Amid the sombre backdrop of the challenging and sluggish macro
environment, the global crude steel production witnessed a 1.8% growth
during the year. India''s cumulative steel production witnessed a growth
of 7% for FY 2011-12, against 13.2% growth in FY 2010-11. The slowdown
in the production was owing to a lull in the commissioning of
greenfield projects accompanied by severe raw material crunch from the
ongoing crisis in coal and iron-ore sectors. The steel demand on the
other hand has drastically declined owing to low consumption across
major steel consuming areas like automobile, fast moving consumer goods
India has witnessed rapid steel capacity expansion over recent decades
and has emerged as the fourth largest steel producer globally.
The government has allocated US$ 1 trillion for the XIIth Five year
Plan period towards infrastructure development, which will further
enhance the demand for steel. The consumption growth, on the other
hand, is expected to increase considerably owing to urbanisation and
increasing construction activities. MSP Steel & Power Limited is
strategically positioned to respond to the anticipated demand. our
proactive strategy is based on our ambition to evolve from a regional
player to one of the leading national players.
For more than a decade, we have been directing our efforts towards
enhancing our operational efficiencies. Besides, we have invested
around Rs. 840 crore over the past four years towards expansions of
pellet plant, sponge iron and captive power plant capacities. I am glad
to say that the year marked the completion of our first phase of
expansion, which was way ahead of schedule. Thanks to our excellent
execution capabilities that we achieved this amidst challenges.
our team''s dynamic and professional mindset has further enabled us to
meet the untold challenges. our continuous ability to innovate enables
us to enhance our execution and service delivery. The growing levels of
dedication and passion to excel give us the confidence to meet our
desired growth objectives. In addition, we will fulfil our obligations
to all our stakeholders, customers and employees as well as the nation
and the larger society, providing all of them with industry-leading
values through advanced and responsible management.
At this juncture, stabilisation would be the focus of our strategy to
ensure smoother operations, achieve economies of scale and enhance cost
and overall efficiencies. I believe we have developed a framework that
will bring significant success to MSP Steel & Power limited and all its
shareholders over the next several years and enable us to emerge
stronger. I express my gratitude to all the shareholders, customers and
employees for their continued support and confidence in our abilities.
This gives us the courage to excel further in our future endeavours.