Agenda. PPGI vs. Galvanized Steel. Coated Steel usage in Construction Industry. Developments in pre-painted steel. Market Analysis India

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2 Agenda PPGI vs. Galvanized Steel Coated Steel usage in Construction Industry Developments in pre-painted steel Market Analysis India Indian Steel Industry Outlook

3 over Galvanized Steel Added Corrosion Resistance for the Substrate resulting long life Enhanced Aesthetic Value to steel enhanced appearance using color, form and texture Value added steel for consumer appliances Cool Metal Roof reduces heat transmission through the roof due to reflective properties of UV and IR rays Versatile finishes endless selection of colors, textures, metallic / non metallic finishes Ease of Fabrication multiple methods to efficiently form, shape, cut & fasten

4 Construction Industry GROWTH DRIVERS Infrastructure investment Demographic changes 100% FDI High industrial growth Growth in organized retail Simultaneous upgradation of major cities, satellite towns and rural areas Easy Availability of home loans at affordable rates Government Driven housing schemes APPLICATIONS Sloped Architectural Roofing & Cladding Sandwich Panels for cold storages, warehouses, and other industrial and commercial applications Rainware (gutters and downspouts) Garage & Entry doors Storage Units & Storage Systems Window sections Interiors (Ceiling tiles, back splashes, ceiling grids, wall panels, wainscoting, column surrounds) Solar panels Metal Decking Source: AkzoNobel Investor Meet

5 Sector Wise Steel Consumption Infrastructure is India s largest steel consumer, accounting for 63% of total consumption in FY12 This is not surprising given the heavy use of steel in this sector and soaring construction activity in the country over the past decade Engineering and fabrication is the next largest consumer with 22% of total consumption 22% Sector wise steel consumption FY12 10% 2% 3% 63% Infrastructure Engineering and fabrication Autos Packaging Transportation Source: JSPL May 2013 presentation, Aranca Research

6 Trends & Developments Emergence of pre-engineered buildings in the construction industry Laminated steel & specialty finishes on steel such as wood grain finish, marble finish etc. Textured coatings on steel such as Wrinkle finish / Leather finish / Orange Peel finish Usage of Coated Steel in Decking

7 Applications of Pre-Painted Steel in India Construction sector consisting of single skin and double skin installations are dominating the demand High growth in White Goods & Home appliance segment seen in the last 3-4 years Indoor applications such as storage systems, furniture, lighting equipment, are gaining popularity

8 Developments

9 Developments

10 Production vs Consumption of PPGI Predicted CAGR for next 7 years till % Highlights During , consumption has increased from 60% to 83%. It is estimated that this segment will grow by 12% during the next 7 years and the production by 2020 will be around 2.29 million tons Construction sector, domestic appliance sector, Automotive sector and general engineering sector would form the coil coating market India has earned a reputation of a consistent and well recognized supplier of pre painted steel to many developed countries of the world Production of Pre-Painted Steel Coil in India: Year Production (tons) Consumption (tons) ,36,000 9,94, ,60,320 11,13, ,99,558 12,47, ,55,505 13,97, ,30,166 15,64, ,25,786 17,52, ,44,880 19,63, ,90,266 21,98,655

11 India Steel Industry Outlook India is slated to become the second-largest steel producer in the world by Steel production in the country has increased at a compound annual growth rate (CAGR) of 6.9 percent over India's real consumption of total finished steel grew by 0.6 percent year-on-year in April-March to MT, according to the Joint Plant Committee (JPC), Ministry of Steel Increasing demand by sectors such as infrastructure, real estate and automobiles at home and abroad has put India on the world map. The construction sector accounts for around 60 percent of the country's total steel demand while the automobile industry accounts for 15 percent

12 Summary Fourth largest producer of crude steel Steel production in India has increased at a CAGR of 6.9% over The country is slated to become the second largest steel producer by 2017 as large public and private sector players strengthen steel production capacity in view of rising demand Strong growth opportunities Huge scope for growth is offered by India s comparatively low per capita steel consumption and the expected rise in consumption due to increased infrastructure construction and the thriving automobile and railway sectors Technological advancements Increased government and corporate sector focus on using innovative production techniques for enhancing operational as well as financial performance is a positive Rising domestic and international investments Domestic players investments in expanding and upgrading manufacturing facilities are expected to reduce reliance on imports. In addition, the entry of international players would provide benefits in terms of capital resources, technical know-how and more competitive industry dynamics

13 QUESTIONS?