Ferrochrome & Stainless Steel : Brightening India’s future Tata Steel Ferro Alloys & Minerals participated in India’s first international Stainless Steel fair held at Ahmedabad between Jan 16 – Jan 19, 2009. FAMD’s stall at the fair (titled “Making Steel Stainless”) showcased Tata Steel as being among the top 6 global chrome players and the largest manganese alloy player in India. Amongst the visitors to Tata Steel’s stall, were the steel minister, Shri Virbhadra Singh and Chairman, SAIL, Mr S K Roongta; apart from the who’s who of the Stainless Steel industry of India, and international delegates (from China, EU, Bhutan, Japan, US, UK, Bangladesh, Pakistani, Sri Lanka). FAMD also participated in the B2B session with Stainless Steel producers and presented this paper

1. INDINOX 2010
Ferrochrome &
Stainless Steel :
Brightening
India’s future
Prabhash Gokarn
Head (M&BD), FAMD,
Tata Steel Ltd

2. Tata Steel Ferro Alloys & Minerals participated in India’s first
international Stainless Steel fair held at Ahmedabad between
Jan 16 – Jan 19, 2009.
FAMD’s stall at the fair (titled “Making Steel Stainless”)
“Making Stainless”)
showcased Tata Steel as being among the top 6 global chrome
players and the largest manganese alloy player in India.
Amongst the visitors to Tata Steel’s stall, were the steel
minister, Shri Virbhadra Singh and Chairman, SAIL, Mr S K
Roongta;
Roongta; apart from the who’s who of the Stainless Steel
industry of India, and international delegates (from China, EU,
Bhutan, Japan, US, UK, Bangladesh, Pakistani, Sri Lanka).
FAMD also participated in the B2B session with Stainless Steel
producers and presented this paper

3. View Of FAMD TATA STEEL STALL AT THE INDINOX FAIR
Mr Virbhadra Singh, Steel Minister at FAMD Stall / Mr SK Roongta, Chairman SAIL at FAMD Stall
Roongta,

4. This presentation is an amalgamation of author’s own
views.
Tata Steel does not necessarily subscribe to the views
expressed in the presentation and the views should not
be taken as company policy.

5. Chrome Alloy Scenario
In India

6. Chrome Discovery
• Nicolas-Louis Vauquelin in 1797
Nicolas-
• Chromium-iron spinel now known as chromite (FeOCr2O3).
Chromium-
• Colorful salts : name derived from “khrôma”
“khrôma”
Greek word for colour.
colour.
• In 1798-99, Lowitz & Klaproth independently discovered
1798-
chromium from the Beresof Mines South-Eastern France.
South-
Stainless Steel
• Corrosion resistance of iron-chromium alloys first recognized in 1821 by
iron-
the French metallurgist Pierre Berthier
• 1890s – 1915 : various patents for different iron – chromium stainless
alloys . Harry Brearley usually credited with first patent for Martensitic
stainless steel in 1915, & Dr Hatfield with invention of 18/8 type Austenitic
Stainless Steel.

7. Chrome : Usage
Industrial uses & Intermediate Products - Chromite
Refractory Chemical Metallurgical Foundry Sands
Cement kiln Chrome Plating Ferrous Alloys
Fiberglass furnace Corrosion control -Cast Iron
Glass tank regenerator Metal finishing -Steel :
Mag-chrome refractories Pigments alloy
Others Tanning Chemicals stainless
(Chromates, Non ferrous alloys
Di-chromates) Aluminium
Others Copper
94% Nickel
Others
Chromite - Uses
Foundry 70% of chrome used in
Sands
3%
95% of total chrome metallurgical applications -
used in metallurgical is for making stainless
Refractory
1%
Chemical
applications - prime steel
Metallurgic 2%
al demand driver 18% is for making alloy
94%
steel
Source : ICDA, USGS

8. India in The Global Chrome Market (1)
India, 1% Other, 5%
Russia, Others,
5% S Africa,
7%
Khazak, 35%
8% India,
11%
Zimb,
12%
S Africa,
74%
Kazak,
China,
17%
25%
Global Chrome Reserves
Global Chrome Alloy
Production CY09
India has a total chrome ore India has a total chrome alloy
reserve of 213 million MT production capacity of 876 MVA,
(proved 31mill MT, probable 35 Prodn in 2009 : 6,05,000 MT
mill MT, recoverable 66 mill MT). 70% in state of Orissa
98% in state of Orissa Chinese LAM Coke preferred
Power cost & availability concerns

