India is the second-largest steel producer in the world with a production capacity of 111.2 million tonnes (MT) in 2019. The growth of the Indian steel sector has been driven by the domestic availability of raw materials such as iron ore and cost-effective labor.
The government has also supported this sector by policy as well as by investment. The government of India has increased the FDI (foreign direct investment) limit to 100% in the steel sector under the automatic route. Along with the FDI, the government has also allocated ₹39.25 crores to the Ministry of Steel.
For more information on steel sector go to www.ibef.org
Top Steel companies in India.
1. JSW Steel Ltd.
Promoter Group – O. P. Jindal Group (Jindal family) & Holding – 44.07% (1.55% pledged)
- Managing Director & Chairman – Sajjan Jindal
- Joint Managing Director & Group CFO – M V S Seshagiri Rao
- Deputy Managing Director – Vinod Nowal
Market Capitalization – 166000 crs
- Revenue = 80431 crs.
- 3 yrs CAGR Sales = 6.63%
- 3 yrs CAGR Net profit = 13.87%
- P/E ratio = 21%
- ROE = 16.91%
- ROCE = 15.28%
- Debt to equity = 1.11
JSW Steel is of one the company from the $13 billion JSW group from India. JSW Steel was established in the year 1982 with its first steel plant at Vasind, near Mumbai. Over years JSW Steel has become the no. 1 steel producer in India and no. 3 position in Asia.
It is also one of the lowest-cost steel producers in the world. JSW Steel offers a wide range of steel products like Hot Rolled, Cold Rolled, Galvanized, Galvalume, etc.
Over the years, JSW Steel has implemented several projects to reduce the overall cost of production. The company built the world’s largest conveyor system with the same objective, which travels ~24 km from the captive mines to the Vijayanagar plant. Go to the JSW Steel Ltd. website for more information.
2. TATA Steel Ltd.
Promoter Group – Tata group via different entities & Holding – 34.41% (1.55% pledged)
- Chairman – N Chandrasekaran
- Managing Director & CEO – T V Narendran
- Executive Director & CFO – Koushik Chatterjee
Market Capitalization – 130000 crs
- Revenue = 157189 crs.
- 3 yrs CAGR Sales =8.75%
- 3 yrs CAGR Net profit = -33.03%
- P/E ratio = 17.50%
- ROE = 10.19%
- ROCE = 12.69%
- Debt to equity = 1.11
Tata Steel was established in India as Asia’s first integrated private steel company in 1907. They have also developed India’s first industrial city at Jamshedpur. Today, we are among the leading global steel companies.
TATA Steel is the lowest cost producer of steel in Asia because of the uninterrupted supply of raw materials. They manufacture ball bearings, hand tools, tubes, steel wires, and also operate chrome mines. Tata Steel also in the business activities of Steel, Ferro Alloys, and Minerals.
In 2007 they brought Chorus and became the 2nd largest steel producer in Europe. But this acquisition need not meet the expectation because of the financial crises, other reasons, which stopped the expansion plans of this company. Go to the Tata Steel Ltd. website for more information.
3. Steel Authority of India Ltd.
Promoter Group – President of India & Holding – 65%
- Chairperson – Soma Mondal
Market Capitalization – 54250 crs
- Revenue = 69974 crs.
- 3 yrs CAGR Sales = 9.58%
- 3 yrs CAGR Net profit = 154.94 %
- P/E ratio = 13%
- ROE = 9.13%
- ROCE = 13.05%
- Debt to equity = 0.78
Steel Authority of India Ltd. also called SAIL is a state-owned government, it is India`s largest iron ore producer. SAIL is one of the “Maharatna”, which means even though it’s a state governed company, they have financial and operational autonomy.
SAIL produces iron and steel at five integrated plants and three special steel plants, located principally in the eastern and central regions of India and situated close to domestic sources of raw materials.
SAIL manufactures and sells a wide variety of steel products such as HR/CR sheets and coils, galvanized sheets, electrical sheets, structurals, railway products, etc. Go to the SAIL Ltd. website for more information.
Also Read: Top 10 Electric companies in India.
