NRE ppt - Gujarat NRE Coke Limited

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and factors outside of Gujarat's control, may cause the actual results, performance and achievements of ... The information in this report that relates to Mineral Resources and Reserves is based on information compiled by ... water harvesting.
Gujarat NRE Coking Coal (ASX: GNM)

-Mega growth plans of the Indian Steel Industry -The coking coal supply crunch -Gujarat NRE Story in Australia Arun Kumar Jagatramka Chairman, Gujarat NRE Coking Coal Ltd

DISCLAIMER This presentation contains only a brief overview of Gujarat NRE Coking Coal Limited and its associated entities (“Gujarat") and their respective activities and operations. The contents of this presentation, including matters relating to the geology of Gujarat’s projects, may rely on various assumptions and subjective interpretations which it is not possible to detail in this presentation and which have not been subject to any independent verification. This presentation contains a number of forward-looking statements. Known and unknown risks and uncertainties, and factors outside of Gujarat’s control, may cause the actual results, performance and achievements of Gujarat to differ materially from those expressed or implied in this presentation. To the maximum extent permitted by law, Gujarat does not warrant the accuracy, currency or completeness of the information in this presentation, nor the future performance of Gujarat, and will not be responsible for any loss or damage arising from the use of the information. The information contained in this presentation is not a substitute for detailed investigation or analysis of any particular issue. Current and potential investors and shareholders should seek independent advice before making any investment t decision in regard to Gujarat or its activities.

COMPETENT PERSON STATEMENT The information in this report that relates to Mineral Resources and Reserves is based on information compiled by Mr. Kris Markowski who is a member of the Australian Institute of Mining and Metallurgy. Mr. Markowski is employed by Gujarat NRE Coking Coal Limited. Mr. Markowski has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as Competent Person as defined in the 2004 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and ore Resources’. Mr. Markowski consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.”

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Take a hard look

At good old coal

Had Coal Not been there …

Forests would have been denuded years ago, as energy hunger would have forced man to burn trees ….

The industrial revolution that transformed the planet would not have taken place

Civilisation as we know it today, would not have marched on in the pace that we have seen…

The power to transform societies, the power to transform economies, the power to control destinies, the power to hold progress by its horns would not have been witnessed

The United States, the United Kingdom, Germany, Japan and Australia would not have marched on the path of prosperity..

China and India would have remained sleeping dragons and crouching tigers

Mankind would have remained in the quagmire of lost opportunities

."with coal, we have light , strength, power, wealth and civilisation, without coal we have darkness, weakness, poverty and barbarism."

Global Climate Change is a truth that we all must face but we need to ensure that facts and figures are not used to forcefully slaughter the human civilization in a fashion similar to the Y2K scare at the beginning of this millenium which turned out to be one of the biggest hoax calls in the modern era.

What Mankind must do :

Cut CO2 emissions by 50 % by the year 2050. Share Clean technologies with the 3rd world freely

No Greenmail. No Eco Pornography. No sham.

A global initiative by the brotherhood of man.

At Gujarat NRE We are already doing our bit as a socially conscious corporate citizen. Not because we were compelled but from an inner urge to be

the most energy efficient, nature friendly entity.

Our Windmills Generate clean, green energy 87.5 MWs (we even earn carbon credits while doing this)

Our Coke Ovens are emission free

Our Coke Oven batteries Use the waste heat to generate more power thus, earning Carbon Credits using Coking Coal

Our Establishments Have green belts around them so that the fragile eco systems we operate in are well maintained

We practice rain water harvesting so that water levels are maintained and refurbished

The threat to the environment

Is from thermal coal and petroleum derivatives Burning of which causes carbon emissions As in Thermal power plants Transportation

We do neither On the contrary, we deal in the greenest variety of coal – COKING COAL It is the diet version and earns carbon credit by generating power while being converted to COKE

What is the India Story?

