls for a two-phased increase in finished steel capacity to 3.5 million tonnes. Wire rods and rebars will be the final products.
9. Godawari Power & Ispat Ltd.
GPIL, a public Ltd. Co., formally Ispat Godawari Ltd, a pioneer constituent belonging to HIRA Group of Industries, Raipur, C.G. was incorporated in 1999. It established an integrated steel plant with captive power generation under the visionary leadership of Mr B. L. Agrawal, Managing Director, a techno-commercial visionary with proven broad experience in commissioning and operating Cement Plants, Sponge Iron Plants, and other plants, backed by a dedicated team of professionally qualified personnel under the stewardship of a Board of Directors with expertise in Engineering finance administration. The National Stock Exchange and the Bombay Stock Exchange both list GPIL.
GPIL is a flagship company of the Raipur-based Hira Group of Industries, which has a significant presence in the steel industry’s long product category, primarily mild steel wire. GPIL is now a full-service mild steel wire maker. Sponge iron, billets, Ferroalloys, captive power, wire rods (via a subsidiary firm), steel wires, oxygen gas, fly ash brick, and, last but not least, iron ore pellets are all produced during the process. GPIL has also been granted mining rights for the captive consumption of iron ore. The firm has traversed the complete value chain (raw material to finished product) in steel wires and has become a fully integrated steel maker.
10. Hindalco Ltd.
Hindalco Industries Limited is an Aditya Birla Group business that manufactures aluminium and copper in India. Mumbai, Maharashtra, India, is the company’s headquarters.
The corporation generates $15 billion in annual revenue and employs roughly 20,000 employees. It is ranked 895th among the Forbes Global 2000 companies. It had a market capitalization of US$3.4 billion at the end of May 2013. Hindalco is one of the world’s largest aluminium rolling firms and one of Asia’s leading primary aluminium producers.
In June 2000, the company acquired a 74.6% equity stake in Indian Aluminium Company Limited (Indal).
Hindalco stated in July 2007 that it would buy Alcan Inc.’s share in the Utkal Alumina Project in Doraguda, Odisha.
Hindalco Industries bought Aleris Corporation, a manufacturer of aluminium rolled products based in the United States, on April 15, 2020. Hindalco’s Novelis’ foray into the high-end aerospace industry has been completed at a $2.8 billion enterprise value.
Their equity shares are traded on the Bombay Stock Exchange, part of the BSE SENSEX index, and the National Stock Exchange of India, where they are part of the S&P CNX Nifty. The Luxembourg Stock Exchange lists its Global Depository Receipts.
