Gallard Steel Limited · BSE:GALLARD
Gallard Steel — Investor Presentation (February 2025)
37 slides from Gallard Steel's investor presentation, February 2025
Slide 1: Steel
STEEL February 2025 For updated information, please visit www.ibef.org
Slide 2: Table of Contents
Table of Contents Executive Summary 3 Advantage India 4 Market Overview 6 Recent Trends and Strategies 16 Growth Drivers 22 Opportunities 29 Key Industry Contacts 32 Appendix 34 2
Slide 3: Executive summary
Executive summary Strong growth opportunities Second-largest • India's global steel trade share stands at producer of crude steel 2%, underlining its significant role in the industry. • In April-December 2024, crude steel • Demand for steel from different sectors will production in India stood at 11
Slide 4: Advantage India
Advantage India 4
Slide 5: Advantage India
Advantage India 1. Robust Demand ► India’s finished steel consumption stood at 4. Increasing Investment 119.17 MT in FY23, 138.5 MT in FY24 ► To achieve steel capacity build-up of 300 and 111.25 MT in FY25*. MTPA by 2030, India would need to invest ► The Indian Steel Association (ISA) US$ 156.08 bil
Slide 6: Market Overview
Market Overview MARKET OVERVIEW 6
Slide 7: Evolution of the Indian steel sector
Evolution of the Indian steel sector 1907-18 1923-48 1954-64 1973-92 1993-2014 2015-23 ▪ Production of steel ▪ Mysore Iron and ▪ Hindustan Steel Ltd ▪ SAIL was created in • Foreign players • In 2019, India started in India Steel Company was and Bokaro Steel 1973 as a holding began entering the ranke
Slide 8: Structure of the steel sector
Structure of the steel sector Steel Form Composition End use Finished Non-alloy Liquid steel Crude steel Alloy Structural steel steel steel Low Ingots Flat Stainless carbon Construction steel steel Medium Silicon Rail steel Semis Non-flat carbon electrical steel High High carbon speed steel Source:
Slide 9: Steel production capacity has expanded rapidly
Steel production capacity has expanded rapidly Crude Steel Production Capacity in FY20 – By Route Crude Steel Production Capacity (in million tonnes) (in %) 290 300 265 240 27% BOF 215 190 165 45% 171 140 160 144 142 142 EAF 138 115 128 122 90 65 40 28% 15 IF FY16 FY17 FY18 FY19 FY20 FY21 FY23 FY24*
Slide 10: Steel production in India has been growing at a fast pace
Steel production in India has been growing at a fast pace Total crude steel production (million tonnes) Total finished steel production (million tonnes) 160.0 160 140.0 140 120.0 120 100.0 100 138.50 80.0 133.60 126.86 121.29 120.14 143.60 106.86 106.60 80 101.29 101.03 60.0 125.32 120.01 94.66 110.
Slide 11: Demand has outpaced supply over the last five years
Demand has outpaced supply over the last five years Consumption of finished steel (in million tonnes) Per-capita consumption of steel (in kgs) 160.0 180.00 CAGR 5.1% 140.0 160.00 160.00 140.00 120.0 120.00 100.0 100.00 80.0 135.90 80.00 119.17 86.70 111.25 105.75 100.01 60.0 77.20 97.54 74.70 74.10
Slide 12: Trends in import and export of steel
Trends in import and export of steel ▪ In FY25 (April to December), the exports and imports of finished steel stood at 3.60 MT and 7.28 MT, respectively. ▪ In FY24, the exports and imports of finished steel stood at 7.49 MT and 8.32 MT, respectively. ▪ In FY23, exports and imports of finished steel
Slide 13: Key players of the industry
Key players of the industry Company Products Tata Steel Ltd. Finished steel (non-alloy steel) SAIL Finished steel (non-alloy steel) JSW Steel Ltd. Hot-rolled coils, strips and sheets Jindal Steel and Power Ltd. Iron and steel Welspun-Gujarat Stahl Rohren Ltd. Tubes and pipes Visa Steel Ltd. Ferro Ch
Slide 14: Key steel plants in India
Key steel plants in India Steel integrated plants under SAIL (Bhilai, Rourkela, Bokaro, Durgapur and Burnpur) Tata Steel’s largest steel plant, based in Jamshedpur Alloy and special steel plants under SAIL (Bhadrawati and RINL steel plant in Salem); iron and steel plant Vishakhapatnam at Visvesvaray
Slide 15: Steel SEZs in India
Steel SEZs in India Developer Location Product Tata Steel Special Economic Zone (TSSEZ) Gopalpur, Odisha Steel and allied downstream industries Source: Formal approvals granted in the Board of Approvals after the SEZ rules coming into force, Special Economic Zones in India website, www.sezindia.nic.
