Indian Steel Industry An overview and growth prospects in north India
Contents Indian steel industry
4
India steel industry outlook
6
Potential growth constraints
10
Investment scenario in steel
11
Challenging global environment
12
Steel industry in north india: Structure and challenges
14
De-bottlenecking the steel sector in north india
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2
3
Indian steel industry The Indian steel industry has entered into a new era of development since 2007-08, riding high on the resurgent economy and robust demand for steel. Rapid rise in production has resulted in India becoming the 4th largest producer of crude steel and the largest producer of sponge iron in the world. Indian steel industry has just delivered a decade of exponential revenue and profit growth The Indian steel industry has achieved significant milestones in terms of growth in capacity, production and exports to become a major player in the global steel industry. Between FY2008 and FY2013, India’s steel production has grown at a compound annual growth rate (CAGR) of about 7 percent (Exhibit 1).
Exhibit 1. Total finished steel production for India (in million ton)* 80 70 60 50 40 30 20 10 2008
2009
2010
2011
2012
2013
*Source: World Steel Association and Metal Bulletin
Industry revenues (top four companies) grew close to 4x, while operating profits grew by approximately 5x during the past decade (Exhibit 2).
Exhibit 2. Revenues and operating profits for top four Indian steel companies (Rs. Crores)* 150
120
90
60
30
0
2003
Revenues
2013
Operating profits
*Source: World Steel Association and Metal Bulletin
4
On the basis of ownership, the Indian steel industry is broadly divided into private and public The Indian steel industry is divided sector enterprises. The private into primary and secondary sectors. sector dominates production— The primary sector comprises a few accounting for almost 78 percent of the finished steel output—while large integrated steel providers the public sector has higher producing billets, slabs and hot capacity utilizations. rolled coils, among others. The secondary sector comprises small units focused on the production of value added products such as cold rolled coils, galvanized coils, angles, columns, beams and other re-rollers, and sponge iron units. Both sectors cater to different market segments.
Structure of the Indian steel industry
Indian steel industry is more consolidated than the global steel industry The capacity share of the top five Indian steel players stood at 51 percent of the total capacity (87.3 MTPA) in fiscal year (FY) 2011 compared to less than 15 percent capacity share for the top five global steel players (Exhibit 3). This has resulted in the large integrated producers having significant pricing power, forcing the secondary producers to look at backward integration to remain competitive.
Exhibit 3. Consolidation in the Indian and global steel industry*
Top 5 players capacity share - India
Top 5 players capacity share - Global Others 85%
Others 49%
Bhushan 5% ESSAR 7% Tata Steel 9% Wuhan group 2%
JSW 15%
POSCO 2%
SAIL 15% Arcelor Mittal 5%
Hebei Group 3%
Baosteel Group 3%
*Source: World Steel Association and Metal Bulletin
5
India steel industry outlook Domestic steel demand to remain muted during FY2012–17 on account of a weak macroeconomic environment The demand for longs is expected to increase by 19 million ton (MT) at a CAGR of 9 percent and for flats by 16 MT at a CAGR of 8 percent between FY2012 and FY2017 (Exhibit 4). This is due to relatively weaker growth prospects of flats end-user industries (such as automotive and consumer durables) than those for longs.
Exhibit 4. Finished steel demand: longs and flats (in MMT)* 120
100
80
60
40
20
2011
Flats
2012
2013
Longs
*Source: World Steel Association and Metal Bulletin
6
2014
2015
2016
2017
Increased domestic competition Incumbents and challengers have announced 71 million ton per annum (MTPA) of steel capacity addition between FY2012 and FY2017 through both brownfield and greenfield routes. However, there is considerable uncertainty on the actual capacity addition as many projects are yet to achieve financial closure due to delays or lack of regulatory clearances. Based on our bottom-up assessment of the announced capacity additions, projects aggregating to 35 MTPA of crude steel capacity have already
achieved financial closure. Hence, we expect a minimum aggregate capacity of 122 MTPA to be commissioned by FY2017 (Exhibit 5). This capacity addition will lead to two structural changes. First, the concentration in the longs segment will increase by 5–7 percent in the medium term, deepening the sustainability challenge for secondary producers. Second, it will shift the current flats-longs capacity split of 50:50 to 60:40 by FY2017, if all the announced projects are commissioned. As a result, one can expect oversupply in flats and a capacity shortfall in longs.
