Large steel mills grow larger on improved supply-chain efficiencies: Crisil

Market share gain, deleveraging makes room for capex revival

Large steel makers took huge strides in terms of both operations and financial performance last fiscal, increasing their market share by 500 basis points (bps) on-year to 58 per cent despite their share of industry capacity remaining  unchanged, said a Crisil report today.

The improvement was driven by supply-chain efficiencies, higher exports, and captive mines that limited the impact of iron ore shortage, said the report.

Their capacity share is expected to increase this fiscal in FY22 after Sajjan Jindal-led

Dolvi plant expansion of 5.6 million tonne comes on stream.

Higher exports helped counter lacklustre domestic demand for large steel makers (especially