5Galfan, Galvalume, Galvannealed Global Overview of Coated ProductsTotal Flat Coated Steel Consumption 06‘(In Million Tonnes)Galfan, Galvalume, GalvannealedGalvanized19.48 MT69 MTElectro Galva23.52 MTTotal: 112 Million TonnesSource: Metal Bulletin /CRU
6Major Producers of Coated Products (In Million Tonnes)Others38 MTUSA14.7 MTEurope18 MTJAPAN11.60IndiaCanada4.2 MTJapanChina2.4 MT11.6 MTS. Korea15.4 MTTaiwan2.0 MT5.6 MTTotal: 112 Million TonnesSource: Metal Bulletin /CRU
7World Galvanised Steel Growth Source: Metal Bulletin Feb08 /CRU
8Galvanised Steel Growth in US vs India & China DEVELOPED COUNTRYAs the economy matures, consumption of galvanized products increases.%CAGR2006/2000-(-) 2.2%2010/ %DEVELOPING COUNTRY%CAGR2006/ %2010/ %Source: Metal Bulletin Feb08 /CRU
9End-use Markets for Galvanized Sheet (%) USAEuropeChinaIndiaAutomotive4064.292Construction24.36456Appliances-7.31213Furniture2.065PackagingEngineering/FabricationOthers200.27Total100Note: Globally 70% consumption of HDGI is in automotive , 20% in constructionSource: Metal Bulletin /CRU
16India – PPGI Installed capacity Major PlayersInstalled Capacity ( MT/ annum)ESSAR450,000 *JINDAL110,000UTTAM80,000ISPAT100,000BHUSHAN120,000NATIONALTATA150,000CRIL60,000MANAKSIAASIAN COILVARDHAMAN30,000TOTAL1,300,000* ESPF (400,000) + SCG (50,000)Total capacity in India is being expanded upto 1,5 MnSource of Data : Interview with coil manufacturers
17India – PPGI Market Growth SegmentsConstruction10%White Goods8%12%OthersProduct SegmentExpected Growth By 2013RemarksConstruction374,420Although Construction industry expected to grow by 10%, usage of PPGI for newer applications and untapped demand & like Decking, barricading , Doors , and door ,window frames etc will be close to 20 %, therefore ESPF growth in this segment is shown as %White Goods72,000Growth - 10 to 12%, (Source CEAMA)Others13,800Total460,220Others include : Bus Body , AHUs ,Generator Canopy, Signage, Solar Heaters, Lighting Fixtures , Furniture , metal doors & Frames & Decking Profilers etcSource of Data : Interview with coil manufacturers
23How to succeed vs economy deceleration What we have to face:Temporaly economic deceleration due to:Inflation vs anti inflationary policyWeak external demand + forex 20% Rs. vs $ vs €Long term: economy needs modern infrastructureOthersWhat we made, what we do, what we are planning to do:Business units in key driving sectorsGlobal - > Rural focus (i.e.: mining -> hyper & expressmarts)Internationalization & innovation
24Essar Global Essar Global Essar Energy plc* Essar Steel Essar Shipping & LogisticsEssar ProjectsEssar TelecomAegisBPO BusinessEssar OilEssar Power(a)UpstreamTotal reserves and resources (incl. unrisked): 2,132 mmboeSignificant development and exploration upside in India and abroadRefining20MMTPA capacity todaySecuring international distribution/access to maximise marginsMarketingc.1,630 retail outletsIncreasing current capacity from 3,910 MW to 6,700 MW by 2014Current operating plantsTotal capacity: 3,910 MWPlants under constructionTotal capacity: 9,870 MWPlants under developmentTotal capacity: 5,900 MWCoal Blocks500 Mn coal reserves across mines in India, Indonesia & MozambiqueIndiaHazira Steel Complex10 MMTPA integrated steel plantEssar HypermartSteel distribution chainNorth AmericaAlgoma Steel, Canada4 MMTPA integrated steel plantMinnesota SteelIron ore mine with resources of 1.4 bn tonnes & 4 MMTPA Pellet PlantTrinity Coal Block188.6MT coal reserves across 6 mines in eastern Kentucky and southern West VirginiaIndonesiaP T Essar Indonesia0.4 MMTPA cold rolling complexEssar PortsOperationalDry Bulk: 70 MMTPA Liquid: 46 MMTPAUnder ConstructionLiquid: 12 MMTPAEssar ShippingOwns and operates 25 ships.One semi-submersible rig and 12 land rigs.Fleet of lighterage and transhipment assets.12 new ships and 2 new Jack Up rigs being deliveredEssar Projects IndiaEngineeringProcurementConstructionFabricationFully geared to execute turnkey EPC projects in India and overseasEssar Offshore Subsea LtdEngaged in marine offshore constructionGlobal Supplies FZE (UAE) (Essar owns 25%)Global procurement companyProject Management & ConsultancyEssar YuEssar Telecom East AfricaGSM services in Kenya, Uganda, Congo (Brazzaville)Indus Towers(Essar owns 14%)One of the world’s largest tower company102,000 towersThe Mobile StoreChain of over retail outletsThe Electronic StoreLarge format stores for Consumer Durables & IT productsAegis - BPOOne of the leading Global player in BPO and Service sectorCaters to:TelecomHealthcareFinancial servicesTravel & hospitalityConsumer productsEmployee strengthemployees globallyIntegrated company spanning the oil & gas value chainOver a decade of experience in the Indian power industryIntegrated, global steel producerInternational logistics provider to the steel, oil refining and power industriesLeading EPC contractor with 40 year track recordglobal player in the communications sectorProvider of multi channel CRM solutions to a blue-chip, multinational client baseSource: Company information* Listed on London Stock ExchangeCapacities stated represent gross capacity
28Key Differentiators Versatility of Colors Non White Shades. “Non Standards” Widths.Lower Gauges.High End Applications.Market Diversification.