Exhibit 5. Crude steel capacity forecast*
Installed capacity 2011-12
Financial closure
Projects pending financial closure
Total capacity 2016-17
*Source: World Steel Association and Metal Bulletin
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Steel capacity to outpace demand in the medium term We have projected capacity for crude and finished steel between FY2012 and FY2017 to understand the supply-demand balance. In light of the uncertainty in regulatory approvals and financial closures, we have built three scenarios for capacity addition: • Aggressive (all announced capacity commissioned) • Base (all brownfield and financially closed; greenfield capacity commissioned)
Exhibit 6. Flats steel demand versus capacity* in Mn Ton 100 90 80 70 60 50 40 30 20 10 2011
• Low end (only financially closed capacity commissioned)
2012
Demand
2013
2014
Low end case
2015
2016
Base Case
2017
Aggressive case
*Source: World Steel Association and Metal Bulletin
We believe that the supply for flats could outpace demand between FY2012 and FY2017, even in the low-end capacity addition scenario Exhibit 7. Longs steel demand versus capacity* leading to increased pressure in Mn Ton on utilization and margins. This 70 coupled with the downturn in 60 global steel prices will prod primary producers to substitute imports 50 and crowd out secondary producers 40 (Exhibit 6). In contrast, the longs segment could see demand outpacing capacity over the next five years, except in the most aggressive capacity addition scenario. Longs steel players are likely to face a favorable demand environment with only a transient overcapacity leading to better utilization and margins compared to flat steel. Overcapacity could be prolonged only if the entire announced capacity addition—21 MTPA—is completed (Exhibit 7).
8
30 20 10
2011
Demand @7.55%GDP growth
2012
2013
Low end case capacity
*Source: World Steel Association and Metal Bulletin
2014
2015
Base Case capacity
2016
2017
Aggressive case capacity
Domestic raw material supply volatility to continue despite improvement in the global scenario We expect global prices of iron ore to soften in the near term, but the same might not materialize for Indian players primarily due to the challenging regulatory environment. The future landscape of iron ore supply in domestic markets will be determined by who wins the regulatory tussle—iron ore miners or steel players (Exhibit 8).
Exhibit 8. Iron ore supply versus demand scenarios* Scenario 1: Iron players win in Mn Ton 300 250 Supply shortage
200 150 100
Scenario 1: If iron ore miners win, it will lead to: • Firmer iron ore prices in the local market—import parity pricing. • Iron ore shortage for nonintegrated steel players. • Potential margin compression in the case of weak realizations.
50 10 2017
2017
Iron Ore demand
2017 Export
2017
2017
2017
Iron Ore production
*Source: World Steel Association and Metal Bulletin
Scenario 2: Steel players win in Mn Ton 300
Scenario 2: If steel players win, it will lead to: • Softer iron ore prices in t he local market—export parity pricing. • Adequate iron available for nonintegrated players.
250 Supply equals demand
200 150 100 50 10 2017 Iron Ore demand
2017
2017 Export
2017
2017
2017
Iron Ore production
*Source: World Steel Association and Metal Bulletin
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Potential growth constraints Demand-side constraints
Supply-side constraints
The growth in the steel market is expected to be muted in the short term on account of poor growth in core consumer sectors such as infrastructure and construction.
The large steel players and new entrants have announced capacity addition of about 71 MTPA till 2017. Regulatory hurdles and land acquisition challenges remain the largest supply-side constraint for the Indian steel market. Mining bans in Karnataka and Goa and delays in the execution of announced capital projects can further constrain supplies.
