Ministry of Steel launches request for consulting proposals
Leading consulting firms have been called upon to help India’s steel sector navigate the challenges posed by the Covid-19-induced downturn. The Ministry of Steel has put out a request for proposals, inviting pitches from India-based consultants.
The project at hand is wide and versatile. Much has been written about the impact of Covid-19 on domestic and global supply chains, as borders close and social distancing regulations put restrictions on manufacturing. Prospective consulting firms are expected to help the steel sector navigate this scenario.
For starters, the selected consulting firm(s) will have to clearly identify the most pressing challenges for India’s steel industry, which spans integrated steel and secondary steel. Disruptions to the supply chain included, the scope of the analysis will also incorporate shifts in the cost of raw material and labour as a result of the crisis.
Then there is analysis of pricing, as well as a run down of shifts in global trade dynamics, all of which are included in the consulting mandate. Once these challenges have been analysed, the consultants are expected to provide recommendations to tackle each of the issues.
Proposals will be submitted to a Joint Plan Committee (JPC) established by the Ministry of Steel specifically to steer the steel sector through the crisis. The selected consulting firm(s) will then work in collaboration with the JPC.
Steel is the backbone of India’s metals & mining sector, and the Ministry is already engaged in a number of other initiatives to support the sector. Minister of Steel Dharmendra Pradhan has reportedly met with leaders in the railway ministry, the Institute of Steel Development and Growth, as well as the Steel Authority of India (SAIL) to deliberate on setting up steel fabrication units across the country.
Plans are already being developed for a cluster of such units in Chhattisgarh, while similar plans are expected to follow for other regions. A boost to India’s steel manufacturing will help an overall drive to increase India’s manufacturing capacity, particularly as the country looks to capitalise on gaps in the global supply chain that have emerged in the wake of the crisis.
The consulting industry will be quick on its feet to support this process. Leading consulting firms such as Alvarez & Marsal, McKinsey & Company and Roland Berger have all previously worked with major steel companies in India to develop action plans or help with restructuring.
