Indian Steel Industry Research Articles

A Critical Examination and Scrutiny between Tata Steels and JSW Steels Limited in India

Abstract: Over the past few years, the Indian steel sector has advanced quickly thanks to solid foundations. The industry is receiving all of the necessary components needed for rapid expansion. The industry is receiving billions of dollars in investments from the private sector and advantageous industrial changes from the government. Due to the robust domestic demand from the building, automotive, and infrastructure sectors, the industry was able to maintain its positive growth momentum even during the difficult economic downturn. With a stellar history, the nation is now well-known in the global steel sector. The remarkable performance of the industry has attracted global steel companies from all over the world. For instance, India's production of crude steel reached 56.6 million metric tonnes in 2009, a modest year-over-year increase of 2.7%. Conversely, a number of Asian nations, including South Korea and Japan, experienced a sharp drop in their production levels. This further demonstrates the Indian steel industry's robustness and resilience against outside risk factors. The impact of the steel industry on two significant businesses, Tata Steels and JSW Steels, is discussed in this essay. Additionally, the author has attempted to use ratio analysis in the study to highlight Tata Steels' and JSW Steels' financial performance.

FINANCIAL REPORTING EVOLUTION: A CASE STUDY OF IND AS IMPLEMENTATION OF INDIAN STEEL COMPANIES

This article investigates the ramifications of the transition from Indian Generally Accepted Accounting Principles (IGAAP) to Indian Accounting Standards (Ind AS) on financial reporting within the Indian steel industry. In an era of global economic interconnectivity, the move towards aligning with international standards, notably International Financial Reporting Standards (IFRS), holds profound implications. The study underscores the paramount importance of transparency and comparability in financial reporting. The study employs the Grays Comparability Index (GCI) to quantitatively assess the conservatism levels in reporting various financial statement items. The findings reveal that while assets, liabilities, and equity exhibit relatively consistent reporting under both standards, Ind AS demonstrates a propensity for greater optimism in the reporting of income, expenses, and financial activities.

Forging the Indian Steel Industry: How Soviet Designs Won the Day

ABSTRACT Indian politics tried to benefit from the competition between the two Cold War Blocs by gaining beneficial terms for economic cooperation and assistance. At times, Soviet and Central and Eastern European designs could prove more successful on the ground than their direct competitors from the West. This paper analyses cooperation schemes in the steel sector and scrutinises the reasons why this was the case. Economic cooperation between East and South was vibrant and could be mutually beneficial during the whole period of the Cold War, thereby calling into question a narrative of steady decline inherent in state socialism.

“If you want peace avoid interpersonal conflict”: a moderating role of organizational climate

PurposeThis study examines the impact of interpersonal conflict on workplace aggression. Moreover, the moderating role in the association between interpersonal conflict and workplace aggression has been examined.Design/methodology/approachThe research is grounded on the cognitive appraisal theory, which posits that interpersonal conflict contributes to aggression in the workplace. A sample of n = 250 employees from the steel industry in India was selected in two waves. The authors utilized Hayes' PROCESS macro v4.1 for path analysis.FindingsThe research reveals that interpersonal conflict is positively and significantly related to workplace aggression. Moreover, organizational climate is negatively associated with workplace aggression. The moderation analysis has revealed that organizational climate negatively moderates the relationship between interpersonal conflict and workplace aggression.Practical implicationsThis study suggests that recognizing the significance of the organizational climate, companies can proactively curtail the progression of disputes into hostile behaviors. Nurturing a positive workplace climate becomes paramount, as it acts as a buffer against conflict escalation. Educating both staff and managers about the diverse forms of aggression and implementing appropriate protocols to address such behaviors are crucial steps toward fostering a positive climate.Originality/valueThis study provides new insights into the existing literature on workplace aggression, interpersonal conflict and organizational climate for future research.

