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The engineering sector is delicensed;100 per cent FDI is allowed in thesector

Due to policy support, there wascumulative FDI of USD14.0 billion intothe sector over April 2000 February2012, making up 8.6 per cent of totalFDI into the country in that period

Growing demand

Notes: FDI - Foreign Direct Investment, MT - Million Tonnes

MoUs - Memorandum of Understanding, 2016E - Estimated figure for the year 2016; These estimates are from Data monitor

Robust demand

Demand would be supported bygrowth in the domestic market

Infrastructure, oil & gas andautomotives would drive thegrowth of the industry

Increasing investments

Intended steel capacity build-up in India is set to result ininvestments in the range ofUSD104.2 billion to USD208.3billion by 2020

301 MoUs have been signedwith various states for plannedcapacity of about 488.6 MT

Policy support

100 per cent FDI through theautomatic route is allowed

Large infrastructure projects in thePublic-Private Partnership (PPP)mode are being formed

National Steel Policy (NSP)implemented to encourage theindustry to reach global benchmarks

Competitive advantage

India is the worlds fourth-largestproducer of crude steel (up from

eighth in 2003); the country isexpected to become the second-largest producer by 2015

Easy availability of low-costmanpower and presence ofabundant reserves make Indiacompetitive in the global setup

2011

Marketvalue:

USD57.8billion

2016E

Marketvalue:

USD95.3billion

AdvantageIndia

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Notes: TISCO - Tata Iron and Steel Company; IISC - Indian Iron & Steel Company; SAIL - Steel Authority of India Ltd

Production of

steel started inIndia (TISCOwas setup in1907)

IISC was set upin 1918 tocompete withTISCO

Mysore Iron andSteel Companywas set up in 1923

According to thenew IndustrialPolicy Statement(1948), newventures were onlyundertaken by thecentral government

Hindustan Steel Ltdand Bokaro Steel Ltdwere setup in 1954and 1964,respectively

In the early 1990s,the public sectordominated steel

production Private players were

in downstreamproduction mainlyproducing finishedsteel using crudesteel products

SAIL was createdin 1973 as aholding companyto oversee mostof India's iron andsteel production

In 1989, SAILacquiredVivesvata Ironand Steel Ltd

In 1993, thegovernment setplans in motion topartially privatiseSAIL

19071918

19231948

19541964

19731992

19932012

Foreign players

began entering theIndian steel market

No licenserequirement forcapacity creation

Imposition of exportduty on iron ore, tofocus more oncatering growingdomestic demand

Decontrol of domesticsteel prices

Launch of Scheme forpromotion ofResearch andDevelopment in Iron& Steel sector

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Steel

End use

Structuralsteel

Constructionsteel

Rail steel

Form

Liquid steel Crude steel

Ingots

Semis

Finished steel

Flat

Non-flat

Composition

Non-alloysteel

Low carbonsteel

Mediumcarbon steel

High carbonsteel

Alloy

Stainless

Siliconelectrical

High speed

Source: Report on Indian steelindustry by Competition Commission

of India, Aranca Research

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Total crude steel production (million tonnes)

Total crude steel production rose at a CAGR of 6.6 per cent over FY0811 to 69.6 MT; production in the first nine monthsof FY12 was a little more than three-fourth of FY11 levels

Finished steel production stood at 66.0 MT in FY11, recording a CAGR of 4.2 per cent during FY0811; analysts expectproduction figures to improve rapidly over the next five years with the Ministry of Steel forecasting production levels at115.3 MT by FY17

Total finished steel production (million tonnes)

17.1 16.4 16.7 17.012.3

36.842.1

49.152.6

41.1

FY08 FY09 FY10 FY11* FY12* (April -Dec)

Publ ic sector Private sector

13.5 12.7 13.0 13.18.6

42.6 44.547.6

52.9

43.4

FY08 FY09 FY10 FY11* FY12* (April -Dec)

Public sector Private sector

Source: Ministry of Steel, Aranca Research;Notes: FY - Indian Financial Year (April March); MT - Million Tonnes, * - Provisional; CAGR - Compound Annual Growth Rate

