Gujarat NRE Coking Coal (ASX: GNM) - Mega growth plans of the Indian - - PowerPoint PPT Presentation

Gujarat NRE Coking Coal (ASX: GNM)

Arun Kumar Jagatramka Chairman, Gujarat NRE Coking Coal Ltd

• Mega growth plans of the Indian Steel Industry
• The coking coal supply crunch
• Gujarat NRE Story in Australia

2

This presentation contains only a brief overview of Gujarat NRE Coking Coal Limited and its associated entities (“Gujarat") and their respective activities and

• perations. 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

• re 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.”

DISCLAIMER

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

• pportunities

."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 Oven batteries

Use the waste heat to generate more power

thus, earning Carbon Credits using Coking Coal

Our Coke Ovens are emission free

Our Establishments Have green belts around them so that the fragile eco systems we

• perate 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

• f 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

% average annual GDP growth

1900 – 1950 1.0 1950 – 1980 3.5 1980 – 2002 6.0 2002 – 2006 8.0

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

2) Population growth is slowing

% average annual growth

1901 – 1950 1.0 1951 – 1980 2.2 1981 – 1990 2.1 1991 – 2000 1.8 2001 – 2010 1.5

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

0.5 1 1.5 2 2.5 1901 - 1950 1951 - 1980 1981 - 1990 1991 - 2000 2001 - 2010 % growth Year

% Gowth in Population

2 4 6 8 10 1900 - 1950 1950 - 1980 1980 - 2002 2002 - 2006 % growth Year

% Growth in GDP

% 1950 17 1990 52 2000 65 2010 (proj) 80

Source: Census of India (2001)

• 3. Literacy is rising
• 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

20 40 60 80 100 1950 1990 2000 2010

% Rise Year

% Rise in Literacy

5 10 15 20 25 30 35 1980 2000 2010 (proj) %Growth Year

% Growth in Middle Class

1980 46% 2000 26% 2010 (proj) 16% 1% of the people have been crossing poverty line each year for 20 years. Equals ~ 200 million.

• 5. Poverty is declining
• 6. Productivity is rising

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

10 20 30 40 50 1980 2000 2010 (proj) % growth Year

% Growth in poverty

(US$ ppp) 1980 1178 2000 3051

• 7. Per capita income gains
• 8. India is now a global economy

And it will cross Japan between 2012 and 2014 to become the 3rd largest

500 1000 1500 2000 2500 3000 3500 1980 2000 US$ PPP Year

% Growth in US$ PPP

Economic Indicators

 Economic Slowdown much flatter compared to other countries.  Expectation of 7% growth in current year

GDP growth rate comparison

• 6
• 4
• 2

2 4 6 8 10 12 14 2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 (proj) GDP Growth in %

India China USA

Domestic led

• Low Impact of global downturns
• Less volatility

The Biggest strength of Indian Model is……

Drivers of the India Model

% Million People

1980 8 65 2000 22 220 2010 (proj) 32 368

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

5 10 15 20 25 30 35 1980 2000 2010 (proj) %Growth Year

% Growth in Middle Class

Consumption led

• People friendly: Consumption as % of GDP

India 64 Europe 58 China 42

• Middle Class is Exploding

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

And a Vibrant Private Space

Over 125 Indian Companies have market cap

• f 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

• utsourced 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

• f 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

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

All resources can be mobilised in the medium term

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

Mainly in the prospecting license stage Reserves have to identified and established Huge investment in infrastructure required Before mining can actually commence

Mozambique, Botswana, other African sources

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

Secure sources Long term contracts Acquisition of mines

Immediate requirement :

That leaves us, Mates!

Australia Has all the coking coal that INDIA Needs

• Huge potentials
• Short term

Bottlenecks notwithstanding

AUSTRALIA

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

54

NSW coal exports (in ‘000 tonnes)

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

55

NSW Hard Coking Coal Exports (2006/07)

56

Handful of mines in Southern Coalfield

NRE No.1 NRE Wongawilli Peabody Metropolitan BHP Illawarra Coal Xstrata Tahmoor

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

 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

57

Gujarat NRE Coking Coal Limited

58

• 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

GROWTH PLAN – PRODUCTION FOCUS

Wongawilli Longwall Introduced NRE 1 Longwall Introduction Wongawilli Longwall Upgrade

CAGR: 36.7%

59

NRE NO.1 COLLIERY

Resources (Mt) Reserves (Mt) Potential Reserves (Mt)* As per mine plan (Mt)** Seam Measured Indicated Inferred Total Proven Probable Total Total Bulli 12.4 31.7 15.1 59.2 1.8 0.2 2.0 — 2.0 Balgownie — 34.1 41.5 75.6 — — — — — Wongawilli — 59.3 121.5 180.8 — 16.5 16.5 28.0 44.5 Total 12.4 125.1 178.1 315.6 1.8 16.7 18.5 28.0 46.5

Reserves & Resources

*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

• f JORC reserves.

**Total of Reserves and Potential Reserves.

A$m Mine development 70 Plant & equipment 210 Others 20 Total 300

Future capital expenditure plan (FY10-13)

60

NRE WONGAWILLI COLLIERY

Resources (Mt) Reserves (Mt) Potential Reserves (Mt)* As per mine plan (Mt)** Seam Measured Indicated Inferred Total Proven Probable Total Total Bulli — 8 25 33 — — — — — Wongawilli 21 16 114 151 2.7 5.1 7.8 23.0 30.8 Tongarra — — 74 74 — — — — — Total 21 24 213 258 2.7 5.1 7.8 23.0 30.8

Reserves & Resources

*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.

