ESSAR STEELLet’s begin

Europe Steel Trade 2013, Stresa (Italy)8th – 9th April

Presented By:

William Magnasco

Essar Steel - Sales Chief Manager Europe

(PMP + Infrastructure)

Contents 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.

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Global overview of coated product market

Global Overview of Coated ProductsGlobal Overview of Coated Products

Source: Metal Bulletin /CRU

Total: 112 Million Tonnes

Total Flat Coated Steel Consumption 06‘ (In Million Tonnes)

Galfan, Galvalume, Galvannealed19.48 MT

Electro Galva23.52 MT

Galvanized69 MT

5

Taiwan S. Korea

Total: 112 Million Tonnes

Source: Metal Bulletin /CRU

Major Producers of Coated ProductsMajor Producers of Coated Products

(In Million Tonnes)

Europe18 MT

JAPAN11.60

USA14.7 MT

Canada 2.4 MT

Japan 11.6 MT

5.6 MT 2.0 MT

China 15.4 MT

India 4.2 MT

Others 38 MT

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World Galvanised Steel GrowthWorld Galvanised Steel Growth

Source: Metal Bulletin Feb08 /CRU

1 2 3 4 5 6 7 80

20

40

60

80

100

120

140

80.4 79.385.5

90.398 99.5

112.2

128.3

Year-wise growth in global steel consumption

Million tonnes

% CAGR2006/2000~5.7%2010/2006~3.4%

2000 2001 2002 2003 2004 2005 2006 2010

7

Source: Metal Bulletin Feb08 /CRU

DEVELOPED COUNTRY

As the economy matures, consumption of galvanized products increases.

DEVELOPING COUNTRY

%CAGR2006/2000-(-) 2.2%2010/2006-1.5%

2000 2001 2002 2003 2004 2005 2006 20100

5

10

15

20

25

4.1 4.56.5

9

12.414.7 15.4

23.4

Galvanised growth in China

Million tonnes

%CAGR2006/2000-24..4%2010/2006-11.1%

2000 2001 2002 2003 2004 2005 2006 20100

1

2

3

4

5

6

1.41.9

2.42.8

3.1

3.94.2

5.7

Galvanised growth in India

Million tonnes

%CAGR2006/2000-17..8%2010/2006-10.9%

2000 2001 2002 2003 2004 2005 2006 20100

5

10

15

20

25

19.618

19.5 18.721.1

19.217.1

18.2

Galvanised Steel growth in US

Million tonnes

Galvanised Steel Growth in US vs India & ChinaGalvanised Steel Growth in US vs India & China

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End-use Markets for Galvanized Sheet (%)End-use Markets for Galvanized Sheet (%)

Market USA Europe China India

Automotive 40 64.2 9 2

Construction 40 24.3 64 56

Appliances - 7.3 12 13

Furniture - 2.0 6 5

Packaging - 2.0 2 12

Engineering/Fabrication - - - 12

Others 20 0.2 7 -

Total 100 100 100 100

Note: Globally 70% consumption of HDGI is in automotive , 20% in construction

Source: Metal Bulletin /CRU

9

India – Domestic steel market Outlook

Apparent Steel use per capitaApparent Steel use per capita

GEO/Period 2005 2006 2007 2008 2009 2010 2011

European Union (27) 338.2 384.5 404.4 372.2 243.5 294.4 310.0

Turkey 253.7 287.8 317.9 283.0 234.7 302.9 341.8

Others Eastern Europe 170.9 219.2 207.5 198.9 157.1 162.3 162.1

Other Europe 225.6 264.7 280.8 255.4 209.4 257.4 284.1

CIS 160.8 189.7 219.4 195.3 140.7 189.0 212.3

NAFTA 316.7 353.2 319.9 291.7 184.8 243.7 263.0

Central and South America 74.8 84.9 92.7 97.7 74.1 97.9 98.6

Africa 33.7 33.9 34.5 39.6 43.0 38.8 34.8

Middle East 186.0 184.4 227.9 233.9 209.1 231-6 233.9

China 266.0 287.4 316.5 336.0 412.0 436.0 459.8

India 36.6 41.2 45.8 45.1 50.0 55.4 57.0

J apan 601.6 619.5 637.0 612.1 415.6 500.9 506.7

South Korea 981.6 1,042.6 1,144.1 1,210.7 936.1 1,077.2 1,156.6

Taiwan, China 877.1 870.0 790.9 737.8 491.0 772.6 784.4

Other Asia 53.6 49.5 55.6 55.2 52.2 58.1 59.7

Asia 165.6 174.6 189.2 194.9 210.7 228.6 238.8

Australia and New Zealand 322.9 316.9 332.2 330.7 231.6 298.7 261.6

World 173.5 187.5 198.4 196.4 181.9 205.5 214.7 Kg per capita

Source: Eurostat, WSO

Apparent steel use per capita 2005 to 2011

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Crude steel production & consumptionCrude steel production & consumption

Source: CRU

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Growth Driving SectorsGrowth Driving Sectors