Slide 16: Recent Trends and Strategies
Recent Trends and Strategies RECENT TRENDS AND STRATEGIES 16
Slide 17: Notable trends in the Indian steel industry (1/4)
Notable trends in the Indian steel industry… (1/4) 1 Growing investment ▪ India and Japan held the third Steel Dialogue on February 4, 2025, in New Delhi, discussing economic trends, steel trade, and industry developments. India highlighted policy initiatives, green steel efforts, and investment opp
Slide 18: Notable trends in the Indian steel industry (2/4)
Notable trends in the Indian steel industry… (2/4) 2 Strategic alliances ▪ In December 2023, Jindal Steel Power Ltd announced that its collaboration with Rashtriya Ispat Nigam Ltd will guarantee the provision of liquid steel to its new hot strip mill in Angul, Odisha. JSPL stated that they have sign
Slide 19: Notable trends in the Indian steel industry (3/4)
Notable trends in the Indian steel industry… (3/4) 3 Entry of international companies ▪ Attracted by the growth potential of the Indian steel industry, several global steel players have been planning to enter the market. ▪ CarVal Investors, the investment arm of US-based agri group, Cargill, has off
Slide 20: Notable trends in the Indian steel industry (4/4)
Notable trends in the Indian steel industry… (4/4) 5 Vehicle Scrappage Policy to reduce steel prices ▪ India is spreading its wings further to foray into another highly potential, yet untapped metal industry. ▪ The recently announced ‘Vehicle Scrappage Policy’ intends to de-clutter the country of it
Slide 21: Strategies adopted
Strategies adopted CAPACITY EXPANSION ▪ In February 2024, JSW Steel plans to increase the existing rail production capacity to 600,000 tonnes per year at Piombino. ▪ In November 2023, Steel Secretary Mr. Nagendra Nath Sinha said that India’s steel capacity has crossed 161 million tonnes (MT) and the
Slide 22: Growth Drivers
Growth Drivers GROWTH DRIVERS 22
Slide 23: Strong demand and policy support driving investments
Strong demand and policy support driving investments Growing demand Policy support Increasing investment Growing demand in Rising investment the construction 100% FDI in the steel sector from domestic and industry foreign players Increasing number of The Government released Resulting in MoUs signed
Slide 24: Capital goods, consumer durables, and automotive further driving steel growth
Capital goods, consumer durables, and automotive further driving steel growth Indian Appliance and Consumer Electronics Industry Total automobile production in India (million units) (US$ billion) CAGR 9.91% 25 22.36 21.88 20.71 20.84 20.3 25.00 19.76 20 18.05 18.47 20.00 15.34 21.18 15 15.00 10 4.90
Slide 25: Policy support aiding growth in the steel sector (1/3)
Policy support aiding growth in the steel sector… (1/3) Steel Clusters ▪ In September 2020, the Ministry of Steel prepared a draft framework policy for development of steel clusters in the country. ▪ The draft framework policy is aimed at facilitating and establishing greenfield steel clusters, alon
Slide 26: Policy support aiding growth in the steel sector (2/3)
Policy support aiding growth in the steel sector… (2/3) FDI ▪ 100% FDI through the automatic route is allowed in the Indian steel sector. Rise in export duty ▪ The Government hiked the export duty on iron ore to 50% ad valorem on all varieties of iron ore (except pellets). Duty drawback benefits ▪ I
Slide 27: Policy support aiding growth in the steel sector (3/3)
Policy support aiding growth in the steel sector… (3/3) Production-linked Incentive (PLI) Scheme ▪ The Union Ministry of Steel launched PLI Scheme 1.1 on January 6, 2025, with a Rs. 6,322 crore (US$ 733.40 million) outlay to boost specialty steel production and attract investments. Covering five key
Slide 28: The sector witnessed rising investments in the last decade
The sector witnessed rising investments in the last decade Date announced Acquirer name Target name Value of deal (US$ million) Dec-23 Jindal Stainless Limited Rabirun Vinimay Private Limited 11.6 May-23 Jindal Stainless Limited Rathi Super Steel Limited 24.87 April-23 ArcelorMittal Nippon Steel Ind
Slide 29: Opportunities
Opportunities OPPORTUNITIES 29
Slide 30: Opportunities (1/2)
Opportunities… (1/2) Automotive Capital goods Infrastructure Airports ▪ The automotive industry is ▪ The capital goods sector ▪ The infrastructure sector ▪ More and more modern and forecast to reach US$ 260- accounts for 11% of the accounts for 9% of steel private airports are 300 billion by 2026. t
Slide 31: Opportunities (2/2)
Opportunities… (2/2) Railways Oil and gas Power Rural India ▪ As on January 2023, 41 ▪ India’s primary energy ▪ India aims to boost non- ▪ Policies like Pradhan Mantri indigenously designed, consumption of oil and gas semi-high speed Vande fossil fuel electricity Awa Yojana and Pradhan is expected t
Slide 32: Key Industry Contacts
Key Industry Contacts 32
Slide 33: Key industry contacts
Key industry contacts Agency Contact Information 207-208, 2nd Floor, Kailash Building, 26 K. G. Marg, New Delhi - 110 001, Phone: 011 - 42668800 Indian Steel Association Fax: 011 – 42668805 E-mail: info@indsteel.org Website: www.indsteel.org Udyog Bhavan New Delhi - 110011 Fax : 91-11-23063236 Minis
Slide 34: Appendix
Appendix IBEF /i zz
Slide 35: Glossary
Glossary ▪ CAGR: Compound Annual Growth Rate ▪ FDI: Foreign Direct Investment ▪ CY: Calendar Year ▪ FY: Indian Financial Year (April to March) • So FY10 implies April 2009 to March 2010 ▪ JV: Joint Venture ▪ MoU: Memorandum of Understanding ▪ MT: Million Tonnes ▪ MTPA: Million Tonnes Per Annum ▪ NPA
Slide 36: Exchange rates
Exchange rates Exchange Rates (Fiscal Year) Exchange Rates (Calendar Year) Year Rs. Equivalent of one US$ Year Rs. Equivalent of one US$ 2004-05 44.95 2006 45.33 2005-06 44.28 2007 41.29 2006-07 45.29 2008 43.42 2007-08 40.24 2009 48.35 2008-09 45.91 2010 45.74 2009-10 47.42 2011 46.67 2010-11 45.58
Slide 37: Disclaimer
Disclaimer All rights reserved. All copyright in this presentation and related works is solely and exclusively owned by IBEF. The same may not be reproduced, wholly or in part in any material form (including photocopying or storing it in any medium by electronic means and whether or not transiently
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