The demand is expected to rebound in the latter half of 2015 with growth in infrastructure as announced in the Twelfth Five-year Plan. Growth in the automobile and consumer durable sectors will also support demand growth in the long term.
Exhibit 9. End uses for steel in India*
22%
22%
6% 10%
22%
18%
Others
Automobiles
*Source: World Steel Association and Metal Bulletin
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Capital Projects
Pipes
Infrastructure
Consumer Durables
Investment scenario in steel Incumbents and challengers have announced 71 MTPA of steel capacity addition between FY2012 and FY2017 through both brownfield and greenfield routes. However, there is considerable uncertainty on the actual capacity addition as many projects are yet to achieve financial closure due to delays or lack of regulatory clearances. Land acquisition and regulatory clearances pose major challenges to new greenfield investments
Need to secure raw material supply have led Indian steel companies to look at global asset base
Delays in the government allocating sufficient iron ore blocks, regulatory approvals and challenges in land acquisition have slowed many steel projects. Moreover, regulatory clearances and land acquisition challenges have affected expansion and modernization projects. Major investments from leading MNCs and large Indian corporates across Karnataka, Odisha, Jharkhand and West Bengal have been affected due to land acquisition challenges.
The raw material security scenario has slightly improved due to regulatory support to overseas acquisitions. The Indian steel companies are actively seeking mining leases and assets globally to secure raw material supplies. The capability to acquire, develop and operate these assets has become a key strategic imperative. These assets provide a natural hedge at the raw material portfolio level, and are also important for overcoming the short-term domestic challenges.
Several Indian steel companies have acquired iron ore and coking coal assets in countries such as Canada, Australia and South Africa through joint ventures. One of the leading Indian steel companies acquired a majority stake in a new iron ore reserve in Canada. It had acquired a minority stake in an Australian mine, which was sold last year to a leading global miner. Another Indian steel company has acquired and operates anthracite mines in South Africa. It has also acquired a significant minority stake in an Australian coal miner with exploration rights for coking coal in Queensland.
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Challenging global environment Globally, steel players have been operating in a challenging environment. These trends are now extending to India leading to margin compression and weaker growth prospects.
Shift toward relatively lower steel demand growth in most of the heavy-weight economies including China
Steel companies globally have been operating in a challenging environment of rising input costs and limited pricing power (in most years), leading to steady erosion in margins. In response, steel makers have been integrating upstream facilities to secure supplies of iron ore and coking coal.
The global macroeconomic crisis appears to have accelerated the pre-existing trend toward declining the steel intensity in the OECD economies. The steel industry is staring at a flatter demand trajectory globally, including in China—which is expecting a very low single-digit growth.
The global scenario has been a prologue to the Indian market where after a decade of exponential revenue and profit growth, the steel players are entering a down-cycle. Historically, high asset utilizations, benign global pricing, consolidated industry structure and a local demand-supply environment have enabled Indian players to generate better realizations compared to their global counterparts. Recently, however, the Indian steel industry has started witnessing the signs of down-cycle leading to margin compression despite strong volume growth. This is primarily due to high input costs and a weak macroeconomic environment, both globally and domestically. Declining margins, coupled with sluggish demand growth, has made investors cautious about steel companies. As a result, enterprise
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value for the Indian steel industry has declined almost 30 percent since FY2010. This situation is further complicated by key trends in the global and domestic steel industry that have far-reaching impact on Indian steel players and customer markets
Structural shifts in China could fundamentally impact Indian players
Steel demand growth is expected to flatten in heavy-weight China is experiencing significant economies including overcapacity as players have OECD economies, even created capacity ahead of demand. This, coupled with weak pricing, as major structural presents a significant threat to shifts in China and demand in the local and other Asian markets for Indian players. fewer acquisitions of raw material suppliers Cooling down of iron ore in India are expected to and coking coal prices, reshape these markets. reducing acquisition pace The steel industry in OECD economies is witnessing persistent low capacity utilization compounded by margin squeeze. This, coupled with three key trends, is leading to a structural shift in the global steel industry.
of Chinese and Indian players Steel players in China and India were on an acquisition spree for iron ore and coking coal assets around the globe to insulate themselves from price volatility. But as raw material prices cooled in the past few years, the race for self-sufficiency has taken a backseat.