4. Jindal Steel & Power Ltd.
Promoter Group – O. P. Jindal Group (Jindal family) & Holding – 60.47%
- Chairperson – Naveen Jindal
- Managing Director – V R Sharma
- Whole-time Director – D K Saraogi
Market Capitalization – 40350 crs
- Revenue = 39527 crs.
- 3 yrs CAGR Sales = 19.32%
- 3 yrs CAGR Net profit = 62.08%
- P/E ratio = 11%
- ROE = 11.42%
- ROCE = 19.68%
- Debt to equity = 0.68
JSPL is the second largest company in the steel sector on this list from the Jinal Group. Jindal Steel and Power Ltd. (JSPL) has a dominant presence in the steel, power, mining, and infrastructure sector. JSPL has 10 MTPA Iron making capacity and 5049 MW power generating capacity.
JSPL exports its diversified product portfolio to 22+ countries.
Jindal Steel & Power Ltd, the product range of the company includes rails, parallel flange sections, plates & coils, semi-finished products, ferrochrome, sponge iron. JSPL also has its operations in Australia and Africa. Go to the Jindal Steel & Power Ltd. website for more information.
5. Essar Steel Ltd.
Promoter Group – ArcelorMittal Nippon Steel & Holding – –
- Chairperson – Dilip Oommen
This company was under the ownership of the Ruia Family but their wrong capital allocation leads to the total unpaid debt of 49000 crores. The Steel king of the world ArcelorMittal along with Nippon about this company at a throwaway price of 7000 crores from the banks.
Essar Steel India Private Limited is a fully integrated flat carbon steel manufacturer based in India from iron ore to ready-to-market products with a current capacity of 10 million tonnes per annum (MTPA).
Essar Steel’s manufacturing facility comprises ore beneficiation, pellet making, iron making, steel making, and downstream facilities including cold rolling mill, galvanizing, pre-coated facility, steel processing facility, extra wide plate mill, and a pipe mill.
6. Jindal Stainless Ltd.
Promoter Group – O. P. Jindal Group (Jindal family) & Holding – 68.12% (86.64% pledged)
- Managing Director & Chairman – Ratan Jindal
- Managing Director – Abhyuday Jindal
- Whole-time Director – Tarun Kumar Khulbe
Market Capitalization – 5200 crs
- Revenue = 12229 crs.
- 3 yrs CAGR Sales = 2.34%
- 3 yrs CAGR Net profit = 12.09%
- P/E ratio = 12.40%
- ROE = 13.07%
- ROCE = 15.90%
- Debt to equity = 0.97
Jindal Stainless Ltd. is India’s largest producer of stainless steel with a melting capacity of 1.1 million tonnes per annum. This company was founded in the year 1970 by the group founder O.P. Jindal.
This company is India’s largest manufacturer of stainless steel in the 200, 300, 400, and duplex stainless steel series. Their product range includes stainless steel slab, bloom, coils, plates, sheet, precision strips, blade steel, and coin blanks. Go to the Jinal Stainless Ltd. website for more information.
7. Jindal Stainless (Hisar) Ltd.
Promoter Group – O. P. Jindal Group (Jindal Family) & Holding – 68.12% (86.64% pledged)
- Chairman – Ratan Jindal
- Managing Director – Abhyuday Jindal
- Whole-time Director – Jagmohan Sood
Market Capitalization – 4730 crs
- Revenue = 9507 crs.
- 3 yrs CAGR Sales = -4.73%
- 3 yrs CAGR Net profit = 11.74%
- P/E ratio = 6.80%
- ROE = 23.35%
- ROCE = 22.84%
- Debt to equity = 0.48
Jindal Stainless (Hisar) Ltd. was founded in the year 1975 with the vision to set out by its founders OP Jindal to make India a self-reliant manufacturing unit of stainless steel before setting up this plant, we had to import stainless steel to meet our domestic requirements.
Jindal Stainless (Hisar) Ltd. (JSHL) is one of India’s largest stainless steel producers with a melting capacity of 0.8 million tonnes per annum. It specializes in creating world-class stainless steel solutions tailored to cater to mass and high-end applications. Go to the Jindal Stainless (Hisar) Ltd. website for more information.
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