India's largest steelmaker SAIL has tasted failure and success in rather close succession in the past few years. If unutilised manpower, huge production cost pushed the steel behemoth towards extensive losses, a well-knit corporate plan coupled with a mammoth downsizing exercise brought the steelmajor back on the profit track in the last financial year. By 2012, consumption of steel in India is expected to reach around 55 to 60 million tonnes and SAIL has the comparative advantage to supply additional volumes at the most competitive cost to the nation. In its Corporate Plan-2012, which envisages spending in the range of Rs25,000 crore, the Steel Authority of India has formulated the strategy to enhance the domestic market share from the current level of 26 per cent to around 27 per cent. Meanwhile steel consumption of the country is projected to double from the current level of 30 million tonnes. This would be done through a mix of measures, which, include enhancing production and improving cost and quality competitiveness. The company would make rational investments and multiple managerial interventions to optimise resource utilisation. For realistic achievement, the plan has been split into two stages- the first stage pertaining to the period up to 2006-07 and the second stage up to 2011-12.
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