Estimating Market Attractiveness of Long Products in India for World’s Leading Integrated Steel and Mining Company

Automotive Consulting Firms

Client Challenge

The client was a leading global steel producer, interested in entering the Indian steel market, and wanted to develop a thorough understanding of the long products market in the country. As such the client hired UC Strategy to conduct a study to assist them in landscaping and assessing the Indian long products industry

 

Our Approach

In order to conduct the market study for long products, UC Strategy used the following approach:

  • As a part of the assignment conducted interviews and had in-person discussions with more than 230 industry respondents
  • Conducted detailed discussions with top management to gain perspective on their existing understanding of long products market on the following aspects
    • Product
    • Customer segments (Application segment/sub-segment)
    • Grades (Plain Carbon Steel, Stainless steel, Alloy steel)
    • Geography (Consumption cluster dynamics)
  • Undertook market segmentation:
    • Segmented product (bars, sections, rods, channels, wire rods, sheet piles, rails etc. ) based on
      • Application segment & sub-segment
      • Construction
      • Bridges
      • Dams
      • Real estate – Commercial
      • Real estate – Residential
      • Port, etc.
    •  Engineering
      • Heavy engineering – Capital goods, Transport equipment etc.
      • Light engineering – Casting, forgings, fasteners etc.
    • Defense
  • For each product category gain insights into:
    • Common sizes & grades in various product segments, end application
    • Geographical Portfolio – major clusters by application industry
    • Demand drivers & Inhibitors
    • Channel of sales
    • Analysis of Imports
    • Upcoming capacities of players
    • Upcoming projects that will drive a sustainable demand scenario
    • Value Chain for long products (esp. sections/ sheet piles)
  • Undertook customer analysis, this included:
    • Identified key stakeholders within each segment/sub-segment:
      • End users/developers
      • OEM’s
      • EPC / Consultants
      • Channel members
      • Intermediates (Forgings, converters etc.)
    • Gain insights into
      • Buying process and pattern
      • Role of value chain entities
      • Key influencers
      • Stage of finalization of steel grades
      • Procurement cycle
    • Products used
      • Grades
    • Current suppliers (Domestic vs. imports)
      • Quantities purchased
    • Need Gap analysis by product used
    • Quality
      • Consistency in surface quality
      • Close dimensional tolerances
    • Delivery – lead times, freight
    • Availability etc.
  • Undertook a detailed competition analysis, this included the following analytics of competitors:
    • Market share
    • Current installed capacity
    • Upcoming capacities
    • Range of product/ grades offered
    • Industry segment focus
    • Geographic focus
    • Planned strategy
    • Channel of sales

Our Impact

Identified product opportunities for the client. Segmented the opportunity and suggested geographic spread for the same. Worked out the financing for the opportunities suggested.

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