The ISA Steel Conclave 2019

Summary

The speaker, Mr. Rath, addresses the steel industry's challenges and opportunities, highlighting the successful acquisition of Tata Steel BSL through India's IBC insolvency policy. He emphasizes the importance of safety, environmental responsibility, and embracing technological advancements like hydrogen and gasification to reduce carbon footprint. He also calls for industry preparedness for emerging trends such as the shared economy and disruptions in construction and automotive sectors, urging proactive adaptation to rapid technological changes.

Takeaways

• 🏭 Tata Steel BSL is a significant acquisition, being the first large steel plant to be acquired under India's Insolvency and Bankruptcy Code (IBC).
• 📈 The plant has a robust list of market customers and is on track to reach a full capacity of 5.4 million tonnes, with an expected output of over 4.7 to 4.8 million tonnes this year.
• 🌐 The IBC process has the potential to unleash many capacities in the steel industry, benefiting not only Tata Steel but also other companies like SR Steel and Electro Steel.
• 🙏 The speaker expresses gratitude to the Government of India for implementing schemes that provide impetus to the steel industry.
• 🔐 Safety is a paramount concern for steel plants, which are inherently at a higher risk due to the presence of hot metal and gases.
• 🤝 Collaboration among industry players is crucial for learning from incidents and adopting technologies to enhance safety.
• 🌿 The Ministry of Steel has initiated a scheme encouraging steel plants to participate in making steelmaking safer for the industry.
• 🌍 Environmental concerns are significant, with a need for better maintenance, filters, and dusting systems, as well as exploring new technologies like hydrogen and gasification to reduce the carbon footprint.
• 🚫 Coke remains the largest contributor to the carbon footprint in steel production, which is a growing societal concern.
• 🔄 The industry must adapt to new emerging trends such as the shared economy, connected world, and disruptions in construction and automotive sectors, which may require different types of steel.
• 🚀 The pace of technological change is accelerating, and the industry needs to be agile and proactive in preparing for these changes.

Q & A

What significant acquisition did Tata Steel make in 2018?

Tata Steel acquired the BSL steel plant, which was the first large steel plant to be acquired under India's newly formulated policy of IBC (Insolvency and Bankruptcy Code), on 18th of May 2018.

How is the BSL unit performing in terms of production capacity?

The BSL unit is performing well and is on track to reach its full capacity of 5.4 million tonnes. This year, it is expected to surpass 4.7 to 4.8 million tonnes.

What is the current ranking of the BSL unit among steel plants in India?

The BSL unit is the fifth largest steel plant in the country today.

How has the IBC process impacted the steel industry?

The IBC process has helped to unleash many capacities within the steel industry, as evidenced by the acquisition of companies like Tata Steel, SR Steel, and Electro Steel.

What is a major concern for steel plants mentioned in the script?

Safety is a major concern for steel plants due to the inherent risks associated with hot metal and gases present in the plants.

What is the Ministry of Steel doing to promote safety in the steel industry?

The Ministry of Steel has launched a scheme asking all steel plants to participate and make steelmaking safer for the industry.

What are some of the environmental challenges faced by the steel industry?

The steel industry faces challenges such as managing emissions, maintaining mills, and implementing dusting systems to reduce environmental impact.

How can new technologies help reduce the carbon footprint of the steel industry?

New technologies like hydrogen and gasification can help reduce the carbon footprint, as they offer alternatives to coke, which is a significant contributor to carbon emissions.

What is the speaker's view on the pace of technological change in the steel industry?

The speaker believes that technological changes are happening faster than expected, and the industry needs to prepare itself for these rapid changes.

What emerging trends does the speaker suggest the steel industry should monitor?

The speaker suggests that the steel industry should monitor trends such as the shared economy, a connected world, and disruptions in construction and automotive sectors, as these will influence the demand and type of steel required.

What is the speaker's closing statement regarding the steel industry's future?

The speaker emphasizes the need for the steel industry to continuously adapt and prepare for new trends and technologies to stay competitive and relevant.

Outlines

00:00

🏭 Acquisition and Growth of Tata Steel BSL

The speaker begins by addressing the Minister of State and other dignitaries, acknowledging the importance of the gathering. They highlight the significance of Tata Steel BSL as the first major steel plant acquired under India's new Insolvency and Bankruptcy Code (IBC). The acquisition took place on May 18, 2018, and since then, the unit has shown impressive growth, with a strong customer base and a trajectory towards reaching its full capacity of 5.4 million tonnes. The speaker anticipates surpassing 4.7 to 4.8 million tonnes in the current year, emphasizing the unit's status as the fifth largest in the country. They express gratitude to the government for the IBC process, which has helped to unlock capacities in the steel industry, including other companies like SR Steel and Electro Steel.

