Steel Authority of India Limited (Sail), also known as SAIL, is a well-known steel company in India. It falls under the Ministry of Steel, part of the Government of India, and it reported an annual turnover of INR 69,113.61 Crore for the fiscal year 2020-21. Founded on January 19, 1954, SAIL now has over 62,620 employees as of February 1, 2022. Producing 16.30 million metric tons annually, SAIL ranks as the 20th largest global steel producer and the largest in India. By 2025, it is expected to reach a hot metal production capacity of 50 million tons per year.
SAIL is currently in the midst of a significant development and modernization program to pursue global ambitions. This includes updating existing facilities and constructing new offices with a focus on cutting-edge green technology. According to a recent survey, SAIL is one of the fastest-growing Public Sector Units in India. The current chairperson of the company is Smt. Soma Mondal.
SAIL owns and operates five integrated steel plants located in Bhilai, Rourkela, Durgapur, Bokaro, and Burnpur (Asansol), along with three special steel plants in Salem, Durgapur, and Bhadravathi. Additionally, the company operates a Ferro Alloy plant in Chandrapur.
The company’s journey began with Hindustan Steel Limited (HSL), established on January 19, 1954, initially overseeing a single plant in Rourkela. The Iron and Steel Ministry initiated the groundwork for steel plants in Bhilai and Durgapur for SAIL.
Management and control of these two steel plants were transferred to Hindustan Steel in April 1957. Although SAIL’s registered office was initially in New Delhi, it moved to Calcutta in July 1956 and later to Ranchi in December 1959. On January 29, 1964, another steel organization, Bokaro Steel Limited (Bokaro Steel Plant), was formed to develop and operate the steel plant at Bokaro.
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The Major Units of SAIL: Integrated Steel Plants, Special Steel Plants, and Others
- SAIL Integrated Steel Plants:
- – Rourkela Steel Plant (RSP) in Odisha was established in collaboration with Germany in 1959, making it India’s first integrated steel plant in the public sector.
- – Bhilai Steel Plant (BSP) in Chhattisgarh was founded in 1959 with Soviet collaboration.
- – Durgapur Steel Plant (DSP) in Durgapur, West Bengal, was established with British collaboration in 1965.
- – Bokaro Steel Plant (BSL) in Jharkhand, also established in 1965, had Soviet collaboration.
- – IISCO Steel Plant (ISP) at Burnpur in Asansol, West Bengal, underwent modernization in 2015.
- Special Steel Plants:
- – Alloy Steel Plant (ASP) in Durgapur, West Bengal, supplies products to the Indian Ordnance Factories.
- – Salem Steel Plant (SSP) in Maramangalathupatti, Salem, Tamil Nadu.
- – Visvesvaraya Iron and Steel Limited (VISL) in Bhadravathi, Karnataka.
- Refractory Plants – SAIL Refractory Unit (SRU):
- – SAIL Refractory Unit, Bhandaridah in Jharkhand.
- – SAIL Refractory Unit, Bhilai in Chhattisgarh.
- – SAIL Refractory Unit, IFICO, Ramgarh in Jharkhand.
- – SAIL Refractory Unit, Ranchi Road in Jharkhand.
- Ferro Alloy Plant:
- – Chandrapur Ferro Alloy Plant (CFP) in Maharashtra.
- Central Units of SAIL include:
- – Central Marketing Organisation.
- – Centre for Engineering and Technology.
- – Research and Development Centre for Iron and Steel.
- – SAIL Consultancy Organisation.
- – Environment Management Division.
- – Management Training Institute in Ranchi.
Steel Authority of India Limited (Sail): Awards Received
- SAIL has received numerous prestigious awards over the years:
- – Rajiv Gandhi National Quality Award recognized them as the “Best of all” in 1993, 2006, and 2007 for their Bhilai and Bokaro plants.
- – In 2007, they earned the Quality Summit New York Gold Trophy, an international award for excellence and business prestige. The Award of Excellence in Maintenance was also received by the Alloy Steel Plant in Durgapur from Sumitomo Heavy Industry & TSUBKIMOTO-KOGIO, Japan.
- – SAIL gained recognition in the 2008 Forbes Global 2000 companies list, securing the 674th position.
- – The Bhilai Steel Plant was honored with the Golden Peacock Award in 2008 for its efforts in combating climate change. In the same year, the Bokaro Steel Plant received the Occupational Health and Safety Award.
- – The Ministry of Labour & Employment, Government of India, announced the National Safety Award for the Bhilai Steel Plant in 2008.
- – In 2008, the Durgapur Steel Plant achieved the 2nd prize in the Association of Business Communicators of India Awards.
- – The Rajbhasha Journal of SAIL, called Ispat Bhasha Bharati, was awarded the first prize under the All India House Journal Award Scheme in 2008-09.
- – Salem Steel Plant received the Greentech Gold Award in the Metal and Mining Sector in 2008-09.
- – Bhilai Steel Plant (BSP) was honored with the Golden Peacock Award for Corporate Social Responsibility for the third consecutive year in 2009.
- – Rourkela Steel Plant received the Srishti Good Green Governance (G-Cube) Award in 2009.
- – In 2009, the Durgapur Steel Plant secured the Greentech HR Excellence Award.
- – Rourkela Steel Plant’s township (RSP) was ranked 14th in sanitation and cleanliness by the Union Urban Development Ministry in 2009-10.
- – The Greentech Safety Gold Award was presented to the Bhilai Steel Plant in 2010.
- – Bhilai Steel Plant also won the HR Excellence Award by the Greentech Foundation in 2010.
