Bhushan Steel Limited

2
This presentation contains statements that constitute "forward looking statements
including, without limitation, statements relating to the implementation of strategic
initiatives, and other statements relating to the Companys future business
developments and economic performance. All statements regarding the expected
financial condition and results of operations, business, plans and prospects of the
Company are forward-looking statements.
These forward-looking statements include statements as to the Companys business
strategy, the Companys revenue and profitability, planned projects and other matters
discussed in this presentation regarding matters that are not historical fact. These
forward-looking statements and any other projections contained in this presentation
(whether made by the Company or any third party) involve known and unknown risks,
uncertainties and other factors that may cause the Companys actual results,
performance or achievements to be materially different from any future results,
performance or achievements expressed or implied by such forward-looking statements
or other projections.
The Company undertakes no obligation to publicly update or revise any of the opinions
or forward looking statements expressed in this presentation as a result of new
information, future events or otherwise.
isclaimer isclaimer
3
. Overview
2. Performance & Key Strengths
3. Strategy
4. Orissa Project
enda enda
4
. . Overview Overview
5
Business Overview Business Overview
hushan Steel Limited (earlier known as
hushan Steel and Strips Limited)
("hushan Steel or "SL or the
"Company), established in , is
engaged in the business of steel
manufacturing, steel processing and allied
activities. It is the market leader in the
secondary steel sector for cold rolled (CR)
products and the third largest player in the
CR segment in India.
!rofile !rofile
Shareholders !ercentae
Promoters 64.20%
Corporate odies 25.0%
Individuals 7.0%
Institutional Investors 2.0%
Total 00%
Ratin
Ratin ency Type Ratin &pdated on
Fitch Long-Term A+ May 2007
Fitch Short-Term F + May 2007
Care Short-Term PR + Jan 2007
Shareholdin !attern Shareholdin !attern
Ratin Ratin
Business Overview Business Overview
As of 31st March (US$ miIIion) 2005 2006 2007
Net Sales 691.1 739.9 1,012.5
EBTDA 97.1 95.4 158.7
Depreciation (39.7) (39.9) (50.3)
nterest Expense (19.1) (20.0) (18.6)
Net ncome 37.0 37.2 75.5
Property, Plant and Equipment 345.2 557.9 871.2
Cash 4.2 19.6 24.1
Total Borrowing 317.5 490.6 781.2
Networth 176.0 215.2 292.7
6
ommenced operations in 1989 with a capacity of 60,000 tons & a turnover of &S 11.24
million.
Transformed to 3
rd
larest producer of old Rolled Steel after Steel uthority of India
(SIL) & Tata Steel with an installed capacity of one million tons and sales of more than
&S 1 Billion.
Focused on niche hih value added sement of automobile and white oods & is today a
leader in these sements. Recently started the country's larest Colour Coated line and
first to manufacture the Galume ( zinc and aluminum coated sheets / coils ).
!rincipal production facilities at Sahibabad, &ttar !radesh, Khapoli, Maharashtra and
henkana in Orissa (scheduled to be completed in July 2009.
Invested in latest technoloy/ equipment without compromisin over cost.
First to set up a hih tech plant in 1996 to cater to automobile and white ood sector, in
technical tie-up with Sumitomo Metals, Japan.
BSL has a ood debt-servicin track record.
!rofit makin and dividend payin company since inception.
Snapshot Snapshot
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Stock !erformance Stock !erformance
hushan SteeI
0
100,000
200,000
300,000
400,000
500,000
600,000
700,000
800,000
Jan 06 Mar 06 Jun 06 Sep 06 Dec 06 Mar 07 Jun 07
V
o
I
u
m
e
0
100
200
300
400
500
600
700
800
P
r
i
c
e

