NEW PLAYERS CREATE DENTS IN STEEL MARKETING RULES
Article Abstract:
The latest price wars initiated by new firms in the steel market have forced well established companies like the Steel Authority of India Ltd (SAIL) and Tata Steel (TS) to take up precautionary measures in the prime markets of western and southern India. The new flat steel manufacturing firms, instead of quoting their own price for steel products, are offering a discount over the price quoted by the established players. This move of these new companies has affected the growth of leading steel companies. It has brought about a dent in the market shares of leading steel manufacturers such as SAIL, TS, Essar Steel and Jindal Vijaynagar Steel. SAIL incurred a net loss of Rs311 crore in the first quarter of 1998-99, while TS posted 60 percent drop in its net sales during the period. (gs)
Comment:
India: Latest price wars initiated by new cos in steel mkt have forced well established cos to take up precautionary measures
Publication Name: Economic Times
Subject: Business, international
ISSN: 0013-0389
Year: 1998
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7 STEEL PROJECTS MAY GET MORE FUNDS FROM FIs
Article Abstract:
Seven steel projects are being considered for additional funding and rescheduling of old loans by financial institutions (FIs). FIs are said to be considering additional funding of about Rs1500 crore for Jindal Vijaynagar Steel, Ispat Industries, Malvika Steels, Usha Ispat and Rajinder Steels. The FIs are reviewing the possibility of rescheduling the old loans of Essar Steel. The funding of these projects will depend upon the promoters complying with the conditions laid down by the FIs including pledging their holdings and monitoring cash flows through a trust and retention account. The promoters will also have to bring in about Rs300 crore as their contribution. (khr)
Publication Name: Economic Times
Subject: Business, international
ISSN: 0013-0389
Year: 1998
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STEEL AUTHORITY OF INDIA LTD
Article Abstract:
The Steel Authority of India Ltd (SAIL) is the biggest integrated producer of steel in India. It has an installed production capacity of 9.12 million tonnes. It operates alloy steel plants and markets stainless steel also. SAIL's profits are likely to suffer as it is not able to control costs in a restricted economy. The price of steel in the international market is likely to be low due to supplies from Korea and Taiwan. Recession in the global steel industry and over-capacity in India will hit SAIL's prospects. SAIL suffered a net loss of Rs3.11 billion in the quarter ended June 30, 1998. The SAIL scrip is traded at Rs6.15. (uh)
Publication Name: Economic Times
Subject: Business, international
ISSN: 0013-0389
Year: 1998
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