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Steel industry in north India: structure and challenges Industry structure
industry operates out of several centers including Sahibabad, Shamli and Gorakhpur. Bhushan Steel, Gallant Ispat, Jai Bharat Steel, Rathi Steel are the main players with production facility in Uttar Pradesh.
India’s northern steel hub contributes about 16 percent to India’s annual steel production. The hub comprises multiple small and medium units—primarily induction furnaces and steel re-rolling mills— located in and around Punjab and Haryana. These units largely cater to the construction and light engineering sector including bicycle and auto-parts.
owing to tax benefits, and are catering to Jammu and Kashmir, and Haryana.
Rajasthan
Rajasthan is the third largest producer and fourth largest consumer of steel in north India. Punjab The industry produced 2.5 MTPA Punjab’s secondary steel of steel in 2011-12. Rajasthan’s manufacturing capacities secondary steel manufacturing are concentrated in Mandi capacities are concentrated in Gobindgarh, Khanna and Ludhiana, Bhiwadi/Alwar, Bhilwara, Jaipur catering to the construction and and Kota. Kamdhenu Steel is light engineering sector. a major steel producer with Uttar Pradesh production facility in Rajasthan. Uttar Pradesh is the largest In the past few years, units in producer and consumer of steel in north India. The industry produced Himachal Pradesh have developed Haryana an edge over Punjab’s steel mills Haryana is the fourth largest 5.6 MTPA of steel in 2011-12. The producer and third largest Exhibit 10. Production and sale of finished steel in North India in FY 2012* consumer of steel in north India. The industry produced 2.3 MTPA of steel in 2011-12. Haryana’s FY2011-12 Data steel manufacturing capacities Annual Production (‘000 tonnes) are concentrated in Bhadurgarh Annual Sales MMTP and Hissar. Jindal Group and (‘000 tonnes) Surya Steel Pipes are two major Jammu & Kashmir steel producers with production facilities in Haryana.
Himachal Pradesh, Jammu & Kashmir and Uttarkhand
Himachal Pradesh Punjab
Himachal Pradesh, Jammu & Kashmir and Uttarkhand jointly occupy the fifth position as steel producing states in north India. Each of these states produced 0.4 MTPA of steel in 2011-12.
Chandigarh
Haryana Delhi
Rajasthan
*Source: JPC2012 report
0 14
Uttar Pradesh
Steel units in Himachal Pradesh are concentrated around Kala Amb. These units have in the last
few years developed an edge over Punjab’s steel mills owing to tax benefits. Amba Group, Jai Bharat Steel and SPS Group are a few of the steel producers with production facilities in Himachal Pradesh. Steel units in J&K are concentrated in Jammu. Cosmic Steel, KC Group and are a few of the steel producer with production facilities in Uttarkhand. Steel units in Uttarkhand are located in Haridwar, Kashipur, Kotdwar and Udham Singh Nagar. KVS Group and Sidhbali Group are a few of the steel producer with production facilities in Uttarkhand.
Industry challenges Scarce natural resources but advantage of proximity to end users
Power shortages and rupee depreciation impact the industry in the north
Challenges to remain competitive in the flats products market
Most steel mills are running at less than 50 percent of their respective rated capacities because of poor power supply and rising input costs. The power outages in northern states are resulting in production losses and forcing many mills to work only single shifts.
High value flat products such as cold rolled coils and galvanized coils have better transport durability as compared to long products. This makes it easier for primary steel producers to ship these products from their primary manufacturing locations to global consumers. The long product units can benefit from proximity to end users and provide an opportunity for secondary steel players in north India. The demand for long products for infrastructure and capital projects is met by downstream units in north India. These units focus on the production of TMT bars and wire rods, among others.
