Valuation Report on

Steel Authority of India Ltd.

There’s a little bit of SAIL in everybody’s life

STEEL SECTOR CMP: Rs 233.40TMP: Rs 202.82 31st

March 2010

Steel Authority of India Ltd. (Rs Mn)

We are initiating the coverage of Steel Authority of India Ltd. With a 12 month target price in the range of Rs 200 to Rs 270.We anticipate that capacity expansion with wide product mix will drive company’s revenue on a sustained growth path. The company’s vast dealership and service network, operational expertise will help in achieving the revenue and profitability projections.

SAIL has highest contribution in steel industry. It has 28% market share followed by Tata Steel & JSW.We expect that company revenue will be Rs 4, 92,979.88 Mn in FY11 i.e. a growth rate of 14.89% over previous year.

The company EBITDA margin is expected to increase from the current level of 20.91% in FY 09 to 23.69% in FY 10.

We expect that sales volume will increase by 13.64% in FY 10 & 11.11% in FY 11. Steel majors like SAIL, JSW, Tata Steel, SAIL is only one with net cash position (Rs 44/ share as of 2009).

The company has added new products like Auto grade CR products, Galvanized coils/ Sheets. It has also launched plates/ pipes to meet API 100 grade specification. For Infrastructure requirements it has added Universal beams/ Heavy beams with the size up to 1100. It has launched HCR-EQR TMT for earthquake resistant construction, Rock bolt TMT for tunnel construction, EN series HR coils for LPG cylinders. It has increased production Of rails & wheels to meet the increasing

Share Holding Pattern (%) OND 09

86%

6%

4%

1%

1%

2%3%

Promoters Insurance companies Foreign Institutional Investors

Mutual Fund / UTI Financial Institutions / Banks Others

Source:Bseindia

Requirements of Indian Railways.

The Joint venture magnese ore India Ltd for setting up a ferro alloy plant at Bhilai and joint venture agreement with Tata Steel for development of new coking coal mines which will help SAIL to reduce its raw material cost as coking coal is the one of the major raw material and 70% of it is imported from Australia & Newzeland.

Source: BSE INDIA

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SAIL SENSEX BSE-METAL

1. INVESTMENT RATIONALE.........................................................................51.1. Huge Demand to Drive the growth of Industry........................................................51.2.Steady volume growth expected................................................................................51.3. Relatively higher margins and EBITDA (Operationally good position)..................5

2. KEY RISKS.....................................................................................................................52.1. Delay in renewal of leases for Iron ore mines..........................................................52.2. Government Ownership............................................................................................52.3. Technological Process..............................................................................................52.4. High Manpower Cost................................................................................................5

4. FINANCIAL FORECAST AND ASSUMPTIONS........................................................64.1. KEY ASSUMPTIONS.............................................................................................64.2. Revenue....................................................................................................................64.3. Plant-Wise:...............................................................................................................64.4. Product-Mix:.............................................................................................................64.5. Others:.......................................................................................................................64.6. Production Capacity and Sales:................................................................................6

4.6.1. For 2008-09.......................................................................................................64.6.1.2 For 2009-10.....................................................................................................6

4.7. Capex........................................................................................................................74.8. Financing of Capex...................................................................................................74.9. Operational Expense.................................................................................................74.10. Dividend distribution..............................................................................................7

5. VALUATIONS................................................................................................................7DCF Sensitivity...............................................................................................................8

6. BUSINESS ANALYSIS..................................................................................................96.1. Company Background..............................................................................................96.2. Products and Services.............................................................................................10

7. Business model Analysis...............................................................................................107.1. Value Proposition...................................................................................................107.2. Target Customers....................................................................................................117.3. Distribution Channels.............................................................................................117.4. Promotion...............................................................................................................117.5. Revenue Streams....................................................................................................117.6. Core Capabilities....................................................................................................117.7. Value Configuration...............................................................................................117.8. Partner Network......................................................................................................117.9. Cost Structure.........................................................................................................12

8. SEGMENTAL ANALYSIS..........................................................................................128.1. Competition............................................................................................................128.2. Issues, concerns and Challenges.............................................................................13

8.2.1. Cyclical nature of Steel Industry.....................................................................138.2.2. Environmental regulation imposes additional costs and may affect the results of operations..............................................................................................................138.2.3. Infrastructural facilities of steel industry in India is not conducive to a sustainable growth.....................................................................................................138.2.4. High energy consumption................................................................................138.2.5. Dependence on import of Coking Coal...........................................................138.2.6. Low investment in R&D and inefficient technology leading to high carbon emission.....................................................................................................................13

