CII in association with its knowledge partner, CARE Ratings released a report on “Managing Capacity against Uncertain Demand” against the backdrop of the 4th Steel Mart 2015: ‘Driving Make in India’ organized by CII on 22- 23 July, 2015 at Chandigarh.
The report highlights the current and future trends of both the global and Indian steel industry and discusses ways to narrow the demand-supply gap. The “Make in India” campaign key to engineering & capital goods sectors which accounts for a significant share in the end-use consumption pattern of the steel industry is examined. Further, the availability of adequate funds to finance the incremental capital expenditure and the working capital requirement in the domestic Iron & steel industry is discussed. The role of the Government to act as a facilitator for the development of the steel industry is also defined.
The ‘credit quality’ of the Indian Steel industry is also profiled taking into consideration that the industry is structurally fragmented marked by the presence of a few major integrated players and numerous small and mid-sized players. The report points out that in the past two-three years, though the steel sector as a whole has been impacted by the volatility in raw material and finished goods prices with high interest rates, the deterioration in credit profile of the smaller players has been more pronounced as the vertically integrated players with large scale operations are in a position to partially maintain a competitive cost structure.
Key Content: Outlook on Global Steel Industry; Outlook on Domestic Steel Industry; Funding the Great Indian Steel Dream; Future Funding requirements of the Indian Iron & Steel Industry; Funding Challenges faced by the Domestic steel players; Current Credit quality of the Indian Iron & Steel Industry.