Unraveling the Symphony: How the COVID-19 Pandemic Orchestrated Changes in Working Capital Management within the Steel Industry

The world health organisation (WHO) has discovered a novel coronavirus known as COVID- 19, which has shattered human civilization and the global economy. The study is based on the impact of covid on working capital Management in selected public sector steel industry in India. The period of study taken for prior covid is 2016-2019 and 2019-2022. The study describes a favorable correlation, both before and after the advent of the COVID-19 pandemic (r = 0.649, p < 0.001). There is no significant difference between (t=1.510, p < 0.001). On average, the points prior to COVID exceeded those after COVID by 21844.69 points. (95% CI-8083.24, 51772.63]). Keywords: Working Capital Management, Covid 19, Steel Industry, Paired Sample t test.

Dynamics of speed of leverage adjustment and financial distress in the Indian steel industry

Business managers strive to attain the optimal capital structure (OCS), which allows them to raise capital at a minimal cost, thereby maximising their returns. Balancing risk and reward is crucial in determining the target capital structure. Therefore, understanding the optimal leverage ratio and the Speed at which leverage adjustments are made is vital to managers. This study examines the optimal leverage ratio, the speed of adjustment, and the factors contributing to achieving the target capital structure for select 208 steel firms, particularly in an emerging economy like the Indian steel industry. A partial adjustment model is utilised, employing the Generalised Method of Moments (GMM) technique. Additionally, the Altman Z-score is employed to evaluate the financial distress of these steel firms. Very few studies have specifically focused on determining the Speed of adjustment (SOA) using GMM of emerging economies like the Indian steel industry. The findings indicate that steel firms take approximately 2.13 years to reach their target leverage, supporting the existence of the dynamic trade-off theory. The results also highlight the relationship of selected variables (Profitability, Growth, Size, Tangibility, NDTS, Liquidity, and Financial Distress) with the Speed of leverage adjustment and the weak financial position of these businesses.

Environmental and economic evaluation of decarbonization strategies for the Indian steel industry

Decarbonizing hard-to-abate sectors, such as iron and steel, is critical to achieving climate change goals given the unique and often fossil fuel-based manufacturing processes. Evaluating the iron and steel sector for India is also pertinent, given the immense industrial growth expected in the upcoming decades (IEA, 2021). Cost and emission models have been developed and analyzed using the Sustainable Energy Systems Analysis Modelling Environment (SESAME) Industry and Industrial Fleet models. The models calculate cradle-to-gate greenhouse gas (GHG) emissions and the levelized cost of several steel production pathways. In addition to plant-level analysis, the models estimate emissions and energy consumption for the Indian steel sector.From the marginal abatement cost (MAC) analysis, smelting technologies with carbon capture provide the best option with a MAC as low as $9/t CO2e and a 70% emission reduction relative to the BF-BOF. However, the green H2-DRI pathway reduces emissions even more (84%) with a higher MAC of $112/t CO2e. For existing NG-DRI plants, switching to hydrogen is more advantageous than carbon capture with MEA since the emissions are sensitive to natural gas upstream methane leakages. Sector scenario analysis with The Energy Resource Institute steel demand and International Energy Agency production pathway projections indicate that combined resource efficiency efforts and decarbonization pathways will aid in decreasing cumulative 2050 emissions by about 27% from the baseline scenario. Future steel production will need to be flexible to new fuels for reducing agents and potential CCS retrofitting to support the decarbonization efforts and mitigate climate change.

Working Capital Management on the Firm’s Profitability of Steel Sector Firms in India

This study investigates the effect of working capital management (WCM) on the profitability of a sample of Indian steel companies. The analysis is based on financial data from BSE Dollex 200 steel sector firms from 2011 to 2020. The effects of WCM were determined using panel data analysis, pooled ordinary least squares (OLS), fixed effect model (FEM), and random effect model (REM). This study revealed that Inventory Conversion Period, Cash Conversion Cycle, and Accounts Payable Period significantly negatively impact the profitability of firms in the Indian steel industry.

