you are here:

Steel Authority of India Ltd.

BSE: 500113 | NSE: SAIL |

Represents Equity.Intra - day transactions are permissible and normal trading is done in this category
Series: EQ | ISIN: INE114A01011 | SECTOR: Steel - Large

BSE Live

Dec 06, 16:00
102.90 -1.10 (-1.06%)
Volume
AVERAGE VOLUME
5-Day
2,173,633
10-Day
2,617,891
30-Day
3,080,166
2,293,518
  • Prev. Close

    104.00

  • Open Price

    104.20

  • Bid Price (Qty.)

    102.90 (798)

  • Offer Price (Qty.)

    102.90 (359)

NSE Live

Dec 06, 16:09
102.90 -1.10 (-1.06%)
Volume
AVERAGE VOLUME
5-Day
40,691,118
10-Day
41,810,615
30-Day
42,669,751
40,798,956
  • Prev. Close

    104.00

  • Open Price

    104.30

  • Bid Price (Qty.)

    102.90 (12392)

  • Offer Price (Qty.)

    0.00 (0)

Annual Report

For Year :
2019 2018 2017 2016 2015 2014 2013 2011 2007

Chairman's Speech

I have great pleasure in extending to you all a warm and hearty welcome to the 22nd Annual General Meeting of your Company. The Audited Accounts for the financial year 1993-94 and the Directors' Report have been with you for some time. You would, no doubt, be pleased with the performance of your Company during 1993-94. During the year, the Company scaled new heights in almost all areas. SAIL achieved the highest production and sales and in the process recorded the highest-ever profit. The net profit after tax during the year has gone up by 29 per cent and crossed Rs.545 crores in 1993-94. That this has been achieved in a difficult market situation bears testimony to your company's proven ability to perform well in a difficult environment. Business Environment During 1993-94, the steel industry passed through a difficult period. The overall domestic demand for steel remained stagnant. Competition in the domestic market intensified due to additional capacities coming up in the steel sector and imports becoming a viable option. However, the market is gradually changing for the better. The liberalisation measures taken by the Government in the past 2-3 years are showing positive results. There is an overall buoyancy in the country's economy. The demand for consumer durables is going up. Industrial activity is back on the bounce. The private sector has started investment in infrastructure. Every sector of the economy, particularly, the steel consuming sector, is vibrating. Steadily, the steel industry is coming out of the recession. As time goes on, the steel demand should further firm up. Managing the Change To grapple with the increased competition in the domestic and export markets, SAIL quickly changed gears. Customer became the focus of our new strategies and customer satisfaction the ultimate goal. Production was continuously tuned to suit customers' requirements. Supplying the best quality was a prerequisite. It was not just 'Good Steel', it was 'SAIL' steel. In short, SAIL changed over to a market-oriented management strategy to maintain its leadership through customer-satisfaction. For the past few years, SAIL has been quite aggressive in the market. To maintain its edge, SAIL entered into special marketing arrangements with its customers. About 50 per cent of the production is committed under long-term tie-ups. To remain price competitive, so essential for an industrial input like steel, SAIL further streamlined its operations and intensified the cost reduction efforts. Significant success was achieved in reducing energy consumption, lowering coke consumption, improving productivity of Blast Furnaces, Finishing mills, etc. Achievements Aggressive marketing strategies and continuous thrust on customer satisfaction yielded good results. In contract to the world-wide trend, your Company was able to increase production and sales. Capacity utilisation went up substantially with a record production of 8.31 MT of saleable steel in 1993-94, registering a growth of about 5 per cent over the previous year. The production of hot metal and crude steel was also an all-time best. The turnover increased by about 15 per cent. SAIL marketed about 10 per cent more steel than in 1992-93. This helped in increasing SAIL's market share in the domestic market, further consolidating its market leadership position. Considering the domestic market conditions, special thrust was laid on exports which registered an impressive growth of 130 per cent over 1992-93. You will be happy to know that SAIL has been awarded the status of a Star Trading House for its excellent export performance. The credit for these achievements goes primarily to talented, motivated and dedicated work force of your company who put in strenuous efforts in the face of growing competition. Human resource is SAIL's biggest strength. Accolades These efforts have been well-recognised. You will be happy to know that the Hon'ble Prime Minister has appreciated SAIL's performance during 1993-94. Another matter of pride for us is the award of the Prime Minister's Trophy to Bhilai Steel Plant, which was adjudged the Best Integrated Steel Plant in the country during 1992-93. Many other awards have been received by the employees and workmen bringing laurels to your Company. SAIL has an improved image arising from its ability to respond quickly to the changing market situation. Modernising for International Competitiveness To achieve international competitiveness, SAIL took up the modernisation of the steel plants, aiming primarily at technological upgradation. This should result in better quality, reduction in cost of production and improved productivity. The modernisation of DSP is nearing completion and will result in substantial increase in production and productivity. With continuous casting facilities and modernised finishing mills including Wheel & Axle Plant, Merchant Mill, Durgapur will be in a position to supply a much better quality of steel to customers. The modernisation of RSP is under way to improve the productivity, update the technology and reduce the cost of production. The progress of the project is being closely monitored to ensure timely completion. At Bokaro also, modernisation has been taken up to provide continuous casting facilities in SMS-II and to improve the hot rolling facilities. These technological upgradations will enable SAIL to supply steel of international standards and face the competition even from the new units. Steel output will also go up substantially. Memorandum of Understanding Members may recall that SAIL enters into a Memorandum of Understanding with Ministry of Steel every year under which the obligations of the two parties are specified and the performance is evaluated with respect to re-defined criteria. You will be glad to know that SAIL's performance has been adjudged 'EXCELLENT' for the second consecutive year under the Memorandum of Understanding entered into with the Ministry of Steel. International Recognition SAIL continues to figure in the Fortune's top 500 industrial corporations. In terms of profitability it ranks 5th among the metal producing companies in the world. SAIL has emerged as a leader among the public sector companies facing competition, and has established an image of credibility and reliability with its customers. A Promising Future Building on these strengths, SAIL is planning to exploit the emerging market opportunities. As the economy moves into a different trajectory, a higher level of investment will be made in the infrastructure sector. Coupled with increased industrial activity, this should result in a much higher level of demand for steel. Assuming that the GDP will grow at around six per cent, there is every chance that the domestic demand for steel by 2000 A.D. will be 28 to 30 million tonnes a year. This takes into account only the present rate of consumption in key areas. But there is scope for consumption to grow in areas where it is not much in use now, like buildings and construction. Elsewhere in the world, steel is used in large quantities in buildings and bridges. To meet this growing demand, we are planning to increase the crude steel making capacity of SAIL including its subsidiaries to about 17 million tonnes by 2001-2 from about 10 million tonnes produced in 1993-94. This will enable us to substantially increase our turnover and maintain the leadership in the domestic market. To expand its business horizon, SAIL is planning to diversify into related areas. SAIL is already providing consultancy and training services to other steel plants globally. To further develop our business, SAIL may diversify into cement, power and international trading in steel, etc. It is to the credit of SAIL that it anticipated the changing market situation in the domestic steel industry and quickly changed itself, both strategically and managerially, to the needs of the new situation. In the days to come, the competitive scenario will change much more rapidly. Your Company has built up a capable team and devised appropriate systems to visualise these changes and take appropriate steps in time. I am confident that with the level of commitment of our employees and the goodwill which has been generated particularly amongst policy makers, customers, suppliers and our investors, SAIL will be able to achieve the tasks it has set for itself in future.