9. INDUSTRY OVERVIEW.............................................................................................139.1. MARKET SIZE......................................................................................................149.2. KIND OF STEELS.................................................................................................14

9.3. Flat Products...........................................................................................................149.4. Long Products.........................................................................................................149.5. Structure of Indian Steel Industry...........................................................................14

Major Producers.........................................................................................................1410. GROWTH DRIVERS..................................................................................................14

10.1. Raw Material Integration......................................................................................1410.2. Growth drivers for company.................................................................................1410.3. Joint venture..........................................................................................................1510.4. MOU.....................................................................................................................1510.5. Focus on Value Added Product, Rural Demand & Distribution channel.............15

1. INVESTMENT RATIONALE

1.1. Huge Demand to Drive the growth of Industry

Steel consumption in India is growing at a rate of 12%, a trend persist as the country enters into Steel development phase. Construction/Infrastructure accounts for 60% of domestic steel demand, Engineering(Approx 30%), Auto sector(approx 8%).In the union budget 2010-11 it has planned to spend Rs 1,77,000 Cr. Mega projects in power, ports, railway, roads will increase the demand of steel.

1.2.Steady volume growth expected

SAIL makes both flat (52%) & long (36%) products. It also makes value added products such as pipes, plates and coated products. Alloy & special steel contributes to 6% of sales. SAIL has not expanded its installed capacity in this financial year so; we expect its saleable steel volume will grow by 9.44% in FY 10 & by 11% in FY 11 and subsequently by a higher rate as its new capacity is expected to increase in FY12. It will increase its hot metal production beyond 26 Mtpa.

1.3. Relatively higher margins and EBITDA (Operationally good position)

Sail’s EBITDA margin compare favorable with its domestic peers. This is possible due to its ongoing integrated operations, technological up gradation.

2. KEY RISKS

2.1. Delay in renewal of leases for Iron ore minesSAIL currently meets its all iron ore requirements of ~23 mtpa from captive sources. When its iron ore capacity is fully commissioned, its iron ore requirements will rise to ~43 mtpa. It has looking for new mines for meets its requirements. There has been delay in renewal of leases from the Chiria mines (Jharkhand) while further delay will be a risk.

2.2. Government OwnershipGovernment of India holds 86% of SAIL’s equity so it is public sector undertaking (PSU).Government subjects several rules, procedures which can have adverse effect on its business. There is also risk of price to which Government Company would be more susceptible.

2.3. Technological ProcessSome of the technological process like twin hearth furnace and ingot casting continue to operate and will be eliminated only after

modernization/expansion plan. It can develop advance technology and can reach better levels with reducing the cost by improving its R&D activities.

2.4. High Manpower CostSAIL has higher manpower cost than its competitors. Its cost is 17-18% of sales as compared to 7-8% and 2-3% for Tata steel & JSW respectively which reduces the operating profit margin.

4. FINANCIAL FORECAST AND ASSUMPTIONS

SAIL’s revenue is declined by 0.56% in FY10 due to global recession and it is expected to grow with a CAGR of 23% to reach Rs648949.63 Mn by FY 12.

The EBITDA will grow by 23.69% in FY10 to touch Rs 101662.4Mn from Rs 90234.70 Mn in FY09. EBITDA is expected to grow by CAGR of 16.37% from FY10 to FY11.

We anticipates that PAT would grow by 15.36% to Rs 71234.68 Mn in FY10 from Rs 61478.10 Mn in FY09. We expect PAT to grow by CAGR of 19% in next 3 years.

4.1. KEY ASSUMPTIONS

4.2. Revenue

4.3. Plant-Wise:

Bhilai steel plant have highest share of sales among integrated plants. Bokaro steel plant have high share of sales after Bhilai steel plant. Alloy steel plants have fewer shares of sales among all plants of SAIL.

4.4. Product-Mix:

Saleable steel is likely to be contributing about 90% of total sales turnover.

Semis component in sales of saleable steel is 12% of 5 integrated steel plants.

Special steel production 3.44 Mt which is increased by 20% in FY10 from FY09.

Production through concast 6.8 Mt which is 3% higher in FY10 from FY09.

Sale of other product like ingots, pig iron, scraps, coal chemicals etc. likely to contribute 5% of total sales turnover.

Shares of round likely to increase 10% to 20% by 2012. Shares of structurals likely to increase 5% to 15% by 2012.

