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Part - VIII

As we find in the above table that the Indian steel exports are increasing but their growth is less particularly due to the anti dumping actions initiated by the advanced, developed nations of the world, which led to the loss of major markets for the Indian steel exporter. In order to remain competitive Indian companies should find out alternative export markets where selling steel is profitable. In context to this China is experiencing strong steel consumption with its imports rising to 26million tons in 2002 and with International Events like Olympics in 2008 and International Expo in 2010 demand for steel in this region will grow. Though China is the largest producer of steel but its requirement far outstrips its production. But India's exports to China is limited to only 3% of its imports in a calendar year and so the strategy should be to increase this quota to an unlimited extent so that the exports do not attract tariffs and thus reduce margins. Also substantial dependence on a single market carries its own risks hence India should look at other lucrative markets of Middle East, Africa and South East Asia to boost exports.

Financial Restructuring of Companies
With the lowering of interest rates most steel companies can restructure their high interest rate debt to lower debt. Restructuring of high cost debt is estimated to increase their competitiveness in the global markets with better ability to manage the cyclicality of the industry. The initiative by the steel companies to go for External Commercial Borrowings (ECB) and FCCB for replacing high cost debt is aimed at further reducing the cost of debt. The companies should try to remain in black and maintain sound financial health.

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* Contributed by: -
Amit Chaddha,
B.E. (Metallurgy), MMS (Marketing),
School of Management Studies,
MNNIT Allahabad.