Technology Management (TM) on Corporate Sustainability Performance (CSP): The Moderating Role of Total Quality Management (TQM)

In today’s world, corporate sustainability has become a crucial aspect of doing business. Manufacturing industries are giving more emphasis on technology management (TM) and corporate sustainability performance (CSP) due to the growing need for recognition to operate in environmentally and socially responsible ways and remain economically viable. By focusing on TM and CSP, companies can reduce environmental impacts, and improve social performance, while enhancing long-term financial stability. In the modern era, the advantages of technology and Total Quality Management (TQM) practices are well-known, but their role in CSP is not clearly explored. This study aims to assess the impact of TM and TQM on CSP with respect to the Iron and Steel industry in India. A multistage sampling technique was adopted, and data was collected from 514 respondents for this study. Structural equation modelling technique was used to determine the interrelations among TM, TQM and CSP. The study finds that TQM and TM substantially impact CSP and each dimension of CSP (environmental, social and economic). Furthermore, path analysis was performed considering TQM as a moderator. The result reveals that TQM considerably moderates the link between TM and CSP in the Iron and Steel industry. Finally, the study offers practical implications for the executives who are mainly accountable for implementing sustainability with regard to TQM and TM.

Challenges and Innovative Ideas to Improve Steelmaking in India

India is on the threshold of being a world leader in steel production. In this context, India being the 4th largest producer of steel in the world is in a position to dominate the steel industry. This beng the case, Inida should concentrate more on innovate solutions to improve its steelmaking. However, there are a lot of challenges to be faced regarding production of quality steel in accordance with International norms. In this paper, some of the challenges are discussed and innovative solutions are given. Recent research on steelmaking has been given and progress in Indian steel making has been shown graphically Various types of steelmaking have been briefly touched upon and the challenges that India is facing have been outlined. India has to take up these challenges and is poised to be a world leader in steelmaking. Therefore, improvements and innovations become necessary and, innovative solutions are required in steel making in order to face the challenges of the future. This paper discusses these challenges from an Indian perspective. Data are given from literature indicating some of the innovations already made and some more innovative methods which are unique to the Indian situation are discussed. These ideas when implemented could result in higher and cleaner steel productivity. Future trends in steelmaking have also been suggested. It is hoped that the new ideas given in this work will benefit and the global steel industry in general and. Indian steel industry, in particular.

Dynamic coal blending under sustainability concerns: a case study from the Indian steel industry

PurposeIncreasing scarcity of natural resources and the adverse effects of unsustainable practices call for more and more efficient management strategies in the energy industry. The quality of the coke plays a significant role in the quality and durability of the output steel which is produced using the energy from the coal. This paper aims to investigate the dynamic coal blending problem under overall cost and coke quality constraints in the steel industry within a periodic cycle of operations.Design/methodology/approachConsidering the variability of the natural properties over a periodic cycle, this study proposes a multi-period mixed-integer non-linear programming formulation to optimize the total blending costs while taking various coke quality constraints into account. Besides, this study applies factorial design to investigate about the significant effect of coal proportions as well as improvement into the overall cost of blending.FindingsIn this case study, utilizing real data from a coal blending facility in India, through a factorial design, the authors obtain optimal desirable levels of coal proportions and their criticality levels towards the total cost of blending (TCB) or objective function. This analysis reflects the role of the coke quality constraints in the objective function value while characterizing the price of sustainability for the case study among other critical insights.Originality/valueObjective function (or TCB) includes basic coal cost, movement cost and environmental costs during the coal and coke processing at a coke-oven and blast furnace of steel industry. The price of sustainability provides managerial insights on that sacrifices the industry has to make in order to become more “sustainable”.