(
R
s
.
)
Volume Price
Market Cap (As of 1 Jun 2007): Rs.28,636.1m (US$690.0m)
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2. 2. Performance & Key Strengths Performance & Key Strengths
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FY 07 !erformance FY 07 !erformance
&S in Millions
Growth Growth
2006-07 2005-06 % 2006-07 2005-06 %
Gross Sales 1,012.5 739.8 36.9% 280.7 197.3 42.2%
Exports 368.0 242.4 51.8% 86.3 62.9 37.2%
Net !rofit 75.4 37.1 103.2% 26.5 15.4 71.9%
ash ccruals 140.0 78.3 78.8% 43.9 28.0 56.5%
Q - 4 12 Months
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&SD MLLON
Financial Year 1994 2000 2002 2004 2006 2007
ross Sales 35.7 230.6 274.5 420.5 73. 1,012.5
xports 4. 27.7 3.7 242.4 368.0
ITDA 6.5 3.3 44. 66.7 .3 158.8
Net !rofit 3. 0. . 23. 37. 75.4
ash !rofit 4.3 2.2 26.0 4. 7.3 140.0
Net Worth 3.0 07.7 27.2 60.0 23.3 322.4
Fixed Assets .3 23.3 36.4 744. 1,105.1
PS (USD) 0.3 0.3 0.6 0. 1.8
1 &SD = Rs. 41.50
Financial !erformance Financial !erformance
36
231
274
420
740
1013
0
200
400
600
800
1000
1200
1994 2000 2002 2004 2006 2007
Revenue (&S$ m)
4
21
26
49
78
140
0
20
40
60
80
100
120
140
160
1994 2000 2002 2004 2006 2007
Cash Profit
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Growth trajectory Growth trajectory
2003-06
W Mumbai project commissioned - 425,000 Mt
W Galume, olour oated, HTSS, H&T, rawn Tubes
installed apart from R & G!.
W !ower !lant - 24 MW
1993-94
W Skin pass mill, ut to lenth, R Slitter
W uxiliary equipment of G! Line
1991-93
W ontinuous alvanisin line - 100,000 tpa
W Shift from full hard to drawn & deep drawn rade
1988-89
W New cold rollin mill - 60,000 tpa
W Total Installed apacity - 120,000 tpa
1994-97
W Hitachi R Mill (1700 mm) - 350,000 tpa
W G!/G Line - 40,000 tpa
W !ower !lant - 12 MW
1998-2001
W ontinuous Galvanizin Line - 85,000 tpa
W Replacement of R Mill -50,000 tpa
W !ower !lant - 12 MW
W Kathabar & nnealin bases
U8D 11.24 mn
U8D 28.76 mn
U8D 33.26 mn
U8D 78.43 mn
U8D 237.75 mn
U8D 644.49 mn
U8D 1013 mn
2006 2006- -07 07
W Orissa !lant
- Spone Iron - 680000 tpa
- Billets - 300000 tpa
- !ower !lant - 110 MW
P - alvanized Plane C - alvanized Coil CR - Cold Rolling
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urrent apacities urrent apacities
(tonnes per annum)
PRODUCTS SAHIAAD KHAPOLI
ORISSA
MAR 07
TOTAL
Cold Rolling
O Widest (upto 1700 mm)
O Wider (upto 1200 mm)
O Narrow (upto 550 mm)

350,000
100,000
25,000

-
325,000
100,000


350,000
425,000
125,000
TotaI CoId RoIIing 475,000 425,000

900,000
Sponge Iron 680000 680000
Galvanised Sheets 225,000 240,000

465,000
Hardened & Tempered Strips - 6,000

6,000
Color Coated - 80,000

80,000
Galume (aluminum & zinc
coated)
- 70,000

70,000
Drawn/ Precision Tubes 15,000 45,000

60,000
High Tensile Steel Strapping - 20,000

20,000
Alloy Steel/ Wire Rods/Billets 63,000 -
300000
3,63,000
Service Centre 300,000 -

