Steel Authority of India

1. SAIL- Strategy 2020
Indian Institute of
Metals
Delhi Chapter
Rakesh Kulshreshtha
Executive Director I/C
[Corporate Planning]
Resurgent India – Vision 2020 in Metals & Minerals Sector

2. MODERNIZATIONMODERNIZATION
JOINT VENTURESJOINT VENTURES
/ STRATEGIC ALLIANCES/ STRATEGIC ALLIANCES
CONTENT OF THE PRESENTATIONCONTENT OF THE PRESENTATION
OUR VISION FOROUR VISION FOR
THE FUTURETHE FUTURE
SAILSAIL ––
A BRIEF DESCRIPTIONA BRIEF DESCRIPTION
CORECORE
STRATEGYSTRATEGY
MODERNIZATIONMODERNIZATION
& EXPANSION& EXPANSION

3. ANANANAN
INTRODUCTIONINTRODUCTION
ABOUT SAILABOUT SAIL
3

4. SAILSAIL -- LARGEST STEEL PRODUCER INLARGEST STEEL PRODUCER IN
INDIAINDIA
Identified modernisation and expansion plan –
expanding capacity to 20.23MTPA of saleable steel
by FY2013.
FY2012 saleable steel production of 12.40 MT
4
by FY2013.
Second largest iron ore mining operations
in India
One of only five PSEs in India accorded
“Maharatna” status
FY2012 turnover of over Rs. 50,000 crores

5. ......WITHWITH ANAN ESTABLISHEDESTABLISHED ANDAND SUCCESSFULSUCCESSFUL
OPERATINGOPERATING TRACKTRACK RECORDRECORD......
Over 50 years of experience in the steel sector
5

6. Total Current Saleable Steel Capacity 11.20 MTPA
FY12 Saleable Steel Production 12.40 MT
Total Saleable Steel Capacity Post
Expansion
20.23 MTPA
Manufacturing Facilities
Plant
Current
capacity
(MTPA)
FY12
Production
(MT)
Planned
Installed
Capacity
(MT)*
Integrated Steel Plants
Bhilai Steel Plant 3.15 4.24 6.56
Durgapur Steel Plant 1.59 1.84 2.12
Rourkela Steel Plant 1.67 2.07 3.99
......ANDAND STRATEGICALLYSTRATEGICALLY LOCATEDLOCATED OPERATIONSOPERATIONS
6
Rourkela Steel Plant 1.67 2.07 3.99
Bokaro Steel Plant 3.78 3.35 4.18
IISCO Steel Plant 0.55 0.32 2.39
Special Steel Plants
Salem Steel Plant 0.18 0.31 0.34
Alloy Steels Plant 0.18 0.19 0.43
Visvesvaraya Iron &
Steel Plant
0.1 0.06 0.22
Total 11.2 12.38 20.23
Note: Capacity numbers refer to saleable steel capacity
* After implementation of Modernisation & Expansion Plan

7. FULLYFULLY INTEGRATEDINTEGRATED PRODUCERPRODUCER WITHWITH
STRATEGICALLYSTRATEGICALLY LOCATEDLOCATED OPERATIONSOPERATIONS......
7
Five integrated steel plants and three special
steel plants located principally in eastern and
southern India
Easy and cost efficient access to raw
materials
Ready supply of substantial portion of raw
materials

8. • Second largest mining operations in India in FY10
• 99.9% iron requirement in FY10 met through captive supplies
• Plans to ramp up existing mines to meet post expansion requirements
• 41% of dolomite and 38% of limestone requirements in FY10 met through
captive soruces
• Developing new coking coal mines at Tasra and Sitanala
Access to large
captive raw
material base
• Sizeable land bank provides flexibility for expansion and growth at existing
locationsLarge land bank
......ANDAND ACCESSACCESS TOTO LARGELARGE RESOURCERESOURCE BASEBASE
8
• Owns and operates four captive power plants (aggregate cap. of 211
MW)
• 50% interest in four captive power plants (aggregate cap. of 1,116 MW)
• Approximately 70% of FY12 power requirement sourced through captive
sources
Relative self-
sufficiency in
power
• 106,000 full-time employees including over 15,000 executives
• Reducing employee cost/tonne – expanded capacity planned to be
operated with the current number of employees
• Emphasis on skill based training to remain competitive
Large skilled
manpower
base

