Calcination Technology Pioneers Calcination Technology Pioneers Goa Goa Welcomes you to a

Presentation about

its activities ….

Reputed business house in India

Long established industrial presence since 1941

Core business – Iron ore mining, Calcined Petroleum coke

Long term relationships with steel manufacturers internationally – 50 years

Group turnover: Rs. 1800 crores – 2007-08 Rs. 2200 crores – 2008-09 (Projected)

Promoters DEMPO GROUP

Corporate Social Responsibility

Educational institutes imparting university level education in Arts, Science and Commerce

Instituted awards for Goa Environment Protection

Premier football club in the National Football League

DEMPO GROUP

Core Businesses

Iron Ore Mining & Export

Calcined Petroleum Coke

Iron & Steel

Newspaper Publication

Ship Building & Engineering

Industrial Paints & Varnishes

Marketing of Industrial Vehicles

Foods & Beverages

Real Estate Development

Allied Businesses

DEMPO GROUP

Started production in 1976

First plant at Goa, 40 kms from Mormugao Port

Technical guidance from Great Lakes Corporation.(USA)

Kiln designed by M/s Kennedy Van Saun Procured from M/s McNally Bharat

India’s Leading Calciner

Green Coke / RPC sourced globally

Three locations across India

300 Employees

Annual Projected Sales USD 116 Million

First Indian producer exporter of Calcined Petroleum Coke

First ISO 9000 certified Calciner in India

Listed Company on the BSE & NSE

Experience in calcination of more than 30 years.

First calciner in India to use green coke blending to optimize customer requirements.

Experience in using and blending green cokes from sources around the globe - Kuwait, Indonesia, Malaysia, China, Argentina, Brazil.

During the year 1999 acquired Bilaspur Calcining unit.

Production capacity of 40,000 tons/year.

During 2001 acquired Paradeep Calcining unit .

Production capacity of 125,000 tons/year.

Acquisitions

40 kms from Mormugao port

Only Calciner on west coast of India

Proximity to Middle East, East Africa & South Africa

Goa Plant

Located on the east coast of India

8 kms from Paradeep port Second largest calciner in

India

Located in Central India

Strategically located near India’s largest Aluminium smelters

Paradeep Plant

Bilaspur Plant

All the plants are ISO 9001 and ISO 14001 certified.

Green Coke The Paradeep & Bilaspur Plant’s have access to

green Petroleum Coke producing Indian refineries

Indian green cokes comparable to the best with Low Sulphur & High Real & Apparent Densities

The Paradeep & Goa Plant’s use imported green cokes in their Blends

Anode Manufacture for Aluminium Smelting

Carbon additive – sponge iron/steel making

Electrodes – EAF/steel industry

Titanium Dioxide

Speciality applications

Applications - CPC

SalesGoa and Paradeep plants are export orientedThe company exports 25 % of its productionSatisfied customers across the world.Shipments – BHP, DUBAL, Anglessey,

ALCAN, AUG, GREECE.

Customers list - partialAluminium Industry

•Alcan France•Aluminium de Greece•Alucam Cameroon

•Balco Korba•Hindalco Renukoot•Hindalco Belgaum•Malco Metturdam•Nalco Angul•Hindalco Hirakud

Electrode Manufacturers•ESMA, RSA •Eveready Industries,

Hyderabad•Graphite India, Bangalore

Titanium Dioxide•Millenium Inorganic Chemicals, Australia

•Kerala Metals & Minerals, Chavara

Metalurgical Chemical & others

•Amsteel, Malaysia•Krakatau Steel, Indonesia•Met & Const. Chem., Egypt•Saudi Iron & Steel, KSA

•Ennore Foundaries, Chennai•Ashok Leyland, Hyderabad•Bharat Heavy Electricals, Bhopal•Carborundum Universal, Koratty•Ghatge Patil, Kolhapur•Kalyani Steel, Pune,•Telco, Pune

Major increase in petroleum prices

Our Raw material costs increased by more than 100% over 3 years (Petroleum, shipping)

Customer prices take their time to increase, the business is on long term contracts

The last three years: A position statement

Local players dependant on North East Raw material, proving costly. Flexibility to import limited

Goa Carbon has plants closest to domestic customers – offers significant freight advantage

GCL has port based plants, offers good Raw Material freight advantage

Rain Calcining is on the East Coast, currently having an Export focus

We foresee a shakeout among smaller domestic players

Goa Carbon Strategy: Domestic

Customer feedback to GCL very positive for Volume increase

1. Export 2. Domestic

Long term Contract for the supply of CPC to overseas Aluminium Smelter discontinued

Supply to overseas market on spot basis which will result in passing on the increased raw material cost and exchange fluctuation.

Paradeep will be a focus area for growth

Middle East an area of interest, proposals being studied

Power generation

Goa Carbon Business Plan Medium Term

Price increase on both Domestic and Export sales.

Reducing the credit period to customers to improve the Cash Flow

Completion of old contracts at old prices by Dec 2007

New customers

Push volumes

Look domestic and also at steel

Lower cost imported raw material vs domestic raw material

Lower cost blends

High capacity utilization

Financial Performance Improvement - 1

Repayment of higher cost term loans, ICD’s

Reduced interest burden by availing ECB’s instead of normal working capital borrowing from Indian Banks

Focus on domestic market where margins higher

Possibility of trading in CPC to augment top line

Financial Performance Improvement - 2

Aluminium industry bullish on growth , with capacity relocationDomestic

International

Domestically, steel industry on a growth mode

China a major competitor and consumer

Medium Term Customer Outlook

Current capacity split is :

GCL Group 240,000 tpy (3 plants)

Rain Calcining 600,000 tpy (1 plant)

Other competitors 566,000 (9-10 of them, all in the NE East/East – Barauni, Gauhati, Haldia, Kolkata)

Domestic CPC Competition

Demand drivers from Aluminium positive

Increase customers

Capacity expansion

Use of waste heat – Power generation

Future Plans

Our Strengths Goa Carbon - Established calcined coke

suppliers in the global market.

The strong financial support of the Dempo group of companies in world business.

Accessibility to both domestic and imported sources of green petroleum coke.

Expertise in blending green cokes.

Highly qualified professional management at all levels

Port based plants on both coasts of India

Process Expertise established over 30 years

High Sieving & Screening Capacity

Thank you Thank you