Sail to Achieve 60 Million Tonnes of Steel Production

For the first time, the company has undertaken modernization & expansion plan at this scale simultaneously at all the plants/units.  The growth plan, besides targeting higher production, also addresses the need for eliminating technological obsolescence, achieving higher energy savings, enriching product-mix, reducing pollution, developing mines & collieries, introducing customer centric processes and developing matching infrastructure facilities.  Orders for over Rs. 52,000 crores have already been placed under this modernisation & expansion plan.

SAIL has set the ball rolling for the company to work on Vision 2020 for the company.  Keeping in line the estimated requirement of steel in the country and the potential SAIL has, action plan is underway for achieving 60 million tonnes production by 2020, which would be approximately 30% of the Indian Steel industry market share.

Towards this direction, SAIL has carried out an assessment of the ultimate potential of our plants at the existing locations. The cumulative production of steel at these locations would range 47- 48 million tones. The remaining 12-13 million tones would be in the form of greenfield investments in the new locations a part of which will be outside India. While stressing upon SAIL’s future plans, scaling up production of steel to such a high level will open a number of opportunities for business diversification. SAIL is contemplating to diversify into areas where synergy exists or which are related to core strength of the company. This diversified portfolio will have an added advantage of de-risking the business from the fluctuations in steel business cycle, besides optimizing opportunities in related business areas.

To improve operational efficiency of steel units and to achieve synergy, a number of mergers / acquisitions / strategic alliances / Joint Ventures have taken place. Details of which are under:

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