Last week, World Steel Dynamics, a market services firm based in New Jersey, ranked Korea’s Posco at the top of its list of world-class steelmakers. Ranked right behind Posco at #2 is India’s SAIL, formerly known as the Steel Authority of India Limited. According to the service, the ranking is based on 23 parameters including size, expansion plans, adaptation of new technology and products.
Four other Indian steel companies also feature for the first time among the top 32 world steel companies. These include, Rashtriya Ispat Nigam — rank 30, Essar Steel (20), Tata Corus (10) and JSW Steel (7).
SAIL is also looking to tap overseas market for building raw material security. It is scouting to buy coking coal mines in Australia, Africa, Brazil and Canada. SAIL is currently in the midst of $17 billion expansion of hot metal capacity from 13 million tons to 23.6 million tons by 2012. This would put the company among the top three steel makers globally.
SAIL is also expected to tap the equity market by September this year with a public offering involving sale of 10% of its equity. The majority stockholder, India’s govebernment has already approved a plans for the company offer 20% of its equity involving the government offloading 10% stake in the company and the steel PSU issuing fresh equity shares in the same proportion (10%). This will happen in two phases, starting in September.