The merchant sponge iron manufacturing industry is highly fragmented, and the company competes against a number of marginal players, having low production capacities, primarily based in Eastern India. While most of the sponge iron manufacturers have integrated manufacturing facility and primarily focus on steel making, they also sell sponge iron in the market on an intermittent basis. TSLP believes that its position in relation to the competitors will largely depend on its ability to anticipate and proactively respond to various competitive factors impacting the industry, including product quality, pricing strategies, ability to source raw materials cost effectively and increase production efficiencies. Being an intermediary product, the competition faced by our end customers also impact our business at time, in a way.
The long and special steel products industry is moderately fragmented, and business is characterised by way of competition from a number of domestic steel producers in India. Further, the quality expectations of customers and end-users creates a high barrier for entry into this industry.