ESSAR STEEL Lets begin. Europe Steel Trade 2013, Stresa (Italy) 8 th – 9 th April Presented By:...
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Transcript of ESSAR STEEL Lets begin. Europe Steel Trade 2013, Stresa (Italy) 8 th – 9 th April Presented By:...
ESSAR STEELLet’s begin
Europe Steel Trade 2013, Stresa (Italy)8th – 9th April
Presented By:
William Magnasco
Essar Steel - Sales Chief Manager Europe
(PMP + Infrastructure)
Contents Contents
• Global overview of coated product market.
• India: domestic steel market outlook.
• India: Galv & PPGI exports into EU
• Essar Steel’s strategy.
• Overview of coated product applications.
• Global Installations.
• Indian Installations.
3
Global overview of coated product market
Global Overview of Coated ProductsGlobal Overview of Coated Products
Source: Metal Bulletin /CRU
Total: 112 Million Tonnes
Total Flat Coated Steel Consumption 06‘ (In Million Tonnes)
Galfan, Galvalume, Galvannealed19.48 MT
Electro Galva23.52 MT
Galvanized69 MT
5
Taiwan S. Korea
Total: 112 Million Tonnes
Source: Metal Bulletin /CRU
Major Producers of Coated ProductsMajor Producers of Coated Products
(In Million Tonnes)
Europe18 MT
JAPAN11.60
USA14.7 MT
Canada 2.4 MT
Japan 11.6 MT
5.6 MT 2.0 MT
China 15.4 MT
India 4.2 MT
Others 38 MT
6
World Galvanised Steel GrowthWorld Galvanised Steel Growth
Source: Metal Bulletin Feb08 /CRU
1 2 3 4 5 6 7 80
20
40
60
80
100
120
140
80.4 79.385.5
90.398 99.5
112.2
128.3
Year-wise growth in global steel consumption
Million tonnes
% CAGR2006/2000~5.7%2010/2006~3.4%
2000 2001 2002 2003 2004 2005 2006 2010
7
Source: Metal Bulletin Feb08 /CRU
DEVELOPED COUNTRY
As the economy matures, consumption of galvanized products increases.
DEVELOPING COUNTRY
%CAGR2006/2000-(-) 2.2%2010/2006-1.5%
2000 2001 2002 2003 2004 2005 2006 20100
5
10
15
20
25
4.1 4.56.5
9
12.414.7 15.4
23.4
Galvanised growth in China
Million tonnes
%CAGR2006/2000-24..4%2010/2006-11.1%
2000 2001 2002 2003 2004 2005 2006 20100
1
2
3
4
5
6
1.41.9
2.42.8
3.1
3.94.2
5.7
Galvanised growth in India
Million tonnes
%CAGR2006/2000-17..8%2010/2006-10.9%
2000 2001 2002 2003 2004 2005 2006 20100
5
10
15
20
25
19.618
19.5 18.721.1
19.217.1
18.2
Galvanised Steel growth in US
Million tonnes
Galvanised Steel Growth in US vs India & ChinaGalvanised Steel Growth in US vs India & China
8
End-use Markets for Galvanized Sheet (%)End-use Markets for Galvanized Sheet (%)
Market USA Europe China India
Automotive 40 64.2 9 2
Construction 40 24.3 64 56
Appliances - 7.3 12 13
Furniture - 2.0 6 5
Packaging - 2.0 2 12
Engineering/Fabrication - - - 12
Others 20 0.2 7 -
Total 100 100 100 100
Note: Globally 70% consumption of HDGI is in automotive , 20% in construction
Source: Metal Bulletin /CRU
9
India – Domestic steel market Outlook
Apparent Steel use per capitaApparent Steel use per capita
GEO/Period 2005 2006 2007 2008 2009 2010 2011
