It is expected that India will pass the US when using steel in 2019 to become the second largest market.
JSW Steel and Tata Steel, the two largest steel companies in the private sector in the country, are banking on their diverse product mix to go on the big steel ArcelorMittal SA as they try to enter the market. In October, creditors from a bankruptcy of € 50,000 crore ($ 6.9 billion) of Essar Steel approved by ArcelorMittal and Nippon Steel and Sumitomo Metal Japan for Essar assets, turning the road to the first major foreign bets on steel manufacturing in India.
JSW Steel and Tata Steel said, during separate media meetings on Tuesday, that the huge global record in the rapidly growing steel market in the country would be good on for competition.
However, the companies said their customers' relationships, a variety of added value and adaptation products would help them to keep and grow a market share and take a competition.
"Obviously from Tata Steel's perspective, we will continue up and forth", said Tare Steel TV Narendran, chief executive and managing director on Tuesday. "We have the technology and product lines needed."
ArcelorMittal's access is at a time when Indian steel demand grows at the fastest pace in the world. India is expected to pass the US into steel use in 2019 to become the second largest market behind China, said Steel Steel Steel Society, a global steel body, reported last month.
ArcelorMittal plans to increase the capacity of Essar's plant to 15 million tonnes of 10 million tonnes now, and produce higher grades of products. Owned by the billiard Lakshmi Mittal, ArcelorMittal is the largest steel company in the world with a total tonnage of 97.03 million tonnes in 2017.
Analysts feel that the ArcelorMittal assault will force large Indian steel makers to innovate, despite reducing their impact.
"ArcelorMittal's record would stimulate a shift of expansion of steel capability to product / technology evolution by sinters," said Edelweiss, the domestic broker company in a report.
Indian steel machines say that this is already at work.
"We all have a lot of opinion," said Seshagiri Rao, managing director of JSW Steel, on Tuesday, referring to the growing steel market of India.
Rao said in line with global trends. JSW had already started moving from "volumes to value" to ensure its profitability and future share of the market.
JSW Steel spends up to 6,000 crore to expand its added value proposals such as automotive, electric steel and galvanized products by over 60 per cent over the next three years, out of a total spend of 45,000 crore on expansions.
"We will completely transform JSW Steel … and also align the company according to what the market is asking," he said.
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