Maier+Vidorno

Metallurgy & Mining Industry

Home/Industry Expertise/Metallurgy & Mining Industry

METALLURGY & MINING SECTOR OVERVIEW

Statistics, news & updates: everything you need to know about the Metallurgy & Mining Industry in India

Metal and Mining

Growth Drivers​

  • The private sector became the dominant player in mineral production in 2017-18 (excluding atomic, fuel, and minor minerals), accounting for 67% of total value (USD 5.26 billion crores).​

  • India’s metals and mining industry is booming thanks to increased infrastructural development and automobile manufacturing.​

  • The NHAI completed the building of 136,440 kilometers of national roadways in FY21.​

  • Over the years, revenue has increased significantly. In FY21, Indian Railways earned US$ 16.17 billion from freight loadings.​

Sub industries​

  • Metal components

  • Metalworking & fabrication​

  • Rolled, Extruding & Drawn metals and non-metals​

  • Spring & wire products

  • Valves & Bearings​

Opportunities

  • To help MSMEs, the government decreased the customs duty on non-alloy, alloy, and stainless-steel semis, flats, and long items to 7.5 percent in the Union Budget 2021.​

  • With the implementation of the National Mineral Policy in 2019, India presents a significant investment opportunity.​

  • In the Union Budget 2021, the government proposed a drop in import duty on copper scrap from 5% to 2.5 percent to encourage copper recycling in India.

  • Steel output in India is increasing rapidly as companies (such as Tata Steel) commission new projects.​

Challenges

  • Mining can be a hazardous occupation. Traditional occupational hazards such as coal dust inhalation, hearing loss due to mine noise, and chemical hazards still exist, but the changing nature of mining has given rise to a slew of new concerns.​

  • One of the most significant difficulties confronting the mining industry is capital access and allocation.​

  • Challenges that are faced by the metal and mining industry are resources scarcity and quality, shortage in talent, volatility of commodity prices and environmental footprint.​

    How we can help you:
    – Product-Pricing analysis

    – Strategies for – product/service localization

    – Market research to sell effectively

Summary/Snapshot​

  • In FY20, India ranked third in coal production and fourth in iron ore production. India’s mining sector is one of the country’s most important industries. Many key industries rely on it for essential raw resources.​

  • With a 3 percent stake in the global biotechnology sector, India is one of the top 12 biotechnology destinations in the world.​

  • To boost domestic production, the sale of coal for newly granted captive coal blocks has been allowed to account for 25% of total production. Iron ore, bauxite, chromium, manganese ore, baryte, rare earth minerals, and mineral salts are among the country’s abundant resources. In FY21, the country produced 189 million tonnes of iron ore.​

  • By 2030-31, the National Steel Policy seeks to increase per capita steel consumption to 160 kg. The government has set a goal of raising rural steel consumption from 20 to 38 kgs per capita.​

  • The Indian government has placed a 30% export charge on all iron ore forms (excluding low-grade ore) and a 5% export duty on pellets.​

  • In FY21, India’s coal production was 715.95 MT. Coal production reached 516 lakh tonnes in April 2021.​

  • India was the world’s fourth-largest producer of aluminum, (5% of worldwide output). India’s production capacity has expanded to 4.1 MMTPA in the last four years, driven by an US$ 18.54 billion investment.​

  • There are 1,531 active mines in India. India produces 95 minerals, including four fuel minerals, ten metallic minerals, 23 non-metallic minerals, three atomic minerals, and 55 minor minerals (including building and other materials). ​

  • Metallic mineral production grew in the country from US$ 5.14 billion in FY16 to US$ 6.79 billion in FY21E. Non-metallic mineral production grew from US$ 1.16 billion in FY16 to US$ 1.24 billion in FY21 during the same period.​

Mining and Metallurgy

Key Investment Opportunities​

  • Permission granted to captive mines to sell coal in the open market.​

  • Only 20% of the total reserves have been mined till now.

  • Rising demand from infrastructure and transportation sectors with schemes such as Housing for all by 2022 and expansion of railway network.

  • Production Linked Incentive scheme of US $85 million in the specialty steel sector has been introduced under Atmanirbhar Bharat 3.0 package​

COVID Impact​

How has COVID affected the industry?

  • India’s metal sector has been severely impacted by COVID-19 in the year to date, and we expect metal production to experience a slow recovery back to pre-pandemic levels in the coming quarters.​

  • The mining and metals sector was allowed to continue operations, worker absenteeism was rife and most companies operated at 60 per cent of capacity.​

  • Some industry players in mining will be more affected than others by the new set of challenges facing the industry.​​

Outlook for the Mining and Metallurgy industry post-Covid

  • The near-term outlook for the mining industry remains strong as pent-up demand emerges post-pandemic while prices are expected to remain elevated. ​

  • In the longer term, the sector will capitalize on raw material needs critical to the global energy transition efforts.​

Key Players in India

National

  • Tata Steel​

  • Steel Authority of India​

  • NMDC Ltd.​

  • JSW Steel​

  • Accurex Steel Rolling Mills​

  • SRB International​

  • BEML​

     

  • Larsen & Toubro​

International

  • NSL Consolidated​

  • BHP Billiton​

  • Rio Tinto​

  • Vedanta Resources

  • JFE Steel Corp.​

  • China Steel Corp.​

  • John Deere

  • Joy Global

  • Caterpillar Corp.​

  • JCB​

 

  • Terex Corp.​

 

Map Clusters

Map- Clusters - Metallurgy & Mining Industry
How we can help you

Contact Us For More Case Studies




    Case studies of Specific IndustrySpecific query about industry or M+V services

    I have read the privacy policy and my data can be used for registration and communication.


    Yes, I agree

    Clients Speak

    LI Ping HR Director /BHS Corrugated Machinery(Shanghai) Co.Ltd

    Strong support in recruitment
    M+V is very professional in India HR market. They were able to provide us with strong support in our recruitment. We are satisfied with their service.

    Falk Tzchichholz Sales Manager Export /Kjellberg Vertrieb GmbH

    Incubation solution
    With the incubation solution from Maier + Vidorno , we successfully placed our products in the Indian market and established valuable product market presence, which we can now build on further with our subsidiary

    Andreas Dauerbock Quality Assurance /Voestalpine Grobblech GmbH

    BIS registration project
    The BIS registration project went smooth and efficient. We are very satisfied with the way the documentation, communication and inspection on-site was handled from the Maier+ Vidorno Team. We are happy to recommend working with M+V in India - with the expert's advice you will need.

    Rajesh Nath Managing Director /VDMA India Services Pvt Ltd German Engineering Association

    Competent Partner
    India has great investment potential for foreign companies if you manage the highly complex business environment professionally. Our experience shows - Maier+Vidorno is a competent partner to efficiently set up and run business.

    Bjoern Becker Export Sales /Jumo GmbH & Co KG

    Market Presence and Profitability
    The cooperation of JUMO and Maier+Vidorno is a success story in India since 2008. Our sales, market presence and profitability in India shows constant growth. M+V knows about the challenges foreign companies face while doing business in India - and provides hands-on solutions.

    Rene Pluss CFO, Member of the Board /Regent Beleuchtungskorper AG

    Business Diagnostic and Implement Improvement
    Maier+Vidorno understands business challenges in the Indian business environment and provides solutions with the help of its experts. M+V has experience in running business diagnostics and implement improvement and expansion strategies in various industries in India.