🔐 Prioritizing Safety in the Steel Industry

The speaker emphasizes the critical issue of safety within steel plants, which are inherently at a higher risk due to the presence of hot metal and gases. They stress the importance of making safety a top priority and suggest that there is ample room for collaboration among industry players to learn from incidents and adopt safer technologies. The speaker specifically mentions a conversation with Mr. Jindal about Mr. Naveen Jim's factory, which is in close proximity to their own, indicating a willingness to share knowledge and best practices. They also thank the Ministry of Steel for launching a scheme that encourages steel plants to participate in making steelmaking safer for the industry.

🌿 Addressing Environmental Concerns in Steel Production

The speaker discusses the environmental challenges faced by the steel industry, outlining traditional methods of environmental management such as maintaining mills, installing back filters, and using dusting systems. They also mention the use of electric arc furnaces that utilize scrap, resulting in a lower carbon footprint. However, the speaker believes that technology must play a more significant role, particularly in the adoption of emerging technologies like hydrogen and gasification, which Mr. Naveen Jindal discussed. These technologies are crucial for reducing the carbon footprint, especially since coke is a major contributor to it. The speaker calls for the industry to be proactive in adopting these technologies to address societal concerns and maintain an active dialogue with the community.

🚀 Preparing for Emerging Trends in the Steel Industry

In the final part of the speech, the speaker addresses the need for the steel industry to adapt to new trends such as the shared economy, a connected world, and disruptions in construction and automotive sectors. They note that these trends will require different types of steel, and the industry must continuously monitor and adapt to these changes. The speaker warns that technological advancements are happening faster than expected, and the industry must be prepared to respond quickly to maintain its relevance and competitiveness. They conclude by thanking the audience for the invitation and expressing optimism for the upcoming sessions.

Keywords

💡Tata Steel BSL

Tata Steel BSL refers to a significant steel plant that was acquired by Tata Steel under the new Insolvency and Bankruptcy Code (IBC) policy in India. It is the first of its kind and is mentioned as one of the largest steel plants to be acquired in this manner. In the script, it is highlighted as a successful acquisition that has a good list of market customers and is on its way to reaching full capacity, making it the fifth largest in the country.

💡Insolvency and Bankruptcy Code (IBC)

The Insolvency and Bankruptcy Code is a legal framework in India that consolidates and amends laws relating to corporate insolvency and bankruptcy. It is used in the script to explain the process through which Tata Steel BSL was acquired, indicating that the IBC has facilitated the revitalization of the steel industry by enabling the acquisition of underperforming assets.

💡Full capacity

Full capacity in the context of the script refers to the maximum production output that a steel plant can achieve. The speaker mentions that Tata Steel BSL is expected to reach a full capacity of 5.4 million tonnes in the current year, with an anticipated production exceeding 4.7 to 4.8 million tonnes, signifying the plant's growth and efficiency.

💡Safety

Safety is emphasized as a major concern for steel plants due to the inherent risks associated with hot metal and gases. The speaker stresses the importance of prioritizing safety and mentions collaboration between different companies to learn from incidents and implement safer technologies. The Ministry of Steel is acknowledged for launching a scheme to make steelmaking safer for the industry.

💡Environment

The environment is a key theme in the script, focusing on the need for better environmental practices in the steel industry. The speaker discusses traditional methods such as maintaining mills and using dusting systems, as well as the adoption of electric arc furnaces that utilize scrap and reduce the carbon footprint. The role of emerging technologies like hydrogen and gasification is also highlighted as crucial for reducing the industry's environmental impact.

💡Carbon footprint

Carbon footprint is the total amount of greenhouse gases emitted directly or indirectly by a company or individual. In the script, it is mentioned as a significant contributor from the use of coke in steel production, which is a concern for society. The speaker calls for the adoption of new technologies to reduce this footprint and address societal concerns.

💡Electric arc furnaces

Electric arc furnaces are a type of industrial furnace used for producing steel from scrap metal. The script mentions these furnaces as a more environmentally friendly alternative to traditional steelmaking methods because they use less coke and thus have a lower carbon footprint.

💡Hydrogen

Hydrogen, as mentioned in the script, is an emerging technology in the steel industry that has the potential to reduce carbon emissions. It is suggested as a cleaner alternative to coke for steel production, indicating a shift towards more sustainable practices in the industry.

💡Gasification

Gasification is a process that converts carbon-rich materials into gas, which can be used for energy production. In the context of the script, it is presented as a technology that could help reduce the carbon footprint of the steel industry by offering an alternative to coke.

💡Shared economy

The shared economy is a socio-economic system where access to goods and services is shared among individuals, rather than each person owning their own. The script suggests that this trend, along with other emerging trends like the connected world and disruptions in construction and automotive industries, will influence the demand and type of steel required in the future.

💡Disruptions

Disruptions in the script refer to the significant changes or innovations that are expected to occur in various industries, such as construction and automotive, which will affect the steel industry. These disruptions will likely require different types of steel, necessitating that the industry adapts and innovates to meet new demands.