An intuitionistic fuzzy entropy-based gained and lost dominance score decision-making method to select and assess sustainable supplier selection

<abstract> <p>Sustainable supplier selection (SSS) is recognized as a prime aim in supply chain because of its impression on profitability, adorability, and agility of the organization. This work introduces a multi-phase intuitionistic fuzzy preference-based model with which decision experts are authorized to choose the suitable supplier using the sustainability "triple bottom line (TBL)" attributes. To solve this issue, an intuitionistic fuzzy gained and lost dominance score (IF-GLDS) approach is proposed using the developed IF-entropy. To make better use of experts' knowledge and fully represent the uncertain information, the evaluations of SSS are characterized in the form of intuitionistic fuzzy set (IFS). To better distinguish fuzziness of IFSs, new entropy for assessing criteria weights is proposed with the help of an improved score function. By considering the developed entropy and improved score function, a weight-determining process for considered criterion is presented. A case study concerning the iron and steel industry in India for assessing and ranking the SSS is taken to demonstrate the practicability of the developed model. The efficacy of the developed model is certified with the comparison by diverse extant models.</p> </abstract>

Impact of Outward FDI on Firms’ Productivity in the Steel Industry: Evidence from India

This paper examines the impact of Outward FDI (OFDI) on productivity and analyses its substantial effect on home countries' steel firms. For the analysis, the study classifies the steel companies into a treatment group and a control group. To analyse India's FDI investment objective and its impact on productivity, the study ranks economies into low- and middle-income, high- and middle-income, and tax havens to analyse productivity growth. The data for the analysis come from Prowess, a World Bank database. The data of outward FDI from Indian companies is compiled from the UNCTAD database. The study suggests that research on FDI does not focus on the impact on the issuing party, particularly FDI from low- and middle-income countries. The study analyses the effects of FDI with special reference to the Indian steel industry.

The Lockdown Effect on the Profitability Position of Tata Steels Ltd India

Tata steels in second largest steel industry in India followed by SAIL. This study is to analyze impact of pandemic in Tata steels ltd. The scope of this study is to find the profitability and solvency position of Tata steels ltd, in the period from 2016-17 to 2020-21. The company faced a little impact of the pandemic in some aspects. The company’s debt is higher than the equity of the company. The overall liquidity and the cash circulation in the company is to be increased to run the company in an uninterrupted manner.

Capacity Expansion Banes in Indian Steel Industry

It is a known fact that a large number of Steel Industry Expansion projects in India have been delayed due to regulatory clearances, environmental issues and problems pertaining to land acquisition. Also, there are challenges in the tendering phase that affect viability of projects thus delaying implementation, construction phase is beset with over-runs and disputes and last but not the least; provider skills are weak all across the value chain. Given the critical role of Steel Sector in ensuring a sustained growth trajectory for India, it is imperative that we identify the core issues affecting completion of infrastructure projects in India and chalk out initiatives that need to be acted upon in short term as well as long term.

Evaluation of Indian non-coking and semi-coking coals for metallurgical application

ABSTRACT India has a huge reserve of coal belonging to Permian Period. 85% of these coals fall under non-coking category and are being used for power generation. Looking at the depletion of coking coals, there is a huge challenge for the Indian steel industry to manufacture coke using domestic coals. Utilizing Indian non-coking or inferior coals for coking purpose is a challenging task because of its higher ash content and poor rheological properties. These coals are less matured than coking coals and contain higher amount of organic and inorganic inerts. To study the effect of blending Indian thermal coals on coke CSR, eight different coals of varying characteristics have been used for experimentation. To improvise their coking ability and resulting coke strength on carbonization, phenol formaldehyde-based polymer addition has also been tried and tested. In most of the cases, it has been found that CSR got improved because polymer acts as a catalyst and improves the binding behavior and rheological property of the coal blend. Present work suggests that Indian thermal coals can be used up to 10% as one of the component coals in the blend for coke making with polymer addition.