1) Rising GDP growth % Growth in GDP

% average annual GDP growth 10

1.0 3.5 6.0 8.0

8 % growth

1900 – 1950 1950 – 1980 1980 – 2002 2002 – 2006

6 4 2 0 1900 - 1950

Sources: 1900-1990: Angus Maddison (1995), Monitoring the World Economy, 1990-2000:Census of India (2001), 2000-2005 Finance Ministry

1950 - 1980

1980 - 2002

2002 - 2006

Year

2) Population growth is slowing 1901 – 1950 1951 – 1980 1981 – 1990 1991 – 2000 2001 – 2010

% Gowth in Population 2.5

1.0 2.2 2.1 1.8 1.5

2 % growth

growth

% average annual

1.5 1 0.5 0 1901 - 1950 1951 - 1980 1981 - 1990 1991 - 2000 2001 - 2010 Year

Sources: 1900-1990: Angus Maddison (1995), Monitoring the World Economy, 1990-2000:Census of India (2001)

3. Literacy is rising 1950 1990 2000 2010 (proj)

% Rise in Literacy 100 80

% Rise

% 17 52 65 80

60 40 20 0 1950

1990

Year

2000

2010

Source: Census of India (2001)

4. Middle class is exploding Million People

1980

8

65

2000

22

220

2010 (proj)

32

368

Source: The Consuming Class, National Council of Applied Economic Research, 2002

% Growth in Middle Class %Growth

%

35 30 25 20 15 10 5 0 1980

2000 Year

2010 (proj)

5. Poverty is declining 46% 26% 16%

1% of the people have been crossing poverty line each year for 20 years. Equals ~ 200 million.

50 40 % growth

1980 2000 2010 (proj)

% Growth in poverty

30 20 10 0 1980

6. Productivity is rising

30% to 40% of GDP growth is due to rising productivity

2000 Year

2010 (proj)

7. Per capita income gains (US$ ppp)

1178

2000

3051

US$ PPP

1980

% Growth in US$ PPP 3500 3000 2500 2000 1500 1000 500 0 1980

Year

8. India is now a global economy And it will cross Japan between 2012 and 2014 to become the 3rd largest

2000

Economic Indicators  Economic Slowdown much flatter compared to other countries.  Expectation of 7% growth in current year GDP growth rate comparison 14 12 10

GDP Growth in %

8 6

India China

4

USA

2 0 -2 2004/05 -4 -6

2005/06

2006/07

2007/08

2008/09

2009/10 (proj)

The Biggest strength of Indian Model is……

Domestic led • Low Impact of global downturns • Less volatility

Drivers of the India Model Consumption led •

People friendly: Consumption as % of GDP India 64 Europe 58 China 42 % Growth in Middle Class



Middle Class is Exploding Million People

8

65

30 25 %Growth

1980

%

35

20 15 10

2000

22

2010 (proj) 32

220 368

5 0 1980

2000 Year

Source: The Consuming Class, National Council of Applied Economic Research, 2002

India’s success is market led. The entrepreneur is at centre of the Indian model

2010 (proj)

And a Vibrant Private Space Over 125 Indian Companies have market cap of US$ 1 billion Over 1000 Indian Companies have received FII Over 125 Fortune 500 companies have R&D bases in India Over 300 Fortune 500 companies have

outsourced software development to India 4.4% bad loans in Indian banks (vs ~ over 15% in China)

What adds up to this confidence… •

Even slow reforms add up - state getting out of the way



A Population Young at Age



Liberated Young Minds



Competitive advantage in the knowledge economy

The next few decades would be the India story

We are the protagonists - unfolding this play

Over the next 11 years • India will continue to add to her steel making capacities

• Japan will be overtaken within 2015-16 • Even the most conservative estimates aim at a whooping 3 fold increase from current levels • India’s growth is demand led as opposed to export fed • The growth will be much stable and less

susceptible to external conditions…

Per capita consumption of steel • India 2001 – 26.8 kg • India 2008 – 50.4 kg • Germany – 464.4 kg • USA – 353.9 kg • China – 307.3 kg • Brazil – 114.6 kg • World average – 194.2 kg India drags the current World average down from 230 to 194 kg