Highlights

Tata Steel BSL is the first largest steel plant acquired under India's new Insolvency and Bankruptcy Code policy.

Tata Steel acquired BSL on May 18, 2018 and it has become a very good unit with a strong list of market customers.

BSL is on track to reach full capacity of 5.4 million tonnes this year, surpassing 4.7-4.8 million tonnes.

The IBC process has helped unleash capacities in the steel industry, benefiting companies like Tata Steel, SR Steel, and Electro Steel.

Safety is becoming a major concern for steel plants, which have inherent risks due to hot metal and gases.

Collaboration and learning from incidents are key to improving safety in the steel industry.

The Ministry of Steel has launched a scheme to make steelmaking safer for the industry.

Environmental concerns are increasing in the steel industry, with a focus on reducing carbon footprint.

Technological advancements like hydrogen and gasification can help reduce the carbon footprint from coke usage.

Society is becoming more actively involved with the steel industry, raising concerns about environmental impact.

The steel industry needs to adapt to emerging trends like the shared economy and connected world.

Disruptions in construction and automotive industries will require different types of steel.

The industry must continuously monitor and adapt to technological changes happening faster than expected.

Technological advancements are coming at a rapid pace, requiring the industry to prepare for unforeseen changes.

The speaker expresses gratitude for the invitation and looks forward to productive sessions in the next two days.

Transcripts

Honorable Minister of State mr. coolest

a mr. Sachin gender

I am mr. omni mr. Rath mr. Naveen gender

mr. Mosca Chatterjee all the dignitaries

all my colleagues from the steel

industry a very good afternoon to all of

you I run the risk of being repetitive

in fact I am sure that I am going to be

repetitive so one way to end the speech

is to say just ditto but nevertheless I

want to just emphasize on few things you

must be aware that this Tata Steel BSL

which is probably the first largest

steel plant which was acquired by the

new formulated policy of comment of

India which was IBC insolvency in

bankruptcy code and this unit came to

Tata Steel on 18th of may 2018 almost

one and a half years it's a very good

unit it has got a good list of Markey

customers and it's on its path to the

full capacity which is about 5.4 million

tonne this year we would be crossing

more than four point seven four point

eight million tonne and it's a very good

asset and it's the fifth largest in the

country today so this unit through this

IBC process you will see that many of

the capacities will get unleashed like

whether it is our company whether it is

SR steel which you see you see Monat you

see electro steel so would like to thank

the government of India that how these

such schemes can really help providing

impetus to the steel industry now coming

back to some of the mega trends which

are which are going to with the steel

industry will face so we were we were

discussing all of them but I would like

to emphasize on two and three one is the

the safety part of it now safety is

becoming a big concern for the steel

plants you must understand that steel

plants have hot metal steel plants have

gases and hence inherently they have a

larger kind of risk in terms of safety

and it's very important that we take

that as one of the top most priority to

all of us

there's a lot of collaboration which can

be done in fact I was just telling mr.

Jindal that mr. Naveen Jim does Factory

which is very close to our Factory

there's a lot of collaboration which we

do in this area we learn from what all

incidents happen we also try to look to

talk to the technologies to find ways

and means to make the things safer so

this is one area which we need to

concentrate in fact I would like to

thank Ministry of Steel because they

have also launched one scheme where they

are now asking all the steel plants to

participate and make steelmaking Massey

for industry the second one is

environment now in environment obviously

you have the tested ways of handling

environment which is having better

maintained mills having back filters new

dusting systems bla bla bla then you

have standard items like using more of

electric arc furnaces they use you scrap

and the carbon footprint is much lower

but I think here probably technology has

to play a role in the way the new

technologies are emerging what we see is

that whether it's hydrogen whether it's

mr. Naveen Jindal talked about

gasification I think these are some of

the things which has to come as quickly

as possible to the industry because coke

continues to be the biggest contributor

of carbon footprint and that is causing

concern among the society and today's

society participate very actively with

the industry so I think we need to take

up these matters very consciously with

lot of alacrity the last point which I

would like to make is that the industry

also need to prepare itself to the new

emerging trends which we are seeing

whether it is shared economy whether it

is connected world whether you see

disruptions which will happen in in the

way then the buildings are being

constructed or you already seeing some

disruption in the automotive and all of

them would require steel but probably

would require steel which is of a

different kind and that is one area

which as an industry I think we need to

look at continuously monitor them

because sometimes what we are finding is

that these trains come to us faster than

what we expect we normally think that

big thick

logical changes happen in 10 15 20 years

but the way some of the technologies are

coming they're coming so fast so I think

that is one area which as an industry we

need to prepare ourselves for so with

these thoughts

thanks a lot once again is a to have

invited us and have a good sessions in

the next two days thank you