European Union (27) 338.2 384.5 404.4 372.2 243.5 294.4 310.0
Turkey 253.7 287.8 317.9 283.0 234.7 302.9 341.8
Others Eastern Europe 170.9 219.2 207.5 198.9 157.1 162.3 162.1
Other Europe 225.6 264.7 280.8 255.4 209.4 257.4 284.1
CIS 160.8 189.7 219.4 195.3 140.7 189.0 212.3
NAFTA 316.7 353.2 319.9 291.7 184.8 243.7 263.0
Central and South America 74.8 84.9 92.7 97.7 74.1 97.9 98.6
Africa 33.7 33.9 34.5 39.6 43.0 38.8 34.8
Middle East 186.0 184.4 227.9 233.9 209.1 231-6 233.9
China 266.0 287.4 316.5 336.0 412.0 436.0 459.8
India 36.6 41.2 45.8 45.1 50.0 55.4 57.0
J apan 601.6 619.5 637.0 612.1 415.6 500.9 506.7
South Korea 981.6 1,042.6 1,144.1 1,210.7 936.1 1,077.2 1,156.6
Taiwan, China 877.1 870.0 790.9 737.8 491.0 772.6 784.4
Other Asia 53.6 49.5 55.6 55.2 52.2 58.1 59.7
Asia 165.6 174.6 189.2 194.9 210.7 228.6 238.8
Australia and New Zealand 322.9 316.9 332.2 330.7 231.6 298.7 261.6
World 173.5 187.5 198.4 196.4 181.9 205.5 214.7 Kg per capita
Source: Eurostat, WSO
Apparent steel use per capita 2005 to 2011
11
Crude steel production & consumptionCrude steel production & consumption
Source: CRU
12
Growth Driving SectorsGrowth Driving Sectors
Source: Ernst & Young
Key OpportunitiesSector
13
ProductWise
IndianPoduction
FY 2012-13Apr-Jan
ProductWise
IndianPoduction
FY 2012-13Apr-Jan
14
Galvanized Indian market 2012 (1)Galvanized Indian market 2012 (1)
15
16
Major Players Installed Capacity ( MT/ annum)
ESSAR 450,000 *
JINDAL 110,000
UTTAM 80,000
ISPAT 100,000
BHUSHAN 120,000
NATIONAL 80,000
TATA 150,000
CRIL 60,000
MANAKSIA 60,000
ASIAN COIL 60,000
VARDHAMAN 30,000
TOTAL 1,300,000
India – PPGI Installed capacity India – PPGI Installed capacity
* ESPF (400,000) + SCG (50,000)Total capacity in India is being expanded upto 1,5 MnSource of Data : Interview with coil manufacturers
17
Product Segment
Expected Growth By 2013
Remarks
Construction 374,420 Although Construction industry expected to grow by 10%, usage of PPGI for newer applications and untapped demand & like Decking, barricading , Doors , and door ,window frames etc will be close to 20 %, therefore ESPF growth in this segment is shown as 30 - 35%
White Goods 72,000 Growth - 10 to 12%, (Source CEAMA)
Others 13,800
Total 460,220
Segments 2010-11 2011-12 2012-13Construction 10% 10% 10%White Goods 8% 10% 12%
Others 10% 10% 10%
Others include : Bus Body , AHUs ,Generator Canopy, Signage, Solar Heaters, Lighting Fixtures , Furniture , metal doors & Frames & Decking Profilers etcSource of Data : Interview with coil manufacturers
India – PPGI Market Growth India – PPGI Market Growth
18
Galvanized Indian market 2012 (2) Galvanized Indian market 2012 (2)
India: Galv & PPGI exports into EU
20
EU Coated Steel – Market Supply 2007 - 2011EU Coated Steel – Market Supply 2007 - 2011
Source of Data : Eurofer
21
GEO HDGI PPGI Total general
China 679.691 mt 461.316 mt 1.141.007 mt
South Korea 222.702 mt 275.495 mt 498.197 mt