9. DIVERSIFIED PRODUCT MIX SUPPORTED BYDIVERSIFIED PRODUCT MIX SUPPORTED BY
STRONG DISTRIBUTION AND SALES NETWORKSTRONG DISTRIBUTION AND SALES NETWORK
9
Rods / bars
16.7%
Coated products
2.0%
CR coils / sheets
6.7%
Structurals
7.1%
Railway
materials
7.3%
HR coils / sheets
28.2%
Plates
20.6%
Pipes
0.5%
Semis
10.9%
Sales Breakup by Products

10. Vision
To be a respected world-class corporation and the leader
in Indian steel business in quality, productivity,
profitability and customer satisfaction
Credo
10
Credo
We build lasting relationships with customers based on trust and
mutual benefit.
We uphold highest ethical standards in conduct of our business.
We create and nurture a culture that supports flexibility, learning
and is proactive to change.
We chart a challenging career for employees with opportunities for
advancement and rewards.
We value the opportunity and responsibility to make a meaningful
difference in people's lives.

11. SAIL’s LONGSAIL’s LONG
TERMTERMTERMTERM
STRATEGY FORSTRATEGY FOR
GROWTHGROWTH
11

12. SAIL strategically continues to be an integrated steel
producer, producing steel by the BF-BOF-CC route.
Critical to its competitiveness and sustainability is access
to key raw materials – iron ore and coking coal.
• Strengths of SAIL is its captive iron ore mines near
the steel plants.
In India, there are rich and sufficient endowments of iron
ore and non-coking coal.
Choice of technology to use indigenous raw-materials.

13. SAIL’s Core
Business -
Steel
SAIL’s Core
Business -
Steel
Downstream
Supporting
Businesses
Raw-material and
resources supply
businesses
Upstream
Supporting Businesses
Downstream
End Use
Industries
Business
Diversification in
related
businesses
Diversification in
related
businesses
Other Related Businesses
Engineering Workshops
Prefabricated structures in steel
Brand exploitation in related businesses
Manufacturing of equipment & machinery
Power generation & transmission (incl. Renewable Energy]
Railway track expansion & up gradation projects
Metro rail / light rail urban transportation projects
Logistics solutions
Production of rolling stock (wagons, coaches etc)
Waste Management

14. MODERNISATIONMODERNISATION
&&&&
EXPANSIONEXPANSION
PLANPLAN
14

15. Capacity build-up as per current expansion plan envisages :
MODERNISATION & EXPANSION PLANMODERNISATION & EXPANSION PLAN
Particulars Installed
Capacity
After Current
Phase
Hot metal 13.82 23.46
(Million tonnes)
Hot metal 13.82 23.46
Crude Steel 12.84 21.40
Saleable
Steel
11.07 20.23

16. MODERNISATION & EXPANSION PLAN:
SALEM
Installed cap. After Expn
Crude Steel - 0.18
Saleable Steel 0.18 0.34
Production Build-up
million tonnes
Saleable Steel 0.18 0.34
Major FacilitiesMajor Facilities
New Steel Melting Shop (180,000New Steel Melting Shop (180,000 tpatpa))
New Cold Rolling Mill Complex (146,000New Cold Rolling Mill Complex (146,000 tpatpa))
UpUp--gradation of Existing Cold Rolling Millgradation of Existing Cold Rolling Mill
Roll grinder for Hot Rolling MillRoll grinder for Hot Rolling Mill

