Company Presentation Sept 2009

Industry Opportunity Business + Management Financial Snapshot Growth Strategy

Industry: Mill Internals High Chromium wear resistant parts for grinding & crushing equipment

Industry: Mill Internals (cont’d) Grinding Media Liners Diaphragm Rollers & Table liners Blow bars / Hammers Dipping Tubes Cement & Mining as key end-user industries

Process Critical Input for Grinding Optimal design for given application Consistent end product quality Increased production volume Reduce process costs A small component of grinding cost, but essential for continuous production Non availability Leads to Grinding Operations can come to a halt Product failure Leads to

Industry Size & Scope Global market for Mill Internals for mining and cement sectors estimated at 3 mn MT (Rs 125 bn) and growing at 4-5% per annum Mill internals are consumables in grinding mills Their design and properties (abrasion, corrosion, impact resistance) are critical to grinding process efficiency Demand driven by new projects and replacement for wear parts Industry moving from cost of parts to total cost of ownership, driving innovation in product development and total solutions Move from forged grinding media to high chrome cast media Total solutions include design of parts, metallurgy to meet the specific requirement of the material being ground – varies from plant to plant

Industry size Mining Sector Demand at 2.4 mn MT Cement Sector Demand at 300,000 MT

Industry Opportunity Business + Management Financial Snapshot Growth Strategy

Company Overview AIA Engineering Limited (‘AIAE’ ) promoted by Mr Bhadresh Shah, a first generation entrepreneur, began operations in 1978 A niche manufacturer of impact / abrasion / corrosion resistant high chrome castings with rated capacity of 165,000 MT per annum Products include grinding media , liners, diaphragms etc for cement, mining & utility industries, with focus on application and end to end solutions Strong focus on metallurgy, process technology – for product development and process improvement to facilitate total solutions to customers Basic know how through collaboration (1991 to 2000 ) with M/s Magotteaux, Belgium Collaboration with Southwestern Corp, UK for process improvements (vertical mills) Global marketing presence, through 100% owned subsidiaries / branches in USA, UK , ME , Australia and Philippines Supply contracts with global cement majors like Lafarge of France, Cemex of Mexico and Holcim of Switzerland & commercial relationships with OEMs like F L Smidth of Denmark Domestic customers include leading cement manufacturers, mining companies, major thermal power plants and OEMs

Milestones $ 200 million revenue mark 100K Mt plant fully commi-ssioned IPO Indepen-dent global foot print Foreign Joint Venture Develop high chrome applications Initial years 1978 - 1985 1985 - 1991 1991 - 2001 2001 onwards 2005 2008 2009

AIA Engineering – A Total Solution Provider Metallurgy Design Application M D A Application : Working Conditions Design of Part Physical & Metallurgical Properties

Manufacturing Process

Marketing International marketing presence – under ‘Vega’ brand Wholly owned subsidiaries and offices covering USA , UK, Middle East, Australia Technical team in key offices servicing customer requirements Established relationships with cement majors / technology suppliers Holcim (Switzerland), Lafarge (France), Cemex (Mexico), FL Smidth Now focusing on opportunities available in global mining & utility sectors Domestic business spread across cement and utility/mining sectors ACC Limited, Gujarat Ambuja Cement Ltd., Ultra-tech Ltd., Grasim Industries Ltd., etc- in cement segment Kudremukh Iron Ore Company Ltd., Hy-grade Pellets, Hindustan Zinc, Bharat Aluminium Company-in mining segment Major thermal power plants and OEMs in the utility segment

Global Footprint in 75 countries Countries where AIA/Vega products are sold

Total Solutions Approach = Long Term Client Relationships

Organisation Structure AIAE 165,000 MT manufacturing capacity Domestic & international sales operations Manufacturing subsidiaries Marketing subsidiaries Welcast Steels Limited (WSL) Vega, ME Vega, UK Vega, USA Background WSL is a listed entity. AIAE holds 72 % of its equity 100% subsidiary Vega, ME owns 100% of Vega UK Vega, UK owns 100% of Vega USA Manufactures Grinding Media Sells directly to AIAE and to its customers Direct Sales to Middle East, South East Asia and South America Direct Sales to European Region, Russia, Africa, Turkey and other erstwhile CIS Countries Direct Sales to North America and part of Central America Production & Sales

AIA/Vega Global Presence Offices being opened in 2009

Industry Opportunity Business + Management Financial Snapshot Growth Strategy

Consolidated Financials ( In INR ) Rs.in Millions PARTICULARS FY 05 FY 06 FY 07 FY08 FY09 Sales 2937 4070 5230 6912 10233 EBIDTA 469 919 1407 1955 2717 EBIDTA / Sales (%) 16% 23% 27% 28% Interest 28 53 24 17 21 Depreciation 33 71 82 136 203 Tax 252 346 460 750 NP after minority interest 269 524 943 1333 1736 PAT / Sales (%) 9% 13% 18% 19% 17% Capital Employed 1483 3316 5184 6379 8324 Networth 875 2741 4918 6100 7726 ROCE (%) (EBIDTA-DEP/CE) 29% 26% 30% RONW(%) (PAT/NW) 25% 22% ** Annualised

Consolidated Financials ( In USD ) USD in Millions PARTICULARS FY 05 FY 06 FY 07 FY08 FY09 Sales 67 91 120 173 201 EBIDTA 11 21 32 49 53 EBIDTA / Sales (%) 16% 23% 27% 28% Interest 1 Depreciation 2 3 4 Tax 6 8 15 NP after minority interest 12 22 33 34 PAT / Sales (%) 9% 13% 18% 19% 17% Capital Employed 74 119 159 164 Networth 20 62 113 152 ROCE (%) 29% 26% 30% RONW(%) 25% 22% ** Annualised

Industry Opportunity Business + Management Financial Snapshot Growth Strategy

Growth Strategy Capitalize further on predominant position in Cement in India & global markets Expand focus on global mining & utility segments Exploring backward integration opportunities for sourcing of certain key inputs and setting up a power plant Focus on strategic relationship / commercial partnerships with international partners to gain access to newer markets Increased R&D focus to further strengthen total solutions capabilities

Proposed Capacity & Plans Capacity in tons 200,000 165,000 Further expansion of manufacturing capacity (by de- bottling to 200,000) 115,000 115,000 65,000 Dec - 2005 June - 2007 April - 2008 FY 2010-2011 Implementation

Thank You