4.5. Others:

Higher sales volume is expected because of higher average price realization due to higher sales of value added products, good product-mix and better quality of techno economic parameters.

Major demand of growth expected to come from Railways, Automobiles, power projects, Oil & gas and Highways.

4.6. Production Capacity and Sales:

4.6.1. For 2008-09 Saleable steel production will decrease to 12.5 MT in2008-09. Crude steel production of 10.18 Mt in FY10, growth of 1% from

previous year. Sales of saleable steel out of crude steel production are 82%. Net realization expected to be around Rs 36000 per tonn. Average capacity utilization to be 82%.

4.6.1.2 For 2009-10 Saleable steel production will increase to 13.68 Mt by 2009-10. Sales of saleable steel out of crude steel production are 90%. Net realization per tonn would be ~ Rs 31000 due to global slowdown

and it is expected to increase in future because economy is emerging from global economic crisis.

4.7. CapexTotal capex for 2007-08 was Rs. 2181 Cr and for 2008-09 it is Rs 5233 Cr. For this option for raising funds to finance the capex plan are being explored. Capex plan for 2009-10 is approximately Rs 10000 Cr. For modernization, expansion of plants various plans have already been taken.

4.8. Financing of CapexCompany has sufficient cash deposits and internal accruals which do not warrant any borrowings, may be done through ECB route.

4.9. Operational Expense1. Raw material expenditure is increased from 49% in FY08 to 56% in

FY09 and is expected to decrease in FY10. The increase in raw materials is expected because of increase in price of Ferro & Silico manganese, nickel, Ferro alloys and increase in freight on imported coal. The increase in expenditure on account of stores & spares consumption and repair & maintenance is expected due to major repairs undertaken for blast furnaces, coke oven batteries and other mills at integrated steel plants.

2. Staff costs are expected to be in the range of 17-18% from FY09 to FY11

of sales. However company will increase its production capacity which will help company achieve economies of scale. Wage revisions are not expected to happen in the coming years.

3. Other expenditure is expected to be between 7.8% to 7.6% from FY09 to FY11.

4. Depreciation will takes into account the capital investment being made from FY08 to FY11.

5. Tax Rate- has been taken at 33% for the coming years.

4.10. Dividend distributionIt has been assumed to be 20% of the share face value during FY09 and for remaining 3 years.

5. VALUATIONSSAIL’s stock is valued at Rs 202.82 based on my DCF valuation, which is 13% down from the current levels.

All parameters like EBITDA, PAT are expected to grow at 23.69%, 16.60% respectively in 2010 but the sales would declined by 0.56%. These would further grow at a CAGR of 21%, 19% & 20% respectively for next four years up to 2014.

The expected higher growth rate is due to the following reasons

We expect the automobile sector to grow in a double digit and huge demand comes from construction sector. Demand of steel is increasing in engineering sector, railways, and in defence sector.

The company continues to dominate in long product range.

Large sales network and service network gives substantial customer reach and loyalty.

DCF SensitivityThe DCF valuation is relatively sensitive to the continuing growth rate and the discounting factor used. The base case uses continuing growth rate of 8% in 2014 onwards. Considering 10 year government bond yield and risk premium as per Leman brother’s report gives the WACC 13.02%.We have analyzed the DCF sensitivity with respect to different scenarios with different combination of growth rates and cost of capital. Our fair price for the stock will based on the terminal growth rate of 8%, owing to higher growth rate in automobile and infrastructure segment which is the major contribution in steel industry.

We expect the trailing P/E is between 7.10 to 20. Considering the expected adjusted EPS of Rs 17.24 for FY10 the stock to have a price range of Rs 122.4 to Rs 344.8. Similarly, the expected range of P/BV gives a range of Rs 85.6 to Rs 187.5 and EV/EBITDA gives range of Rs 135.3 to Rs 200.5.

6. BUSINESS ANALYSIS

Steel Authority of India Limited (SAIL) is among the top ten public sector, steel maker in India. It is a fully integrated iron and steel maker, producing both basic and special steels for domestic construction, engineering, power, railway, automotive and defense industries and for sale in export markets. Its strength has been the diversified range of quality steel products catering to the domestic, as well as the export markets and a large pool of technical and professional expertise.The company has the distinction of being India’s largest producer of iron ore and of having the country’s second largest mines network. This gives SAIL a competitive edge in terms of captive availability of iron ore, limestone, and dolomite which are inputs for steel making.