The New Era of steel making dawned in 1947 India had three units Two of them in the Private Sector (TISCO & IISCO) Total Capacity 1 million tons

China too had almost similar capacities … (one million ton in 1949)

It took China 47 years to commission its first 100 million tons of steel capacity 5 years to commission the next 100 million tons And A mere two years to score its triple hundred. The rest is history!

Steel Development Pattern • India’s long term steel development pattern is similar to most countries, following the same pattern of more than a century old China has already reached its peak in growth rate, while India is on the rise…..

Indian Steel Expansion in Pipeline Company

Existing

Total capacity in 2011-12

Total capacity in 2019-2020

SAIL

12.8

20.7

60

RINL

2.9

6.8

10

TISCO

5

16.5

33.5

ESSAR

4.6

8

20.5

JSW

4.1

11

31

JSPL

2.4

10.5

26.5

ISPAT

3

5

17

POSCO

-

6

12

Arcelor-Mittal

-

5

24

Bhushan Power

1.2

4

7

Bhushan steel

0.6

6

9

Others

22

28.5

42.4

Total

58.6

128

292.9

Year 2020

300 million tons of steel

The world’s who’s who of steel making are waiting : • Arcelor Mittal, the world's largest steelmaker, plans to set up two greenfield steel projects in India each with a capacity of 12 million tonne per annum (mtpa).

• Acerinox SA, the world's second-biggest stainless steelmaker, is joining hands with Japan's Nisshin Steel to build a steel plant in India. • Tata Steel, the world's fifth largest steel maker, plans to double its capacity by 2015, by adding another 35 mt capacity. • India's largest steel manufacturer SAIL is planning to increase its annual production of 12 mtpa to 24.98 mtpa by 2011-12.

• Sinosteel Corp, China's second- biggest iron ore trader, plans to invest US$ 4 billion to build a 5 mt greenfield steel plant • Posco is already in Orissa.

Factors of Production • There is a global shift of steel making facilities

to its natural habitat – and India has it all : • A legacy of steel making • Abundant raw materials including Iron Ore

• Low cost economy with quality manpower • Democratic framework with entrepreneurial abilities

• Internally generated funds – thriving stock market • Economy on the growth multiplier

• Opportunity in low per capita consumption

All resources can be mobilised in the medium term

Ports Vessels Material handling facilities Roads Railways Road – rail linkages Ancillaries Trained manpower, including skilled labour

Only villain in this love story • Is good quality coking coal

• Even at 100 mt, India will need about 70 mt of hard coking coal • China cannot and will not feed this demand • Sources like Mozambique are untenable • Other countries in Europe and America are neither cost effective nor viable logistically

Potential sources :

Established : Australia Canada USA China

Emerging : Mozambique Indonesia South African Nations

But Except Australia Need to consider *ash content, *Coking Properties, *land locked mines, *transport bottle necks, *freight costs, *law & order problems

Mozambique, Botswana, other African sources Mainly in the prospecting license stage Reserves have to identified and established

Huge investment in infrastructure required Before mining can actually commence

Note as opposed to a steel plant being set up in 2-4 years time, setting up a mine will require 6 – 8 years which means, 10 years to get the coal flow)

Coal Criticality

Immediate requirement :

Secure sources Long term contracts Acquisition of mines

That leaves us, Mates! Australia Has all the coking coal that INDIA Needs

- Huge potentials - Short term Bottlenecks notwithstanding

AUSTRALIA

NSW coal exports

(in ‘000 tonnes)

Source: 2008 NSW Coal Industry Profile by NSW Department of Primary Industries 54

NSW Hard Coking Coal Exports

(2006/07)

