India: 14.4% SAIL’s Market Share in Finish Steel Consumption; Tata 12.1% & JSW 9.6%

SAIL is planning to produce 20.23 MnT salable steel by 2016 from present 12.88 MnT.

A 6-member team of officials from SAIL, led by chairman CS Verma are now on a roadshow across the US, Europe and Hong Kong to meet the potential investor for its upcoming expansion. Apart from SAIL officials, Joint Secretary, Steel Ministry, Mr UP Singh was also part of Indian team during the roadshow.

The presentation says about the market share of finished steel consumption – SAIL had a 14.4% chunk by Mar’14, with Tata Steel in second spot at 12.1% share, followed by JSW Steel with 9.6% share, as per data from Joint Plant Committee (JPC). While, SAIL had 16.6% share at the end of Mar’14, JSW Steel and Tata shares were 11.4% and 11.2% respectively. 

The government will off-load around 206.5 million shares, which amounts to 5% stake sale in the company. The stake sale is likely to fetch around INR 18 billion, which will kick-start Modi government’s ambitious INR 430 billion disinvestment programme. While, the date for launch of the issue has not been finalized, it may happen sometime in the next couple of months. 

At the same time, a team led by Mr Verma met investors in New York and Boston after a meeting fund managers in London, another team led by SAIL’s director (finance), A Chaudhary, has been meeting prospective participants in OFS in Hong Kong & Singapore.

As per JPC datae, the total Bars & Rods consumption in FY14 was reported at 30.193 MnT pa, accounting for 44% share of India’s total non-alloy steel consumption of 69.311 MnT pa. The share of primary steel mills remains below 30%.

 Steel Bars & Rods Production for FY14

Source: SteelMint, JPC
MnT- Million tonnes

Source: economictimes.com