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Essar Steel has become the first Indian major to offer special-grade steel for a wide range of applications in land and naval defence system of the country.
The company is foraying into the high growth defence manufacturing sector by developing steel grades that find application in this sector. The estimated expenditure in defence sector over the next five years is expected to be over $200 billion.
Essar Steel has developed several products which are import substitutes as well as innovated to develop indigenous armour plate for ballistic protection, Dillip Oommen, Managing Director and CEO, said on Thursday.
Essar Steel’s import substitute products have been used in the construction of advance naval destroyers, offshore patrol vessels and floating docks. They also provide ballistic protection to combat vehicles and battle tanks. In addition, Essar Steel products are used in the construction of Coast Guard vessels and in the repair of naval ships.
He said the company aims to participate in the indigenisation of products used in naval defence, including naval destroyers, offshore patrol vessels used by both the Navy and Coast Guard, rocket launchers, floating docks and submarines. In land defence, their products are used for battle tanks, motor casing of missiles, mine protected and combat vehicles, military and civil vehicles, artillery guns.
Alongside growing domestic demand, these products also have a large export potential. Market estimates put the annual demand potential at approximately 2 lakh tonnes, of which 50 per cent is in flat steel and the remaining in structural steel.
The revised Defence Procurement Policy 2016 encourages “Make in India” and supports indigenous manufacturing of defence equipment and spares. The goal is to achieve an indigenisation level of 60-70 per cent against the existing 40 per cent.
Apart from saving foreign exchange for clients, it will bring about self-sufficiency and self-reliance, as well as position the country as an exporter of defence goods.
Defence expenditure
The Union Budget for 2017-18 outlays a defence expenditure of $$53.50 billion — up from $30 billion in 2009-10. About 80-90 per cent of defence manufacturing in India is dominated by the Defence Public Sector Undertakings (DPSUs) and the Ordnance Factories Board (OFB). However, several big corporate houses in India, foraying into this sector, have announced partnerships and expansion plans.
Hazira facility
Essar Steel has set up a 1.5 MTPA, 5-metre-wide steel plate facility at Hazira to meet the requirements of the defence sector. The plant has three types of rolling capabilities that make this mill a versatile plant capable of producing any grade of steel for defence applications, Dillip Oommen added.
Essar Steel’s R&D Centre at Hazira is approved by the Department of Science and Technology, Government of India.
The leading integrated steel producer has an overall annual production capacity of 10 MTPA supported by a 20-MTPA pellet facility. It produces over 300 grades of steel conforming to quality standards of international certification agencies. Essar Hypermart, caters to the requirements of the SME segment.
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