Also, the depreciation of the Indian rupee against the US dollar has resulted in a significant increase in the cost of imported steel melting scrap, a major input in secondary steel production. Further, due to the rupee depreciation, export orders have been cancelled or deferred, which is another set-back for the steel industry in north India.
North India has not been naturally endowed with rich iron ore and coal deposits like East or South India. Poor proximity to ports, higher cost and shortages of power do not favor setting up primary steel manufacturing units in the region. Moreover, the logistics cost of transporting raw material from the eastern and southern states make it unviable to produce crude steel in the region. However, north India continues to be a substantial consumer of steel. North India is the industrial hub for automobile and consumer durable goods factories, which are among the key consumers of steel. The proximity to these units makes secondary steel production a commercially viable option in north India.
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De-bottlenecking the steel sector in north India Opportunities
Challenges
Initiatives
Infrastructure investments in north India to spur the local steel demand
Depreciating rupee and competitive import market will continue to impact steel manufacturers in north India
Customer-centric sales and marketing
The government has announced many mega-investment projects in north India including the prestigious US$100-billion DelhiMumbai Industrial Corridor, slew of export zones and industrial parks across Rajasthan, Haryana and western Uttar Pradesh. These projects will continue to drive sustained demand for long steel across the northern states. Regional steel suppliers need to remain competitive on cost and service to play a major role in the implementation of these projects.
Automobile sector is centered in north India About 32 percent of the Indian major automobile manufacturers have strong presence in the north India region including Maruti Suzuki, Hero MotoCorp, Honda Motorcycle & Scooter, Honda Cars, Bajaj Auto, Yamaha, TAFE, Tata Motors, Ashok Leyland, and Mahindra & Mahindra. Many autocomponent manufacturers too are based in north India. This provide a tremendous opportunity for Indian auto-component manufacturers in north India.
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The Indian government’s continued push toward imposing import duties on scrap has increased cost of production for domestic steel producers. Additionally, the depreciating rupee will continue to make imports of scrap more expensive depressing the secondary steel margin further. The north Indian steel producers will have to work on other aspects apart from price to remain afloat in the market
Challenges in establishing north India as a hub for production of highvalue steel High-value steel products typically travel well and are packaged to travel over long distances. The raw material transportation costs make nonprimary steel producing hubs less attractive for the production of high-value steel. The automobile and consumer goods plants in north India continue to purchase high-value flat products from around the globe due to competitive pricing and excellent travel characteristics.
As Indian steel companies expand, they are increasingly facing an overlap in their market and product footprint. This coupled with a lower demand growth has led to increased price competition and pressure on margins. In this scenario, increased customer centricity will differentiate the high performers. Indian secondary steel producers will have to demonstrate higher customer centricity to maintain business in highly competitive north Indian markets. The core customer base of automobiles, consumer durables and engineering has become more demanding in terms of quality and service levels. Firms will need to deepen their understanding of buyer values and create innovative products and service offerings targeted at different customer segments. Capability to analyze customer buying patterns will enable the sales force to be more proactive in the selling cycle. Additionally, as customers become more demanding and offering complexity increases, firms will need to embrace leading Sales and Distribution practices from consumer focused industries such as FMCG & Pharma to differentiate themselves from their peers.
Indian steel companies will need to: •
1.Deepen their understanding of buyer values and create differentiated products and service offerings The understanding of the end customer buyer values would need to go beyond the basic knowledge of grade and volume and into the realm of product usage and identification of critical attributes. Indian steel companies could leverage this knowledge to create a differentiated value proposition targeted at the appropriate customer segment. In some cases, they could bundle the product with a value-added service to create a differentiated offering.
Aligning pricing with customer value: Understand the value delivered to customers or their customers’ end customers, and capture a part of the value-in-use for customers via pricing. For instance, if a coil with customized thickness or width results in a five percent reduction in manufacturing costs, steel players price the custom SKU to share this benefit along with additional cost incurred in rolling the same. Executing this pricing decision is challenging as it requires understanding the criticality of product attributes to the end customer and cost elements across the value chain.