6.1. Company Background

SAIL incorporated in 1973 by Government of India. It’s headquarter is situated at New Delhi. The chairman of SAIL is Mr.S.K.Roongta. It has five major steel plant units at Bhilai, Bokaro, Durgapur, Rourkela, & Burnpur and three special steel plants at Salem, Durgapur & Bhadravati. All the units having combined capacity of 15.2 Mt of crude steel and 12.5 Mt of saleable steel.SAIL was made responsible for managing five integrated steel plants at Bhilai (production capacity of 4.22 MTPA saleable steel), Bokaro (3.86 MTPA), Durgapur (1.7 MTPA), Rourkela (1.94 MTPA) and IISCO (west Bengal) (0.40 MTPA). It also manages the Alloy Steel Plant (0.14 MTPA), the Salem Steel Plant (0.18 MTPA) and the Visvesvaraya Iron and Steel Plant (.13 MTPA). It has a subsidiary in Maharashtra (Maharashtra Elektromelt Limited).

6.2. Products and Services

TYPES PRODUCTS

Semis productBlooms, Billets,Slabs

Long product

Structural crane rail bars,Rods & Rebars,Wire rods

Flat productsHR coils, Sheets & skelp,Plates, CR coils& sheets,

GC sheets/Gpsheets,Coils tinplates, Electrical steel

Tubular products Pipes

Railway productsRail wheels, Axles,Wheel sets

7. Business model Analysis

7.1. Value PropositionSAIL provides better quality of steel products such as TMT, semis, round bars, CR coils/ sheet, structural railway materials, HR coils/ sheet, plates & pipes, tar products. It provides project management services, design and engineering services, HR and training services to other steel companies under consultancy part. It also provides technology to other steel companies under its research and development.

7.2. Target CustomersConstruction, Railway, Power, Engineering, Automotive, Cement and Defence industries are major customers of SAIL. Other sectors are Cycle industry, Transportation etc.

7.3. Distribution ChannelsSAIL has the largest distribution network in India including 37 branches of sales offices across the four regions, 25 departmental warehouses, 42 consignment agents and 26 customers contact offices. It is spreaded in all districts in India through its dealer network. It has crossing over 2000 dealers across the country. It also reaches it’s customer through “APNA SAIL SHOP”, “SAIL JYOTI”.

7.4. PromotionFor promotion SAIL has adopted 79 villages as model steel villages across 8 states for development of education, roads, sanitation, and medical facilities. It has established 61 primary health centres and 35 hospitals to provide healthcare services. For awareness of public about the ranges of products SAIL publish its market share and size.

7.5. Revenue StreamsSAIL’s revenue comes from a large dealer network, which is spreading all over the country. Government and other industries like construction, automobile are also major sources of revenue for the company.

7.6. Core CapabilitiesIt has captive power plant with a capacity of 872 mw. It has the largest distribution network in India, research and development centre, various ranges of products mix enabling it to develop superior products matching customer’s need are the core capabilities of this company

7.7. Value Configuration Auto operation of blast furnace charging conveyors and monitoring of

vibrators at BSL resulting reduction in time of conveyors (7 hrs/ month) and increase in hot metal production.

Optimization of VAD process parameters for enhanced production in special quality of steel slabs at Bhilai steel plant.

Low Mgo sinter practice for control of sinter return in sinter plant at Bhilai steel plant resulting in higher productivity.

Introduction of water quality monitoring system in cooling water circuit in BOF method at Durgapur steel plant.

For reduction in fuel consumption Bokaro steel plant has improving thermal performance of annealing furnace of steel.

7.8. Partner NetworkSAIL has promoted many joint ventures in different areas like with Damodar valley corporation for managing 302 MWpower generating station and produce 660 tonnes per hour steam generating facilities at Bokaro steel plant with TATA steel it promotes e-commerce activities in steel, with BMW industries ltd it promotes a service centre at Bokaro for increase the value of steel, with Jaiprakash associates ltd it has setup a 2.2 mt slag based cement plant at bhilai, for getting the target of steel PSU’s self reliant in the area of coaking coal area it has joint venture with RINL, CIL, NTPC, and NDMC for survey of coal properties in Australia, Mozambique and other target countries.It has also mou’s with Defence for long term supply of steel, with Indian railways for making high power locomotives, with IIM Ahmedabad for knowledge sharing.