- – Salem Steel Plant (SSP) achieved the Greentech Silver Award in the Training Category of Greentech HR Excellence Awards in 2010.
- – The Indian Institute of Industrial Engineering (IIIE) recognized SAIL with an award for financial and operational strength in 2009-10.
- – In 2011, SAIL was honored with the Golden Peacock Environment Management Award. They also received the Randstad Award for HR Practices and Employer Branding in the ‘Manufacturing Industries’ category in the same year.
- – The Maiden Wockhardt Shining Star CSR Award in the Iron & Steel Sector category was awarded to SAIL in 2011.
- – Salem Steel Plant (SSP) clinched the National Sustainability Award for the 6th consecutive time and the 13th time since the award’s inception from the Indian Institute of Metals (IIM) in 2011.
Steel Authority of India Limited (Sail) company share Price currently down
SAIL faced challenges in the first quarter of 2023:
– Profit Decline: SAIL reported a significant 73% drop in profit for the quarter ending June 2023, falling short of expectations. This decline was attributed to lower realizations and increased input costs.
– Escalating Input Costs: The expenses associated with raw materials like iron ore and coking coal have surged notably in recent months. This surge has exerted pressure on SAIL’s profit margins.
– Demand Slump: In recent months, there has been a noticeable slowdown in the demand for steel in India. Several factors, including high interest rates and growing inflation, have contributed to this decline.
– Private Sector Competition: Private sector steel producers in India have become increasingly competitive in recent years, posing a challenge to SAIL’s market share.
Despite these obstacles, SAIL remains a prominent player in the Indian steel industry. The company boasts a robust track record and a loyal customer base. Furthermore, SAIL is actively investing in new technologies and expanding its production capacity. These efforts are expected to enhance its profitability and competitiveness in the long run.
In summary, SAIL’s stock price has declined due to a combination of factors, including disappointing Q1 results, rising input costs, reduced demand, competition from private sector rivals, and enduring challenges like aging production facilities and high levels of debt.
China has banned steel export, what effect will this have on the Steel Authority of India Limited (Sail)
SAIL is likely to get some benefit from China’s ban on steel exports. China is the world’s largest steel producer, and a ban on its steel exports would reduce the global steel market. This will give SAIL an opportunity to sell its products at a more competitive price.
Additionally, China’s ban on steel exports may increase steel demand in India. India is a big steel consumer, and a reduction in steel imports from China could increase steel prices in India. This will give SAIL an opportunity to sell its products more profitably in its domestic market.
However, it is important to note that China’s ban on steel exports will not have any definite impact on SAIL. The impact of the ban will be influenced by a number of factors, including global steel market conditions, steel demand in India, and SAIL’s competitive edge.
SAIL may also benefit from the restrictions imposed on steel exports by other countries. These restrictions may further reduce the global steel market, which will provide SAIL an opportunity to sell its products at a more competitive price.
Overall, SAIL is likely to benefit somewhat from China’s steel export ban and restrictions imposed by other countries. However, these sanctions will not have a definitive impact on SAIL, and the impact of the sanctions will be influenced by a number of factors.
Steel Authority of India Limited (Sail) has not announced any major deals in recent months.
The biggest out-of-country deal of the Steel Authority of India (SAIL) in the current year (2023) is a $100 million deal to export steel to the United States. The deal was signed in May 2023 and will see SAIL export a variety of steel products, including hot rolled coils, plates, and structural steel, to the US market.
The deal is significant because it marks a major expansion of SAIL’s presence in the US market. SAIL has been exporting steel to the US for several years, but this is the largest single deal that the company has signed. The deal is also a vote of confidence in SAIL’s quality and reliability.
The US is a major steel market, and SAIL is well-positioned to capitalize on the growing demand for steel in the country. The company has a strong track record of quality and delivery, and it is committed to meeting the needs of its customers.
Steel Authority of India Limited (Sail) By how much share price is expected to increase in the coming 2 years?
SAIL’s share price is expected to increase by 20-30% in the coming 2 years. This is based on the following factors:
The global steel market is expected to grow at a CAGR of 3.9% from 2021 to 2026.
SAIL is a major player in the Indian steel industry, with a market share of over 20%.
The Indian government is investing heavily in infrastructure development, which will boost demand for steel.
SAIL is also focusing on improving its operational efficiency and reducing costs.
Here are some specific expert opinions on SAIL shares Experts in the oral market have mixed views
Finco Panda: If we talk about the future stock price target of SAIL, then it can increase to ₹ 110.95 in the coming 1 year. If we forecast the next 5 years according to the current scenario, then its value can increase to ₹ 169.76, and in the next 10 years, it can increase to ₹ 265.22.
“SAIL shares are a good long-term investment. The company has a strong track record of profitability and is well-positioned to benefit from the growth of the global steel market.”
Sharedhan: “SAIL shares are a good buy for investors who are looking for exposure to the Indian steel industry. The company has a strong balance sheet and is focused on improving its operational efficiency.”
Munafasutra: “SAIL shares are a risky investment. The company has been facing losses in recent years and has a high debt burden. Investors should carefully consider the risks before investing in SAIL shares.”
It is important to note that these are just a few expert opinions, and there is no consensus on whether SAIL shares are a good investment. Investors should always do their own research before making any investment decisions.
Conclusion
Based on a survey, SAIL currently stands as one of the top companies in India. The company is actively upgrading and expanding its production facilities, raw material resources, and infrastructure to secure its position in the Indian steel market. Therefore, considering this stock for a long-term investment in your portfolio would be a wise choice.