17. MODERNISATION & EXPANSION PLAN:ERNISATION & EXPANSION PLAN:
IISCOIISCO
Installed cap.Installed cap. After Expn
Hot MetalHot Metal 0.850.85 2.912.91
Crude SteelCrude Steel 0.500.50 2.502.50
Saleable SteelSaleable Steel 0.400.40 2.392.39
Production BuildProduction Build--upup million tonnes
Saleable SteelSaleable Steel 0.400.40 2.392.39
MajorMajor FacilitiesFacilities
CokeCoke OvenOven BatteryBattery ((00..7878 millionmillion tonnestonnes),), SinterSinter PlantPlant ((33..88 millionmillion
tonnestonnes))
BlastBlast FurnaceFurnace ((40604060 mm33)) withwith TopTop PrPr.. RecoveryRecovery TurbineTurbine ((22..77 millionmillion
tonnestonnes))
BasicBasic OxygenOxygen FurnaceFurnace (BOF)(BOF) ShopShop ((22..5656 millionmillion tonnestonnes))
BilletBillet CasterCaster ((11..6767 millionmillion tonnestonnes)) andand BeamBeam Blank/Blank/ BloomBloom CasterCaster ((00..88
millionmillion tonnestonnes))
HeavyHeavy SectionSection MillMill ((00..66 millionmillion tonnestonnes),), WireWire RodRod && BarBar MillMill ((11..2525
millionmillion tonnestonnes))

18. MODERNISATION & EXPANSION PLAN :
BHILAI
Installed cap.Installed cap. After Expn
Hot MetalHot Metal 4.084.08 7.507.50
Crude SteelCrude Steel 3.933.93 7.007.00
Saleable SteelSaleable Steel 3.153.15 6.566.56
Production BuildProduction Build--upup
million tonnes
Saleable SteelSaleable Steel 3.153.15 6.566.56
Major FacilitiesMajor Facilities
Coke Oven BatteryCoke Oven Battery--11 (7 m tall); 211 (7 m tall); 2ndnd Sinter M/c in SPSinter M/c in SP--33
Blast Furnace (4060 mBlast Furnace (4060 m33))
Steel Melting ShopSteel Melting Shop –– III (4.0 millionIII (4.0 million tonnestonnes))
New CastersNew Casters
Bar & Rod Mill (0.9Bar & Rod Mill (0.9 mtmt), Universal Rail Rolling Mill (1.2 million), Universal Rail Rolling Mill (1.2 million
tonnestonnes))

19. MODERNISATION & EXPANSION PLAN:
ROURKELA
Installed cap.Installed cap. After Expn (Mt)
Hot MetalHot Metal 2.002.00 4.504.50
Crude SteelCrude Steel 1.901.90 4.204.20
Production BuildProduction Build--upup million tonnes
Saleable SteelSaleable Steel 1.671.67 3.993.99
Major FacilitiesMajor Facilities
7m tall Coke Oven Battery, Sinter Plant (1x360 m2)7m tall Coke Oven Battery, Sinter Plant (1x360 m2)
Blast Furnace (4060 mBlast Furnace (4060 m33), 3), 3rdrd BOF, LF, RHBOF, LF, RH--OBOB
Single strand slab casterSingle strand slab caster
New plate mill 4.3m (1.0 millionNew plate mill 4.3m (1.0 million tonnestonnes))

20. MODERNISATION & EXPANSION PLAN:
BOKARO
Installed cap.Installed cap. After Expn (Ph-I)
Hot MetalHot Metal 4.594.59 5.775.77
Crude SteelCrude Steel 4.364.36 4.614.61
Production BuildProduction Build--upup
million tonnes
Saleable SteelSaleable Steel 3.783.78 4.184.18
Major FacilitiesMajor Facilities
Rebuilding of COBs with Pollution Control measuresRebuilding of COBs with Pollution Control measures
UpgradationUpgradation of one Blast Furnaceof one Blast Furnace
UpgradationUpgradation of existing SMSof existing SMS--II to 3.35 millionII to 3.35 million tonnestonnes from 2.85from 2.85
millionmillion tonnestonnes
New Cold Rolling Mill Complex (1.2 millionNew Cold Rolling Mill Complex (1.2 million tonnestonnes))

