Mr LN Mittal CEO of ArcelorMittal said that despite the expanding steel making capacity in India, the country is set to face a massive shortfall in supply in the coming decades.

Mr LN Mittal estimated this could be as high as 33 million tonnes by 2020, is equivalent to two thirds of the country's current output.

Making his presentation at the annual Investor Day, simultaneously in London and New York, Mr Mittal said that shortfall in supply is expected to increase rapidly from 2015, leaving a potential 30 million tonne to 33 million tonne gap to be filled.

Against a current capacity of 51 million tonnes, he projected the supply base to increase to 131 million tonnes (based on projected expansion plans of all steel makers in India) by 2019. Demand during this period, he said, would expand from a current level of 56 million tonnes to 150 million tonnes in 2019 and to 164 million tonnes by 2020.

Mr Mittal said that "ArcelorMittal is a stronger company after the global economic crisis. We now have more efficiency, a stronger balance sheet, lower costs and a very clear steel and mining growth strategy keeping in line with our financial objectives."

(Sourced from BS)