Presentation of Vedanta Resources, India - vutbr.cz · Vedanta Resources Plc ±A Snapshot...

Presentation of Vedanta Resources, India

The Company Vedanta Resources is interested to recruit engineers (who are currently in final year of engineering) and interns (who are currently in third year of engineering) from VUT, Brno. We are already planning a visit to Europe in last week of Oct '09 and are covering four universities across Europe. Introduction about our company and detailed proposal is as follows: Vedanta resources is in the business of metals and mining with revenues in excess of USD 8.2 billion in FY 2007-08. Its principal operations are located throughout India, with further operations in Zambia and Australia. The major metals produced are aluminium, copper, zinc, iron ore and lead. With a talent pool of over 30,000 employees globally, the Group has a clear focus on achieving and sustaining global leadership in metals and mining business. We were keen to offer jobs to final year students of Chemical and Metallurgy Engineering and also offer internship programs to third year students of engineering. Our Corporate presentation can be found in a separate file. For more information about the company, please visit www.vedantaresources.com Our proposal is as follows: For Graduate Engineers (Final year students of engineering)

1. Remuneration: USD 2000 per month 2. Furnished Bachelor's Accommodation 3. Medical and Personal Insurance 4. Air tickets at the time of joining and One return trip per annum to Hometown

For Interns (3rd year engineering students)

1. Remuneration: USD 1000 per month 2. Furnished Bachelor's Accommodation 3. Medical and Personal Insurance 4. Travel tickets from Base town to India and back to Base Town on completion of

internship

Also to state that Average cost of living in India is between USD 150 to USD 200 per month.

Exploring your career with VedantaExploring your career with Vedanta

Iron OreIron Ore

Flow of the PresentationFlow of the Presentation

n Vedanta Resources Plc A Brief Introduction

n Overview of The Businesses Under Vedanta

n Corporate Social Responsibility

n Environment, Health & Occupational Safety

n Working With Vedanta

Vedanta Resources PlcVedanta Resources Plc A SnapshotA Snapshotn Vedanta Resources plc is a London listed FTSE 100 diversified metals and mining group with revenues in

excess of USD 8.2 billion in FY 2007-08. Its principal operations are located throughout India, with

further operations in Zambia and Australia. The major metals produced are aluminum, copper, zinc, iron

ore and lead.

n With a talent pool of over 30,000 employees globally, the Group has a clear focus on achieving and

sustaining global leadership in metals and mining business. The Group provides accelerated careers,

global leadership opportunities and is driven by core values of trustworthiness, respect and care for

people, entrepreneurship and innovation, concern for the environment and passion to excel.

Chairman Anil Agarwal

Deputy Executive Chairman Navin Agarwal

Group CEO MS Mehta

Vedanta Resources PlcVedanta Resources Plc A SnapshotA Snapshot

§ National presenceSterlite Industries (India) Ltd (SIIL)Hindustan Zinc Limited (HZL)Bharat Aluminium Company Ltd (BALCO)The Madras Aluminium Company Ltd (MALCO)Vedanta Alumina Ltd. (Alumina and Aluminium Projects)Sesa Goa LimitedSterlite Energy Limited

§ Overseas presenceCopper Mines of Tasmania Pvt Ltd, TasmaniaKonkola Copper Mines, Zambia

§ Sterlite Group has also strong presence in Optical cables business throughSterlite Optical Technologies Ltd. (a non Vedanta Company)

Global Operations

Konkola Deeps Mine

KCM smelter and refinery

Zambia

Australia

India

Mt. Lyell Mine

zSterlite Copper facilities

zHindustan Zinc facilities

zMALCO facilities

zBALCO/VAL facilities

zSesa Goa facilities

Vedanta Resources PlcVedanta Resources Plc A SnapshotA Snapshot

n A leading producer of key commodities

in India

nFY2008 Group turnover :

US $ 8,203 million (up 26.2%)

nFY2008 Group EBITDA :

US $ 3010 million (up 11.4%)

n Investment of over $ 8-10 billion in

Brown/ Greenfield project under

implementation

Indian market shares (2008)