Source: Ernst & Young

Key OpportunitiesSector

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ProductWise

IndianPoduction

FY 2012-13Apr-Jan

ProductWise

IndianPoduction

FY 2012-13Apr-Jan

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Galvanized Indian market 2012 (1)Galvanized Indian market 2012 (1)

15

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Major Players Installed Capacity ( MT/ annum)

ESSAR 450,000 *

JINDAL 110,000

UTTAM 80,000

ISPAT 100,000

BHUSHAN 120,000

NATIONAL 80,000

TATA 150,000

CRIL 60,000

MANAKSIA 60,000

ASIAN COIL 60,000

VARDHAMAN 30,000

TOTAL 1,300,000

India – PPGI Installed capacity India – PPGI Installed capacity

* ESPF (400,000) + SCG (50,000)Total capacity in India is being expanded upto 1,5 MnSource of Data : Interview with coil manufacturers

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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 30 - 35%

White Goods 72,000 Growth - 10 to 12%, (Source CEAMA)

Others 13,800

Total 460,220

Segments 2010-11 2011-12 2012-13Construction 10% 10% 10%White Goods 8% 10% 12%

Others 10% 10% 10%

Others include : Bus Body , AHUs ,Generator Canopy, Signage, Solar Heaters, Lighting Fixtures , Furniture , metal doors & Frames & Decking Profilers etcSource of Data : Interview with coil manufacturers

India – PPGI Market Growth India – PPGI Market Growth

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Galvanized Indian market 2012 (2) Galvanized Indian market 2012 (2)

India: Galv & PPGI exports into EU

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EU Coated Steel – Market Supply 2007 - 2011EU Coated Steel – Market Supply 2007 - 2011

Source of Data : Eurofer

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GEO HDGI PPGI Total general

China 679.691 mt 461.316 mt 1.141.007 mt

South Korea 222.702 mt 275.495 mt 498.197 mt

India 100.724 mt 77.726 mt 178.450 mt

Turkey 63.378 mt 23.984 mt 87.362 mt

Taiwan 38.220 mt 32.950 mt 71.170 mt

Others 83.655 mt 56.366 mt 140.020 mt

Total general 1.188.369 mt 927.837 mt 2.116.205 mtExtra UE 27 imports

Source: Eurostat provisional data

Coated Imports 2012 by origin

GEO HDGI PPGI Total general

Belgium 331.521 mt 155.912 mt 487.433 mt

Italy 196.534 mt 189.484 mt 386.017 mt

Utd. Kingdom 162.180 mt 48.504 mt 210.683 mt

Spain 111.081 mt 91.134 mt 202.215 mt

Romania 65.251 mt 90.864 mt 156.115 mt

Poland 31.736 mt 92.818 mt 124.554 mt

Slovenia 98.770 mt 6.150 mt 104.921 mt

Sweden 22.643 mt 61.081 mt 83.724 mt

Fr Germany 22.937 mt 37.500 mt 60.437 mt

Others 145.716 mt 154.392 mt 300.108 mt

Total general 1.188.368 mt 927.837 mt 2.116.205 mtExtra UE 27 imports

Source: Eurostat provisional data

Coated Imports 2012 by destination

EU Coated Steel – Imports 2012 (P)EU Coated Steel – Imports 2012 (P)

Essar Steel’s Strategy

• 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

How to succeed vs economy decelerationHow to succeed vs economy deceleration

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IndiaHazira Steel Complex10 MMTPA integrated steel plant Essar HypermartSteel distribution chain

North AmericaAlgoma Steel, Canada4 MMTPA integratedsteel 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 Virginia

IndonesiaP T Essar Indonesia0.4 MMTPA cold rolling complex

Essar Yu

Essar Telecom East AfricaGSM services in Kenya, Uganda, Congo (Brazzaville)

Indus Towers (Essar owns 14%)One of the world’s largest tower company102,000 towers

The Mobile StoreChain of over 900retail outlets

The Electronic StoreLarge format stores for Consumer Durables & IT products

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 Steel Essar Projects

Aegis - BPOOne of the leading Global player in BPO and Service sectorCaters to:

Telecom

Healthcare

Financial services

Travel & hospitality

Consumer products

Employee strength47000+ employees

globally

Essar Global

Essar PortsOperational Dry Bulk: 70 MMTPA Liquid: 46 MMTPA

Under ConstructionLiquid: 12 MMTPA

Essar 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 delivered

Essar Shipping & Logistics

Essar TelecomAegis

BPO Business

Increasing current capacity from 3,910 MW to 6,700 MW by 2014

Current operating plantsTotal capacity: 3,910 MW

Plants under constructionTotal capacity: 9,870 MW

Plants under developmentTotal capacity: 5,900 MW

Coal Blocks500 Mn coal reserves across mines in India, Indonesia & Mozambique

Essar Power(a)

Upstream Total reserves and resources (incl. unrisked): 2,132 mmboe

Significant development and exploration upside in India and abroad

Refining20MMTPA capacity today

Securing international distribution/access to maximise margins

Marketingc.1,630 retail outlets

Essar Oil

Essar Energy plc*

Source: Company information* Listed on London Stock Exchange(a) Capacities stated represent gross capacity

global player in the communications

sector

Integrated, global steel producer

International logistics provider to the steel, oil

refining and power industries

Leading EPC contractor with 40 year track record

Provider of multi channel CRM solutions to a blue-chip, multinational client

base

Integrated company spanning the oil & gas

value chain

Over a decade of experience in the Indian

power industry

Essar Global Essar Global

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Think global, act localThink global, act local

Continued positive actionsContinued positive actions

Overview of coated Product Applications

Key DifferentiatorsKey Differentiators

• Versatility of Colors

• Non White Shades.

