Presented by N.C. Mathur Advisor – JSL Stainless Ltd.

President : ISSDA ( Indian Stainless Steel Development Association )

India – A driver of Stainless Steel Growth

CRU – 13th World Stainless Steel Conference :17-19 Nov 2010, Paris

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Global SS Scenario

Indian SS Scenario

JSL Profile

Watch for

Summing up

Contents …..

Global SSScenario

Global SS Production : Growth Slowdown

4

0

5,000

10,000

15,000

20,000

25,000

30,000

2001 2002 2003 2004 2005 2006 2007 2008 2009

1,0

00

metr

ic t

on

s

Asia W. Europe/Africa Americas Central + Eastern Europe

19,16720,663

22,861 24,583 24,320

+7.5% -1.0%+10.6%+7.8%-1.0%

28,400

25,913

- 6.9 %

27,836

- 2%+16.8%

24,579

- 5.2 %

ISSF

0100020003000400050006000700080009000

Q1 Q2

48306028

7625 8023

20092010

Global SS Production : Coming back…

ISSF5

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• Significant recovery :  Q1 & Q2 ,2010

• Growth in H1,2010   : 44%  over H1, 2009• Production 2010       : Expected to reach 30 Mill Tons • Growth Region          : China and other Asia

Global SS Production… Recovery

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• Significant grade shift in SS , Steady increase in share of 200 & 400 series 

13.7 14.92 16.19 16.1 15.35 18.616.16 15.68 14.9

1.02 1.18 1.69 2.31 2.38 2.673.21 2.95 2.85

4.45 4.57 4.98 5.65 6.03 6.53 8.3 7.28 6.82

0%10%20%30%40%50%60%70%80%90%

100%

400 200 300

Global SS Production… by Series

ISSF

Indian StainlessScenario

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GDP growth 6.7 % (FY 2008-09)

Projected @ 8--9% over next 5 years

Overall Steel Consumption to grow at 1.2 times GDP

Planned Infrastructure Investment in 5 years: USD 440 billion

India : Macro Economic Overview

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Qty : ‘000 MT

Others include the melting capacity of unorganized Utensil Grade sector

Company 2008-09 2009-10 2010-11 2011-12

JSL-Hisar 720 720 720 720

JSL-Orissa 800

Sail-Durgapur 50 50 50 50

Sail-Salem 180 180

Others 1410 1480 1550 1550

Sub Total 2180 2250 2500 3300

Indian SS Melt Capacity ( Flat Products)

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Others include the unorganized Utensil Grade(  Patta Sector )

Company 2008-09 2009-10 2010-11 2011-12

JSL-Hisar 275 275 275 275

JSL-Orissa 400

Sail-Salem 70 70 140 140

Others 1170 1220 1275 1275

Sub Total 1515 1565 1688 2088

Indian Cold Rolling Capacity ( Flat Products)Qty : ‘000 MT

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0%

20%

40%

60%

80%

100%

2007-08 2008-09

77.4% 76.2%

15.8% 14.4%6.7% 9.4%

200 Series300 Series400 Series

Indian Stainless Steel : By Series

200 Series continues to be dominant , 400 series share rising 

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India : SS Growth Drivers

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Railways•New Stainless Steel Wagons & Coaches

• Refurbishing Railway Stations with world class facilities

•Development of Metro Rail projects and street infrastructure

Delhi Metro

SS in Railways

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RailwaysRailway Stations :  Cladding , Roofing , Structures , Decoration , Selling Carts , Display Boards , Ticketing 

Area , Seating Space  ,Floor Tiles ….

Railway Stations :  Cladding , Roofing , Structures , Decoration , Selling Carts , Display Boards , Ticketing 

Area , Seating Space  ,Floor Tiles ….

SS in Railways

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ABC •Urban Renewal in the form of Street furniture e.g. Bus Shelters

• Shopping Malls, organized retail is growing at rapid pace.

• Modular kitchens

•Airports

Delhi Bus Shelter

SS in ABC

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New age applications in Household

Kitchen Applications

• Bathroom Accessories

• White Goods

• Lifestyle Products

• Interior Decoration

SS Modular Kitchen by J-ARC

SS in ABC

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SS in ABC

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AirportsWall Cladding , Roofing , Check in Area , Seating Spaces , 

Immigration Area, Railings , Display Boards , Lounge , Booths, Duty Free Area , Signage , Decorative , Elevators , Escalators , 

Travelators , Food Courts….

Wall Cladding , Roofing , Check in Area , Seating Spaces , Immigration Area, Railings , Display Boards , Lounge , Booths, Duty Free Area , Signage , Decorative , Elevators , Escalators , 

Travelators , Food Courts….

SS in ABC

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Industrial Applications

•Power

•Process Industry

SS in Industrial Applications

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Automotive and  

White goods•India a leading automobile hub in S.Asia, specially for two wheelers and small cars

• Increase usage of Stainless Steel in exhaust, wheel rims etc.

•Large middle class driving White Goods market

SS in Auto & white Goods

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 ‐

 5,000,000

 10,000,000

 15,000,000

 20,000,000

 25,000,000

 30,000,000

 35,000,000

2004‐05 2005‐06 2006‐07 2007‐08 2008‐09 2014‐15

Passenger Vehicle Commercial Vehicle Three Wheelers Two Wheelers

Source : FICCI Nov 2009

• India destined as a major Automotive hub in South Asia.• A large manufacturing base for Two wheelers / Small cars / Steel and Stainless Steel 

components for automobiles.