21. MODERNISATION & EXPANSION PLAN:
DURGAPUR
Installed cap.Installed cap. After Expn (Ph-I)
Hot MetalHot Metal 2.092.09 2.452.45
Crude SteelCrude Steel 1.801.80 2.202.20
Production BuildProduction Build--upup million tonnes
Crude SteelCrude Steel 1.801.80 2.202.20
Saleable SteelSaleable Steel 1.591.59 2.122.12
Major FacilitiesMajor Facilities
RMHS & Coal handling facilities; UpRMHS & Coal handling facilities; Up--gradation of By Product Plant,gradation of By Product Plant,
Dolomite plant, LF New slag yardDolomite plant, LF New slag yard
Rebuilding of Coke Oven BatteryRebuilding of Coke Oven Battery--22
BloomBloom--cum round caster (0.75 millioncum round caster (0.75 million tonnestonnes))
Medium Structural Mill (1.0 millionMedium Structural Mill (1.0 million tonnestonnes))

22. SAIL – BROWN FIELD EXPANSION TO
REACH ITS ULTIMATE CAPACITY
TheThe brownbrown--fieldfield expansionexpansion potentialpotential ofof thethe integratedintegrated steelsteel plantsplants hashas
beenbeen assessedassessed basedbased onon::
•• ExistingExisting facilitiesfacilities
•• FacilitiesFacilities underunder OngoingOngoing Modernization/ExpansionModernization/Expansion PlanPlan--PhasePhase--II•• FacilitiesFacilities underunder OngoingOngoing Modernization/ExpansionModernization/Expansion PlanPlan--PhasePhase--II
•• FacilitiesFacilities thatthat couldcould comecome underunder OngoingOngoing
Modernization/ExpansionModernization/Expansion PlanPlan--PhasePhase--IIII
•• CapacityCapacity ExpansionExpansion PlanPlan basedbased onon exploitingexploiting fullfull brownbrown--fieldfield
capacitycapacity ofof integratedintegrated steelsteel plantsplants atat theirtheir existingexisting locationslocations
Realization in a phased manner

23. JOINTJOINT
VENTURES /VENTURES /VENTURES /VENTURES /
STRATEGICSTRATEGIC
ALLIANCESALLIANCES
23

24. CURRENT JOINT VENTURES / STRATEGICCURRENT JOINT VENTURES / STRATEGIC
ALLIANCESALLIANCES
FOCUS AREA ALLIANCE PARTNER OBJECTIVE
POWER
JVs with NTPC and DVC for power plants for captive
consumption
Bokaro Jaypee Cement Ltd is operating a 2.1MTPA
cement plant at Bokaro
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CEMENT
cement plant at Bokaro
Bhilai Jaypee Cement Ltd is operating a 2.2MTPA
cement plant at Bhilai
SHIPPING
JV with Shipping Corporation of India for shipping of
imported coking coal
WAGON
MANUFACTURE
JV for manufacture of specialized wagons
E-PORTAL
JV with Tata Steel to promote e-commerce activities
in steel and related areas

25. CURRENT JOINT VENTURES / STRATEGICCURRENT JOINT VENTURES / STRATEGIC
ALLIANCESALLIANCES
FOCUS AREA ALLIANCE PARTNER OBJECTIVE
TECHNOLOGICAL
UPGRADATION
• MoU with Kobe Steel to explore employment of
ITmk3 single step furnace technology.
25
RAW MATERIALS
International Coal Ventures Ltd set up as JV with CIL,
RINL, NMDC and NTPC to acquire coal assets globally
JV with MOIL to produce ferro-manganese and silico-
manganese to lower cost of steel production
MoU with NMDC to jointly develop limestone mine
in Himachal Pradesh with expected capacity of
3MTPA
S&T Mining – JV with Tata Steel for acquisition and
development of coal blocks/mines