India 100.724 mt 77.726 mt 178.450 mt
Turkey 63.378 mt 23.984 mt 87.362 mt
Taiwan 38.220 mt 32.950 mt 71.170 mt
Others 83.655 mt 56.366 mt 140.020 mt
Total general 1.188.369 mt 927.837 mt 2.116.205 mtExtra UE 27 imports
Source: Eurostat provisional data
Coated Imports 2012 by origin
GEO HDGI PPGI Total general
Belgium 331.521 mt 155.912 mt 487.433 mt
Italy 196.534 mt 189.484 mt 386.017 mt
Utd. Kingdom 162.180 mt 48.504 mt 210.683 mt
Spain 111.081 mt 91.134 mt 202.215 mt
Romania 65.251 mt 90.864 mt 156.115 mt
Poland 31.736 mt 92.818 mt 124.554 mt
Slovenia 98.770 mt 6.150 mt 104.921 mt
Sweden 22.643 mt 61.081 mt 83.724 mt
Fr Germany 22.937 mt 37.500 mt 60.437 mt
Others 145.716 mt 154.392 mt 300.108 mt
Total general 1.188.368 mt 927.837 mt 2.116.205 mtExtra UE 27 imports
Source: Eurostat provisional data
Coated Imports 2012 by destination
EU Coated Steel – Imports 2012 (P)EU Coated Steel – Imports 2012 (P)
Essar Steel’s Strategy
• What we have to face:Temporaly economic deceleration due to:
• Inflation vs anti inflationary policy• Weak external demand + forex 20% Rs. vs $ vs €• Long term: economy needs modern infrastructure• Others
• What we made, what we do, what we are planning to do:• Business units in key driving sectors• Global - > Rural focus (i.e.: mining -> hyper & expressmarts) • Internationalization & innovation
How to succeed vs economy decelerationHow to succeed vs economy deceleration
23
IndiaHazira Steel Complex10 MMTPA integrated steel plant Essar HypermartSteel distribution chain
North AmericaAlgoma Steel, Canada4 MMTPA integratedsteel plantMinnesota SteelIron ore mine with resources of 1.4 bn tonnes & 4 MMTPA Pellet PlantTrinity Coal Block188.6MT coal reserves across 6 mines in eastern Kentucky and southern West Virginia
IndonesiaP T Essar Indonesia0.4 MMTPA cold rolling complex
Essar Yu
Essar Telecom East AfricaGSM services in Kenya, Uganda, Congo (Brazzaville)
Indus Towers (Essar owns 14%)One of the world’s largest tower company102,000 towers
The Mobile StoreChain of over 900retail outlets
The Electronic StoreLarge format stores for Consumer Durables & IT products
Essar Projects India
Engineering
Procurement
Construction
Fabrication
Fully geared to execute turnkey EPC projects in India and overseas
Essar Offshore Subsea Ltd
Engaged in marine offshore construction
Global Supplies FZE (UAE) (Essar owns 25%)Global procurement company
Project Management & Consultancy
Essar Steel Essar Projects
Aegis - BPOOne of the leading Global player in BPO and Service sectorCaters to:
Telecom
Healthcare
Financial services
Travel & hospitality
Consumer products
Employee strength47000+ employees
globally
Essar Global
Essar PortsOperational Dry Bulk: 70 MMTPA Liquid: 46 MMTPA
Under ConstructionLiquid: 12 MMTPA
Essar ShippingOwns and operates 25 ships. One semi-submersible rig and 12 land rigs. Fleet of lighterage and transhipment assets.
