Investment Opportunity in Steel & Aluminum

Current Status and Size of the Market

• Globally, India is ranked among the top 10 major suppliers of aluminum and steel
• India produces 35 million tonnes of steel annually
• India is the No.1 producer of sponge iron in the world
• Annual domestic consumption of aluminum and copper are over 0.75 million tonnes and 0.4 million tonnes respectively
• Indian metal industry employs about one million people and generates over $13 billion in revenues (2004-05)
  

Structure of Indian Metal Industry

• Large number of integrated players, such as SAIL and Tata Steel in steel and Hindalco and Nalco in aluminum, dominate the industry
• This industry has a significant presence of public sectors:
• Steel Authority of India Ltd. (SAIL) has 32% of India’s installed capacity of crude steel
• Nalco has 38% of India’s installed capacity of aluminum
• Among the private players, Tata Steel, Hindalco and Sterlite are the major companies in the industry
  

GOI Policy

100% FDI is allowed under the automatic route for metallurgy and processing of all metals

Potential & Opportunities

• Steel consumption in domestic market is forcast to grow by 8% p.a. To 60 million tonnes by 2010
• Indian metal industry has the potential to become one of the world’s top five suppliers and top five markets for aluminum and stee
• Demand for Aluminum is expected to grow @ 10% p.a. for the next 10 years
• The current low per capita consumption of metals is projected to increase substantially in the recent future
• Large global metal manufacturers including POSCO, Mittal Steel and Dubai
• Aluminum have announced plans for setting up plants in IndiaInvestments of over $15 billion for integrated steel manufacturing and about $5 billion for aluminum manufacturing are needed by 2010