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India crude steel market share by production -

- FY12* (Apr-Dec)

SAIL is the leading player in Indias steel sector; in the first nine months of FY12, the company accounted for 18.7 per centof the countrys crude steel production and had a 13.5 per cent share in finished steel production

Tata Steel, another household name in the country, leads private sector activity in the steel sector; during April December2011, the firm accounted for 9.9 per cent of crude steel production and 7.8 per cent of finished steel production

India finished steel market share by production

- FY12* (Apr-Dec)

Source: Ministry of Steel, Aranca Research;Notes: RINL - Rashtriya Ispat Nigam Limited, * - Provisional

9.9%

18.7%

4.3%67.1%

Tata Steel

SAIL

RINL

Other

7.8%

13.5%

4.0%

74.7%

Tata Steel

SAIL

RINL

Other

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Market value of the Indian steel sector(USD billion)

In 2011, the Indian steel sectors total market value wasUSD57.8 billion

The sector has benefitted from rises in price andproduction, especially since the beginning of themillennium

Over 200711, the sectors market value is estimated tohave posted a strong CAGR of 17.7 per cent 30.1

43.0

36.5

46.8

57.8

2007 2008 2009 2010 2011

CAGR: 17.7%

Source: Datamonitor, Aranca ResearchNote: E - Estimates

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Consumption of steel (in million tonnes)Total consumption of steel exceeded production and grewto 70.9 MT in FY12 as against 66.4 MT in FY11; overFY0712, consumption has expanded at a CAGR of 8.7 percent

Driven by rising infrastructure development and growingdemand for automotives, steel consumption is expected togrow at an average rate of 6.8 per cent, reaching 104 MT by

2017

Source: Ministry of Steel, Indian Steel Markets Conference,

Datamonitor, BMI, Aranca ResearchNotes: FY12* - Data for FY12 is provisional, MT - Million Tonnes

46.852.1 51.9

59.3

66.470.9

FY07 FY08 FY09 FY10 FY11 FY12*

CAGR: 8.7%

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Steel demand and production (in million tonnes)

With steels demand growth outpacing growth in domestic production over the last few years, import dependency hasincreased

Imports have increased at a CAGR of 6.8 per cent over FY0712

In FY12, total imports stood at about 6.8 MT

Steel exports and imports (in million tonnes)

Source: Ministry of Steel, JSPL presentation, Aranca ResearchNotes: FY - Indian Financial Year (April - March), * - Data for FY12 is provisional

50

55 5560

6771

50

53 55 57

64 69

2007 2008 2009 2010 2011 2012

Demand Production

4.9

7.0

5.8

7.46.8 6.8

5.2 5.14.4

3.3

3.54.0

FY07 FY08 FY09 FY10 FY11 FY12*

Imports Exports

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Source: JSPL May 2013 presentation, Aranca Research

Sector-wise steel consumption FY12Infrastructure is Indias largest steel consumer, accountingfor 63 per cent of total consumption in FY11

This is not surprising given the heavy use of steel inthis sector and soaring construction andinfrastructure activity in the country over the pastdecade

Engineering and fabrication is the next largest consumer,with 22 per cent of total consumption

63%

22%

10%

3%2%

0Infrastructure

Engineering andfabrication

Autos

Packaging

Transportation

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Company Products

Tata Steel Ltd Finished steel (non-alloy steel)

SAIL Finished steel (non-alloy steel)

JSW Steel Ltd Hot-rolled coils, strips and sheets

Jindal Steel & Power Ltd Iron and steel

Ispat Industries Ltd Hot-rolled coils, strips and sheets

Welspun-Gujarat Stahl Rohren Ltd Tubes and pipes

Bhushan Steel Ltd Cold-rolled coils, strips and sheets

Source:Aranca Research

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Source: Ministry of Railways, Aranca ResearchNotes: MOUs - Memorandum of Understanding, MT - Million Tonnes