9. India in The Global Chrome Market (2)
45 90 30
40
Chrome Ore/Concentrate 80
Ferro Chrome 44 26
33
35 22 70
22 35 34
30 22 25 60 32%
25 60% 50
20 80% 40 50%
15 30
13 20 38
10 9 60%
10 10 18 19
5 10 6
6 5 < 10%
0
0
1 2 3 4 5
Cr Ore/Conc 2005 2006 2007 2008
Export to China Export ROW Used inside India FeCr Export to China FeCr Export to ROW Used inside India
India has moved from mainly a supplier of Chrome Ore/Concentrate to a
global supplier of Ferro Chrome. Today, most chrome ores are used
within India.
Domestic consumption of ferro chrome has remained more or less
stagnant, due to slow growth of the SS & Alloy steel industry. Share of
FeCr used within the country has dropped to one-third.
one-

10. India in The Global Chrome Market (3)
Production capacity 2.5 mil MT.
Product mix- 75% Flat :25% Long. 76% output in 200 series.
mix-
10% in 400 series fast growing
Majority from Private enterprises which mainly produce Flat
products. 5% production from Govt enterprises who are mostly
in Long products
In 2009 SS production expected 1.8 to 2.4 mill MT (figures
from different sources!!).
sources!!).
SS Exports 0.5 million MT, mainly Bright Bars, Utensils.

11. China in The Global Chrome Market (1)
Chrome Ore
Insignificant Chrome Ore Reserves compared to India
Chrome ore production < 3 lakh MT, mainly used for refractory &
chemical applications.
Imports Chrome Ore from mainly S Africa, Oman. Imports from India
have reduced sharply.
Ferro Chrome
Turned a net importer of HC Ferro Chrome from 2002.
Significant imports from India. Quantum jump in HC FeCr imports in last
2 years.
Significant producer of Silico Chrome & LC FeCr

12. China in The Global Chrome Market (2)
8000 SS Prodn In China grew at a 6,940
CAGR of @22% (2005-2009)
(2005- 6,290
6,000
6000 6,449
4,505 6,091 4,979
Quantity('000 MT)
4000 3,024
4,325
2,686 1,506
2000 1,348 1,660
854 1,043 1,296
440 1,094 750
0 233
2005 2006 2007 2008 2009 Till Sept
SS production Import of Chrome Ore & Conc
Production of Ferro Chrome Import of Ferro Chrome
Total production capacity 13 million MT; one-third of global capacity
one-
Flats : 7 million MT - State Owned Joint enterprises
Longs : 6 million MT – mostly private enterprises
2009:
2009: SS production expected 8 mill MT, capacity utilisation of 62%.
Significant exports. China now the world’s largest SS Player.

13. China in The Global Chrome Market (2) – India Factor
China’s dependence on India in Chrome Ore or Chrome Alloys
India’s spend share as supplier of Chrome Ore & Conc to China
2005 : 32%, 2007 : 16%, 2009 : 7%
India’s spend share as supplier of Ferro Chrome to China-
China-
2005 : 28%, 2007 : 14%, 2009 : 17%
Share of India’s Ferro Chrome export to China as part of India’s total production
increased to a level of 60%
China prefers Indian Ferro Chrome :
- High grade
- Short Sailing Time
- No Seasonal Effect
-Time zone advantage
Domestic FerroChrome Demand
Demand in India for ferro chrome has not grown significantly as yet : growing
from 1.7 mill MTPA to 2.5 mill MTPA (2000-2009)
(2000-

14. Other issues in India
1. Secure suppliers / customers : LT Contracts with fixed
monthly committed lifting quantity
2. Price : need to evolve an acceptable BM. Monthly/quarterly
BM based pricing on LT Contracts.
3. Improvement in Logistics : specially inland transport in
Orissa and from the Eastern to the western part of India.
4. Power availability and need to keep power costs low

15. ¿ Quo Vadis ?

16. Ferro Chrome : India catching up with China
1,600 1,576
1,600 1,500 1,476
1,450 1,450
1,500 1,406
1,350
1,400
1,300
'000 MT
1,156
1,200
1,100
1,041
1,000
900
800
2009 2010 2011 2012 2013
China India
China turned a net importer of HC Ferro Chrome from India since 2002,
with a quantum jump in HC FeCr imports in last 2 years.
Significant increase in FeCr production within India forecast, India will
catch up with China by 2013.

