The iron and steel industry is one of the most important industries in India. During 2014 through 2015, India was the third largest producer of raw steel and the largest producer of sponge iron in the world. The industry produced 91.46 million tons of total finished steel and 9.7 million tons of pig iron. Most iron and steel in India is produced from iron ore. The Indian Ministry of Steel is concerned with: the coordination and planning of the growth and development of the iron and steel industry in the country, both in the public and private sectors; formulation of policies with respect to production, pricing, distribution, import and export of iron and steel, ferro alloys and refractories; and the development of input industries relating to iron ore, manganese ore, chrome ore and refractories etc., required mainly by the steel industry.
Most of the public-sector undertakings market their steel through the Steel Authority of India (SAIL).
There are two types of steel plants – mini steel plants and integrated steel plants.
Mini steel plants are smaller, have electric furnaces, use steel scrap and sponge iron. They have re-rollers that use steel ingots as well. They produce and introduce mild and alloy steel of certain specifications. There are around 650 mini steel plants in India.
Integrated steel plants are large, handle everything in one complex – from putting together raw material to steel making, rolling and shaping. Iron ore, coke, and flux are fed into the blast furnace and heated. The coke reduces the iron oxide in the ore to metallic iron, and the molten mass separates into slag and iron. Some of the iron from the blast furnace is cooled, and marketed as pig iron; the rest flows into basic oxygen furnaces, where it is converted into steel. Iron and steel scrap may be added to both to the blast furnace and to the basic iron furnace. There are about five integrated SAIL plants in India.
Infocost have full strength of costing professional equipped with SAP Costing and MIS Modes knowledge to help the textile industry and organizations in achieving the required cost control and optimization measures.
May it be target costing, standard costing, actual costing, activity based costing, profitability analysis, make or by decision, planning and budgeting, recovery reporting, costing sheets and many more MIS and decision making tools.
PoV of Infocost on Iron and Steel Industry
National steel policy – 2005 has the long-term goal of having a modern and efficient steel industry of world standards in India. The focus is to achieve global competitiveness not only in terms of cost, quality, and product-mix but also in terms of global benchmarks of efficiency and productivity. The Policy aims to achieve over 100 million metric tonnes of steel per year by 2019-20 from the 2004-05 level of 38 mT. This implies an annual growth of around 7.3% per year from 2004-5 onward.
We have vast experience in SAP costing and management accounting (CO) in Steel industries and have developed the costing and MIS modes for large integrated and mini steel plants,
Steel industries where we have the experience and association of working are;
- Bhilai Steel Plants, (A unit of Steel Authority of India Ltd.)
- Nalwa Steel and Power Ltd. (A unit of Jindal Steel and Power Ltd. Raigarh CG)