Growing investments

SAIL has modernised and expanded its integrated steel plants in Bhilai, Bokaro, Rourkela,Durgapur, Burnpur and Salem

The company is in the process of expanding its crude steel production capacity to 21.4MTPA by 2013

Completed mega expansion of Rashtriya Ispat Nigam Limited (RINL) to more than doublecapacity of plant (from 2.9 MT to 6.3 MT) from 2013-14

Strategic alliances

International Coal Ventures Pvt Ltd, comprising SAIL, RINL, CIL, NTPC and NMDC, hasbeen set up for acquisition of coal mines overseas

The consortium of SAIL and National Fertiliser Limited (NFL) has been nominated forrevival of Sindri Unit of the Fertiliser Corporation of India Limited

RINL, Vishakhapatnam Steel Plant and the Power Grid Corporation of India Ltd(POWERGRID) signed an MoU to set up a joint venture company to manufacturetransmission line towers and tower parts including R&D of new high-end products

Entry of internationalcompanies

Attracted by the growth potential of the Indian steel industry, several global steel players

have been planning to enter the market National Mineral Development Corporation (NMDC) has signed an MoU with Russias

third-largest steelmaker, Severstal, for a greenfield steel plant in Karnataka Posco Steel to invest USD12 billion in setting up a 12 MT project in India

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Increased emphasis ontechnologicalinnovations

Indian steel companies have now started benchmarking their facilities and processesagainst global standards, to enhance productivity

These steps are expected to help Indian companies improve raw material and energyconsumption as well as improve compliance with environmental and pollution yardsticks

Companies are attempting coal gasification and gas-based direct-reduced iron (DRI)production. Other alternative technologies such as Hlsmelt, Finex and ITmk3 beingadopted to produce hot metal

Source:Aranca Research

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Steel integrated plantsunder SAIL (Bhilai, Rourkela,

Bokaro, Durgapur andBurnpur)

Tata Steels largest steel

plant, based in Jamshedpur

RINL steel plant inVishakhapatnam

Alloy and special steelplants under SAIL

(Bhadrawati and Salem)

Source: Company websites, Aranca Research

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Policy support

100 per cent FDI inthe steel sector

Encouragement ofsector-based R&D

activities by thegovernment

Reduced customduty and other

favourablemeasures

Growing demand inthe construction

industry

Increasing investments

Rising investmentsfrom domestic and

foreign players

Increasing numberof MoUs signed toboost investment in

steel

Foreign investmentof nearly USD40

billion committed inthe steel sector

Inviting Resulting in

Growing demand inthe automotives

sector

Rising demand forconsumer durablesand capital goods

Growing demand

Note: FDI - Foreign Direct Investment

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Projected values of investment in infrastructure(USD billion)

Investment in infrastructure by the Planning Commission isexpected to expand at a CAGR of 14.5 per cent over FY1217

The Planning Commission expects total infrastructureinvestment to be USD1 trillion in the 12th Five-Year Plan(201217), from USD428 billion in the 11th Plan

This increase in infrastructure investment is set to raisesteel demand by roughly 40 MTPA during FY1317

Source: Planning Commission, Aranca ResearchNotes: MTPA - Million Tonnes Per Annum

97.3114.1 131.2

149.1

169.0

191.4

FY12 FY13 FY14 FY15 FY16 FY17

CAGR: 14.5%

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Consumer durables market size (USD billion)

Over FY03-FY11, consumer durables has grown at a CAGR of 12.2 per cent as growth in disposable income resulted risein their demand

Capital goods and consumer durables are expected to grow at a 7.5 per cent to 8.8 per cent over 2012-2021

Automotives production expanded at a CAGR of 22.2 per cent over FY0912

Commercial vehicles are the fastest growing segment with a CAGR of 29.8 per cent over the same period

Over FY12-FY21, the automotive sector is projected to grow at a CAGR of 11.5 per cent to 12.5 per cent

Total production of automobiles in India(million units)

Source: SIAM, JSPL May 2013 presentation, Corporate Catalyst India, Aranca ResearchNotes: E - Estimate; FY - Indian Financial Year (April - March)

2.9

3.23.5

3.84.2

4.75.2

6.3

7.3

FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11

1.