ZincVedanta (HZL) 75%Production FY 2008 426Kt

CopperVedanta (Sterlite) 42%Production FY 2008 339Kt

AluminiumVedanta (BALCO & MALCO) 21%Production FY 2008 396Kt

Only integratedzinc producer

One of two leadingcopper producers

One of threealuminium producers

Milestones in Vedanta GrowthMilestones in Vedanta Growth

From being a lesser known 0.4 USD Million company in 1979 , it is now a USD 8.2 Billion Global Major.From being a lesser known 0.4 USD Million company in 1979 , it is now a USD 8.2 Billion Global Major.

SesaSesa Goa Ltd.Goa Ltd. 20072007 USD 8.2USD 8.2BillionBillion

25mtpa

12mtpa

2010

2008

Aluminium Zinc-Lead Copper

Captive Power Iron ore Independent Power

2012

2010

140ktpa

400ktpa

1,000ktpa2010

2008

2004

Evolution of GroupDelivering Strong Returns : 2003 -2008

1,000ktpa

600ktpa

180ktpa

2010

2008

2004

1000ktpa

754ktpa

235ktpa

2010

2008

2004

3,000MW

1,350MW

500MW

2010

2008

2004

2,400MW

Production Capacity : 2004 -2010

Optimise performance of existing assets

Organic growth

Consolidate group structureAcquisitions

üü

üü

**ROCE excludes capital work in progress

9,600MW

963

1,884

3,702

8,204

224 323 454

1,1021,290

6,502

2,7033,010

44.5%

14.4%

78.5%

37.9%

32.0%

16.8%

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

2003 2004 2005 2006 2007 2008

USD

Mill

ion

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

Revenue EBITDA ROCE **

363370

405

412425452

492525535535

572

618889

1,088

2,093

375

1,100

489

572

547

334Birla CopperKazakhmys

UGMKRio Tinto

RAO NorilskCumerio

Yunnan CopperSouthern Copper (ex SPCC)

VedantaMitsubishi Materials

TonglingJiangxi Copper Company

KGHM Polska MiedzSumitomo Metal Mining

BHP BillitonNorddeutsche Affinerie

Nippon Mining and MetalsXstrata AG

F-McM Copper & GoldVedanta aspiration

Codelco

Global Copper Producers Ranking :2007 (ktpa)

363370

405

412425452

492525535535

572

618889

1,088

2,093

375

1,100

489

572

547

334Birla CopperKazakhmys

UGMKRio Tinto

RAO NorilskCumerio

Yunnan CopperSouthern Copper (ex SPCC)

VedantaMitsubishi Materials

TonglingJiangxi Copper Company

KGHM Polska MiedzSumitomo Metal Mining

BHP BillitonNorddeutsche Affinerie

Nippon Mining and MetalsXstrata AG

F-McM Copper & GoldVedanta aspiration

Codelco

Global Copper Producers Ranking :2007 (ktpa)

152

186

240

295

409

465

751

725

1,100

396

490

150Anglo American plc

Yunnan Chihong Metallurgy

Shenzhen Zhongjin Lingnan

Industrias Penoles

Teck Cominco Limited

Votorantim

Glencore

New Boliden

Zinifex

Vedanta - HZL

Xstrata AG

Vedanta - aspiration

Global Zinc Producers Ranking :2007(ktpa)

152

186

240

295

409

465

751

725

1,100

396

490

150Anglo American plc

Yunnan Chihong Metallurgy

Shenzhen Zhongjin Lingnan

Industrias Penoles

Teck Cominco Limited

Votorantim

Glencore

New Boliden

Zinifex

Vedanta - HZL

Xstrata AG

Vedanta - aspiration

Global Zinc Producers Ranking :2007(ktpa)

741

860

871

1,343

1,577

2,034

4,144

4,318

3,818

395

3,500

457

464

417

527

359

Vedanta

Nalco

Tajik Government

CBA

Hindalco

CVG

Century Aluminum

Alba

Dubal

BHP Billiton

Hydro Aluminium

Chalco

Vedanta aspiration

Alcoa

UC Rusal

Rio Tinto with Alcan

Global Aluminium Producers Ranking :2007 (ktpa)