Source: 2008 NSW Coal Industry Profile by NSW Department of Primary Industries

55

Handful of mines in Southern Coalfield Peabody Metropolitan Xstrata Tahmoor NRE No.1

BHP Illawarra Coal

NRE Wongawilli

Source: 2008 NSW Coal Industry Profile by NSW Department of Primary Industries 56

Gujarat NRE Coking Coal Limited Listed on ASX (Code: GNM) on 10 July 2007  Current market cap of >$600 million  Two producing hard coking coal mines (NRE No.1 and NRE Wongawilli)  Over 570 million tonnes of JORC resources  Strong and well experienced management team  Currently employing over 450 people  $300 million invested with plans to invest further $500 million Target production – 2.4 million tonnes in next 12 months; 

6 million tonnes in next few years

Longwall mining at NRE Wongawilli commenced Aug’09  Mines located at close proximity (within 20 Kms) of Port Kembla  Access to key infrastructures (road and railway)  Strong links (via parent company) with Indian and international market 

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GROWTH PLAN – PRODUCTION FOCUS 

GNM’s Two Mines, NRE 1 and Wongawilli are to be developed to deliver production growth, cost reduction and operational excellence Based on in-house studies completed at a level equivalent to a pre-feasibility study » At 6Mtpa operating costs are estimated to be ~$39.0/t FOB Port Kembla Coal Terminal »

CAGR: 36.7%

Wongawilli Longwall Introduced NRE 1 Longwall Introduction Wongawilli Longwall Upgrade

58

NRE NO.1 COLLIERY Future capital expenditure plan (FY10-13) Mine development

A$m 70

Plant & equipment

210

Others

20

Total

300

Reserves & Resources Potential Reserves (Mt)*

As per mine plan (Mt)**

Inferred Total Proven Probable Total 15.1 59.2 1.8 0.2 2.0



Total 2.0

Resources (Mt) Seam Measured Bulli 12.4

Indicated 31.7

Reserves (Mt)

Balgownie



34.1

41.5

75.6











Wongawilli



59.3

121.5

180.8



16.5

16.5

28.0

44.5

12.4

125.1

178.1

315.6

1.8

16.7

18.5

28.0

46.5

Total

*Potential reserve of 28.04 million is additional to 18.5 million JORC reserves and based on mine plans drawn-up from inferred resources. Hence is not a part of JORC reserves. **Total of Reserves and Potential Reserves. 59

NRE WONGAWILLI COLLIERY Future capital expenditure plan

(FY10-13)

Mine development

A$m 40

Plant & equipment

110

Others

50

Total

200

Reserves & Resources

Resources (Mt) Seam Measured Bulli —

Potential As per Reserves mine plan (Mt)* (Mt)**

Reserves (Mt)

Indicated 8

Inferred 25

Total 33

Proven —

Probable Total — —



Total —

Wongawilli

21

16

114

151

2.7

5.1

7.8

23.0

30.8

Tongarra Total

— 21

— 24

74 213

74 258

— 2.7

— 5.1

— 7.8

— 23.0

— 30.8

*Potential reserve of 28.04 million is additional to 18.5 million JORC reserves and based on mine plans drawn-up from inferred resources. Hence is not a part of JORC reserves. 60 **Total of Reserves and Potential Reserves.

COAL QUALITY Typical washed coal quality

Ash (%) CSN (swell index) Inherent Moisture (%) Volatile Matter (%) Rank (Ro Max) Fluidity (ddpm) Sulphur (%) Phosphorous (%)

Bulli 9.6

Wongawilli 10.0

Average range for coking coal1 7.0 – 10.5

5.5

>9.0

6.0 – 9.0

0.8

0.9

1.02

21.7

24.7

17.5 – 34.0

1.3

1.2

0.95 – 1.70

1,800

3,000

100 – 20,000

0.38

0.59

0.039

0.010

0.375 – 0.750 0.005 – 0.080

Gujarat hard coking coal compares well against Bowen Basin prime hard coking coal on almost all quality parameters