2.Embrace leading sales and distribution practices Traditionally Indian steel companies have been laggards when it comes to adapting leading sales and distribution practices from consumer-focused companies. As the emphasis on selling their products increases, Indian steel companies will need to institutionalize leading practices and become more customer-centric. This would include adapting aspects such as customer account management, effective sales call processes, structured market working across the business-to-business, business-to-consumer and business-to customers. 3.Enhance pricing capabilities Indian steel companies will need to align their pricing strategy with the changing market conditions and customer segments. Organizations need to incorporate leading practices to maximize pocket margins and reduce revenue leakage including:
•
Improve pricing discipline to prevent margin leakage: Indian steel companies need to balance price flexibility and monitoring to control offinvoice leakages. Companies can enhance pricing discipline by adhering to standard price-setting models mapped to the segmented strategies and streamlining the invoiceto-payment process. This is typically done by using price waterfall approach.
Differentiated supply chains Firms will also need to develop nimble supply chains to minimize working capital and improve customer service. Firms will need to reevaluate their manufacturing strategies and adopt a differentiated approach for specific segments. At the same time, they will need to build flexibility in their supply chains, for instance, by pushing differentiation further down the
supply chain and adopting Finish-to-Order approaches in order to balance inventory and customer responsiveness. As customers get more sophisticated and demanding, Indian steel companies will need to move away from the ‘one-size-fitsall’ approach and customize their service levels and supply chains by customer segments. Historically, when the Indian steel market was a seller’s market, Indian steel companies would ration out the production and deploy a make-to-order (MTO) strategy across products and customer segments. Going forward, companies will need to reevaluate their manufacturing strategies and adopt a differentiated approach for specific segments. At the same time, they will need to build flexibility in their supply chains; for instance, by pushing differentiation further down the supply chain and adopting finishto-order approaches in order to balance inventory and customer responsiveness. Indian steel companies also would need to: 1. Segment customers and products by service levels and align manufacturing strategy and supply chain to the customer segments Indian steel companies need to do this in three steps. In the first step, they need to define customer segments based on size and profitability, service levels and product specificity. Post this, they need to define the manufacturing strategy and supply chain for each customer segment.
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2.Implement integrated order management To support order promising to large, demanding and sophisticated customers based on capable-to-promise (CTP) and available-to-promise (ATP) capabilities rather than on an ad hoc basis. This will enable the companies to balance responsiveness and inventory carrying cost in lower margin, over-supplied markets. 3. Deploy improved demand forecasting and sales and operations planning (S&OP) techniques Indian steel companies will need to improve their demand forecasting techniques as an over-supplied market will enable their customers to demand lower lead times. Further, the companies will need to develop the ability to assign the right order to the right plant as several of the Indian steel companies have already moved to a multi-plant and multi-location environment. As an example, a leading Indian steel company implemented an advanced optimization solution that allows it to block capacity in an optimal manner across plants based on demand forecasts. The solution then confirms the same on the receipt of orders. This process allows the enterprise to maximize the overall contribution for a given demand basket.
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Focus on reduction of raw material and manufacturing costs
will be required to execute on the organization’s chosen strategy.
2. Discover talent by sourcing Firms with large scale operations and selecting the best talent can look at elimination of raw to propel the execution of material risks through backward an organization’s chosen integration. Few large north Indian strategy. Organizations will steel players have built upstream need to innovate to find the facilities in iron ore rich states. best talent for their needs. For Similarly, larger steel players example, as steel marketing can also look at investments in organizations become more hydro-electric power projects to customer centric–they could ensure stable supply of power for benefit from sourcing talent operations. Smaller players will from more traditionally have to explore consortium based consumer focused industries approaches for optimizing like consumer durables, their costs. automotive and durables.