741

860

871

1,343

1,577

2,034

4,144

4,318

3,818

395

3,500

457

464

417

527

359

Vedanta

Nalco

Tajik Government

CBA

Hindalco

CVG

Century Aluminum

Alba

Dubal

BHP Billiton

Hydro Aluminium

Chalco

Vedanta aspiration

Alcoa

UC Rusal

Rio Tinto with Alcan

Global Aluminium Producers Ranking :2007 (ktpa)

Growth Aspiration: Amongst Top 5 by 2012

Silvassa

Mumbai

Bangalore

Marketing office/SalesDepot

Delhi

Udaipur

Plants

Hyderabad

Copper smelter Refinery & RodPlant

Copper Refinery &

Rod Plant Indore

Faridabad

Ludhiana

Corporate office

Chennai

Vizag

Tuticorin

Korba

Mettur

Jaipur

MALCO

BALCO

Hindustan Zinc

Vedanta Alumina, Lanjigarh

PRESENCE IN INDIAPRESENCE IN INDIA

Sesa GoaGoa

Ø Only fully integrated Zinc-Lead producer in the country.

Ø Having three lead-zinc mines, two smelters in Rajasthan and one at Vizag

Ø Market leader with 75% market share of country s Zinc demand.

Ø Providing direct employment to over 6500 people.

Ø Strive for continuous improvement in Environment, Health & Safety performance of itsoperations.

Ø Stimulating work environment.

Ø Galvanizing India s growth.

Ø Winner of awards like FICCI, Dun & Bradstreet, FIMI, Greentech Safety Award, GoldenPeacock, Energy Conservation Award

Turnover: Rs. 8560 Cr EBITDA : Rs. 6639 Cr.

Hindustan Zinc LimitedHindustan Zinc Limited

Hindustan Zinc : Smelters

Debari Smelter

Vizag Smelter

Hydrometallurgical ZincSmelter: 88,000 tZinc 419,000 tpaSulphuric Acid CaptivePower Plant: 29 MW

Chanderiya ComplexPyrometallurgical Lead ZincSmelter:105,000 t Zinc35,000 t Lead120 t SilverHydrometallurgical ZincSmelter: 420,000 t ZincAusmeltTM Lead Smelter:50,000 t Lead851,000 t Sulphuric AcidCaptive Power Plant: 234 MW

Hydrometallurgical ZincSmelter: 56,000 tZinc 91,000 tpaSulphuric Acid

INDIA

22ndnd Largest Integrated Zinc Producer in the WorldLargest Integrated Zinc Producer in the World

Capacity Build-Up (t)Product 2002 2007 2008 2010

Zinc 169,000 581,000 669,000 879,000

Lead 35,000 85,000 85,000 185,000

C.P.P 234 MW 234 MW 474 MW

Growth Strategy

Expansion Completedz 170,000 MT hydrometallurgical Zinc smelter.

z Mine expansion to 3.75 Mtpa of ore treatment.

z 2 x 77 MW, coal based CPP completed ahead ofschedule in April 05.

z 50,000 MT Ausmelt Lead Smelter commissioned

Expansion Phase-III

z 210,000 tonnes per annum HydrometallurgicalZinc Smelter at Rajpura Dariba

z 2 x 80 MW Coal based Captive Power Plant atRajpura Dariba

z 100,000 tonnes per annum Lead Smelter atRajpura Dariba

z Opening of a new mine at Kayar with an initialcapacity of 0.30 million tonnes per annum

Hindustan Zinc Ltd.Hindustan Zinc Ltd. -- Chanderiya Cell RoomChanderiya Cell Room

CopperCopper High Quality Asset BaseHigh Quality Asset BaseSterlite Industries (India) Ltd.Turnover - Rs. 11,822 Crores EBITDA - Rs. 1,326 Crores

Sterlite is now listed at India and New York Stock Exchange.

Sterlite has operations in Smelter, refinery and rod plants in India.

