The steel industry is the foundation industry of any

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The Steel industry is the foundation industry of any economy, especially in developing countries whose material intensity is likely to increase significantly in the future, for infrastructure development and growth in manufacturing sector. India certainly is one such economy that is poised to grow significantly over the next decade with its per capita consumption nearly at one-fourth of the global average. A competitive and efficient domestic steel industry is a pre-requisite for India to succeed in its industrial vision for ‘Make in India’. Investments in the steel sector are highly capital intensive and long term in nature, whose economic viability is dependent on the fundamental growth assumptions of the domestic economy. The Government of India aims to triple the steel capacity to 300 million tonnes by 2025. In order to ensure that such capacity is viable to set up and value creating for the stakeholders, it is important to ensure that the ease of doing business is enhanced and the Indian steel industry is not unfairly harmed by low priced subsidised imports from overseas. During the Financial Year 2014-15, the performance of the Company’s Indian operations was adversely impacted by the regulatory uncertainties in the mining sector. For the first time in the history of the Company, several of its critical mines remained closed for varying periods, causing immense stress on operations. This led to supply and production disruptions and impacted the cost structure. However, I am happy to report that the Company responded with remarkable fortitude and created an opportunity from the crisis. This was evident from the fact that, despite The steel industry is the foundation industry of any economy especially in developing countries whose material intensity is likely to increase significantly in the future for infrastructure investment and growth in the manufacturing sector. CHAIRMAN'S STATEMENT
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Responding to challenges . Creating long-term value . 3 the closure of the mines, the Company ensured raw material availability during the period and was also able to grow steel volumes by 3% over the previous financial year. The Jamshedpur Steel Works also achieved the milestone of becoming the first Indian steel plant to produce 10 million tonnes of hot metal from a single location. There were several other initiatives that were undertaken to focus on operational and marketing excellence. While the Company faced challenges in its operations, especially due to the mining crisis for most part of the financial year, it remained committed to building the greenfield steel plant in Kalinganagar. I am happy to report that the first phase of the project of 3 million tonnes per annum with an investment of around ₹ 25,000 crores is substantially complete and is getting ready for commissioning in 2015-16.
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