‘Acche din’ for Steel Industry

Steel manufacturers and users come under one roof to design a road map of the steel industry post budget.
With an objective to bring together stakeholders of steel industry, on a common platform, Steel Users Federation of India (SUFI), recently organised a post budget seminar to discuss the ‘Stimulus Budget’ post demonetisation and its implications on steel industry. The organisation has been formed to pursue the agenda addressing critical issues relating to steel users and contributing towards the growth of the nation.

“The budget announced by the finance minister for the year 2017-18 has precisely ranked major investments on infrastructure and in a way has had a direct implication on the steel sector,” said Nikunj Turakhia,President, SUFI.

He further added, “A common discussion platform reinforces an idea for steel channel partners to complement each other in the industry. Driven by rising infrastructure development and growing demand for automotives, steel consumption is expected to reach 104 million Tonne by 2017. India’s steel production is expected to increase from 100 million Tonne to 112.5 million tonne by FY16. Also, the HRC has been reduced from 12.5 per cent to 10 per cent. This is also a boon for the steel industry.”

Turakhia claimed that the core objective of SUFI is to facilitate enhanced steel consumption per capita at par with world standards.

The chief guests present at the event were Shaina NC, National Spokesperson & Member of N.E.C. – BJP, and Seema Bisht, Commissioner of Customs. Shaina NC expressed that it is time that the industrial sector waits out the decision of demonetisation. “The government plans to transform every business and industry sector corruption and red tape free. With the bold steps of demonetisation and the upcoming GST, there is revolution that will take place in the time to come.”

As per the Ministry of Steel, in 2015, India produced 91.46 million tonnes (MT) of finished steel. Total finished steel production in the country increased at a CAGR of 7.45 per cent over FY011–15.

Samir Sanghvi, CA, Synthesis Group observed that the budget is set to increase the demand for steel throughout the country. He said, “The budget clearly shows that the government is keen on improving the infrastructure. There is a record investment of Rs 3,96,135 crores for the infrastructure. Railways is another sector where the government has allotted Rs 1.31 lakh crore.” Sanghvi pointed out that the investments are a path to increase the production of steel in the country.

Though there was a dip in the sales post demonetisation, the steel market has very quickly revived itself. The steel manufacturers and the users have long term expectations from the after effects of demonetisation. “The scrapping of the FIPB board is a major step towards easing business and will be a great relief for the steel industry,” expressed Jayesh Gorgi, Director  GSC Intime Pvt Ltd.

Participating at the event were major steel manufactures  such as Tata steel, JSW Steel, RINL, SAIL, Jindal Steel. Steel users such as Godrej, Welspun, L&T and Tata Motors, as well as steel distributors, dealers and importers were also present.