IT to Streamline Entire Value Chain of the Indian Iron and Steel Industry

The Indian steel is witnessing a new era of development from 2008, riding high on the growing economy and increasing demand for steel. India is the fourth largest producer of crude steel globally in 2013 as against the eighth position in 2003. 

The steel sector contributes to nearly 2 percent of the country’s GDP and employs over 5 lakh people in India. The intended steel capacity build up in the country is likely to result in an investment of INR 5-10 trillion by 2020.   

The Indian iron and steel industry is already in the developed and consolidation stage, in terms of the production process. However, major domestic steel manufacturers are now in the process of implementation of Information Technology (IT) to streamline the entire value chain. Emerging competitive challenges faced by steel manufacturers presently are:

      Reduce time-to-market

      Increase manufacturing process visibility

      Increase production flexibility

      Optimize forecasting and scheduling

      Reduce rejects, stocks, and downtime

      Ensure optimal quality and production efficiency

The main areas where IT can play an important role in the Indian steel industry are:

      Advanced Planning and Scheduling for production

      Entire Metals Supply Chain Management including raw materials

      Manufacturing Execution Systems (MES)

More than 60 percent of steel consumption in the country has traditionally been from the construction and infrastructure sectors which registered the highest growth rates over the past five years among steel-intensive industries. With steel demand driven by increasing infrastructure development and the automotive industry, steel consumption is expected to grow at a rate of 6.8 percent, to reach 104 Mn MT by 2017.

Considering investment opportunities in the steel sector, upcoming Greenfield and Brownfield projects as well as growth trends of the different end-user industries, projected crude steel capacity in the county is expected to reach 140 Mn MT by 2016 from the current capacity of around 100 Mn MT in 2013.

The Indian Government is also proactively providing incentives to boost economic growth by injecting funds into various industries such as construction, infrastructure, automotive, and power, which will drive the steel industry in the future.  

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