8

2.

4

3.

0

3.

1

5.

1

9.

7

0.

4

0.

6

0.

8

0.

9

1.

4

2.

4

8.

9

11.

1

14.

2

16.

3 2

1.

0

30.

2

FY09 FY10 FY11 FY12 FY16E FY21E

Passenger vehicles Commercial vehicles

Three wheelers & two wheelers

CAGR: 12.2%

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National Steel Policy2012

In view of the sectors changed dynamics, globally as well as domestically, the Ministry ofSteel has initiated the process of drafting a new National Steel Policy to replace theexisting National Steel Policy of 2005

The government has set up a committee headed by the Steel Secretary to monitor theformulation of the new National Steel Policy

Four task forces have been constituted to study, analyses, consult and formulate draftpolicy documents on different aspects of the policy

The current policy draft proposes allotment of captive iron ore mines to producers through

open bidding and putting some mines in the general category

R&D and innovation

A new scheme, The scheme for the promotion of R&D in the iron and steel sector, hasbeen approved with budgetary provision of USD24.6 million to initiate and implement theprovisions of the scheme as per the 11th Five-Year Plan

USD10.7 million had been spent under the scheme up to December 2012 The development of technology for cold-rolled grain oriented (CRGO) steel sheets and

other value-added products is also included under the policy purview and is allocatedUSD6.7 million

Source: Ministry of Steel, Aranca Research

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Foreign DirectInvestment

100 per cent FDI through the automatic route is allowed in the Indian steel sector

Rise in export duty on

iron ore

The government hiked the export duty on iron ore to 30 per cent ad valorem on allvarieties of iron ore* (except pellets)

Source: Ministry of Steel, Aranca ResearchNotes: * - w.e.f. 30th December 2011

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Export duty on iron ore has been increased to 30

per cent ad valorem on all varieties of iron ore

(except pellets), to preserve iron ore resources for

domestic use

As per the governments decision, the Government

of Indias 51 per cent shareholding in Eastern

Investments Company Limited (EIL), under Bird

Group of Companies, was transferred to RINL

New Research and Development policy for the

steel sector have been finalised/adopted for

implementation

New techno-economic benchmarks have been

evolved on international patterns to improve

performance of steel PSUs; implementation is

being monitored closely

Under the Ministry, the Joint Plant Committee

(JPC) studied 300 districts, 1,500 villages, 4,500

manufactures and 8,000 retailers spread over

Indias 28 states and 7 union territories to assess

steel demand in the rural areas and examine the

potential to increase steel consumption levels

The Ministry of Steel set up the Steel Innovation

Council to promote innovative ideas in the steel

sector

The New National Steel Policy for the forthcoming

years is under finalisation

In April 2013, the Ministry of Steel signed a Letter

of Intent (LoI) with the Tanzanian Government to

strengthen cooperation in steel and mining

activities

Source: Ministry of Steel, Aranca ResearchNotes: W.E.F - With Effect From 30 th December, 2011

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Developer Location Product

Viraj Profiles Ltd Thane, MaharashtraStainless steel engineering

products

Jindal Steel Ltd Kalinganagar Stainless steel

SAIL Salem SEZ Pvt Ltd Salem, Tamil Nadu Steel

Orissa Industrial InfrastructureDevelopment Corporation

Jajpur, OrissaMetallurgical-based engineering

and ancillary/downstream industry

Source: Formal approvals granted in the Board of Approvals after the SEZ rules coming into force,

Special Economic Zones in India website, www.sezindia.nic.in

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M&A scenario details

Period: 1 January 2012 to 21 June 2013

Deal type Number of deals Largest deal (USD million)

