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IFGL Refractories Limited An Indian Multi-national

IFGL Refractories Limited An Indian Multi-national . Disclaimer.

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IFGL Refractories Limited An Indian Multi-national

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  1. IFGL Refractories Limited An Indian Multi-national

  2. Disclaimer Certain statements in this presentation concerning our future growth prospects, are forward looking statements, which involves a number of risks and uncertainties that may cause actual results to differ materially from those in such forward looking statements. Risk and uncertainties relating to these statements include and are not limited to risk and uncertainties relating to fluctuations in sales, earnings, our ability to manage growth, intense competition, our ability to manage operations, fluctuations in demand, our ability to successfully complete and integrate potential acquisitions, performance of our subsidiaries, political instability and changes in legal restrictions and general economic conditions affecting our industry. The Company may from time to time make additional written and or oral forward looking statements. The Company does not undertake to update any forward looking statements that may be made from time to time by or on behalf of the Company.

  3. IFGL Refractories Highlights • One of the best known Special Refractory Manufacturer of India • Largest exporter of Refractories from India • Crossed Rs 1000 Million Export in 2007-08 • Recipient of CAPEXIL Special Export Award for Refractories for five successive years • Star Export House –recognised by Ministry of Commerce • Quality System certified- BS EN ISO 9001: 2000 • Reputed for introducing new technology products in India • Uninterrupted Dividend paying (since 2002-03)

  4. Industry Scenario & Opportunities

  5. Refractory Industry Overview Global Refractory Production World Steel Crude Steel Production 2007 – 1,343 million tonnes growth of 7.5% 2006 – 1,244 million tonnes growth of 8.9% 2005 – 1,142 million tonnes End use- segments

  6. World Steel – on growth path after consolidation

  7. Global Market Opportunities for Refractories Steel Scenario • BRIC led growth has revitalised Steel Industry-BRIC’s share in world production grown from 31% in 2001 to 48.2% in 2007 • Strong growth expected to continue as Steel consumption still very low in Developing regions • Increased demand for Special Refractories, being consumable to Steel Industry • Limited competition for Special Refractories • Buoyant outlook for Steel Industry, both in Indian and Overseas markets

  8. Indian Steel Industry – a bright future • Developments • SAIL,TISCO, ESSAR,JSW have announced ambitious Capacity expansion plans • Arcelor Mittal and POSCO major International players coming to India • Resources • Abundant Iron Ore reserves • Strong Managerial skills in Iron and Steel making • Large pool of skilled Man-power • Established steel players with strong skills in steel making • Opportunities • High economic growth driven by industry • Faster Urbanisation • Increased Infrastructure Asset Building • Automobiles and component industry growth • Policy • Pro-active stance of Govt. • Encouragement for overseas investments

  9. Steel production- Current production & Planned capacity

  10. Tata Steel RINL Essar Bhushan JSPL JSW Ispat Mittal POSCO Proposed state-wise New Capacity J’khand: 38 mtpa W Bengal: 14 mtpa Ch’garh: 9 mtpa Orissa : 50 mtpa AP: 3.3 mtpa Karnataka: 9.7 mtpa SAIL IFGL Plant

  11. IFGL - Introduction

  12. 1999 Purchase of stake from Vesuvius Indo Flogates merger with IFGL Refractories 2005 Acquired Monocon Group 1993 IFGL Refractories Founded Collaboration with Harima Corp., Japan 1983 Collaboration with Flogates UK 2000 Awarded ISO 9001 1979 Indo Flogates founded 1970s 1980s 1990s 2000s • Manufacture of Flocon Slide Gate Mechanism & refractories • Manufacture of Slide Gates for Furnace and convertors • Manufacture of Continuous Casting Refractories started • Manufacturing IPV Porous Plug started • Export Thrust • Lances • Darts • Monolithics • Castables Brief history of IFGL Refractories 2006 Acquired Goricon Group

  13. Highly efficient international manufacturing operations . . . Monocon International RefractoriesDenaby, UK Tianjin Monocon Tianjin, China Mono Ceramics Inc Michigan, US IFGL Refractories India Monotec Refratarios Fortaleza, Brazil

  14. IFGL Refractories • Products: • Continuous Casting refractories • Slide Gate system & refractories • Ladle bottom Porous Plugs • Tap Hole Sleeves • Furnace Gate & refractories • Cast Products • Monolithics/Castables • ZIRCON & Zirconia Nozzles Works: Sector ‘B’ Kalunga Industrial Estate P.O. Kalunga – 770 031 District – Sundargarh Orissa - India Corporate Office: Mcleod House 3, N S Road Kolkata-700001 India Technical Collaborator: Krosaki Harima Corporation, Japan (A Subsidiary of Nippon steel)

