1. ESSAR STEEL
Let’s begin

2. Europe Steel Trade 2013, Stresa (Italy)
8th – 9th April
Presented By:
William Magnasco
Essar Steel - Sales Chief Manager Europe
(PMP + Infrastructure)

3. Contents Global overview of coated product market.
India: domestic steel market outlook.
India: Galv & PPGI exports into EU
Essar Steel’s strategy.
Overview of coated product applications.
Global Installations.
Indian Installations.

4. Global overview of coated product market

5. Galfan, Galvalume, Galvannealed
Global Overview of Coated Products
Total Flat Coated Steel Consumption 06‘
(In Million Tonnes)
Galfan, Galvalume, Galvannealed
Galvanized
19.48 MT
69 MT
Electro Galva
23.52 MT
Total: 112 Million Tonnes
Source: Metal Bulletin /CRU

6. Major Producers of Coated Products
(In Million Tonnes)
Others
38 MT
USA
14.7 MT
Europe
18 MT
JAPAN
11.60
India
Canada
4.2 MT
Japan
China
2.4 MT
11.6 MT
S. Korea
15.4 MT
Taiwan
2.0 MT
5.6 MT
Total: 112 Million Tonnes
Source: Metal Bulletin /CRU

7. World Galvanised Steel Growth
Source: Metal Bulletin Feb08 /CRU

8. Galvanised Steel Growth in US vs India & China
DEVELOPED COUNTRY
As the economy matures, consumption of galvanized products increases.
%CAGR
2006/2000-(-) 2.2%
2010/ %
DEVELOPING COUNTRY
%CAGR
2006/ %
2010/ %
Source: Metal Bulletin Feb08 /CRU

9. End-use Markets for Galvanized Sheet (%)
USA
Europe
China
India
Automotive 40
64.2 9 2
Construction
24.3 64 56
Appliances -
7.3 12 13
Furniture
2.0 6 5
Packaging
Engineering/Fabrication
Others 20
0.2 7
Total
100
Note: Globally 70% consumption of HDGI is in automotive , 20% in construction
Source: Metal Bulletin /CRU

10. India – Domestic steel market Outlook

11. Apparent Steel use per capita11

12. Crude steel production & consumption
Source: CRU

13. Growth Driving Sectors
Source: Ernst & Young
Key Opportunities
Sector

14. Product Wise Indian Poduction FY 2012-13 Apr-Jan

15. Galvanized Indian market 2012 (1)

16. India – PPGI Installed capacity
Major Players
Installed Capacity ( MT/ annum)
ESSAR
450,000 *
JINDAL
110,000
UTTAM
80,000
ISPAT
100,000
BHUSHAN
120,000
NATIONAL
TATA
150,000
CRIL
60,000
MANAKSIA
ASIAN COIL
VARDHAMAN
30,000
TOTAL
1,300,000
* ESPF (400,000) + SCG (50,000)
Total capacity in India is being expanded upto 1,5 Mn
Source of Data : Interview with coil manufacturers

17. India – PPGI Market Growth
Segments
Construction
10%
White Goods 8%
12%
Others
Product Segment
Expected Growth By 2013
Remarks
Construction
374,420
Although 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 Goods
72,000
Growth - 10 to 12%, (Source CEAMA)
Others
13,800
Total
460,220
Others include : Bus Body , AHUs ,Generator Canopy, Signage, Solar Heaters, Lighting Fixtures , Furniture , metal doors & Frames & Decking Profilers etc
Source of Data : Interview with coil manufacturers

18. Galvanized Indian market 2012 (2)

19. India: Galv & PPGI exports into EU

20. EU Coated Steel – Market Supply 2007 - 2011
Source of Data : Eurofer

21. EU Coated Steel – Imports 2012 (P)

22. Essar Steel’s Strategy

23. How to succeed vs economy deceleration
What we have to face:
Temporaly economic deceleration due to:
Inflation vs anti inflationary policy
Weak external demand + forex 20% Rs. vs $ vs €
Long term: economy needs modern infrastructure
Others
What we made, what we do, what we are planning to do:
Business units in key driving sectors
Global - > Rural focus (i.e.: mining -> hyper & expressmarts)
Internationalization & innovation