Source: Australian Coal Association, Company reports, Broker reports

Note: 1 Based on Bowen Basin coal quality estimates 2 Based on inherent moisture content of Peak Downs coal

61

MAJOR SHAREHOLDERS

11% Gujarat NRE Coke Ltd. & Associates

13%

Financial Institutions & Nominees

Others 76%

62

GNM Outperforms All Ordinaries (ASX) (from 30 cents to 66 cents in 12 mths)

2009

2010

MANAGEMENT STRUCTURE Board of Directors

Management Committee Arun Kumar Jagatramka S Murari P R Kannan Sanjay Loyalka

Head of Operations Steven Bow

Opeations Manager NRE Wongawilli

Head of Technical Services

Group Engineering Manager

Chief Financial Officer

HR Manager

Company Secretary/IT Manager

Operations Manager NRE No.1

Phil Wakeford

Dr. Chris Harvey

Steven Coffee

Naveen Kumar Nanda

Stefanie White

Sanjay Sharma

Rhys Brett

STRONG MANAGEMENT TEAM Senior Management Team Steven Bow



Head of Operations BE(Hons), MEngSc



28 Years Underground Coal experience in coal operations and management with BHP Billiton and its coal operations in the Illawarra Region First class mine managers certificate & qualified competent person in reserves analysis

Chris Harvey

 

35 years coal industry experience Former Mining Engineer and Senior Environmental Officer with the NSW Department of Mineral Resources

Steve Coffee



28 years Underground Coal experience at operations in the southern and western coal fields of NSW mainly with BHP Billiton Mechanical Engineers Certificate of Competency

Head of Tech. Services PhD Mining Engineering Group Engineering Manager



Phil Wakeford



Operations Manager NRE Wongawilli Colliery

insert



33 years Underground Coal experience having worked in NSW South Coast, NSW Western District and Central Queensland Collieries with Oakdale Collieries Ltd, BHPBIC and NREWW Mine Managers Certificate of Competency

Rhys Brett

 

8 years underground coal mining with Anglo, Centennial and Xstrata NSW 1st Class Certificate of Competency for Underground Coal Mines and a diploma on Ventilation Engineering

Naveen Kumar Nanda



16 years of extensive experience at senior level positions in reputed Indian companies and CA Firms, Sydney based CPA firm providing Auditing, Taxation & Corporate Consultancy. Fellow Chartered Accountant from India and CPA from Australia.

Operations Manager NRE No. 1 Colliery B. Eng (mining) honours . Chief Financial Officer



65

BOARD OF DIRECTORS   

Arun Kumar Jagatramka



25 years of professional and management experience All India 1st rank gold medalist Chartered Accountant Director of Pike River, Port Kembla Coal Terminal, NSW Mineral Council and Australian Coal Research Association Appointed as an honorary NSW Sydney Ambassador to India

Chairman B.Com (Hons), FCA, AIMM   

10 years of experience in management and administration Active in the management & human resources for Gujarat NRE Group Also on the board of Gujarat NRE Coke Limited

Mrs. Mona Jagatramka Non-Executive Director 



Andrew Firek Director M.Sc, Ph D, FAusIMM, FAIE

25 years experience in mining, mineral processing, construction, commissioning and operations of coal, base and precious metals plants in Europe, Africa and Australia Former Group Leader at the CSIRO, Division of Fossil Fuels in Sydney and was engaged in developing technologies to produce liquid fuels from coal

BOARD OF DIRECTORS (contd..) 