  15. Office & Works: Davy Road, Old Denaby, South Yorkshire, UK ISO 9001 accreditation Products Lances Tundish spray products Slag control darts Other Monolithics Engineering Products Slag control Dart machines Ladle & EF Monocators Tundish spray machines SPV Office in Sao Paulo Works: Av. Jandira, 316-Conj.4 Cep 04080-001 Sao Paolo Brazil Products Tundish spray Precast Castables Production Facilities- UK & America • Office and works: Pipestone Road Benton Harbor Michigan 49022 USA • ISO 9001 accreditation • Products • Lances • Precast & Castables • Purge Plugs

  16. New plant Production Facilities- China • Office & Works: • Tianjin Economic Development Area • Tianjin 300457 • P R China • Products • - Slag Control Darts • - Cast Products • - Purge Plugs • Office & Works: • Tianjin Economic Development Area • Tianjin 300457 • P R China • Products • - Monolithics

  17. Worldwide Marketing Network Ukraine Germany Russia France Romania & Slovakia UK Italy Poland Sweden USA, Canada, Mexico Turkey Egypt Iran Malayasia Aus, NZ Chile S.Africa Marketing offices/ Works Agents

  18. Technical Know How • Current KROSAKI HARIMA CORP.,JAPAN New Generation Slide Gate Systems Continuous Casting Refractories ALCAR INTERNATIONAL, U.K Tube Changer device for Slab Caster

  19. IFGL - Performance

  20. Consolidated Operations

  21. Standalone Operations

  22. Overseas Operations

  23. IFGL Group - Strong financial performance • Strong growth in Sales • Highly cash generative – EBITDA Rs 55 crores yearly and growing

  24. IFGL Refractories, India

  25. Global Market Opportunities for RefractoriesGeographical distribution - Steel Production & IFGL Group sales

  26. Achievements 2007-08 • New Dart Plant started operating in China • New Product introductions: • Full range of Castables • Zirconia nozzles • Integration of Goricon Production facilities into Monocon to achieve Cost efficiencies • All overseas subsidiaries generating profits • Continued enhancement of Kalunga Plant capacity • Expansion of Marketing network

  27. CAPEX

  28. Capacity- India

  29. Capacity- Global

  30. Future Outlook

  31. IFGL Refractories Shareholding Pattern & Dividend History • Listed on: • Bombay Stock exchange • National Stock Exchange

  32. Action Plan 2008-09 • ACTION PLAN • Full Utilisation of the new Dart Plant in China • 2nd shift operation of the Monolithic Plant in China • Develop market of Zirconia nozzles and Castables • Debottlenecking to take care of next 1/2 years • New Plant for CC Refractories Planned in Kandla SEZ LIKELY SCENE • Likely scarcity of Refractories due to: • Pressure on supply of Raw Materials • New Capacity / increase in Steel Production • Achieving full capacity utilisation in Kalunga(Rourkela) Plant

  33. New Project CC Refractories at Kandla SEZ • Existing plant running very close to full capacity • Huge increase in demand expected due to high growth in Steel Industry • Overseas Sales growing fast, driven by • Group’s acquisitions of refractory companies in UK, USA, Brazil and China • Resulting in logistical support and increased acceptance of IFGL products by overseas customers • Port based plant in Western India will reduce transit time and reduce delivery cost to customers in Middle East and Europe • Project to be implemented by IFGL Exports Ltd., a subsidiary of IFGL Refractories Ltd. • Capacity planned 300000 pcs per annum (existing 360000 pcs) of CC products • Project Cost Rs 500 Million Kandla Existing plant at Rourkela

  34. SEZ Benefits • Duty Benefits: SEZ units may import or procure from the domestic sources all their requirements of capital goods, raw materials, consumables, spares, packing materials, office equipment, DG sets etc. duty free. • 100% IT exemption (10A) for first 5 years and 50% for 5 years thereafter. Reinvestment allowance to the extend of 50% of ploughed back profits for further 5 years • External commercial borrowings by units up to $ 500 million a year allowed without any maturity restrictions. • Flexibility to keep 100% of export proceeds in EEFC account. . • Exemption from interest rate surcharge on import finance. • Exemption to sales made from Domestic Tariff Area to SEZ units from Central Sales Tax. • Exemption from Service Tax to SEZ units

  35. Progress- Kandla CC Project Bhoomi puja being perfomed by company senior executives • Land already acquired • Key Personnel appointed • Orders for Long delivery equipment placed • Contractors / equipment suppliers being identified

  36. Outlook for 2008-09 25% 20% Sales Profit

  37. Thank You

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