24. Essar Global Essar Global Essar Energy plc* Essar Steel
Essar Shipping & Logistics
Essar Projects
Essar Telecom
Aegis
BPO Business
Essar Oil
Essar Power(a)
Upstream
Total reserves and resources (incl. unrisked): 2,132 mmboe
Significant development and exploration upside in India and abroad
Refining
20MMTPA capacity today
Securing international distribution/access to maximise margins
Marketing
c.1,630 retail outlets
Increasing current capacity from 3,910 MW to 6,700 MW by 2014
Current operating plants
Total capacity: 3,910 MW
Plants under construction
Total capacity: 9,870 MW
Plants under development
Total capacity: 5,900 MW
Coal Blocks
500 Mn coal reserves across mines in India, Indonesia & Mozambique
India
Hazira Steel Complex
10 MMTPA integrated steel plant
Essar Hypermart
Steel distribution chain
North America
Algoma Steel, Canada
4 MMTPA integrated steel plant
Minnesota Steel
Iron ore mine with resources of 1.4 bn tonnes & 4 MMTPA Pellet Plant
Trinity Coal Block
188.6MT coal reserves across 6 mines in eastern Kentucky and southern West Virginia
Indonesia
P T Essar Indonesia
0.4 MMTPA cold rolling complex
Essar Ports
Operational
Dry Bulk: 70 MMTPA Liquid: 46 MMTPA
Under Construction
Liquid: 12 MMTPA
Essar Shipping
Owns 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 delivered
Essar Projects India
Engineering
Procurement
Construction
Fabrication
Fully geared to execute turnkey EPC projects in India and overseas
Essar Offshore Subsea Ltd
Engaged in marine offshore construction
Global Supplies FZE (UAE) (Essar owns 25%)
Global procurement company
Project Management & Consultancy
Essar Yu
Essar Telecom East Africa
GSM services in Kenya, Uganda, Congo (Brazzaville)
Indus Towers
(Essar owns 14%)
One of the world’s largest tower company
102,000 towers
The Mobile Store
Chain of over retail outlets
The Electronic Store
Large format stores for Consumer Durables & IT products
Aegis - BPO
One of the leading Global player in BPO and Service sector
Caters to:
Telecom
Healthcare
Financial services
Travel & hospitality
Consumer products
Employee strength
employees globally
Integrated company spanning the oil & gas value chain
Over a decade of experience in the Indian power industry
Integrated, global steel producer
International logistics provider to the steel, oil refining and power industries
Leading EPC contractor with 40 year track record
global player in the communications sector
Provider of multi­ channel CRM solutions to a blue-chip, multinational client base
Source: Company information
* Listed on London Stock Exchange
Capacities stated represent gross capacity

25. Think global, act local

26. Continued positive actions

27. Overview of coated Product Applications

28. Key Differentiators Versatility of Colors Non White Shades.
“Non Standards” Widths.
Lower Gauges.
High End Applications.
Market Diversification.

29. Product Diversification
Anti-Skid , Anti-Wrinkle ,ARS RAL 8004 – for Shutters & Door Panels
RAL 9006 Metallic Coatings
Double 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

30. Product Diversification
Supply to various Service Centers
Signage Boards for Companies like DHL, Ikea, Castorama
Versatility & Flexibility in colors developed
Supplying over 4500 shades
Dead Matt Finish
Sparkle Finish
Slits
Food Grade Paints.

31. Product Diversification
Studs Market in Europe
Gypsum Boards Profiles.
Channels ,T Sections and Capping Materials
Minimized Spangle, Skin passed for Pre-painted End Use.
False Ceilings / Acoustic Ceilings.
Telecom Shelters / Cold Storage.