Experienced financially qualified Professional with commercial skills and legal/regulatory and governance expertise Audit partner in chartered accounting firms for over 20 years

Maurice Anghie Director & Chairman of Audit Committee BBus, FCA, FCPA, MAICD





Don Carroll Director B. Mining Engineering



Over 30 years experience in the international resources business primarily in marketing & development of minerals ,merger & acquisitions. Senior executive positions with BHP Billiton including Vice President Investor Relations Australia, General Manager Marketing Asia, President BHP Billiton Japan, President BHP Billiton India. Long standing member of Australian Institute of Mining & Metallurgy, Australian Institute of Company Directors

A brief on the Indian Parent

GUJARAT NRE COKE LIMITED

68

A SNAPSHOT 

Largest independent producer of Metallurgical Coke in India



Listed on the Bombay and National Stock Exchanges, with a market capitalisation of around USD 1 billion (No. of shareholders 1,60,000)



Profit earning and dividend paying company with strong financials and credit rating of AA- for long term borrowing and PR1 for short term borrowing.



Met Coke capacity 1.25 million tons, being increased to 4 million tons by 2014/15 with setting up of green field/brown field plants in Gujarat, Karnataka and Andhra Pradesh.



The only Indian company to have acquired captive coking coal mines outside India.



The only Indian Company to have exported LAMC from India (to Argentina, Brazil, South Africa & Europe).

69

A SNAPSHOT (contd...) 

Strong focus on the Environment with ISO 14001:2004 & OHSAS 18001:1999 certification



Acquiring six new dry bulk carriers on long term time charters with an option to buy.

.



Received several awards as Super performer, Highest wealth creator, identified as 3rd Best Performing Mid sized company by Business World , environment & safety by various media houses



Rated one of the top 10 company by 10-years profit performance in the latest edition issued by Business Today on India’s Most Valuable Companies



Identified as the 4th best stock of the decade (CAGR wise) in the latest edition of Times of India, others being Unitech, Aban Offshore, Sesa Goa etc.

GNCL OPERATIONS… Waste Heat Recovery Power Plants

HARD COKING COAL (NSW, AUSTRALIA) RESOURCES 574 MMT

Khambhalia* Bhachau* Dharwad* Total

15 MW 15 MW 30 MW 60 MW

Wind Power

87.5 MW

LOW ASH METALLURGICAL COKE 1.25 MMTPA

KHAMBALIA UNIT 0.358 MILLION MTPA

Gujarat NRE Coking Coal (ASX: GNM)

STEEL UNIT TMT BARS : 0.311 MMTPA

BHACHAU UNIT

NRE NO. 1 – 316 million tonnes NRE Wongawilli – 258 million tonnes

Coal Washeries

DHARWAD UNIT

0.324 MILLION MTPA

0.25 MILLION MTPA

Khambalia Bhachau Dharwad *

0.75 0.75 0.90

(Leased) DHARWAD UNIT 0. 324 MILLION MTPA

In Australia

In India

* Under implementation

71

BOARD OF DIRECTORS The

main promoter of GNCL. Has more than five decades of business experience

Mr. Girdharilal Jagatramka Chairman Emeritus 25

Arun Kumar Jagatramka

years of professional and management experience All India 1st rank gold medalist Chartered Accountant Director of Pike River, Port Kembla Coal Terminal, NSW Mineral Council and Australian Coal Research Association Appointed as an honorary NSW Sydney Ambassador to India

Chairman & Managing Director   

10 years of experience in management and administration Active in the management & human resources for Gujarat NRE Group Also on the board of Gujarat NRE Minerals Limited

Mrs. Mona Jagatramka Non-Executive Director 

Mr. Rajendra Prasad Jain Executive Director

More than 32 years of experience in the field of Organisational Management, Business Planning, Operational and Commercial Functions in reputed Industrial Houses of India.

BOARD OF DIRECTORS (contd..)  