Went on stream in a record period of two years, fully stabilized and operating at rated capacity.

State-of-the-art technology on par with the best in the world. New ISA incorporates waste heatrecovery boiler.

An ISO 9001:2000, ISO 14001 and OHSAS 18001 Certified Organization.

Approved LME Tester for copper rods.

TQM as a way of life for Continual Improvements and Employee engagement

First Copper Smelter in the world to be accredited with Five Star rating by British Safety Council.

Winner of the International Safety Award from British Safety Council for the Year 2005

Dominant market shares in the various segments of copper consumption

Capacity summary

Tuticorin Smelter

Silvassa Refinery

1,90,000 TPA CopperCathode Refinery1,60,000 TPA CCR

4,00,000 TPA CopperAnode2,10,000 TPA CopperCathode90,000 TPA CCR13,00,000 TPA SulphuricAcid180,000 TPA PhosphoricAcid

Installed capacityn 4,00,000 TPA of Copper Anode

4,00,000 TPA of Copper Cathode2,50,000 TPA CCR

CopperCopper High Quality Asset BaseHigh Quality Asset Base

Revenues India/ Australia(2006/2007)

$2,553 million (66% inc.)

EBITDA - $365.6(66.9% inc)

Sterlite Industries (India) Ltd.Sterlite Industries (India) Ltd.-- TuticorinTuticorin PlantPlant

Copper Operations (Australia)Copper Operations (Australia)Copper Mines of Tasmania (CMT)

n Mine acquired by Sterlite in 1999

n Wholly owned by Sterlite (100% Stake)

n CMT has reserves of 12.4 MT and produces 100,000 tonnes of copper

concentrate

n The Copper Mine supplies approximately 7% of Sterlite's copper concentrate

requirements.

Copper Operations (Zambia)Copper Operations (Zambia)

n Vedanta Resources acquired a 51% stake in Konkola Copper Mines (KCM),

Zambia in 2004

n KCM's assets consist of three Mines, a Leaching Plant and a Smelter.

n Fully integrated Copper Producer

n KCM has reserves of approximately 156 million tonnes of Copper

n Copper Production of 1,42, 000 TPA

Konkola Copper Mines

Turnover - $1,015.9 million (44% increase) EBITDA - $468.3 million (127% increase)

AluminiumAluminium High Quality Asset BaseHigh Quality Asset BaseCapacity summary

Key projects

Bodai-Daldali Deposit

Bauxite deposit:Reserves of 9 Mt

Mettur Dam Complex

Kolli Mine

Yercaud Mine

Mainpat Mine

Korba Complex

2,00,000 TPA AluminaRefinery3,45,000 TPA AluminiumSmelter540MW and 270 MWCaptive Power Plant

Orissa Project

Bauxite mineReserves of 0.30 Mt ofbauxite

Bauxite mineReserves of 0.16 Mt ofbauxite

1,20,000 TPA AluminaRefinery40,000 TPA AluminiumSmelter75 MW Captive PowerPlant

Plans for a 1 1.4 Mtpaalumina refinery

Bauxite mineReserves of 7 Mt

Installed capacity Smelter

n Balco: 3,45,000 TPA of Aluminium

n Malco: 40,000 TPA of Aluminium

Turnover US$ 1140.2 million

EBITA(2007-08) US$ 380.7 million

Aluminium Expansion Project ($ 900m)Aluminium Expansion Project ($ 900m)

Korba Smelter

n 650,000 MT smelter

n Power Plant : 4X300 MW

nTime frame: Nov 2010

Mettur Smelter

nPower Plant : 1X25 MW

n Time frame: September 2008

BALCOBALCO -- KorbaKorba Aluminium SmelterAluminium Smelter

Malco Aluminium Plant (Malco Aluminium Plant (MetturMettur))

Project overview

FIRST PHASEFIRST PHASE

n1 - 1.4 Mtpa alumina refinery

n90 MW power plant

n Includes bauxite mining facilities

Vedanta s entry into the highly attractive Alumina market

Alumina Project ($800m)Alumina Project ($800m)

