Steel Authority of India Limited

By: EconomyWatch   Date: 17 July 2010

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Steel Authority of India Limited (SAIL) is a leading public steel manufacturing company. It is ranked 647 in Forbes Global 2000 list of companies. Ranked amongst top ten public sector undertakings in India, SAIL manufactures and markets steel in various forms.
SAIL is a totally integrated iron and steel manufacturer producing for indigenous construction, railway, power, engineering, defense and automobile sectors. SAIL operates five integrated steel plants, three special steel plants, and one subsidiary unit. SAIL’s 86% shares are held by government of India, with remaining 14 percent held by public.

Brief history
Beginning of SAIL goes as far back as 1954 when Hindustan Steel Limited (HSL) was established, with the President of India holding shares of this company on behalf of Indian citizens. HSL was primarily set up for managing Rourkela steel plant. Durgapur and Bhilai steel plants were set up initially under supervision of ministry of iron and steel. From 1957 onwards these two plants were brought under Hindustan Steel Limited’s control. Registered office of HSL originally set up in New Delhi shifted to Calcutta in 1956 and thereafter to Ranchi in 1959.

After incorporation of Bokaro Steel Plant in 1964, and completion of Rourkela, Durgapur and Bhilai steel plants, ministry of steel and mines drafted a policy for forming a holding company to manage all activities of these steel producing units. Consequently SAIL was established in 1973 with an authorized capital of Rs.2000.crores.

Products and services
SAIL manufactures and markets a wide variety of steel products for construction, railways, automobiles, defense, and engineering sectors. Steel products include bars and rods, hot and cold rolled steel coils and sheets, steel rails, plates, electrical sheets, galvanized sheets, alloy steels and stainless steel. SAIL is also credited of being among top two iron ore producers in India with its vast network of mines. SAIL also owns limestone and dolomite mines.

SAIL has its own Center for Engineering and Technology (CET), Research and Development Center for Iron and Steel (RDCIS) in Ranchi.

Financials
Steel Authority of India Limited with its asset worth of US $8.05 billion is largest public sector steel manufacturer in India. During April 2007- March 2008, SAIL achieved sales of US $7.88 billion and profits of US $1.45 billion.

Awards and recognition
SAIL was adjudged runner up as ‘Most Innovative Industry Resource’ organization by Baclubindia in 2007.


Current financial crisis
Demand for steel has gone down due to financial market crisis. This has led Steel Authority of India to adopt strong measures to counter this problem. Production of steel at company's Rourkela Steel Plan has been reduced. In October 2008, sales of saleable steel also saw a decline.


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