12 new ships and 2 new Jack Up rigs being delivered
Essar Shipping & Logistics
Essar TelecomAegis
BPO Business
Increasing current capacity from 3,910 MW to 6,700 MW by 2014
Current operating plantsTotal capacity: 3,910 MW
Plants under constructionTotal capacity: 9,870 MW
Plants under developmentTotal capacity: 5,900 MW
Coal Blocks500 Mn coal reserves across mines in India, Indonesia & Mozambique
Essar Power(a)
Upstream Total reserves and resources (incl. unrisked): 2,132 mmboe
Significant development and exploration upside in India and abroad
Refining20MMTPA capacity today
Securing international distribution/access to maximise margins
Marketingc.1,630 retail outlets
Essar Oil
Essar Energy plc*
Source: Company information* Listed on London Stock Exchange(a) Capacities stated represent gross capacity
global player in the communications
sector
Integrated, global steel producer
International logistics provider to the steel, oil
refining and power industries
Leading EPC contractor with 40 year track record
Provider of multi channel CRM solutions to a blue-chip, multinational client
base
Integrated company spanning the oil & gas
value chain
Over a decade of experience in the Indian
power industry
Essar Global Essar Global
24
25
Think global, act localThink global, act local
Continued positive actionsContinued positive actions
Overview of coated Product Applications
Key DifferentiatorsKey Differentiators
• Versatility of Colors
• Non White Shades.
• “Non Standards” Widths.
• Lower Gauges.
• High End Applications.
• Market Diversification.
28
Product DiversificationProduct Diversification
• Anti-Skid , Anti-Wrinkle ,ARS RAL 8004 – for Shutters & Door Panels
• RAL 9006 Metallic Coatings
• Double Coated Surfaces
• “SOFT” OEMs / White Goods , Like Deep Freezers, Washing
Machines.
• PVDF / Metallic PVDF
• “High Value” OEMs / White Goods for Customers
High Reflective, High Gloss paints for Luminaries
29
Product DiversificationProduct Diversification
• Supply to various Service Centers
• Signage Boards for Companies like DHL, Ikea, Castorama
• Versatility & Flexibility in colors developed
• Supplying over 4500 shades • Dead Matt Finish
• Sparkle Finish
• Slits
• Food Grade Paints.
30
Product Diversification Product Diversification
Studs Market in Europe
Gypsum Boards Profiles.
Channels ,T Sections and Capping Materials
Minimized Spangle, Skin passed for Pre-painted
End Use.
False Ceilings / Acoustic Ceilings.
Telecom Shelters / Cold Storage.
31
Product Applications Industry WiseProduct Applications Industry Wise
• Pharmaceuticals
• Super Markets
• Hospitality
• Processed Food Industry
• Fisheries
• Floriculture
• Tissue Culture
• Agriculture
• Refrigerated Containers
Further Initiatives Further Initiatives
Penetration into tier 2 & tier 3 Indian Cities.
Bus Stands / Bus Shelters.
Develop Lower brands to Tap Rural / “Replacement Markets” of Galvanized with Pre-painted Steel.
Slum Rehabilitation. Indian Railways
33
Products at a Glance – HDGI – Grain SilosProducts at a Glance – HDGI – Grain Silos
Galvanized steel with 450 GSM coating.Target business of 24000 MT with Food Corporation of India.
34
Products at a Glance – HDGI (Solar Panel–sun rise industry)Products at a Glance – HDGI (Solar Panel–sun rise industry)
35
Products at a glance – HDGI for Dish Antennae & Set top BoxesProducts at a glance – HDGI for Dish Antennae & Set top Boxes
Galvanized Skin pass-
Dish Antennae.
*Set top Boxes switching to digital,
36
Products at a Glance – HDGI for Bus BodyProducts at a Glance – HDGI for Bus Body
Commercial supplies to -
Tata Marcopolo
ACGL Goa.
Ashok Leyland Limited
37
Galvanized product for Cable Trays. New segment currently developed.
Galvanized Tubes Replacement market
Products at a Glance - HDGI (Cable Trays & Tubes)Products at a Glance - HDGI (Cable Trays & Tubes)
38
Disaster ManagementDisaster Management
• Shelter for people affected by natural calamities.
• Shelter of 80 x 20 Sqm = 16 MT of PPGI.
400 people can take shelter under one roof
• Bamboo Shelter = 2 Months , PPGI = 10 days for
erection
• Metecno developed PPGI prototype for Police
jawans in M.P
170 shelters supplied (Police jawans)
39
Defense Defense
• 20 – 25 % reduction in energy cost by using sandwich panels.
