ESSAR STEEL Let’s begin
Europe Steel Trade 2013, Stresa (Italy) 8th– 9th April Presented By: William Magnasco Essar Steel - Sales Chief Manager Europe (PMP + Infrastructure)
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.
Global Overview of Coated Products Total Flat Coated Steel Consumption 06‘ (In Million Tonnes) Galvanized Galfan, Galvalume, Galvannealed 69 MT 19.48 MT Electro Galva 23.52 MT Total: 112 Million Tonnes Source: Metal Bulletin /CRU
Major Producers of Coated Products (In Million Tonnes) Others 38 MT USA 14.7 MT Europe 18 MT JAPAN 11.60 India Canada Japan 4.2 MT 2.4 MT China 11.6 MT S. Korea Taiwan 15.4 MT 5.6 MT 2.0 MT Total: 112 Million Tonnes Source: Metal Bulletin /CRU
World Galvanised Steel Growth Source: Metal Bulletin Feb08 /CRU
GalvanisedSteel Growth in US vs India & China DEVELOPED COUNTRY As the economy matures,consumption of galvanized products increases. %CAGR 2006/2000-(-) 2.2% 2010/2006-1.5% DEVELOPING COUNTRY %CAGR 2006/2000-24..4% 2010/2006-11.1% Source: Metal Bulletin Feb08 /CRU
End-use Markets for Galvanized Sheet (%) Note: Globally 70% consumption of HDGI is in automotive , 20% in construction Source: Metal Bulletin /CRU
Crude steel production & consumption Source: CRU
Growth Driving Sectors Sector Key Opportunities Source: Ernst & Young
India – PPGI Installed capacity * ESPF (400,000) + SCG (50,000) Total capacity in India is being expanded upto 1,5 Mn Source of Data : Interview with coil manufacturers
India – PPGI Market Growth 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
EU Coated Steel – Market Supply 2007 - 2011 Source of Data : Eurofer
How to succeed vs economy deceleration • Whatwehavetoface: Temporalyeconomicdecelerationdueto: • Inflation vs anti inflationarypolicy • Weakexternaldemand + 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
Essar Global Essar Global Essar Energy plc* Essar Steel Essar Shipping & Logistics Essar Projects Essar Telecom Aegis BPO Business Essar Oil Essar Power(a) 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 900retail outlets The Electronic Store Large format stores for Consumer Durables & IT products 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 Mncoal reserves across mines in India, Indonesia & Mozambique India Hazira Steel Complex 10 MMTPA integrated steel plant EssarHypermart Steel distribution chain North America Algoma Steel, Canada 4 MMTPA integratedsteel plant Minnesota Steel Iron ore mine with resources of 1.4 bntonnes & 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 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 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 • 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 • 47000+ 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 multichannel CRM solutions to a blue-chip, multinational client base • Source: Company information • * Listed on London Stock Exchange • Capacities stated represent gross capacity
Key Differentiators • Versatility of Colors • Non White Shades. • “Non Standards” Widths. • Lower Gauges. • High End Applications. • Market Diversification.
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
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.
Product Diversification Channels ,T Sections and Capping Materials Studs Market in Europe Gypsum Boards Profiles. False Ceilings / Acoustic Ceilings. Minimized Spangle, Skin passed for Pre-painted End Use. Telecom Shelters / Cold Storage.
Product Applications Industry Wise • Pharmaceuticals • Super Markets • Hospitality • Processed Food Industry • Fisheries • Floriculture • Tissue Culture • Agriculture • Refrigerated Containers
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
Products at a Glance – HDGI – Grain Silos Galvanized steel with 450 GSM coating. Target business of 24000 MT with Food Corporation of India.
Products at a Glance – HDGI (Solar Panel–sun rise industry)
Products at a glance – HDGI for Dish Antennae & Set top Boxes • Galvanized Skin pass- • Dish Antennae. *Set top Boxes switching to digital,
Products at a Glance – HDGI for Bus Body • Commercial supplies to - • Tata Marcopolo • ACGL Goa. • Ashok Leyland Limited
Products at a Glance - HDGI (Cable Trays & Tubes) Galvanized Tubes Replacement market Galvanized product for Cable Trays. New segment currently developed.
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)
Defense • 20 – 25 % reduction in energy cost by using sandwich panels. • Prototype are developed by shelter manufactures. • Metecno • Acme • Lloyds
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
New Initiatives PPGI for Small Refrigerator PPGI for Wine Coolers
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.
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 .
New Value Added Products - PPGI Wood finish coat Beckrytherm paint shade Uni coat paint system
New Value Added Products - PPGI Anti- Graffiti Lead and chrome free paints ( ROHS norms) Abrasion resistant system
New Value Added Products - PPGI Beckry shield anti-static paint system Marble Finish Clean coat
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.
Generator Canopy Kirloskar Kala Genset