Leading medical practioner Past District Governor of Lions Club International

Dr. Mahendra Kumar Loyalka Non-Executive Director  

Mr. Chinubhai R Shah Non-Executive Director

  

Dr. Basudeb Sen



Non-Executive Director  

Former President of ICSI At present on the Board of Nirma Ltd., Adani Power Ltd., Cadila Pharmaceuticals Ltd., Apollo Hospitals International Ltd., Gujarat State Electricity Corpn. Ltd., etc. Also the Chairman of India Renal Foundation. Former CMD of IIBI Former Executive Director of UTI Mutual Fund. Holds directorship of various reputed Listed Companies viz. ITC Ltd., South Asian Petrochem Ltd., etc. Former CMD of Kudermukh Iron Ore Company Ltd. Presently on the Board of Coal India Ltd.

Mr. Murari Sananguly Non-Executive Director  

Mr. Subodh Kumar Agrawal Non-Executive Director

Eminent Chartered Accountant Presently Member of Central Council of ICAI.

SHAREHOLDING PATTERN Sl. No. 1

Particulars Jagatramka Family

% of Holding

33%

44.71 Promoters

2

Mutual Funds & FIIs

32.55

3

Indian Public (160,000)

22.74

MFs & FIIs 44%

Public

23%

Total

100.00

 Listed on BSE & NSE  Ticker Code: GUJNRECOKE BSE: 512579 &

NSE: INE110D01013

 Face Value : Rs. 10 per share  Market Capitalization: Approx USD 1 Billion 74

PERFORMANCE OF LAST 4 FINANCIAL YEARS

1600 1400

Rs. In Crores

1200 1000 800 600 400 200 0 Year Ended 31.03.2006

Year Ended 31.03.2007

Turnover

Year Ended 31.03.2008

Year Ended 31.03.2009

EBITA

75

PHENOMENAL INVESTOR RETURNS Amongst top 5 stock performance over last decade in India

Sl. No.

Name

Returns (Rs.)*

1

Unitech Ltd.

240

2

Aban Offshore Ltd.

167

3

Era Infra Engineering Ltd.

152

4

Sesa Goa Ltd.

134

5

Gujarat NRE Coke Ltd.

106

* If a person would have invested Rs. 1 in this stock on January 3, 2000, his value of investment on December 23, 2009 would be Rs.106 Source: Economic Times

76

LONG TERM NRE SHARE PRICE COMPARED WITH NIFTY (ADJUSTED FOR BONUS ISSUES) GNCL(LHS)

Nifty (RHS)

1,400.00

1,200.00

1,000.00

800.00

600.00

400.00

200.00

0.00 2-Jan-06

22-Nov-07

25-Mar-08

29-Dec-09

5-Jan-10

NRE has outperformed the NIFTY by 58% in last 3 years (02.01.06 to 05.01.10) 77

BONUS HISTORY Financial Year

Bonus Ratio

Record Date

Allotment

1995/96

11:10

26 Nov 1996

23 Dec 1996

2001/02

1:2

30 May 2003

16 Jun 2003

2002/03

1:2

21 Apr 2004

30 Apr 2004

2003/04

1:1

10 Feb 2005

12 Feb 2005

2004/06

1:1

30 Sep 2006

18 Oct 2006

2007/08

2:5

20 Oct 2008

31 Oct 2008

78

GROWTH PLAN – METCOKE PRODUCTION FOCUS

PRODUCTION CAPACITY (MMTPA)

5.00 4.50

4.00

4.00 3.50 3.00 2.25

2.50 2.00 1.50 0.24

2002-03

0.68

0.68

0.68

2007-08

0.13

2001-02

0.50

0.50

2006-07

1.00

2004-06

1.06

1.25

2014-15

2011-12

2009-10

2008-09

2003-04

0.00

Bottom Line • Indian prosperity is on auto pilot • Can’t do without government. But governance reform will take time, till middle class is dominant. • Human capital will continue to flower based on private initiative, and drive the nation

India has law, China has order -India got democracy before capitalism and this has made all the difference -It will be slower than China but its path will be surer -India more likely to preserve its way of life

What now?

If you are still not in India, Call + 91 79 329 31002 (my office will provide you with all travel assistance)