STEEL PRODUCTS MANUFACTURING
[EIRI/EDPR/4754] J.C.: 2974US$
INTRODUCTION
TANZANIA OVERVIEW
Tanzania is one of Africa's fastest growing economies, with diverse natural resources and a youthful population. USAID helps empower women and youth who are essential to the country's continued development but are among the most marginalized citizens. Women's salaries, for example, are on average 63 percent lower than those paid to men, while female-owned businesses make 2.4 times less profit. Youth under age 15 make up 45 percent of the country's population of 55 million. Increasing access to economic and educational opportunities for young people will go a long way in helping ensure prosperity for all.
OPPORTUNITIES
BUDGET OVERVIEW
Despite the economic challenges born from Russia’s war on Ukraine, an increase in commodity prices, and a stronger American dollar, the Tanzanian economy performed satisfactorily in 2022. President Samia Suluhu Hassan’s administration looks to sustain the growth nurtured throughout the implementation of the country’s 3rd Five-Year Development Plan (FYDP III) 2021/22 – 2025/26, while tackling the obstacles facing the economy. Real GDP growth was 4.7% compared to 4.9% in 2021. The growth of the GDP was mostly driven by agriculture (15.6%), construction (11.8%), and manufacturing activities (8.1%). In 2023, the GDP is projected to grow by 5.2% - catalyzed by growth of credit to the private sector, improving business and investment conditions, and the continued rebounding of the tourism sector.
COST ESTIMATION
Plant Capacity 400 MT/Day
Land & Building (20 Acres) US$ 19.35 Lac
Plant & Machinery US$ 79.63 Lac
Working Capital for 1 Month US$ 53.54 Lac
Total Capital Investment US$ 1.54 Cr
Rate of Return 87%
Break Even Point 34%
CONTENTS
INTRODUCTION
TANZANIA OVERVIEW
OPPORTUNITIES
BUDGET OVERVIEW
KEY SECTOR HIGHLIGHTS
MARKET OVERVIEW
TANZANIA ECONOMY
INTRODUCTION TO THE ECONOMY OF TANZANIA
THE TANZANIAN ECONOMY IN 2022, 2023, AND BEYOND
TANZANIA KEY ECONOMIC SECTORS
TANZANIA INFLATION
TANZANIA EXCHANGE RATES
TANZANIA BALANCE OF TRADE
TANZANIA NATIONAL DEBT
TANZANIA FOREIGN DIRECT INVESTMENT (FDI)
INDUSTRIALIZATION
TANZANIA 2025 VISION:
TANZANIA GOVERNMENT’S PRIORITY:
RULES ®ULATIONS IN TANZANIA
TANZANIAN FINANCE ACT, 2023 ANALYSIS
DIGITAL SERVICE TAX (DST)
INCOME TAX ON REALIZATION OF INTEREST IN LAND OR BUILDING
THE FOLLOWING CHANGES HAVE BEEN MADE IN RELATION TO WITHHOLDING TAX REQUIREMENT.