Barriers Prioritization of the Indian Steel Industry Supply Chain: Applying AHP and Fuzzy AHP Method

This study seeks to identify possible key barriers in the supply chain of the Indian steel industry. Each of these hindrances has a significance in serving the store network and refining the economy of India. The study is a mix of theoretical and useful structures, which would zero in on those critical barriers in the steel supply chain. It includes a theoretical examination of the barriers in the Indian steel industry and ranking of these barriers using multicriteria methods, that is, analytical hierarchical process (AHP) and fuzzy analytical hierarchical process (FAHP) approaches. The main finding is the identification of key barriers in the Indian steel industry supply chain and prioritizing them according to the severity of their impact. Eleven potential key barriers have been considered in the study for analysis. There can be more barriers in the Indian steel industry. This study exposes the application of both methods, that is, AHP and FAHP, for ranking identified barriers.

Understanding the performance measurement of Indian steel Industry: A DEA approach

Efficiency measurement has been a major indicator of the performance of a firm. In the study the level of efficiency of the steel firms operating in India was ascertained by adopting an input oriented data envelopment analysis (DEA). Twenty steel producing firms for the period 2018–19 was considered for the study. The study was conducted by using the input variables such as raw material cost, power and fuel cost, gross fixed assets, current assets, and the output variables considered to measure the efficiency was sales turnover. The result of the study indicates the efficient and less efficient firms with respective to their technical efficiency scores. It also indicates the bench marking firms. Out of twenty firms, eleven firms were on the efficient frontier and rest nine were below the frontier. For the relatively less efficient firm the slack and target values were calculated and further analysis was done to indicate the area of improvement for the inputs, which will result in improving the efficiency of the firms.

Challenges and Outlines of Steelmaking toward the Year 2030 and Beyond—Indian Perspective

In FY-20, India’s steel production was 109 MT, and it is the second-largest steel producer on the planet, after China. India’s per capita consumption of steel was around 75 kg, which has risen from 59 kg in FY-14. Despite the increase in consumption, it is much lower than the average global consumption of 230 kg. The per capita consumption of steel is one of the strongest indicators of economic development across the nation. Thus, India has an ambitious plan of increasing steel production to around 250 MT and per capita consumption to around 160 kg by the year 2030. Steel manufacturers in India can be classified based on production routes as (a) oxygen route (BF/BOF route) and (b) electric route (electric arc furnace and induction furnace). One of the major issues for manufacturers of both routes is the availability of raw materials such as iron ore, direct reduced iron (DRI), and scrap. To achieve the level of 250 MT, steel manufacturers have to focus on improving the current process and product scenario as well as on research and development activities. The challenge to stop global warming has forced the global steel industry to strongly cut its CO2 emissions. In the case of India, this target will be extremely difficult by ruling in the production duplication planned by the year 2030. This work focuses on the recent developments of various processes and challenges associated with them. Possibilities and opportunities for improving the current processes such as top gas recycling, increasing pulverized coal injection, and hydrogenation as well as the implementation of new processes such as HIsarna and other CO2-lean iron production technologies are discussed. In addition, the eventual transition to hydrogen ironmaking and “green” electricity in smelting are considered. By fast-acting improvements in current facilities and brave investments in new carbon-lean technologies, the CO2 emissions of the Indian steel industry can peak and turn downward toward carbon-neutral production.

Overview of Steel Industry - Challenges and Strengths of RINL, VSP

Steel may be the most widely used input material in manufacturing sector. This is mainly due to its excellent mechanical properties, resistance to corrosion and low cost. It is used in many industries and varied applications. In general, the demand of steel is cyclic in nature. When the economy is in upward trend, steel demand increases and drops down during economic down turn. Towards the end of 2014, China started oversupply of steel and this caused the steel price drop to the lowest ever. Global steel scenario analysis from 2016-17 to 2019-20 along with Indian Economy and status of Indian Steel Industry as well as strategies adopted by RINL for success during the period from 2016-17 to 2019-20 were analysed and described in detail in this paper. In this paper authors made an effort to present the overview of global Steel Industry, the status of Indian Steel Industry during 2016-17 to 2019-20. The paper also highlights the strategies adopted by RINL, Visakhapatnam Steel Plant to face the challenges during the said period.