32. Product Applications Industry Wise
Pharmaceuticals
Floriculture
Super Markets
Tissue Culture
Hospitality
Agriculture
Processed Food Industry
Refrigerated Containers
Fisheries

33. Further Initiatives
Develop 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

34. Products at a Glance – HDGI – Grain Silos
Galvanized steel with 450 GSM coating.
Target business of MT with Food Corporation of India.

35. Products at a Glance – HDGI
(Solar Panel–sun rise industry)

36. Products at a glance – HDGI for Dish Antennae & Set top Boxes
Galvanized Skin pass-
Dish Antennae.
*Set top Boxes switching to digital,

37. Products at a Glance – HDGI for Bus Body
Commercial supplies to -
Tata Marcopolo
ACGL Goa.
Ashok Leyland Limited

38. Products at a Glance - HDGI (Cable Trays & Tubes)
Galvanized Tubes Replacement market
Galvanized product for Cable Trays. New segment currently developed.

39. Disaster 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 roof
Bamboo Shelter = 2 Months , PPGI = 10 days for erection
Metecno developed PPGI prototype for Police jawans in M.P
170 shelters supplied (Police jawans)

40. Defense 20 – 25 % reduction in energy cost by using sandwich panels.
Prototype are developed by shelter manufactures.
Metecno
Acme
Lloyds
Budget Allocation
Rs 5000 Cr.
Roof & shelter needed
500,000 sqm
Potential
5,000 MT

41. Essar Initiatives Towards Excellence
Low Cost PPGI
Developed with 10 micron top coat and 4-5 micron bottom coat
More cost viable for rural market
Benefit to reach untapped market

42. New Initiatives
PPGI for Small Refrigerator
PPGI for Wine Coolers

43. Modular Building Solutions
Modular Solutions facilitate:
Scale
Speed
Standardization
Thermal & Sound Insulation
20-25% Savings in Energy Bill
4-6° Lower Temperature than ambience
Ease of alterations/repairs
Aesthetics
Elimination of Bricks & Mortar
Shortened Supply Chain
Middlemen are eliminated
Fast emerging as big opportunity to increase margins and enhance market share.

44. New 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 .

45. New Value Added Products - PPGI
Uni coat
paint system
Wood finish coat
Beckry therm
paint shade

46. New Value Added Products - PPGI
Anti- Graffiti
Lead and chrome free paints
( ROHS norms)
Abrasion resistant system

47. Beckry shield anti-static paint system
New Value Added Products - PPGI
Clean coat
Marble Finish
Beckry shield anti-static paint system

48. New Value Added Products - PPGI
RAL 9006 –
Replacing the product (RAL 9006) with conventional roofs.
Solar Geysers
New 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.

49. False Ceilings

50. Generator Canopy
Kirloskar
Kala Genset

51. Solar ( Tata BP Solar) Heaters

52. Bus Body Eicher ACGL Ruby Bus Body JC Coach Kamal Coach Swaraj Mazda
JCBL – Punjab
Azad Body Builders

53. Low Hanging Fruits Railway Defence Furniture Metal Doors & Windows
Portal Cabins
Teletronics
Decking
Cold Rooms
White Goods
Industrial Sheds
Telecom
Bus Body

54. Global Installations

55. RCD Espanyol Stadium, Spain

56. Some of Installations of ‘PVDF’

57. Mercedes Showroom, Spain

58. ‘Ship Lap’ Metal Garden Sheds
Garage Sheds. UK
Wood-like appearance with 12 year anti rust guarantee.
Flat packed and easy to transport.

59. False Ceilings ( Hunter Douglas)

60. Indian Installations

61. Tile Roofs in Kerala

63. Bus Stands & Shelters

64. Cempetitors but partners 
Bhushan Steel

65. SARLA BIRLA Academy , Bangalore

66. Stadiums, Hyderabad

67. Cochin Airport

68. Kalzip

69. THANK YOU!

70. Let’s begin