7.9. Cost Structure

Cost structure jas09Interest

1%

Other23%

Purchase of traded goods

0%

Other11%

Tax12%

Raw material55%

Depriciation5%

Staff cost16%

The major element of overall cost is raw material consumption (55% of total expenses) because delay in clearance of mines lead to shortage of raw materials for steel making.SAIL is endeavoring to provide its customers with the benefit of competitively priced products of world-class quality, through its continuous efforts to utilize its capacity at its full level and achieve cost-effectiveness. To achieve cost leadership, the company is currently implementing a business restructuring plan which envisages the separation of all non-core activities into secondary businesses, in addition to regular cost-cutting measures, including manpower cost

8. SEGMENTAL ANALYSIS

It, s major plants are located in eastern zone and major consumption parts are located in south & west zones. Bhilai steel plant contributes 36 % of revenue; it produces 3.15 MT of saleable steel. Bokaro steel plant contributes 24% of total revenue. Rourkela steel plant produces 1.67 MT of saleable steel whereas Durgapur steel plant produces 1.58 MT of saleable steel annually.

8.1. CompetitionRivalry is intense due to pressure from both Indian and foreign companies which may affect its revenues. The Indian Steel industry is highly competitive. As an Integrated steel manufacturer company’s direct competitors includes:

Tata Steel – It is a largest private sector steel company, incorporated in 1907. Tata Steel’s products include hot and cold rolled coils and sheets, galvanized sheets, tubes, wire rods, rings and bearings.

ISPAT – It is also one of the largest producers of HRC in India. It has signed a MOU with Jharkhand government for setting up a 1980MW coal based power plant.

JSW – It is 3rd largest steel maker in India, consisting of most modern, eco- friendly steel plants with the latest technologies for both upstream & downstream processes.

8.2. Issues, concerns and Challenges

8.2.1. Cyclical nature of Steel IndustryThe steel industry is cyclical in nature, sensitive to general economic conditions and the condition of certain other industries. Future economic

Source : Bseindia

Source: Bseindia

downturns or stagnant economies in India could adversely affect the business and results of operations. Demand for steel is driven mainly by construction, automobile and auto component industries, any ups and down in these industries will influence the demand for steel.

8.2.2. Environmental regulation imposes additional costs and may affect the results of operationsThe steel manufacturers are subject to various central, state and local environmental, healthy and safety laws and regulations concerning issues such as damage caused by air emissions, wastewater discharges, solid and hazardous waste handling and disposal, and the investigation and remediation of contamination. These laws and regulations are increasingly becoming stringent and may in future create substantial environmental compliance or remediation liabilities and costs.

8.2.3. Infrastructural facilities of steel industry in India is not conducive to a sustainable growthThe condition of the infrastructural facilities of the steel industry in India is not at all conducive to a sustainable growth and development. The methods that are adopted for the creation of wealth in the Indian steel industry are also supposed to act as hindrances to the growth and development of the India steel industry. The Indian steel industry has also not able to draw the best professionals in the steel industry and that has been a major draw back of the industry.

8.2.4. High energy consumption Energy consumption levels not matching with world steel benchmark. Indian steel companies are having the levels of 6.5-7 giga calories per tonne of crude steel as compared to world levels of 4.5-5 giga calories per tonne.

8.2.5. Dependence on import of Coking CoalIron ore and coking coal are the basic raw material required for production of steel. But the quality of raw material is not good as Coking coal contains high ash and Iron ore contains high alumina. Also major companies like SAIL and TATA steel are having 100% captive iron ore mines but are not having linkages for coking coal. Hence existing mines need to be reworked and new linkages/alliances need to be explored. Thus import component of coking coal is approximately 70% of total requirement, which is likely to increase as it will take some time to get linkages. High coking coal demand by the Indian steel industry and low reserve base has boosted the import of coking coals. Coking coal requirement in steel production is expected to touch over 85.34 Million Metric Tons in 2011-12.

8.2.6. Low investment in R&D and inefficient technology leading to high carbon emissionIndian industries are spending only 0.2%-0.5% of total turnover on R&D which is very less as compared to other developing countries. Carbon emission norms are 1.5 to 2 times the best steel plants in the world. It creates environmental problems and hence corporate social responsibility forms a crucial role.

9. INDUSTRY OVERVIEWThe Indian steel industry has entered into a new development stage from 2005–06, resulting in India becoming the 5th largest producer of steel globally. Producing about 53 million tonnes (MT) of steel a year, today India accounts for a little over 7 per cent of the world's total production. The total steel production is likely to achievable by 2019–20 will be over 275 MT and this additional capacity enhancement in the sector is expected to generate employment for around 4 million people. About 60 per cent of the country’s steel production is used by the construction and infrastructure sectors.

