Working Capital Management at Jindal Steel Works
SECTION 1 -
PROFILE STUDY OF JINDAL STEEL WORKS LTD
INDUSTRY PROFILE
INTRODUCTION TO STEEL INDUSTRY
India’s economic growth is contingent upon the growth of the Indian steel industry. Consumption of steel is taken to be an indicator of economic development. While steel continues to have a stronghold in traditional sectors such as construction, housing and ground transportation, special steels are increasingly used in engineering industries such as power generation, petrochemicals and fertilisers. India occupies a central position on the global steel map, with the establishment of new state-of-the-art steel mills, acquisition of global scale capacities by players, continuous modernisation and upgradation of older plants, improving energy efficiency and backward integration into global raw material sources.
The growing consolidation in the steel industry worldwide through mergers and acquisitions has already thrown up several significant concerns. The fact that internationally steel has always been an oligopolistic industry,s sometimes has raised concerns about the anti- competitive behaviours of large firms that dominate this industry. On the other hand the set of large firms that characterize the industry has been changing over time.
Trade and other government policies have significant bearing on competition issues. Matters of subsidies, non-tariff barriers to trade, discriminatory customs duty (on exports and imports) etc. may bring in significant distortions in the domestic market and in the process alter the competitive positioning of individual players in the market. The specific role of the state in creating market distortion and thereby the competitive condition in the market is a well-known issue in this country.
INDUSTRY-BACKGROUND
The establishment of Tata Iron and Steel Company (TISCO) in 1907 was the starting point of modern Indian steel industry. Afterwards a few more steel companies were established namely Mysore Iron and Steel Company, (later
PROFILE STUDY OF JINDAL STEEL WORKS LTD
INDUSTRY PROFILE
INTRODUCTION TO STEEL INDUSTRY
India’s economic growth is contingent upon the growth of the Indian steel industry. Consumption of steel is taken to be an indicator of economic development. While steel continues to have a stronghold in traditional sectors such as construction, housing and ground transportation, special steels are increasingly used in engineering industries such as power generation, petrochemicals and fertilisers. India occupies a central position on the global steel map, with the establishment of new state-of-the-art steel mills, acquisition of global scale capacities by players, continuous modernisation and upgradation of older plants, improving energy efficiency and backward integration into global raw material sources.
The growing consolidation in the steel industry worldwide through mergers and acquisitions has already thrown up several significant concerns. The fact that internationally steel has always been an oligopolistic industry,s sometimes has raised concerns about the anti- competitive behaviours of large firms that dominate this industry. On the other hand the set of large firms that characterize the industry has been changing over time.
Trade and other government policies have significant bearing on competition issues. Matters of subsidies, non-tariff barriers to trade, discriminatory customs duty (on exports and imports) etc. may bring in significant distortions in the domestic market and in the process alter the competitive positioning of individual players in the market. The specific role of the state in creating market distortion and thereby the competitive condition in the market is a well-known issue in this country.
INDUSTRY-BACKGROUND
The establishment of Tata Iron and Steel Company (TISCO) in 1907 was the starting point of modern Indian steel industry. Afterwards a few more steel companies were established namely Mysore Iron and Steel Company, (later
Bibliography: * Khan, M Y & Jain, P K , (2007) Financial Management, McGraw-Hill * Reddy,T S &Yadav,Hari Prasad, (2008) Financial And Management Accounting, Margham Publications * http://www.jsw.in/investor_zone/steel_presentation_analyst.shtml * http://www.moneycontrol.com/competition/tatasteel/comparison/TIS#TIS