Rourkela Steel MD sees bright future for industry
Statesman News Service
ROURKELA, Dec. 30. — The future of the steel market world over, especially in India, is very bright and there is nothing to worry about any downslide, according to Dr Sanak Mishra, the MD of the Rourkela Steel Plant, who is due to retire.
In an exclusive interview to The Statesman, the media-shy MD, who is credited with one of the most dramatic turnarounds in steel industry, said: “There is nothing to worry about the market potentiality of steel industry at least for the next 15-20 years and as such Indian consumption will also touch a level of 100 million tons by 2020. The picture is really encouraging and by that time India will be producing over 100 million tons of steel. However, he added that there would be definitely some ups and downs, “ as these are features of the steel industry or for that matter any industry”.
The erudite man who had a doctorate in the metallurgical engineering was optimistic that with the economy constantly registering 7 - 8 per cent growth in India enough infrastructure will be made to keep the market buoyant for a very healthy period.
The techno-savvy and HR expert, whose SAMSKAR movement is now considered as one of the most successful experiments in Indian corporate history, was confident that the big players would not eclipse the small operators. However, he had a word of caution for the smaller operators “In order to remain in the market they have to indulge in good product mix and specialisation to give the necessary market niche for which there will be definitely a demand of their products.”
And the best way to achieve that place in the market, Dr Mishra had some advice for them. “ They must be cost competitive instead of waiting for a higher price always as price is market driven. They must be able to cut their production cost in order to remain aggressive in the market.
He felt the promoters of the smaller units should remain committed to the industry and there shall not be any deviation in their priorities and must give a thrust on their product basket and find out their strengths and bring in necessary adjustments in their product ranges. Citing an example he said: “By today’s standards among integrated steel plants, RSP is a small unit with producing only 1.8 million ton per annum, however, “we are the only unit with such a wonderful bag of product mix and we are also the only unit in the country which sells only finished products, so like us for the smaller units there is no need to feel scared.”
Despite such encouraging notes for the smaller players Dr Mishra thinks that there will be definitely some consolidation in the industry by mergers. And this started with the merger of the British Steel and Hoogevens of Holland to form Corus and at the same time some other European units got together to form Arcelor.
When asked about his view on the Posco project he felt such units would definitely open the door for more investments. However, when he was asked about the ‘import of iron ore clause due to low quality of the raw materials available in the state’ in the recent MoU between Posco and the government, he refused to comment.
He saw a region comprising Orissa, Jharkhand and Chattisgarh becoming the steel hub of the world. “ Sort of Ruhr-belt on this part of the world, for which there is such a rush to this area from all over the world.”
Speaking on the quality of the raw materials he said: “Sail is sourcing its iron ore from this region and we have not faced any problem, and of course the quality of the ore depends from where you are sourcing.” And when the quality of ore is low the standard practice in all the plants is to go for ore blending to get the required quality.
Asked to comment from his experience in RSP on downstream industrialization, he said: “Over Rs. 60 crore order has been placed this year with the local ancillary units and with God’s grace it will go up to Rs 100 crore in the coming years. His advice to the local units was that they must invite investments to undertake bigger, better and sophisticated services.
Informing about the future projects of RSP he said, “ between 2004 - 12 another Rs 4000 crore will be invested as part of up-gradation. And we will get the fifth blast furnace of 2000-meter cube by 2009 - 20010.
