Steel Authority of India Ltd. (Sail) is targeting 50 billion
rupees ($786 million) in savings through cost optimization
initiatives over the next three years.
Indian steel companies
are facing the dual challenge of high production costs and
lower sales, Sail said Sept. 12, noting that the cost of
production is being driven up by volatility in the price of
coal, higher railway freight costs, power tariffs, royalties on
minerals and the depreciation of the rupee.
At the same time,
prices are flat due to prevailing market conditions, leading to
strong pressure on margins.
A company spokesman
didnt respond to AMM sister publication
Steel Firsts queries about the details of the
Sail is Indias
largest government-owned steel company and its second-largest
steel company overall, with an installed annual steel
production capacity of 3.5 million tonnes. The New Delhi-based
company plans to increase this to 50 million tonnes by
A version of this
article was first published in AMM sister publication Steel