17. Projected Stainless Steel Growth
China India
12,000
10,690 11,070
9,760 Year Flat Long Total
9,100
9,000 8,400
2005 1001 153 1154
'000 MT
6,000
2010 1685 373 2058
3,000
2015 3185 900 4085
0
2010 2011 2012 2013 2014 Source ISSDA
Stainless Steel :
•China SS growth to slow to 6-8% CAGR between 2010 - 2015
6-
•Significant opportunity for India to emulate growth of China during 2005-
2005-
2009 (@22).
•However, most optimistic projections for Stainless Steel by ISSDA @12%
CAGR

18. Till 2000 2001 to 2004 2005 to current The possible future
Stainless Steel China reaching half Emergence of China as Dominance of China in Increased Dominance of
million MT production player of significance global Stainless Steel China, Emergence of India
in global Stainless Steel production : high growth in Stainless
Steel production
Increased production of
Ferro Chrome No Ferro Chrome import by China starts importing Ferro Chrome in China and Higher production
China Ferro Chrome : 1st time India. consumption & export of
import rom India Quantum jump in India’s Ferro Chrome in India.
share in China’s import
China secures Chrome Ore
Chrome Ore supplies through equity
India’s production reaches India’s production reached Restriction of Ore supply stakes in Zimbabwe, South
2 million MT 3 million MT with one third from India . China shifted to
exported to China supply from other countries Africa etc. Further
consolidation : Cr Ore -
FeCr - Stainless Steel

19. • Rapid increase in Ferro chrome demand in
China and India will boost Ferro Chrome
production in India in a big way.
• An opportunity exists for India to grow like China
did in the global Stainless Steel arena, and
emerge as a big global producer, consumer and
exporter of stainless steel.

20. THANK YOU

21. USES OF
CHROMIUM

22. Chromium : Use In Metallurgical Applications
CHROMIUM - Alloying Element In Steel
Passive layer formation Carbide formation 70% of chrome used in
Cr > 10.5% Wear Resistance
Stainless Steels Bearing Steels metallurgical applications
- is for making stainless
Cr steel
Carbide formation Scale Resistance 18% is for making alloy
Hot Hardeness Creep Resistance
Tool Steels, High Speed Steels High Temp Steels steel
Growth 000 MT Cr 000 MT Cr
Application % Cr
Foundry & Nickel Alloys Rate Content 2008 Content 2014
Castings Stainless Steel 5% 18% 2,798 50% 3,571 50%
1% Others Alloy Steel 5.50% 3% 1,244 22% 1,626 29%
10%
2% Tool & HSS 6.90% 5% 94 2% 131 2%
Engg Steel 6.20% 0.80% 369 7% 498 9%
HSLA 10% 0.20% 37 1% 60 1%
Alloy Steel Carbon, Low Alloy 4.80% 0.10% 744 13% 941 17%
18% Castings 4.40% 0.20% 153 3% 190 3%
Ni alloys 6% 22% 55 1% 74 1%
Others 6% 1% 70 1% 94 2%
Stainless Steel
69%

24. BACK UP
ABOUT TATA STEEL

25. THE TATA GROUP
The Tata Group
Founded by Jamsetji Nusserwanji Tata in 1869, a visionary,
nationalist and philanthropist who believed that wealth
must be shared
HISTORY OF FIRSTS :
First integrated steel plant
First hotel chain
First hydro electric power plant
First institute of technical education
First to discover & nurture Chrome & Manganese

26. The TATA GROUP
Strong Brand Equity
USD 62.5 billion
6.3% of India GDP
61% of Group Revenue
Employees 350,000 people
worldwide

27. Group Profile
US$25 Bn.
TEA
MOTORS
STEEL
CHEMICALS
SOFTWARE
US$3450M
ENERGY
FERRO ALLOYS &
SERVICES MINERALS TELECOM
US$400M

28. TATA STEEL
Tata Steel is the flagship company of the Tata Group
First to discover and nurture India’s mineral wealth : first Manganese and chrome mines, first Ferro
alloy plant. Amongst the largest Ferro alloy producers in India – amongst World’s top 6 Chrome
producers.

