Stay your Hand

Prakash Industries Ltd. (PIL) is an integrated steel manufacturer which produces sponge iron, mild steel, wire rods, TMT bars, and ferro alloys. The company also undertakes mining and generates power to meet its own requirements. Sectoral outlook Steel production in India rose by 4.2 per cent to 60 million metric tonnes (MMT) in FY10. India emerged as the world's fifth-largest steel producer. In the same year its steel consumption rose 8 per cent over the previous year. The government is supporting the industry through favourable reforms, while the private sector is supporting it with large investments. In a fast developing economy such as India's, the industry has massive growth potential. Industry estimates indicate that the steel industry will continue to grow at a rapid pace since urbanisation and infrastructure development will lead to huge demand for steel. Among the negatives, uncertainty in the availability of key raw materials like iron ore plague the industry. Although India has iron ore reserves of approximately 13 billion tonnes, its high volume of

This article was originally published on November 11, 2010.