26. • Blast furnace is the most acceptable iron making
technology for mass production; offers economies of scale.
• Drawbacks:
• Energy intensive
EMERGING ALTERNATIVE IRON MAKINGEMERGING ALTERNATIVE IRON MAKING
TECHNOLOGIESTECHNOLOGIES
• Energy intensive
• Environmental Pollution
• Requirement of prepared burden
• Emerging Alternative Iron Making Technologies
• No need for coke oven, sinter plants
• Less Capex
• Environmental friendly
• Use non coking coal, lean iron ore

27. Iron ore:
1. The future steel plants to use more quantities of beneficiated iron
ore
2. Use of pellets and micro fines in sintering to increase
Coking Coal:
SUPPLY CHAIN MANAGEMENTSUPPLY CHAIN MANAGEMENT
Coking Coal:
Reducing dependence on coking coal through following:
Increasing auxiliary fuel consumption (primarily CDI) and nut
coke to the extent possible.
Use of higher content of semi coking and non-coking coal in
the coke oven blend through use of technologies like Stamp
charged batteries, etc.
Introduction of alternate iron making technologies which can
use non coking coal and iron ore fines.

28. TECHNOLOGIES TO REDUCE WATER &TECHNOLOGIES TO REDUCE WATER &
SPECIFIC ENERGY CONSUMPTIONSPECIFIC ENERGY CONSUMPTION
Future steel plants would target zero discharge of water
through extensive closed circuit cooling and through extensive
dry cooling.
Adoption of technologies which eliminate processes likeAdoption of technologies which eliminate processes like
sintering and coke making (thus reducing heating and cooling
cycles) would also contribute towards reducing CO2 emissions
and water consumption.

29. • SAIL and Kobe Steel, Japan to jointly set up a 0.5 million
Tonnes per annum ITmk3 technology based iron nugget plant
at SAIL’s Alloy Steel Plant, Durgapur.
• Latest technology developed by Kobe Steel, Japan, to produce
premium grade Iron nuggets, using low grade Iron Ore Fines
JV WITH KOBE STEEL FOR ITMK3JV WITH KOBE STEEL FOR ITMK3
TECHNOLOGYTECHNOLOGY
premium grade Iron nuggets, using low grade Iron Ore Fines
and non-Coking Coal.
• One of the largest technologies
where downstream facilities will
become energy efficient.
• Running successfully in Minnesota
Plant

30. ITMK3 PROCESS: PRODUCTION OF IRONITMK3 PROCESS: PRODUCTION OF IRON
NUGGETSNUGGETS
Disadvantage in DRI: gangue remains within it
• Kobe Steel, Japan: ITmk3
• Ore + coal composite pellets: Reduction & melting at 1500C in RHF
• It produces almost low sulphur pure iron nuggets (& slag globules)
• 0.25 mtpy plant at Minnesota, USA
30

31. IRON NUGGETSIRON NUGGETS
31

32. HAJIGAK DEPOSITSHAJIGAK DEPOSITS

33. BACKGROUNDBACKGROUND -- HAJIGAKHAJIGAK
• The Hajigak Iron Ore Deposit is
situated in the mountainous
Bamyan Province, 130 kms.
West of the Afghanistan Capital,
Kabul.
• Hajigak deposit comprises of
four iron-ore blocks (A,B,C & D)four iron-ore blocks (A,B,C & D)
having estimated reserves of 1.8
bn.
• Tonnes of high grade Magnetite
ore (62-64% Fe).
• Presence of coking coal & other
raw material source makes it
exceptionally favourable target
for economic development.

34. HAJIGAK BIDDINGHAJIGAK BIDDING
Submission of bid by Afghan Iron and Steel Company
(AFISCO), a consortium of seven leading Indian steel
and mining companies in India :
SAIL (Lead Consortium Member)
RINL
NMDC
JSW
JSPL
JSW Ispat Limited
Monnet Ispat and Energy
Selected as Preferred Bidder for three blocks (B, C & D) of
the Hajigak Iron ore deposits and Reserved Bidder for the Á
block.