SECOND PHASESECOND PHASE

n3 Mtpa alumina refinery

n210 MW power plant

n Includes bauxite mining facilities

Future Projects (Orissa)Future Projects (Orissa)

Aluminium Smelter

§ 15,00,000 TPA smelter

§ Setup in 2 Phases

1215 MW Captive Power Plant,

Jharsuguda

2400 MW Power Plant

§Sterlite Energy Ltd., Jharsuguda

§ Coal Based Plant

§ Independent Power Plant

Sesa Goa Ltd.Sesa Goa Ltd.Sesa Goa Limited

Turnover : US$ 963.66 million EBITDA : US$ 595.90 million

q Sesa Goa Limited acquired by Vedanta Resources Plc in 2007

q Substantial entry into highly attractive iron ore business

q Natural fit for Vedanta delivering further diversification Strong growth potential

q Sesa is India's largest private sector iron ore producer-exporter and is globally cost-competitive.

q A well established company for over 50 years, Sesa was previously under Italianmanagement before being acquired by Mitsui in 1996. Its mining operations are located inthe iron ore rich states of Goa, Karnataka and Orissa. It currently sells c10 million tonnesof iron ore, of which over 95% is exported to leading global steel companies in China,Europe and Japan. At current production rates, Sesa s iron ore reserves and resources of207 million tons will support over 6 years of mined production. Sesa s fully integrated pigiron and metallurgical coke facilities each have the capacity to produce c250,000 tonnesper annum.

The Sesa Groupq Sesa Goa Limited

q Mining Divisionq Met Coke Division

q Sesa Industries Limitedq Pig Iron Plant

q Locations:q Goa, Karnataka, Orissa

q Sesa Community Development Foundationq NCM Sesa Technical Schoolq Sesa Football Academy

q Quality / Environment / Safetyq ISO 9001, 14001, OHSAS 18000

10 26168

476

575651

1549

0

200

400

600

800

1000

1200

1400

1600

Profit,

Rs.

Crore

2001 - 2002 2002 - 2003 2003 - 2004 2004 - 2005 2005 - 2006 2006 - 2007 2007- 2008

SONSHI MINE IN GOA

CHITRADURGA MINE IN KARNATAKA

Overview Sesa Goa Mines

Sterlite Energy

z Sterlite Industries intends to participate in projects relating to the generation of coalbased thermal power

z Sterlite Industries currently intends to develop these projects through its subsidiarySterlite Energy Limited ( Sterlite Energy )

z These power projects are expected to include ultra mega power projects or otherprojects announced by Government of India or any state government an / or and otherprojects independently developed by Sterlite Energy aggregating to an installed capacityof up to 10000 MW.

z We are building a 2400 MW coal based power plant at Jharsuguda, Orissa investingRs. 76,000 million.

Sterlite Energy Limited

Optical FibreOptical Fibre -- SOTLSOTL

n Units in Aurangabad and Silvassa

n Meets close to 68% of the country's requirement

n Holds Several Patents

§ Complete range of Terrestrial Fiber Optic Cables For Duct, Direct Buried and Aerial Deployments

§ Solid PE Insulated and Foam-Skin Insulated CopperTelecom Cables

§ Cat 3, Cat 5e & Cat 6 LAN Cables

Fiber Optic, Copper Telecom, LAN Cable Plants: UnionTerritory of Dadra & Nagar Haveli, India

Fibre Optic, Copper Telecom & LANCables - Products & Facilities

Vedanta University

Realizing a dreamConverting a vision into reality

Vedanta UniversityVedanta UniversityVision:

z To create a world-class, multidisciplinary University in India

z Of the caliber of Harvard or Oxford

z Managed through an Endowment

z Based on a Not for Profit philosophy

Mission

VU aims to promote the creation of knowledge to enable students to take advantage ofgreater learning opportunities, and apply this learning for the betterment of the society

z Vedanta University will span more than 6,000 acres on the Puri-Konark marine drive inOrissa and will be home to more than 500,000 talented students from around the world

z With an estimated investment of more than 15,000 crores, supported by a thrivingecosystem of knowledge in a breathtaking physical environment, the University willtransform Orissa into a primary centre for knowledge in India; the institution will join theranks of the world s greatest Universities such as Harvard, Stanford, and Oxford.