INCOME TAX EXEMPTION
THE FOLLOWING ARE EXEMPTED FROM INCOME TAX:
PRESUMPTIVE TAX REGIME
VALUE-ADDED TAX (VAT)
THE FOLLOWING CHANGES HAVE BEEN MADE WITH RESPECT TO INVOICE REQUIREMENTS:
VAT DEFERMENT ON CAPITAL GOODS
THE FOLLOWING CHANGES HAVE BEEN MADE WITH RESPECT TO VAT DEFERMENT ON CAPITAL GOODS:
ELECTRONIC SERVICES
ZERO-RATED SUPPLIES
INPUT TAX CREDIT
VAT EXEMPTIONS
EXEMPTIONS ON IMPORTS AND LOCAL SUPPLIES
IMPORTS AND SUPPLIES OF THE FOLLOWING ITEMS ARE EXEMPTED FROM VAT:
TAX ADMINISTRATION ACT
APPLICATION FOR REFUND
STORAGE FACILITY
FINE FOR FAILURE TO USE FISCAL DEVICE
DISCLOSURE OF INFORMATION ON CONTRACTED SERVICES
EXCISE (MANAGEMENT AND TARIFF) ACT
PERIODIC ADJUSTMENTS
ADJUSTMENT OF EXCISE DUTY RATE
VOCATIONAL EDUCATION AND TRAINING ACT
CHANGES IN OTHER LAWS
THE ACT HAS ALSO AMENDED THE FOLLOWING LAWS:
MINING ACT
GAMING ACT
EXPORT TAX ACT
ELECTRONIC AND POSTAL COMMUNICATIONS ACT
NATIONAL PAYMENT SYSTEMS ACT
LOCAL GOVERNMENT FINANCE ACT
LOCAL GOVERNMENT AUTHORITIES (RATING) ACT
APPLICABLE RATES FOR PROPERTY TAX ARE INCREASED AS FOLLOWS:
ROAD AND FUEL TOLLS ACT
FOREIGN VEHICLES TRANSIT CHARGES ACT
IMPORTANT REGULARITIESORGANIZATION/BODIES IN TANZANIA
STEEL INDUSTRY
GLOBAL ECONOMY OUTLOOK
CHART 1: GLOBAL GROWTH OUTLOOK PROJECTIONS (REAL GDP, Y-O-Y CHANGE IN %)
ADVANCED ECONOMIES GROUP
EMERGING MARKET AND DEVELOPING ECONOMIES GROUP
TABLE: GDP GROWTH TREND COMPARISON - INDIA V/S OTHER EMERGING AND DEVELOPING ECONOMIES (REAL GDP, Y-O-Y CHANGE IN %)
GLOBAL & INDIAN STEEL INDUSTRY
GLOBAL STEEL PRODUCTION
GLOBAL PER CAPITA CONSUMPTION (IN KG)
REGION-WISE GLOBAL CAPACITY IN CY22 (IN MT)
GLOBAL STEEL PRODUCTION
GLOBAL CRUDE STEEL PRODUCTION
STEEL PRODUCTION GEOGRAPHICAL REGION IN CY22- 1,885 MT
GLOBAL STEEL CONSUMPTION
GLOBAL STEEL DEMAND
STEEL TUBES & PIPES INDUSTRY
SWOT ANALYSIS
GLOBAL MACROECONOMIC VIEW
GLOBAL GDP GROWTH TO STAY MODERATE
GLOBAL ECONOMIC REVIEW AND OUTLOOK
USA:
EURO AREA:
JAPAN:
UK:
CHINA:
CPI INFLATION REVIEW AND OUTLOOK
DOMESTIC FOCUS TO RESTRICT WORLD TRADE GROWTH IN 2023
WORLD TRADE IN GOODS AND SERVICES
SUPPORTIVE POLICY ENVIRONMENT TO MAKE INDIA KEY DESTINATION UNDER CHINA PLUS ONE
STRUCTURE OF STEEL INDUSTRY
TYPES/DEFINITION OF STEEL
BY PRODUCT
BY COMPOSITION
INDIA’S POSITION IN THE GLOBAL STEEL MARKET
GLOBAL CRUDE STEEL PRODUCTION FROM 2018 TO 2022 AND SHARE OF MAJOR COUNTRIES IN CY 2022 (MT)