35. • Development of iron ore resource
to its optimum capacity;
HAJIGAK IRON ORE DEPOSITS,HAJIGAK IRON ORE DEPOSITS,
AFGHANISTANAFGHANISTAN
• SAIL led Consortium of seven (7) public and private
sector companies - Preferred party for the three out
of four iron ore blocks of Hajigak deposits,
Afghanistan.
to its optimum capacity;
• Value-addition by setting up a steel
manufacturing facility;
• Power plant;
• Development of Rail & Road
infrastructure and CSR activities
• Negotiations are ongoing with the Afghanistan
Government.

36. SETTING UP OF A GREEN FIELDSETTING UP OF A GREEN FIELD
INTEGRATED STEEL PLANT IN SINDRIINTEGRATED STEEL PLANT IN SINDRI
• GoI allotted land and other assets of the closed unit of FCIL
at Sindri, Jharkhand to SAIL in August’11 - 5482 acre land
available for the project.
• To incorporate 3 JVs for setting up a steel plant, Urea Plant
at Sindri , power plant and township services.at Sindri , power plant and township services.
• SPV ‘SAIL-Sindri Projects Ltd.’ incorporated in Nov.’11
• Firmed up proposal submitted to Ministry of Fertilizer.
• Final Clearance from BIFR awaited for initiating further
activities.
• Project related activities shall commence thereafter

37. SAILSAIL--RITES JV PROJECTRITES JV PROJECT
• SAIL RITES Bengal Wagon Industry Private Ltd.
with 50:50 shareholding.
• The Wagon manufacturing plant to undertake• The Wagon manufacturing plant to undertake
fabrication of 1500 wagons per annum.
• The plant is being set up at SAIL Growth
Works, Kulti and construction work is in full
swing.

38. OTHER RAILWAY PROJECTSOTHER RAILWAY PROJECTS
Setting up a wagon components (Cast steel Bogies, Couplers
and related products) manufacturing facility as a 50:50 JV
with Indian Railways.
• The plant to be set up on the land under possession of
BSCL at Jellingham, West Bengal.BSCL at Jellingham, West Bengal.
• JV Agreement signed between SAIL
& BSCL, a PSU under Ministry
of Railways.
• Incorporation of JV – under progress.

39. INITIATIVES IN POWERINITIATIVES IN POWER
Augmentation of power
750 MW additional Power facility planned at Bhilai and Rourkela
through NSPCL
Renewable Sources of Power
• Various State Electricity Regulatory Commissions have made• Various State Electricity Regulatory Commissions have made
mandatory (for users of Captive power) to use up to 5% of
captive power from Renewable Energy Sources. (out of this 1%
has to be from Solar Power).
• Planned to install renewable energy based power plant in JV (80
MW).

40. SAIL’SSAIL’S VISIONVISIONSAIL’SSAIL’S VISIONVISION
FOR THEFOR THE
FUTUREFUTURE
40

41. SAIL’S VISION FOR THE FUTURESAIL’S VISION FOR THE FUTURE
• SAIL aims to maintain its market leadership position
Realizing the assessed potential in a phased manner.
Greenfield opportunity e.g. Greenfield facility at Sindri,
overseas opportunities
• Earn revenue from non-steel business where synergy exists
Power strategy - To be a surplus power producer
Renewable Energy [Solar & Non-Solar]
Refractories & ferro-alloys
Rail Transportation identified as a growth opportunity in the
value chain

42. SAIL’S VISION FOR THE FUTURESAIL’S VISION FOR THE FUTURE
• Earn revenue from non-steel business where
synergy exists
Waste Management
Prefabricated structures in steel & cement
Brand extension in related businesses
Logistics
Manufacturing of equipment & machinery

43. THANK YOUTHANK YOU