29. Ferro Alloys &
Minerals Division

30. FAMD - PRODUCTS
CHROME ALLOYS MANGANESE CHROME CONCENTATE DOLOMITE / PYROXINITE
ALLOYS
FerroChrome Ferro Manganese
ChargeChrome Silico Manganese
FERRO ALLOYS MINERALS FLUXES
Amongst the top 6 Global Chrome Alloy producers
6.3% global market share in Chrome Alloys, 44% share in India
Largest supplier of manganese alloys in India, 15% market share in India
Production facilities in India and South Africa
Major Customers are Carbon Steel, Alloy Steel & Stainless Steel Manufacturers

31. FAMD - PRODUCTS
As the world sees us….
Chrome Alloys – Stainless /
Alloy Steel Manganese Alloys – Carbon & Stainless
Steel (200S)
Fluxes – Manufacture of Steel
Chrome Concentrate – manufacture of
Chrome alloys and Stainless Steel

32. World’s Largest Chrome Alloy Producers
Rank by Rank by
Company Capacity
Prodn Prodn
Name ( In LMT)
(2008) (2010)
2007 2009
Xstrata 18.00 21.50 1 1
Samancor 11.85 11.35 2 2
Kazchrome 10.0 11.3 3 3
Hernic 2.7 4.3 4 4
Outokumpu 2.6 2.6 5 6
Tata Steel
2.2 3.6 6 5
Group
Tata Steel will be the fifth largest producer of Charge/Ferro Chrome
and the largest producer in India

33. Leader In Manganese Alloys in India
17% Domestic Market Share in Ferro Manganese
12% Domestic Market Share in Silico Manganese

34. Flux Business : Dolomite
• Calcium-Magnesium carbonate
Calcium-
• Used as a flux in making of iron & during steel making and for some
refractory applications. Flux is used as a slag former, which helps in
refining the ore while it is reduced to metal.
Competitive Position
Customer Current Market
Product Present Volume Competitors Envisaged Growth
Segments Share, Position
Integrated Steel BISRA (Mkt share 50%,
Plants Rank 1) 7.5 lakh MTPA
Dolomite 5 lakh MTPA 30%, 3
Ferro Alloy Plants BK Lal (Mkt share 40%, (2015)
Sponge Iron Plants Rank 2)

35. Pyroxenite
Pyroxenite :
• Calcium-Magnesium silicate associated with serpentine, found with Chromites at Sukinda.
Calcium- Sukinda.
• Used as a flux in making of iron & during steel making at Tata Steel, Jamshedpur,
substituting Dolomite.
• Replacement of Dolomite by Pyroxenite (considered a gangue material) has resulted in
substantial saving in cost of steel.
• Not marketed outside Tata Steel due to restricted availability. Pyroxenite reserves expected
to last 1 – 2 years.
• Fully utilized at Tata Steel’s Jamshedpur works

36. CHROME ALLOYS MANGANESE ALLOYS CHROME CONCENTATE DOLOMITE / PYROXINITE
FeCr and ChCr
ChCr FeMn and SiMn
FERRO ALLOYS MINERALS FLUXES
FERRO ALLOYS & MINERALS DIVISION
Other Divisions:
Long
Flat FAMD
Tubes Products & Agrico & Bearings Engineering
Hand Tools Automation
Products Wires

37. GLOBAL REACH
FACILITIES
CHROM E CUSTOMERS
MANGANESE CUSTOMERS
FLUX CUSTOMERS

38. Some Major Customers……
Excellence Recognises Excellence

39. Limestone Biz
Sila Eastern Company Ltd. Thailand:
A 49% joint venture to undertake development of limestone mines in Thailand
nurtured at FAMD.
Company vision: to be the preferred global source for low silica limestone for
metallurgical application
Guaranteed typical specs
CaO 54 % 55.0 % MgO 1.5 % max 0.5 % SiO2 0.5 % max 0.3 %
Al2O3 0.3 % max Fe 2 O3 0.2 % max
The company has grown to be a 1 Million MT limestone producer in 4 years.

