Description
SWOT ANALYSIS OF ESSAR STEEL LIMITED

Essar Steel Ltd

Parent Company

Essar Group

Category

Iron & steel

Sector

Industrial products

Tagline/ Slogan

Let’s begin

A fully integrated flat carbon steel manufacturer-from iron ore to USP ready-to-market products

STP

Hot rolled steel, chequered plates, Shot blasted plates, Cold rolled Segment steel, TMT Bars, Galvanised corrugated sheets

Sectors such as automotive, white goods, construction, engineering and Target Group shipbuilding

Company having value added segments in the steel industry, a Positioning diversi?ed distribution network & integrated nature of operations

SWOT Analysis

1. Global producer of steel with a footprint covering India, Canada, USA, Middle East and Asia 2. India’s largest exporter of flat steel products 3. Natural gas & power consumption in processes have reduced over the years 4. In spite of the slowdown in the steel markets it has retained adequate liquidity within the Company to meet its operational requirements and has withstood the downturn 5. Strong brand backing of parent company Strength 6. Good advertising and market visibility through TVCs and print ads

1. Dependence on RBI monetary policy easing & tightening for controlling inflation affects operations Weakness 2. High dependence on raw materials & forex markets is a concern

Opportunity

1. Improvement in physical property and chemistry to produce quality

products 2. Provide more ?nances for expansion, strengthening of marketing network through Service Centres, Hypermarts etc. and strategic investments 3. Use mathematical Model to predict the temperature evolution during cooling of Hot steel products to improve product quality

1. Financial crisis in Europe will continue to affect demand world wide 2. Rules & Regulations of government of each country in which Essar Threats steel has presence

Competition

1. TATA Steel 2. JSW Steel Competitors 3. ArcelorMittal



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