Human capital management
India steel companies’ ability to manage and leverage its human capital will become a key differentiator and will play a key role in enabling their growth aspirations. We believe Indian steel companies will need to address the 4 D’s of managing talent. 1. Define talent required by identifying and articulating the organization’s critical talent needs for each area of the business, in particular for the mission-critical workforces. This entails defining the specific technical and behavioral competencies by workforce and level that
3. Develop talent by continuously developing individual and collective skills, knowledge, and behaviors to expand the organization’s capabilities and its strategic advantage. In fact, developing the next generation of leadership is one of the foremost challenges facing Indian steel companies today. 4. Deploy talent by building the capability to put the right talent in the right place at the right time to allow the organization to execute its current strategy and prepare for future challenges and
opportunities. For example, organizations need an active program of performance and career management to rotate high potential executives between specific functions to build a cadre of strong future business leaders. In summary, in order to attract and retain the best talent the steel companies would require to: •
Develop a long-range plan in line with the growth objectives •
Institute programs to attract talent and retain key talent •
Up-skill existing resources in order to stay relevant in the changing marketplace •
Strengthen the overall employee value proposition •
Build an HR work-force that focuses on Strategic and Performance Enhancement and less on Transactional and Administrative activities
About CII The Confederation of Indian Industry (CII) works to create and sustain an environment conducive to the development of India, partnering industry, Government, and civil society, through advisory and consultative processes. CII is a non-government, notfor-profit, industry-led and industry-managed organization, playing a proactive role in India’s development process. Founded over 118 years ago, India’s premier business association has over 7100 members, from the private as well as public sectors, including SMEs and MNCs, and an indirect membership of over 90,000 enterprises from around 257 national and regional sectoral industry bodies. CII charts change by working closely with Government on policy issues, interfacing with thought leaders, and enhancing efficiency, competitiveness and business opportunities for industry through a range of specialized services and strategic global linkages. It also provides a platform for consensusbuilding and networking on key issues.
Extending its agenda beyond business, CII assists industry to identify and execute corporate citizenship programmes. Partnerships with civil society organizations carry forward corporate initiatives for integrated and inclusive development across diverse domains including affirmative action, healthcare, education, livelihood, diversity management, skill development, empowerment of women, and water, to name a few. The CII Theme for 2013-14 is Accelerating Economic Growth through Innovation, Transformation, Inclusion and Governance. Towards this, CII advocacy will accord top priority to stepping up the growth trajectory of the nation, while retaining a strong focus on accountability, transparency and measurement in the corporate and social ecosystem, building a knowledge economy, and broad-basing development to help deliver the fruits of progress to all. With 63 offices, including 10 Centres of Excellence, in India, and 7 overseas offices in Australia, China, Egypt, France, Singapore, UK, and USA, as well as institutional partnerships with 224 counterpart organizations in 90 countries, CII serves as a reference point for Indian industry and the international business community.
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About Accenture Accenture is a global management consulting, technology services and outsourcing company, with approximately 275,000 people serving clients in more than 120 countries. Combining unparalleled experience, comprehensive capabilities across all industries and business functions, and extensive research on the world’s most successful companies, Accenture collaborates with clients to help them become high-performance businesses and governments. The company generated net revenues of US$28.6 billion for the fiscal year ended Aug. 31, 2013. Its home page is www.accenture.com.
About Accenture’s Steel practice Accenture works with the leading international steel players as well as Indian steel companies on business challenges ranging from Operations excellence, Capital Projects, Sales & Marketing to Post Merger Integration, Strategy, Talent & Organization and Systems Design and Implementation. In India, Accenture’s steel practice has advised more than 70% of the Top 15 steel companies in India.
Authors Deepak Malkani Managing Partner–Resources Operating Group, Accenture India deepak.malkani@accenture.com Rakesh Surana Managing Director–Capital Projects Practice, Accenture India rakesh.surana@accenture.com Samir Verma Senior Manager–Resources Operating Group, Accenture India samir.verma@accenture.com
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