40. Facilities & Plants
Mines Location Product Production
Chromite Mines Sukinda, Orissa Chrome Ore 1 Million MTPA
Manganese Mines Joda, Orissa Manganese Ore 0.33 Million MTPA
Dolomite Mines Gomardih, Orissa Dolomite 0.5 Million MTPA
Ferro Alloy Plants Facility Current Product Production
33.5 MVA closed
FAP Bamnipal, Orissa Ferro Chrome 55,000 MTPA
furnace
9MVA & 15MVA
FAP Joda, Orissa Manganese Alloys 50,000 MTPA
semi-closed fce
FAP, Cuttack Orissa 2 * 16.5 MVA fce
Ferro Chrome 50,000 MTPA
TSKZN, Richards Bay,
2 * 38 MVA fce Charge Chrome 150,000 MTPA
South Africa
Additional production of ferro alloys through Long Term
Conversion Arrangements of ~2 lakh MTPA

41. Business Profile
Production facilities in India and South Africa
Products :
Minerals :
Chrome Concentrate
Alloys :
Charge Chrome
Only supplier of both FeCr & Ch Cr in World
High Carbon Ferro Chrome
High Carbon Silico Manganese
High Carbon Ferro Manganese
Fluxes :
Dolomite and Pyroxinite
Global reach - strong presence in Japan, Korea, China and recent foray into U
& Middle East market and re-entry into Europe.
Leadership position in India
Major Customers are Carbon Steel, Alloy Steel & Stainless Steel
Manufacturers
Traditionally nurtures LT relationships & long term business agreements.

42. Facilities
FERRO ALLOY FACILITIES
Facility & Location Current Production Furnace Fce Type Capacity
1 FAP Bamnipal, Orissa, India HC Ferro Chrome, Low Phos 1 x 33.5 MVA Closed 60,000 MTPA
2 FAP Joda, Orissa, India HC Ferro Manganese, Low Si 9 MVA , 15 MVA Semi-closed 50,000 MTPA
3 FAP(Rawmet) Cuttack, Orissa, India Chrome and manganese alloys 2 x 16.5 MVA Semi-closed 50,000 MTPA
4 TSKZN, Richards Bay, South Africa Charge Chrome 2 x 38 MVA Semi-closed 151,000 MTPA
In addition facilities to convert approx 200,000 MTPA bulk ferro alloys under tolling

43. Products – Manganese Alloys
Special Products
Low Silica Ferro Manganese with Si content below 1.5% and below 1% can be made.
Low Phos Ferro Manganese with Phos levels below 0.25% and 0.20% can be made
Support Facilities
Customised size and specifications and Delivery conditions
24x7 customer contact
Packaging: In 50 kg Jute-HDPE/ 1 MT Bags and loose in bulk
Jute-
Provision of sales ex – Depots / Warehouses near you or ex-plant
ex-
Multi Mode/ Multi Port despatches : land (road/truck, rail-wagon/Concor rake) & sea
rail-
Provision of certification by independent Public Analyst

44. Products – Chrome Alloys
Only Global Producer of both HC Ferro Chrome and Charge Chrome
Special Products
Low Phosphorus HC Ferro Chrome with Phos content ranging from 0.018%max upwards
Low Manganese Ferro Chrome with Mn levels below 0.35%
Low Titanium Ferro Chrome, with Ti levels below 0.20% for seamless tubes
Support Facilities
Customised size and specifications and Delivery conditions
24x7 customer contact
Packaging: In 50 kg Jute-HDPE/ 1 MT Bags and loose in bulk
Jute-
Provision of sales ex – Depots / Warehouses near you or ex-plant
ex-
Multi Mode/ Multi Port despatches : land (road/truck, rail-wagon/Concor rake) and sea
rail-
Provision of certification by independent Public Analyst

45. Products – Chrome Concentrate
Special Products
Coarse Concentrate
High Cr/Fe Concentrate with Cr/Fe upto 2.8
Support Facilities
Multi Mode/ Multi Port despatches : land (road/truck, rail-wagon/Concor rake) & sea(bulk &
rail-
containerized through a choice of nearby ports)
24x7 customer contact
Packaging: In bulk or 1 MT Bags
Customised size and specifications and Delivery conditions
Provision of certification by independent Public Analyst

46. Products – Fluxes
Support Facilities
Customised size and specifications and Delivery conditions
24x7 customer contact
Multi Mode despatches : land (road/truck, and rail- rake loading option)
rail-
Packaging: In bulk. Rake loading option

47. Our Business Excellence Journey
Accolades Year on Year
TBEM
DEMMING
CAPXEIL SPECIAL EXPORT
PROMOTION AWARD 2009

48. THANK YOU
for more information :
please visit us at – www.tatasteel.com/famd
email - tatafamd@tatasteel.com

50. INDINOX 2010