1. Company Presentation
Sept 2009

2. Industry Opportunity
Business + Management
Financial Snapshot
Growth Strategy

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

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

5. 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

6. 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

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

8. Industry Opportunity
Business + Management
Financial Snapshot
Growth Strategy

9. 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

10. 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
2001 onwards
2005
2008
2009

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

12. Manufacturing Process

13. 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

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

15. Total Solutions Approach = Long Term Client Relationships

16. 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

17. AIA/Vega Global Presence
Offices being opened in 2009

18. Industry Opportunity
Business + Management
Financial Snapshot
Growth Strategy

19. 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

20. 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

21. Industry Opportunity
Business + Management
Financial Snapshot
Growth Strategy

22. 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

23. 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
June
April FY
Implementation

24. Thank You