• Prototype are developed by shelter manufactures.– Metecno– Acme– Lloyds
Budget Allocation Rs 5000 Cr.
Roof & shelter needed 500,000 sqm
Potential 5,000 MT
40
Essar Initiatives Towards ExcellenceEssar Initiatives Towards Excellence
Low Cost PPGIDeveloped with 10 micron top coat and 4-5 micron bottom coat• More cost viable for rural market• Benefit to reach untapped market
41
New Initiatives New Initiatives
PPGI for Small Refrigerator PPGI for Wine Coolers
42
Modular Building Solutions Modular Building Solutions
Fast emerging as big opportunity to increase margins and enhance market share.
Modular Solutions facilitate:• Scale• Speed• Standardization• Thermal & Sound Insulation
• 20-25% Savings in Energy Bill• 4-6° Lower Temperature than ambience
• Ease of alterations/repairs• Aesthetics• Elimination of Bricks & Mortar• Shortened Supply Chain• Middlemen are eliminated
43
New Value Added Products - PPGI New Value Added Products - PPGI
‘Tube light Patti's’ - Simple (but highly effective) currently being replaced with PPGI .
Mapping of Ultra Violet Radiation prone areas of world. Target PVDF coatings PPGI supplies to high UV radiation prone areas.
44
New Value Added Products - PPGINew Value Added Products - PPGI
Uni coat paint system
Wood finish coat Beckry therm paint shade
45
Anti- Graffiti Lead and chrome free paints
( ROHS norms)
Abrasion resistant system
New Value Added Products - PPGINew Value Added Products - PPGI
46
New Value Added Products - PPGINew Value Added Products - PPGI
Marble FinishClean coat Beckry shield anti-static paint system
47
RAL 9006 –• Replacing the product (RAL 9006)
with conventional roofs.
Solar Geysers • New segment - Alternate source of
heat. PPGI supplied to Racold Thermo Ltd.
PPGI for Power Plant Segment:
• SMP (silicon modified Polyester) coating and with high zinc coating (275 GSM). SMP coating with higher zinc coating gives higher
corrosion resistant and longer life.
New Value Added Products - PPGINew Value Added Products - PPGI
48
False CeilingsFalse Ceilings
49
Generator CanopyGenerator Canopy
Kirloskar Kala Genset
50
Solar ( Tata BP Solar) Heaters Solar ( Tata BP Solar) Heaters
51
Bus BodyBus Body
• Eicher
• ACGL
• Ruby Bus Body
• JC Coach
• Kamal Coach
• Swaraj Mazda
• JCBL – Punjab
• Azad Body Builders
52
Industrial Sheds
Telecom
Cold Rooms
Bus Body
White Goods
Decking
TeletronicsPortal Cabins
Metal Doors & Windows
Furniture
Railway Defence
Low Hanging FruitsLow Hanging Fruits
53
Global Installations
RCD Espanyol Stadium, SpainRCD Espanyol Stadium, Spain
55
Some of Installations of ‘PVDF’Some of Installations of ‘PVDF’
56
Mercedes Showroom, SpainMercedes Showroom, Spain
57
‘Ship Lap’ Metal Garden Sheds‘Ship Lap’ Metal Garden Sheds
• Wood-like appearance with 12 year anti rust guarantee.• Flat packed and easy to transport.
Garage Sheds. UK
58
False Ceilings ( Hunter Douglas)False Ceilings ( Hunter Douglas)
59
Indian Installations
Tile Roofs in KeralaTile Roofs in Kerala
61
62
Bus Stands & SheltersBus Stands & Shelters
63
Cempetitors but partners Cempetitors but partners Bhushan Steel
64
SARLA BIRLA Academy , Bangalore SARLA BIRLA Academy , Bangalore
65
Stadiums, HyderabadStadiums, Hyderabad
66
Cochin Airport Cochin Airport
67
Kalzip Kalzip
68
THANK YOU!
Let’s begin