11.2 mill

32.3 mill

10.8 mill11.1 mill

9.7 mill8.5 mill

Indian Automotive : Growth Prospects

What Next ?

Applications - Arriving shortly… ( India )

Bus Body LPG Cylinder

Cycle Rim Plumbing

Hospital Furniture Water Tanks

Modular Toilet in Trains

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25Bicycle Rim & Gas Cylinder

Applications - Arriving shortly… ( India )

Plumbing

Applications - Arriving shortly… ( India )

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Storage Water Tank

Applications - Arriving shortly… ( India )

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Hospital Furniture

Applications - Arriving shortly… ( India )

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Bus Body

Applications - Arriving shortly… ( India )

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Modular Toilet in Trains

Applications - Arriving shortly… ( India )

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But ? ???

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• Inadequate Infrastructure – Energy, logistics, ports etc. not conducive to growth of manufacturing sector

• Infrastructure projects subject to delays and financial constraints

• Budget constraints vs Life Cycle benefits of Stainless Steel

• Dependence on imports for certain raw material – Nickel, SS Scrap , Moly

Challenges Ahead

JSL : Indian face of Stainless

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India’s largest and fully integrated Stainless Steel manufacturer in Flat Products

Leading global supplier of

Precision strips, Razor blade steel and Coin blanks

Substantial Market share for high end

applications

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HISARSS Melting / HR  ‐ 720,000 tpaCold Rolling ‐ 275,000 tpa

Special Products and Coin Blank – 35,000

VIZAGFeCr ‐ 40,000 tpa integrated with Chrome 

Ore Mines in Orissa

ORISSAFerro Alloys – 250,000 tpa

Thermal Power Plant – 250 MWCoke Oven ‐ 430,000 tpa

Integrated SS Phase – IITotal Capacity – 1.6 mtpa

Integrated SS Phase – I (by Mid 2011)Capacity ‐ 0.8 mtpa

INDONESIACold Rolling – 150,000 tpa

Indonesia

Manufacturing Locations

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• India’s largest and fully Integrated SS Plant of 720,000 tpa capacity with Twin Stand Steckel Mill and Cold Rolling Complex.

• Special products Complex with facilities for precision strips, razor blade 

and coin blanks

Hisar Plant

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.

Orissa Plant

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Orissa Plant

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Meltshop (SMS-Demag, Germany)

• 0.8 mtpa - Liquid Steel and Liquid Ferro Chrome route• EAF, Chrome pre-melter, AOD - 150t, LF & Slab Caster

Hotstrip Mill (Siemens VAI, Austria)

• Tandem mill, with capacity of 3.2 mtpa• Coils upto 1650 mm and 36 tons weight• Plates of 1600 mm for critical applications such as nuclear

Cold Rolling Complex (Andritz, Austria)

• 1 mtpa HRAP No 1 & 2E with 1-stand in-line rolling• 0.5 mtpa CRAP with 3 Stands in-line rolling

Orissa : Integrated SS Plant ( Phase -1 )

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Meltshop expansion to 1.6 mtpa

Power Plant/ Ferro Alloys / Coke Oven expansion

Subsequent plans to expand to 3.2 mtpa

Orissa : Integrated SS Plant ( Phase -II )

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Gurgaon, Vadodara, Mumbai, Chennai ‐135,000 tpa each

Jajpur (Orissa)‐Proposed Service Centre in the SS Industrial Park

Chennai

MumbaiJajpur

Vadodara

Gurgaon

Spain ‐Service CentreIn JV with FAGOR

Service Centre Network

Watch For !!

Changes In the market place……..

Railway

• Metro in major cities

• Railway Wagons

• Coach Up-gradation

• SS usage in

Platforms

Increasing ABC applications

• Selective Rebar's

• Door &Windows

• Cladding

• Signage's

• Street Furniture

• Fasteners

• Life Style products

India as export hub for

• Auto Components

• Appliances

• Mill Products

• High Quality Value

Added Engineering

Products

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Movements In environment………

• RM Price Fluctuations ( Ni, Cr, Scrap )

• Grade / Series Substitution in Industry

• Standardization ( e.g Ikea/ Whirlpool / Electrolux moving to

400 Series )

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Opportunities

• Increase in Consumption Levels / Market Size

• Increasing Downstream Applications

• New products / segments being created

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Summing up + +

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Summing Up

• SS Production will up to 4 Million Tons by 2015• Overcapacity in the market .. export boost up• Double digit growth in SS Consumption ( 10-12% )

( Growth in SS Consumption is about 1.2 Times GDP )• New applications will emerge very fast• Opportunities for business in downstream industries• SS will change the face of India

Indian Stainless Steel Market

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• Stainless Steel markets recovering, growth led by Asia.• India to play major role in Asian market as China sets to 

stabilize• JSL all set to take challenges of future India

• Established plant at Hisar• Greenfield 0.8 MMT plant in Orissa ( by 2011)• Enhanced reach by Service centre network• Opportunities for growth• Indian face of Stainless 

Summing up

International SS Market

Thanks …….

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