• “Non Standards” Widths.

• Lower Gauges.

• High End Applications.

• Market Diversification.

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Product DiversificationProduct 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

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Product DiversificationProduct 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.

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Product Diversification 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.

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Product Applications Industry WiseProduct Applications Industry Wise

• Pharmaceuticals

• Super Markets

• Hospitality

• Processed Food Industry

• Fisheries

• Floriculture

• Tissue Culture

• Agriculture

• Refrigerated Containers

Further Initiatives Further Initiatives

Penetration into tier 2 & tier 3 Indian Cities.

Bus Stands / Bus Shelters.

Develop Lower brands to Tap Rural / “Replacement Markets” of Galvanized with Pre-painted Steel.

Slum Rehabilitation. Indian Railways

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Products at a Glance – HDGI – Grain SilosProducts at a Glance – HDGI – Grain Silos

Galvanized steel with 450 GSM coating.Target business of 24000 MT with Food Corporation of India.

34

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

35

Products at a glance – HDGI for Dish Antennae & Set top BoxesProducts at a glance – HDGI for Dish Antennae & Set top Boxes

Galvanized Skin pass-

Dish Antennae.

*Set top Boxes switching to digital,

36

Products at a Glance – HDGI for Bus BodyProducts at a Glance – HDGI for Bus Body

Commercial supplies to -

Tata Marcopolo

ACGL Goa.

Ashok Leyland Limited

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Galvanized product for Cable Trays. New segment currently developed.

Galvanized Tubes Replacement market

Products at a Glance - HDGI (Cable Trays & Tubes)Products at a Glance - HDGI (Cable Trays & Tubes)

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Disaster ManagementDisaster 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)

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Defense 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

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Essar Initiatives Towards ExcellenceEssar Initiatives Towards Excellence

Low Cost PPGIDeveloped with 10 micron top coat and 4-5 micron bottom coat• More cost viable for rural market• Benefit to reach untapped market

41

New Initiatives New Initiatives

PPGI for Small Refrigerator PPGI for Wine Coolers

42

Modular Building Solutions Modular Building Solutions

Fast emerging as big opportunity to increase margins and enhance market share.

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

43

New Value Added Products - PPGI New Value Added Products - PPGI

‘Tube light Patti's’ - Simple (but highly effective) currently being replaced with PPGI .

Mapping of Ultra Violet Radiation prone areas of world. Target PVDF coatings PPGI supplies to high UV radiation prone areas.

44

New Value Added Products - PPGINew Value Added Products - PPGI

Uni coat paint system

Wood finish coat Beckry therm paint shade

45

Anti- Graffiti Lead and chrome free paints

( ROHS norms)

Abrasion resistant system

New Value Added Products - PPGINew Value Added Products - PPGI

46

New Value Added Products - PPGINew Value Added Products - PPGI

Marble FinishClean coat Beckry shield anti-static paint system

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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.

New Value Added Products - PPGINew Value Added Products - PPGI

48

False CeilingsFalse Ceilings

49

Generator CanopyGenerator Canopy

Kirloskar Kala Genset

50

Solar ( Tata BP Solar) Heaters Solar ( Tata BP Solar) Heaters

51

Bus BodyBus Body

• Eicher

• ACGL

• Ruby Bus Body

• JC Coach

• Kamal Coach

• Swaraj Mazda

• JCBL – Punjab

• Azad Body Builders

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Industrial Sheds

Telecom

Cold Rooms

Bus Body

White Goods

Decking

TeletronicsPortal Cabins

Metal Doors & Windows

Furniture

Railway Defence

Low Hanging FruitsLow Hanging Fruits

53

Global Installations

RCD Espanyol Stadium, SpainRCD Espanyol Stadium, Spain

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Some of Installations of ‘PVDF’Some of Installations of ‘PVDF’

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Mercedes Showroom, SpainMercedes Showroom, Spain

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‘Ship Lap’ Metal Garden Sheds‘Ship Lap’ Metal Garden Sheds

• Wood-like appearance with 12 year anti rust guarantee.• Flat packed and easy to transport.

Garage Sheds. UK

58

False Ceilings ( Hunter Douglas)False Ceilings ( Hunter Douglas)

59

Indian Installations

Tile Roofs in KeralaTile Roofs in Kerala

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Bus Stands & SheltersBus Stands & Shelters

63

Cempetitors but partners Cempetitors but partners Bhushan Steel

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SARLA BIRLA Academy , Bangalore SARLA BIRLA Academy , Bangalore

65

Stadiums, HyderabadStadiums, Hyderabad

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Cochin Airport Cochin Airport

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Kalzip Kalzip

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THANK YOU!

Let’s begin