9.1. MARKET SIZEThe Indian steel industry has a capital base of Rs. 90000cr and it constitutes 5.13% weightage in IIP.SAIL has a market share of approximately 28% in context to steel production.

9.2. KIND OF STEELSAll steel products are made from semi-finished steel that comes in the form of slabs, billets and blooms. Though today there are over 3500 varieties of regular and special steel available, steel products can be broadly classified into two basic types according to their shape.

9.3. Flat ProductsThese products are derived from slabs and mainly comprises of hot rolled (HR) plates, coils and sheets. Cold rolled steel is used primarily for precision tubes, containers, bicycles, furniture and for use by the automobile industry. Galvanized steel is used for making roofs in the housing and construction sector. HR plates are used for applications such as shipbuilding, large diameter pipes, boilers, industrial equipment.

9.4. Long ProductsThese products derive their name from their shape. Made using billets and blooms, they include rods, bars, pipes, ropes and wires, which are used largely by the housing/construction sector. There are also other products like rail tracks in the category. Bars and rods, including wire rods, constitute around 40% of the long product segment.

9.5. Structure of Indian Steel Industry

Major ProducersAlso known as Integrated Steel Producers (ISPs), this group includes large steel producers with high levels of backward integration and capacities of over 1 MT. Steel Authority of India Limited (SAIL), Tata Steel, JSW Steel Limited (JSWSL), Essar Steel Limited (Essar) and Ispat Industries Limited (Ispat) form this group. SAIL, TISCO and RINL produce steel using the blast furnace/basic oxygen furnace (BF/BOF) route that uses iron ore, coal/coke as the basic input mix for producing finished steel, Essar and Ispat employ Electric Arc Furnace (EAF) route that uses sponge iron, melting scrap or a mix of both as input and JSWSL uses COREX, a revolutionary technology for making steel using basically iron-ore and coal.

10. GROWTH DRIVERS

10.1. Raw Material IntegrationThe increase in iron ore & coking coal prices due to increasing demand globally . Most Indian Steel companies are also aggressively looking to increase integration of raw materials. The cost reduction possible with captive sources of coking coal and iron ore over current market prices could lead to more than the doubling of operating margins.

10.2. Growth drivers for company

Capacity expansion-SAIL has drawn up aggressive modernization & expansion plans of all the plants and mines simultaneously to achieve hot metal production of over 26.2 million tones by the year 2012 from current level of 14.4 million tones.

Launch of new products -The Company introduced several new products in the domestic market during the year:

HCR-EQR TMT for earthquake resistant construction Rock bolt TMT for tunnel construction EN series HR coils for LPG cylinders MC 12 HR coils for chains etc. Bhilai Steel Plant developed high strength vanadium rails Durgapur Steel Plant produced S-profile loco wheels for high

speed locos and Rourkela Steel Plant rolled special plates which were used in the indigenously

built rocket PSLV C-7

10.3. Joint venture SAIL signs Joint Venture Agreement with Jaiprakash Associates Joint Venture agreement with Manganese Ore India Limited for

setting up a Ferro alloy plant at Bhilai. Joint venture agreement with Tata Steel for development of new

coking coal mines

10.4. MOU MOU with ministry of Railways, NMDC and state Government of

Chhattisgarh f for construction of a new Railway line from Dall Rahjehra to Jagdalput via Rowghat.

MOU signed between SAIL, RINL and NMDC for setting up a green field Steel Plant in Chhattisgarh

Government of India has given formal approval for development of SEZ in the area adjoining Salem Steel Plant. SAIL will be developing SEZ in collaboration with IL&FS IDC

10.5. Focus on Value Added Product, Rural Demand & Distribution channel

SAIL today is one of the largest industrial entities in India. Its strength has been the diversified range of quality steel products catering to the domestic, as well as the export markets and a large pool of technical and professional expertise. It is also undertaking promotion programmes where it brings new products in the market. Its new products include Earthquake resistant TMT wire rods with improved corrosion resistance, e-payment and e-receipts

introduced for customer services, Armor steel plates for defense sector, Low carbon HR/CR steel for auto bodies, Wide area network through VSAT installed in all mines. Largest distribution network-covers 602 (out of 603) districts & crossing 2000 dealers in India.

Balance Sheet of Steel Authority of India Ltd.

Profit and Loss Account of SAIL

Cash Flow Statement of SAIL

Financial Ratio