3. CONTENTS Steps already taken Global steel statistics PEST analysis SWOT analysis Challenges Steps : Taking Us Further Away..

4. Signed MoU with CG Govt. for setting 3.0MTPA Integrated Steel Plant (ISP) at Nagarnar Merger of SIIL with NMDC Inc. in capacity of Paloncha plant, A.P. from 60,000 TPa to 2,60,000 TPa One of the partners in ICVL (Int. Coal Ventures Ltd., with equity shareholding of 2:2:1:1:1 between SAIL, CIL, RINL, NMDC and NTPC Coal being targeted in Australia, Mozambique, Canada, Indonesia etc. Signed MoU with Tata Steel Set to pick up 50% stake in the Ferrous Resources Ltd’s Brazilian operations for $2.5 billion

5. STEEL STATISTICS : A GLANCE

6. 2004200520062007200820092010%2010/2009 Europe339.8333.8355.1364.5342.2265.5314.918.6 North America134.0127.6131.8132.6124.582.4111.835.7 South America45.945.3 48.247.437.843.815.9 Africa16.717.918.7 17.015.217.515.1 Middle East14.315.315.416.516.617.719.610.7 Asia512.5595.5672.3756.9771.0804.9897.911.6 Australia/New8.38.68.78.88.46.08.135.0 World1071.51144.01247.31346.21327.11229.51413.615.0 Pace of Steel Production Worldwide

9. Top 10 Steel Producing Countries RankCountry20102009%2010/2009 1China626.7573.69.3 2Japan109.687.525.2 3US80.658.238.5 4Russia676011.7 5India66.862.86.4 6S. Korea58.548.620.3 7Germany43.832.734.1 8Ukraine33.629.912.4 9Brazil32.826.523.8 10Turkey2925.314.6 Source: ISSB

11. Top 10 Steel Exporting Countries in Asia (In MMT) RANKEXPORTER20082009 %age Change 1Japan37.133-11 2China56.221.7-61 3South Korea19.719.6 4Taiwan9.8 0 5India6.85.2-24 6Malaysia2.52.78 7Singapore2.21.5-32 8Thailand2.31.5-35 9Hongkong1.91.2-37 10Indonesia1.51.1-27 Other0.90.4-56 TOTAL140.997.7-31

13. PEST ANALYSIS STEEL INDUSTRY

14. Political Forces Interferences Political Interferences Regulations Political Interests Political Agitations Environmental aspect Unfavorable policies

15. Economic Forces Currently  Demand, Cost, and Production are rapidly increasing. Over a third of the world’s steel are produced and consumed by BRIC (Brazil, Russia, India, China) Recovery from economic meltdown Upcoming production and consumption Future Trends for cost and production affect the prices as well as production The countries that make up BRIC will continue to fuel the steel industry’s demand for coming years. Labour cost, other variable input cost rise.

16. Social Forces Safety Improved health and safety performance Most successful steel companies are the safest. The Environment Steel industry is responsible for 3-4% of the world’s green house gas emissions 1.7 tons of carbon dioxide is produced per ton of steel produced Rising domestic healthcare puts financial strain on the steel industry. Healthcare Healthcare and other benefits. Employment Job increase in steel sector Nation’s growth

17. Technological Forces Past 25 Years Improved energy efficiency Improved recycling of steel products Improved use of steelmaking by-products (eg. Use of blast furnace sludge as adsorbents for removing Pb 2+ ions from aqueous solutions) Innovative iron-making processes. e.g. Finex Process (based on the direct use of iron-ore fines and non-coking coal ) Future Use of solar power and wind turbines Improving outdated steel plants with new technology Improvised technology required for environment management New concepts of Energy Management, Knowledge management

18. SWOT ANALYSIS

19.  Availability of iron ore and coal domestically  Comparatively low labour wage rates in India  Abundance of quality manpower  Strong managerial capability  New technologies

20. Weaknesses  Coking coal import dependence / Low coking coal quality (Ash content 30-45%)  Low R&D investments  Inadequate infrastructure  High cost of energy  Higher duties and taxes  Labour laws  Dependence on imports for steel manufacturing equipments & technology  Slow statutory clearances for development of mines  Regulations hampering the pace of development

21. Opportunities  Unexplored rural market  Growing domestic demand  Exports (Growing world demand )  Huge Infrastructure demand  Rapid urbanisation  Increasing demand for consumer durables

22.  Chinese production and exporting power  Protectionism in the West  Competitors already flourishing the market  Slow growth in infrastructure development  Global economic slow down (?)/Market fluctuations  Increasing interest of foreign steel producers in India (Arcelor-Mittal, POSCO etc.)

23. CHALLENGES …  Entry into already a highly competitive market  Long – term customer loyalty  Product substitution (e.g. by aluminum, concrete etc.)  Supply limited to domestic market only ??  Supply of raw materials : coke, limestone..  More highly skilled workforce

24. Steps : Taking Us Further Away..  Ensuring continuous supply of raw materials  Bringing coal and limestone projects to ground  Large scale operation of KIOM  Technological advancement  Supply of steel Nation’s infrastructure development

25. Contd..  Supply of limestone to steel / cement industry  Magnesite supply to fertilizer domain  Stepping in energy sector : Public domain supply  Growing into a multidimensional domain  A global presence, e.g. like OVL (ONGC Videsh Ltd.)

26. Contd…  Profit from foreign, but revenue for the nation  Two way global technology transfer  Continue growing our reputation as a responsible organisation  Effective mineral conservation o Value addition of iron ore fines o Utilization of tailings/ slimes

27. (acting as) NATIONAL DEVELOPMENT CORPORATION

28. Thank you for your interest... Go Green Save Nature