Three key planks of VU

Greater Learning

Leading Research

Contribution toSociety

Greater access to quality educationPut India on global education map and build a globallydiversified student community

Cross-disciplinary Centres of Excellence for researchR&D with private-public partnership - Ensure greaterapplication of innovationsInsights on globally relevant topics from an Asia-centricperspective

Promote economic and social development:Develop leaders Nobel Laureates, Olympic Champions,Community leaders, Entrepreneurs & CEOsSpawn a world-class townshipCreate immediate economic benefit to the region

CSR PolicyAt Vedanta Resources Plc, we believe in sustainable development and are committed to

raising the quality of life and social well-being of communities where we operate.

Towards this, we will be guided by

Our community development initiatives will be prioritized based on local needs. Broad areas offocus will be -

Social Investment Health, Education & LivelihoodBio Investment Water Harvesting, Agriculture and Social ForestryEnvironment Conservation

§ All operating locations will incorporate CSR activities as an integral part of their business plan andhave an appropriate organization to implement the same.

We will be open to working with like minded associates, government bodies and other volunteerorganization in pursuit of our mission.

We will measure and report progress as per social accounting systems and encourage third partyreviews for effective delivery and measurable impact.

We will regularly communicate with all our stakeholders on the progress and performance on socialmanagement.

CSR Footprintsz 152 villages in the most remote locales

z Radius 10 km in and around our plants/ locations

z Reach 1.7 million people

z 4 States in India Chhattisgarh, Orissa, Rajasthan, TamilNadu and 4 townships in Zambia

z CSR Team Strength - 45

z BALCO & HZL - Signatories to the UN Global Compact

At Vedanta Resources plc, we believe in sustainable development and are committed to effectivemanagement of health, safety, environment and community development as an integral part ofour business.

Accordingly, we strive to:

Develop, implement and maintain Health, Safety and Environment ( HSE ) management systems alignedwith our commitments and beliefs and consistent with world-class standards

Comply with applicable HSE regulations in all our activities, thereby providing a safe and healthy workenvironment

Seek continual improvements

Conserve natural resources, raw materials, water and energy by process improvements, recycling andreducing waste including waste utilization;

Work with communities to contribute to their development

Vedanta HSE Policy

Working with VedantaWorking with Vedanta

n Opportunity to work with highly qualified professionals with proven track record in the

industry.

n Opportunity to work abroad (Australia, Zambia)

n Job rotation and special assignments to help develop all round capabilities of

individuals

n Management Development Programme at IIM, Ahmedabad for SBU Heads

n Special training at Indian Institute of Technology for young Engineers

n Stars of Business High track performers are identified under the scheme and given

higher roles and responsibilities.

Working with VedantaWorking with Vedanta

n The Vedanta Mentor is a programme to lend a helping hand in professional

as well as personal life

n An Accelerated Competency Tracking and Upgradation Programme has

been implemented with the objective of identifying Fast Track Performers.

Those identified under the process will be identified as Stars of the

Business which aims at nurturing internal talent and taking higher

responsibilities.

Cultural ActivitiesCultural Activities

n Sports Golf, Cricket, Tennis, Football etc.

n Picnics

n Movie Screenings

n Family Get-togethers

n Celebration of holidays like Holi, Diwali, New Year etc.

n Annual Day Celebrations

n In-house Magazines Contribution by all employees

Golf Course - Chanderiya

Recreation Facilities

Who should join Vedanta?Who should join Vedanta?

If you are unconventional,

If you are ambitious to grow fast,

If you are aggressive to take challenges,

Wanna be in Thick & Thin of Action

Have Fire in the Belly

Then .

Come and join Vedanta !Come and join Vedanta !

Thank youThank you

Iron OreIron Ore

Presentation of Vedanta Resources, India - vutbr.cz · Vedanta Resources Plc ±A Snapshot...

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