29Product Diversification Anti-Skid , Anti-Wrinkle ,ARS RAL 8004 – for Shutters & Door PanelsRAL 9006 Metallic CoatingsDouble Coated Surfaces“SOFT” OEMs / White Goods , Like Deep Freezers, Washing Machines.PVDF / Metallic PVDF“High Value” OEMs / White Goods for Customers High Reflective, High Gloss paints for Luminaries
30Product Diversification Supply to various Service CentersSignage Boards for Companies like DHL, Ikea, CastoramaVersatility & Flexibility in colors developedSupplying over 4500 shadesDead Matt FinishSparkle FinishSlitsFood Grade Paints.
31Product Diversification Studs Market in EuropeGypsum Boards Profiles.Channels ,T Sections and Capping MaterialsMinimized Spangle, Skin passed for Pre-painted End Use.False Ceilings / Acoustic Ceilings.Telecom Shelters / Cold Storage.
32Product Applications Industry Wise PharmaceuticalsFloricultureSuper MarketsTissue CultureHospitalityAgricultureProcessed Food IndustryRefrigerated ContainersFisheries
33Further InitiativesDevelop Lower brands to Tap Rural / “Replacement Markets” of Galvanized with Pre-painted Steel.Bus Stands / Bus Shelters.Penetration into tier 2 & tier 3 Indian Cities.Slum Rehabilitation.Indian Railways
34Products at a Glance – HDGI – Grain Silos Galvanized steel with 450 GSM coating.Target business of MT with Food Corporation of India.
35Products at a Glance – HDGI (Solar Panel–sun rise industry)
36Products at a glance – HDGI for Dish Antennae & Set top Boxes Galvanized Skin pass-Dish Antennae.*Set top Boxes switching to digital,
37Products at a Glance – HDGI for Bus Body Commercial supplies to -Tata MarcopoloACGL Goa.Ashok Leyland Limited
38Products at a Glance - HDGI (Cable Trays & Tubes) Galvanized Tubes Replacement marketGalvanized product for Cable Trays. New segment currently developed.
39Disaster Management Shelter for people affected by natural calamities. Shelter of 80 x 20 Sqm = 16 MT of PPGI.400 people can take shelter under one roofBamboo Shelter = 2 Months , PPGI = 10 days for erectionMetecno developed PPGI prototype for Police jawans in M.P170 shelters supplied (Police jawans)
40Defense 20 – 25 % reduction in energy cost by using sandwich panels. Prototype are developed by shelter manufactures.MetecnoAcmeLloydsBudget AllocationRs 5000 Cr.Roof & shelter needed500,000 sqmPotential5,000 MT
41Essar Initiatives Towards Excellence Low Cost PPGIDeveloped with 10 micron top coat and 4-5 micron bottom coatMore cost viable for rural marketBenefit to reach untapped market
42New InitiativesPPGI for Small RefrigeratorPPGI for Wine Coolers
43Modular Building Solutions Modular Solutions facilitate:ScaleSpeedStandardizationThermal & Sound Insulation20-25% Savings in Energy Bill4-6° Lower Temperature than ambienceEase of alterations/repairsAestheticsElimination of Bricks & MortarShortened Supply ChainMiddlemen are eliminatedFast emerging as big opportunity to increase margins and enhance market share.
44New Value Added Products - PPGI Mapping of Ultra Violet Radiation prone areas of world. Target PVDF coatings PPGI supplies to high UV radiation prone areas.‘Tube light Patti's’ - Simple (but highly effective) currently being replaced with PPGI .
45New Value Added Products - PPGI Uni coatpaint systemWood finish coatBeckry thermpaint shade
46New Value Added Products - PPGI Anti- GraffitiLead and chrome free paints( ROHS norms)Abrasion resistant system
47Beckry shield anti-static paint system New Value Added Products - PPGIClean coatMarble FinishBeckry shield anti-static paint system
48New Value Added Products - PPGI RAL 9006 –Replacing the product (RAL 9006) with conventional roofs.Solar GeysersNew segment - Alternate source of heat. PPGI supplied to Racold Thermo Ltd.PPGI for Power Plant Segment:SMP (silicon modified Polyester) coating and with high zinc coating (275 GSM) SMP coating with higher zinc coating gives higher corrosion resistant and longer life.