GROWTH IN INDIAN FINISHED STEEL DEMAND VIS-À-VIS GLOBAL FINISHED STEEL DEMAND
PER CAPITA STEEL USAGE IN INDIA VIS-À-VIS GLOBAL BENCHMARKS FOR CY 2022 (IN KG)
INDIAN STEEL SECTOR REVIEW AND OUTLOOK
FINISHED STEEL DEMAND REVIEW BY STEEL TYPE
FINISHED STEEL DEMAND REVIEW BY PRODUCT TYPE
WIRE RODS PRODUCTION TREND
WIRE ROD PRODUCTION REVIEW AND OUTLOOK
• BUILDING AND CONSTRUCTION
• INFRASTRUCTURE
• AUTOMOTIVE
INDIAN FINISHED STEEL DEMAND GROWTH
FACTORS AFFECTING STEEL MARKET VALUE CHAIN
STEEL WIRES MARKET ASSESSMENT
INTRODUCTION TO STEEL WIRES:
FEW OF THE APPLICATIONS OF STEEL WIRES HAS BEEN HIGHLIGHTED BELOW:
DEMAND TREND FOR STEEL WIRES
WIRES DEMAND REVIEW AND OUTLOOK
DEMAND SEGMENTATION BY END USER INDUSTRY FOR STEEL WIRES (BASED ON VOLUMES)
KEY END USER INDUSTRY GROWTH DRIVERS
INFRASTRUCTURE
AUTO
POWER CABLES
CONSUMER GOODS/KITCHEN ACCESSORIES
TRADE ANALYSIS FOR STEEL WIRES
STEEL WIRE IMPORT EXPORT TREND
COUNTRY WISE EXPORT SPLIT FOR FISCAL 2023
STEEL WIRES DEMAND TREND BY TYPE OF WIRE
STEEL WIRES SEGMENTATION BY TYPE OF WIRE
SPECIALITY WIRES MARKET
DEMAND OUTLOOK BY TYPE OF SPECIALITY WIRES
LRPC WIRES DEMAND OUTLOOK
MANUFACTURING PROCESS
BELOW IS THE TYPICAL PROCESS INVOLVED IN MANUFACTURING OF DIFFERENT WIRES
STEEL WIRES INDUSTRY STRUCTURE
PLAYER WISE MARKET FOR STEEL WIRES IN FISCAL 2023
COMPETITION BENCHMARKING OPERATIONAL BENCHMARKING
PRODUCT PORTFOLIO MAPPING OF KEY PLAYERS
PROFILE OF KEY STEEL WIRE MANUFACTURERS (FISCAL 2023)
FINANCIAL BENCHMARKING
PEER COMPARISON FOR FISCAL 2023 (RS MILLION)
COMPARISON OF RETURN ON CAPITAL EMPLOYED (IN TIMES)
COMPARISON OF RETURN ON EQUITY (IN %)
APPLICATION LANDSCAPE OF DIFFERENT TYPES OF STEEL WIRES
ACTIVITIES UNDERTAKEN BY THE COMPANY FOR MANUFACTURING ARE SUMMARIZED IN THE FOLLOWING CHART:
INTRODUCTION OF THE UNCOILER;
TIG WELDING PROCESS:
SIZING SECTION:
CUTTING SECTION:
FINISHING PROCESS
STRAIGHTENING PROCESS:
POLISHING
MANUFACTURING PROCESS
INTRODUCTION:
USES & MARKET POTENTIAL:
MANUFACTURING PROCESS:
PLANT & MACHINERY MANUFACTURER
VESSEL SUPPLIERS
MIXER
PROJECT LOCATION: COUNTRY
(TANZANIA COUNTRY PROFILE)
GEOGRAPHY
AREA AND POPULATION
CLIMATE
THE CAPITAL CITY
ADMINISTRATIVE REGIONS AND DISTRICTS
CULTURE
POLITICS
ECONOMY
CURRENCY
DOCUMENTS REQUIRED FOR LICENSES
LIST OF DOCUMENTS:
PRINCIPLES OF PLANT LAYOUT
STORAGE LAYOUT:
EQUIPMENT LAYOUT:
SAFETY:
PLANT EXPANSION:
FLOOR SPACE:
UTILITIES SERVICING:
BUILDING:
MATERIAL-HANDLING EQUIPMENT:
RAILCOADS AND ROADS:
MAJOR PROVISIONS IN ROAD PLANNING FOR MULTIPURPOSE SERVICE ARE:
PLANT LOCATION FACTORS
PRIMARY FACTORS
1. RAW-MATERIAL SUPPLY:
2. MARKETS:
3. POWER AND FUEL SUPPLY:
4. WATER SUPPLY:
5. CLIMATE:
SPECIFIC FACTORS
6. TRANSPORTATION:
7. WASTE DISPOSAL:
8. LABOR:
9. REGULATORY LAWS:
10. TAXES:
11. SITE CHARACTERISTICS:
12. COMMUNITY FACTORS:
13. VULNERABILITY TO WARTIME ATTACK:
14. FLOOD AND FIRE CONTROL:
EXPLANATION OF TERMS USED IN THE PROJECT REPORT
DEPRECIATION:
FIXED ASSETS:
WORKING CAPITAL:
BREAK-EVEN POINT:
OTHER FIXED EXPENSES:
MARGIN MONEY:
TERM LOANS:
TOTAL LOAD:
UTILITIES
POWER
WORKING
TOTAL MANPOWER AND PAYROLL
UTILITIES
LABORATORTY EQUIPMENTS MANUFACTURERS
D.G. SET MANUFACTURERS & SUPPLIERS
SUPPLIERS OF BILLET CUTTING MACHINE
SUPPLIERS OF ELECTROPLATING PLANT
SUPPLIERS OF ANNEALING FURNACES
SUPPLIERS OF HEAT TREATMENT FURNACE
SUPPLIERS OF HARDNESS TESTING MACHINE
SUPPLIERS OF CLOSE DIE HOT FORGING MACHINE
SUPPLIERS OF FORGING DIES
SUPPLIERS OF INDUCTION HEATING FURNACE
SUPPLIERS OF CNC MACHINING CENTRE
SUPPLIERS OF METAL TESTING MACHINE
SS PIPE & TUBE MANUFACTURER
ELECRICAL GOOD & SWITCH MANUFACTURE
ELECTRICAL PANEL & BOARD MANUFACTURERS
LATHE MACHINE MANUFACTURERS
CNC MACHINE MANUFACTURERS
PANEL/SHEET BENDING MACHINE MANUFACTURERS
BRAZING MACHINE MANUFACTURERS
EXPANDER MANUFACTURER
SUPPLIERS/ MANUFACTURERES OF EOT CRANE
WEIGHING BREIDGE MANUFACTURER
PROJECT CONSULTANT FOR PROJECT SETTINGUP
SWOT ANALYSIS
STRENGTHS
WEAKNESSES
OPPORTUNITIES
THREATS
ORGANIZATION CHART
PLANT LATOUT
IMPLEMENTATION SCHEDULE
PREHEATING FURNACE
STEEL PRODUCTS MANUFACTURING PLANT & MACHINERY SUPPLIERS
PREHEATING FURNACE MANUFACTURERS
HIGH CAPCITY BOILERS MANUFACTURERS & SUPPLIERS
NAIL MAKING MACHINE MANUFACTURERS & SUPPLIERS
STEEL PRODUCTS MANUFACTURING CONSULTANT
RAW MATERIAL SUPPLIERS (BILLET)
APPENDIX – A:
01. PLANT ECONOMICS
02. LAND & BUILDING
03. PLANT AND MACHINERY
04. OTHER FIXED ASSESTS
05. FIXED CAPITAL
06. RAW MATERIAL
07. SALARY AND WAGES
08. UTILITIES AND OVERHEADS
09. TOTAL WORKING CAPITAL
10. TOTAL CAPITAL INVESTMENT
11. COST OF PRODUCTION
12. TURN OVER/ANNUM
13. BREAK EVEN POINT
14. RESOURCES FOR FINANCE
15. INSTALMENT PAYABLE IN 5 YEARS
16. DEPRECIATION CHART FOR 5 YEARS
17. PROFIT ANALYSIS FOR 5 YEARS
18. PROJECTED BALANCE SHEET FOR (5 YEARS)