300,000
Power Plant 24 MW 24 MW 110 MW 158MW

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BSL: Strenths BSL: Strenths
doption of latest world class technoloies and equipments - first in the ountry
Leader in hih value added sement (utomobile & white oods sector)
!lants situated near to consumin centres of Northern and Western Reion -
savin in freiht cost
Larest olour oated Line in the ountry and first to manufacture Galume Sheets
BSL has manaed and controlled its leverae efficiently
Technical tie-up with Sumitomo Metals, Japan
Economy of scale - total cold rolled capacity of one million tons
Near port facility - Export competitiveness
aptive power (48 MW) - low enery cost
Matchin customer requirement - introduced service centre concept
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Most consistent Steel ompany in India Most consistent Steel ompany in India
SL has a good debt SL has a good debt- -servicing track record servicing track record
hushan has been a steady performer through hushan has been a steady performer through
the cyclical nature of the metals industry the cyclical nature of the metals industry
Profit making since inception Profit making since inception
Dividend paying since inception Dividend paying since inception
Maintained Operating Margins Maintained Operating Margins
Serviced Financial Obligations on Time Serviced Financial Obligations on Time
lways lways
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Hot Rollin oils
old Rollin - Wider
6 HI Hitachi Mill, Japan
old Rollin - Local
nnealin Furnace
NR, Austria
Skin !ass Mill
Clecim, France
R Slitter / ut to lenth
Fimi, Italy
!ercision Tubes R NRROW G!/G Sheets
OEM
Exports / OEM / White Goods
Technoloical Leadership Technoloical Leadership
Sahibabad Plant Sahibabad Plant
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Hot Rollin oils
old Rollin - Wider
old Rollin - Narrow
G!/G Sheets
olour oatin
F, USA
Galume Line
ATMC, USA
Hardend and
Tempered
bner, Austria
!ercision Tubes
Kusakabe, Japan
Hih Tensile
Steel Strappins,
Dheyyun Tech, Korea
Mainly Exports
OEM
Exports
Exports / OEM
Technoloical Leadership Technoloical Leadership
hopoli Plant hopoli Plant
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ustomer !rofile . . . . ustomer !rofile . . . .
O
E
M
&TO
MOBILE
SETOR
WHITE
GOOS
SETOR
Maruti, Tata Motors, Eicher,
Honda Motors, Mahindra & Mahindra,
Ford Motors, GM Motors, Hindustan
Motors, Yamaha Motors, Honda
Scooters, Bajaj uto, shok Leyland
Whirlpool, Electrolux, LG,
Samsun, Videocon, Godrej, arrier,
Voltas, General, B!L, JT Electronix . . .
BSL in recent past has been emered as major Indian supplier caterin to
uto & White oods majors (includin their ancillaries in India) with
larest share in meetin their requirements (to name a few of them)
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3. 3. Strategy Strategy
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Vertical Interation Vertical Interation
!roposes to move further in process / value chain of steel products
throuh backward interation.
Mopin up hiher marins in the value chain.
Secure it aainst vaaries of demand-supply position of HR oils that
result in price volatility.
Exposure to iron ore and coal prices would be insulated throuh a
proposal to acquire captive coal and iron ore mines in the vicinity of the
Orissa plant to meet its internal requirements.
llotment letter for allocatin the coal mines to BSL has already been
awarded.
The company has entered into MO& with Bowen Enery Limited, ustralia
for cokin coal mines.
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!roduct !ortfolio !roduct !ortfolio -- Value added Sement Value added Sement
CR (narrow)
100,000 MT
GP/GC
425,000 MT
CR (wider)
425,000 MT
CoIour Coating
80,000 MT
HTSS
20,000 MT
H&T
6,000 MT
Drawn Tube
60,000 MT
CoId RoIIing
900,000 MT
Dedicated for Auto &
Consumer Goods
edicated to Two
Wheelers, Boiler
Tubes and other OEM
application
Used for packaging-
targeted for OEMs &
Exports Used for saw blades,
springs, cutters for
exports
GaIume
70,000 MT
Skin Pass
GP
40,000 MT
CR (widest)
350,000 MT
or OEMs, Exports
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Movin up the value chain Movin up the value chain
Stron marketin efforts to enhance
share of OEM & Export Sales to et
hiher marins.
Focus on achievin a superior product
sales mix
2006
OEM 42%
Export 8%
Trade 50%
2002
2003
OEM 55%
Trade 33%
Export 12%
2004
OEM 56%
Trade 15%
Export 29%
OEM 63%
Trade 4%
Export 33%
2007
OEM 58%
Trade 6%
Export 36%
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4. 4. Orissa Project Orissa Project
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Modular !roject Implementation Modular !roject Implementation
The proposed interated steel project of 2.2 Mt in the State of Orissa has been
divided into two !hases to facilitate the smooth implementation with the
maximumavailability of internal sources of the company for the !roject:
Stage
Phase II
Phase I
Stage
DRI - 340,000 tons
iIIets - 300,000 tons
Power - 33 MW
AIready Started
DRI - 680,000 tons
Power - 110 MW
AIready Started
Stage
Stage
, Conarc urnace,
DRI - 1.36 MTPA
SIab - 2.0 MTPA
Dec - 2008
HR CoiI - 1.90 MTPA
Apr - 2009
Infrastructure :
- RaiIway Siding
- CoIony
Infrastructure :
- Water
- oundary WaII
- CoaI Washery
- RM HandIing
- Office CompIex
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Project Integrated SteeI & Power PIant for Captive Consumption
- HR Coil - 1,900,000 tons per annum
- Billets - 300,000 tons per annum
Power Plant - 110 MW
Cost of Project &S$ 1256 Millions
&SD 727.27 MN
ImpIementation Period 48 Months
ImpIementation Concept ModuIar Concept of ImpIementation
Process Route
Appraised y Techno-Economic Feasibilty by MECON
Part Facility would be installed during implementation period
and would generate cash accruals.
DR-BF-EAF Route with BF, Slab Caster, Hot Strip Mill and
Billet Caster alongwith Captive Power Plant
!roject etails !roject etails
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!rocess Flow hart !rocess Flow hart
Pig ron Slag
Billet
Caster
HR Mill
Slab Caster
Conarc Furnace
Blast Furnace
mported Coke
Sinter
LF
DR Plant
ron Ore Lumps
ron Ore Fines
Coke Fines
Oxygen Plant
Power Plant
WHRB & AFBC
Coal Washery
F

r
o
n

O
r
e

L
u
m
p
s
EAF
C
o
a
l

M
i
d
d
l
i
n
g
Coal
ron Ore
PROCESS STARTED
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Orissa !roject Site Orissa !roject Site
HR plant
Project
site
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Visuals from !roject Site.... Visuals from !roject Site....
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Visuals from !roject Site.... Visuals from !roject Site....
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Visuals from !roject Site.... Visuals from !roject Site....
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Visuals from !roject Site.... Visuals from !roject Site....
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Visuals from !roject Site.... Visuals from !roject Site....
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Visuals from !roject Site.... Visuals from !roject Site....
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Visuals from !roject Site.... Visuals from !roject Site....
Thank you. Thank you.