Inbound 2 -

Outbound 1 -

Domestic 3 232.6

Cumulative FDI inflows

Period: April 2000 to March 2013

Sector

Metallurgical industries USD7.5 billion

Per cent of total FDIinflow

3.9

Source: Thomson ONE Banker, Fact Sheet On Foreign Direct Investment (FDI), Department of Industrial Policy and Promotion

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For updated information, please visit www.ibef.org

State MoUs signed (2011) Capacity addition (MTPA)

Orissa 63 81.2

Jharkhand 49 105.1

Chhattisgarh 76 60.0

West Bengal 16 39.4

Karnataka 57 173.0

Andhra Pradesh 18 11.8

Other states 22 18.2*

Total 301 488.6

Capacity addition plans 2012

Company Plans

SAILSAIL plans to invest USD27.3 billion in increasing capacity from 21.4 MTPA to 45 MTPA. Inits recent expansion plan, the company modernised and expanded its integrated steelplants at Bhilai, Bokaro, Rourkela, Durgapur, Burnpur and a special plant at Salem

NMDCNMDC is setting up a greenfield integrated steel plant of 3 MTPA capacity in Nagarnar,Chhattisgarh at an estimated cost of about USD3.2 billion

Source: Ministry of Steel, Annual Report 2011-12; Note: MTPA - Million Tonnes Per Annum, * - Estimated figures

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Jindal Steel and Power Limited

Incorporated in 1979, Jindal Steel and Power Limited (JSPL)

is an integrated steel producer and the largest coal-based

sponge iron manufacturer in the world. The company has an

installed steel production capacity of 3 MTPA. JSPL is

engaged in manufacturing long products and is specialised

in producing long rails for railways and large sized H-beams

as well as columns for the infrastructure and construction

sector

JSPL also has significant presence across the mining, power

generation and infrastructure sectors

Achievements:

2011 Ranked third in the Metals category of

Business Worlds Most Respected Companies

Survey, 2011

2010 Rated the Worlds Second-Largest ValueCreator by the Boston Consulting Group (BCG)and the Worlds Largest Value Creator in theMining and Materials category

Projected crude steel capacity in the 12th Plan(million tonnes)

Source: Company website (www.jindalsteelpower.com),Planning Commission, Aranca Research

3.0 3.0

4.5

7.0

8.0

10.0

11.5

FY11 FY12 FY13 FY14 FY15 FY16 FY17

CAGR: 25.1%

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Financial growth (USD million)Sale of steel (million tonnes)

0.30.2

0.71.0

1.21.6

1.9

0.5

0.8

1.4 1.6

2.02.3

2.82.8

3.8


Finished steel products Semi steel products Pellets

671816

1,488

1,8031,596

2,287

3,315

3,007

103197

431 438 395634

818 721

FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13

Gross revenue PBIDT

Source: Company website (www.jindalsteelpower.com)Notes: Company clubs iron and steel segment s performance; PBIDT (Profit Before Interest, Depreciation and Tax)

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1991 1993 1995 1997 1999 2002 2006 2010 2012

Long track rails

Hot-rolled parallel

flange beams

Column sections

Plate and coils

Wire rods

Organic growththrough capacity

additions

Foray into the oil &

gas and cementsectors as a part of

diversification

1991Commencedoperations

FY08ISO

9001:2008

accreditation

FY 1314Steel capacity to

rise from3.5MTPA to7.0MTPA

The iron and steelsegment continues

to be a majorcontributor (~75%)

Expansion ininternational

markets

TMT Re-bars

Strong diversifiedcustomer base of2,758 customers

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Bhushan Steel Limited

Established in 1983, Bhushan Steel Limited (BSL) is the

third-largest secondary steel producer in India. The company

has an existing steel production capacity of 2.5 MTPA. It

primarily manufactures flat steel products for the automobile

industry

Products Cold-rolled closed annealed coils, galvanised

coils and sheets, high tensile steel strapping, colour coated

coils, galume sheets and coils, hardened and tempered steel

strips, billets, sponge iron, precision tubes and wire rods

Milestones:

2004 Commissioned secondary steel production at

Khapoli, Maharashtra

2006 Commissioned primary steel production at

Meramandali, Odisha

2006 Commissioned secondary steel production at

Sahibabad, Uttar Pradesh


2.22.5

4.5

5.0 5.0 5.0 5.0


Source: Company website (www.bhushansteel.com),Planning Commission, Aranca Research

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Financial growth (USD million)Production of steel (million tonnes)

Source: Company website (www.bhushansteel.com), Aranca ResearchNotes: NPAT - Net Profit After Tax

1.0

1.21.1

1.6

1.8

2.1

FY07 FY08 FY09 FY10 FY11 FY12

693

928

1,161 1,178 1,266

1,662

2,251

1,541

35 69 105 92178 221 213 116

FY06 FY07 FY08 FY09 FY10 FY11 FY12 9MFY13

Gross revenue NPAT

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1989 1991 1993 1995 1997 1999 2002 2006 2010 2012

Cold-rolled

Wheel, tyre and

axle plant (railways)

Alloy steel

Iron making and

castings

Organic growth insteel and flat

products

Capacityexpansion

(0.9 MT to 2.5 MT)

1989Secondary

steelproduction in

UP

Partnership withJapanese steel

producer,Sumitomo

FY06Primary steelproduction in

Odisha

FY12USD2.5 billion

turnover

Galvanised

Color coated tiles

and pipes

Alloy billets

Sponge iron

Otherdeveloped products

Technologicalupgradation andfurther capacity

addition

Strong diversifiedcustomer base of3,300 customers

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Tata Steel Limited

Established in 1907 by the visionary founder JN Tata, Tata

Steel is among the top ten global steel companies with an

annual crude steel capacity of over 28 MTPA

The company caters to sectors such as automotive,

construction, consumer goods, engineering, packaging,energy & power, ship building, rail and defense & security

Milestones:

2009 Tata Ryerson and HMPCL merge with Tata

Steel

2007 Tata Steel and Corus were integrated at

USD12 billion, making Tata Steel one of the top ten

global steel producers


Source: Company website (www.tatasteel.com),Planning Commission, Aranca Research

6.87.6

9.211.0

15.1

17.5

20.0


CAGR: 19.7%

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Financial growth (USD million)Production and sales of steel division (million tonnes)

Source: Company website (www.tatasteel.com), Aranca ResearchNotes: NPAT - Net Profit After Tax

4.64.9 4.9 5.4

6.4 6.77.0

7.9

4.4 4.8 4.85.2

6.2

6.4 6.6

7.5

FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13

Production Sales

0.80.9 1.2 1.1 1.1

1.5 1.4

3.9

4.5

5.6 5.9 5.8

7.2 7.1


NPAT Gross revenue

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Source: Company website (www.tatasteel.com), Aranca Research, * - Revenues from Indian operations

Note: M&A - Mergers and Acquisitions

1912 1995 1996 1997 1998 1999 2000 2002 2004 2006 2008 2010 2011 2012 2013

Blast furnace

Organic growth insteel

Capacityexpansion

(3 MT)

M&A(Tata-Corus)

Technologicalupgradation

1912Production

capacity (1.6lakh tonnes)

Diversification(coal injection

unit)

FY06USD3,625

millionturnover

FY13USD7.0billion

turnover*

Pig iron and

steel ingots

Wheel, tyre and

axle plant (railways)

Alloy steel

Iron making and

castings

Developed products

Announced plansto merge Tata

Metaliks Ltd andTata Metaliks

Kuboto Pipes Ltdwith itself in April

2013

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JSW Steel

Established in 1994, JSW Steel Ltd manufactures iron and

steel products in India and abroad

Products Hot-rolled coils, plates and sheets; cold-rolled

coils and sheets; galvanised sheets and coils; pre-painted

galvanised coils, sheets and galvanised sheets

Achievements:

2011 National Sustainability Award by the Indian

Institute of Metals

2009 Gold Award in the Metal and Mining sector

2008 National Energy Management Award

instituted by CII


Source: Company website (www.jsw.in),Planning Commission, Aranca Research

11.1

13.2314.3 14.3 14.3

17.618.4


CAGR: 8.8%

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Notes: JV - Joint Venture, TMT - Thermo Mechanically Treated, MML - Mysore Minerals Limited, MTPA - Million Tonnes Per Annum

1994 1995 1996 1997 1998 1999 2000 2002 2004 2006 2008 2010 2011 2012 2013

FY 14

Saleable steel

sales to reach

9.75 million

tonnes

Special steel bars

Galvanisedproduct

TMT Re-bars

Wire rods

Cold-rolled

Hot-rolled

Organic growthand integration

JV formed toexplore, develop &

mine iron ore withMML

1994ISO

accreditations

Capacityaddition 7.8 MT

1994Productioncapacity

(1.25 MTPA)

FY06USD1,417

millionturnover

FY 13

USD7.1billion

turnover

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Note: Capex Capital Expenditure

Automotive

The automotives

industry is forecasted

to grow in size by

USD122159 billion

by 2016

With increasing

capacity addition in

the automotive

industry, demand for

steel from the sector

is expected to be

robust

Capital goods

The capital goods

sector accounts for

11 per cent of steel

consumption, and

has the potential to

increase in tonnage

and market share

Corporate Indias

capex is expected to

grow and generate

greater demand for

steel

Infrastructure

The government aims

to increase

infrastructure

spending from 8.4

per cent of GDP in

FY11 to 10.7 per cent

by FY17

Due to such a huge

investment in

infrastructure the

demand for long steel

products would

increase in the years

ahead

Airports

More and more

modern and private

airports are expected

to be set up

Development of Tier-

II city airports would

sustain consumption

growth

Estimated steel

consumption in

airport building is

likely to grow more

than 20 per cent over

next few years

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Source: Planning Commission, Aranca Research

Railways

The dedicated rail

freight corridor

(DRFC) network

expansion would be

enhanced in future

Gauge conversion,

setting up of new lines

and electrification

would drive steel

demand

Oil and gas

The liquid fuel

transportation pipeline

network is likely to

grow from the present

16,800 km to 22,000

km in 2014

This would lead to an

increase in demand of

steel tubes and pipes,

providing a lucrative

opportunity to the

steel industry

Power

The government aims

to add 71,000

1,07,500 MW (Mega

Watt) of capacity

during the 12th Five-

Year Plan

Both generation and

transmission

capacities would be

enhanced, thereby

raising steel demand

from the sector

Rural India

Rural India,

accounting for 70 per

cent of Indian

population has low

per capita steel

consumption which

provides huge scope

for growth

Policies like Bharat

Nirman and Rajiv

Gandhi Awaaz Yojna

are driving growing

demand for

construction steel in

rural India

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Indian Stainless Steel Development AssociationL-22/4, DLF Phase-IIGurgaon, Haryana122 002Phone: 91-124-4375501Fax: 91-124-4375509E-mail: [email protected]

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CAGR: Compound Annual Growth Rate

FDI: Foreign Direct Investment

FY: Indian Financial Year (April to March)

So FY10 implies April 2009 to March 2010

JV: Joint Venture

MoU: Memorandum of Understanding

MT: Million Tonnes

MTPA: Million Tonnes Per Annum

NPAT: Net Profit After Tax

SEZ: Special Economic Zone

TMT: Thermo Mechanically Treated

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USD: US Dollar

Wherever applicable, numbers have been rounded off to the nearest whole number

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Year INR equivalent of one US$

2004-05 44.95

2005-06 44.28

2006-07 45.28

2007-08 40.24

2008-09 45.91

2009-10 47.41

2010-11 45.57

2011-12 47.94

2012-13 54.31

Exchange Rates (Fiscal Year)

Year INR equivalent of one US$

2005 45.55

2006 44.34

2007 39.45

2008 49.21

2009 46.76

2010 45.32

2011 45.64

2012 54.69

2013 54.45

Exchange Rates (Calendar Year)

Average for the year

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Steel - August 2013