Steel Authority of India Ltd — the largest steel company in India. Not long ago, the Board of Directors of the company applied to the government of the country. In a statement, the company needs to launch the mining of coal in the country. Thus, it will be possible to provide local metallurgy coal. In this case, the company will be able to abandon the purchase of coal outside the country. Such a step would be able to contribute substantially to the metallurgical industry of the country. After the recent surge in coal prices, many companies in India suffered significant losses. For Steel Authority of India Ltd higher prices of raw materials, also negatively affected profitability of production.
According to statistics, now the company’s needs in coking coal provided by imports. P. K. Singh, Chairman of the Board of Directors of Steel Authority of India reported: «In a difficult time for the industry when the international market is experiencing extraordinary price fluctuations. Now just need to start developing Indian deposits of coking coal. It is important to meet the needs of local companies in the raw materials. Coal mining in India, will be able to maintain the profitability of steel companies. Besides, it is important to implement methods reasonable use of coal. This will help to achieve the most effective factor».
The Chairman of Steel Authority of India stressed the importance of expanding the production capacity of coal. Singh is confident that only thus it will be possible to maintain the growth of steel production. A company representative said that now efforts should be made to the development of new technologies in production. The method, which will use low quality Indian coal, will help to save on steel production.
Singh said: «the Modern market of metallurgy is a rapidly growing organism. Among manufacturers increases every year competition. The number of raw materials is rapidly declining. The production is expanding. And customers increasingly difficult to retain».
The head of Steel Authority of India Ltd recalled about the recent requirement of the government. The President has demanded to increase the output of steel three times. However, this can only be achieved fully by reviewing the business model of production. Besides, it is important to invent new strategies to attract new customers and retain old ones.