A$m Mine development 40 Plant & equipment 110 Others 50 Total 200

Future capital expenditure plan (FY10-13)

61

COAL QUALITY

Typical washed coal quality

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

Source: Australian Coal Association, Company reports, Broker reports

Bulli Wongawilli Average range for coking coal1 Ash (%) 9.6 10.0 7.0 – 10.5 CSN (swell index) 5.5 >9.0 6.0 – 9.0 Inherent Moisture (%) 0.8 0.9 1.02 Volatile Matter (%) 21.7 24.7 17.5 – 34.0 Rank (Ro Max) 1.3 1.2 0.95 – 1.70 Fluidity (ddpm) 1,800 3,000 100 – 20,000 Sulphur (%) 0.38 0.59 0.375 – 0.750 Phosphorous (%) 0.039 0.010 0.005 – 0.080

Gujarat hard coking coal compares well against Bowen Basin prime hard coking coal

• n almost all quality

parameters

62

MAJOR SHAREHOLDERS

76% 13% 11% Gujarat NRE Coke Ltd. & Associates Financial Institutions & Nominees Others

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

65

STRONG MANAGEMENT TEAM

insert

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

Head of Tech. Services PhD Mining Engineering

• 35 years coal industry experience
• Former Mining Engineer and Senior Environmental Officer with the NSW

Department of Mineral Resources Steve Coffee

Group Engineering Manager

• 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

Phil Wakeford

Operations Manager NRE Wongawilli Colliery

• 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

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

• 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

Chief Financial Officer

• 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.

BOARD OF DIRECTORS

Arun Kumar Jagatramka

Chairman B.Com (Hons), FCA, AIMM

 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

• Mrs. Mona Jagatramka

Non-Executive 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 Coke Limited

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..)

Maurice Anghie

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



Experienced financially qualified Professional with commercial skills and legal/regulatory and governance expertise



Audit partner in chartered accounting firms for over 20 years 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

68

A brief on the Indian Parent

GUJARAT NRE COKE LIMITED

69

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
• utside India.
• The only Indian Company to have exported LAMC from India (to Argentina,

Brazil, South Africa & Europe).

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
• ption 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.

71

GNCL OPERATIONS…

HARD COKING COAL (NSW, AUSTRALIA)

RESOURCES 574 MMT

LOW ASH METALLURGICAL COKE

1.25 MMTPA

Gujarat NRE Coking Coal (ASX: GNM)

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

STEEL UNIT TMT BARS : 0.311 MMTPA

BHACHAU UNIT

0.324 MILLION MTPA

KHAMBALIA UNIT

0.358 MILLION MTPA

(Leased) DHARWAD UNIT

• 0. 324 MILLION MTPA

Waste Heat Recovery Power Plants

Khambhalia* 15 MW Bhachau* 15 MW Dharwad* 30 MW Total 60 MW Wind Power 87.5 MW

In Australia In India

Coal Washeries

Khambalia 0.75 Bhachau 0.75 Dharwad * 0.90 * Under implementation

DHARWAD UNIT

0.25 MILLION MTPA

BOARD OF DIRECTORS

• Mr. Girdharilal Jagatramka

Chairman Emeritus

The main promoter of GNCL. Has more than five decades of business

experience Arun Kumar Jagatramka

Chairman & Managing Director 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

• Mrs. Mona Jagatramka

Non-Executive 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

• 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..)

• Dr. Mahendra Kumar Loyalka

Non-Executive Director 

Leading medical practioner



Past District Governor of Lions Club International

• Mr. Chinubhai R Shah

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.

• Dr. Basudeb Sen

Non-Executive Director 

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.

• Mr. Murari Sananguly

Non-Executive Director 

Former CMD of Kudermukh Iron Ore Company Ltd.



Presently on the Board of Coal India Ltd.

• Mr. Subodh Kumar Agrawal

Non-Executive Director 

Eminent Chartered Accountant



Presently Member of Central Council of ICAI.

74

Sl. No. Particulars % of Holding

1 Jagatramka Family 44.71 2 Mutual Funds & FIIs 32.55 3 Indian Public (160,000) 22.74 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

SHAREHOLDING PATTERN

33% 23% 44% Promoters MFs & FIIs Public

75

200 400 600 800 1000 1200 1400 1600 Year Ended 31.03.2006 Year Ended 31.03.2007 Year Ended 31.03.2008 Year Ended 31.03.2009

• Rs. In Crores

Turnover EBITA

PERFORMANCE OF LAST 4 FINANCIAL YEARS

76

PHENOMENAL INVESTOR RETURNS

• 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

Amongst top 5 stock performance over last decade in India

77

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

0.00 200.00 400.00 600.00 800.00 1,000.00 1,200.00 1,400.00

2-Jan-06 22-Nov-07 25-Mar-08 29-Dec-09 5-Jan-10

GNCL(LHS) Nifty (RHS)

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

78

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

GROWTH PLAN – METCOKE PRODUCTION FOCUS

0.13 0.24 0.50 0.68 0.68 0.68 1.06 1.25 2.25 4.00

0.00 0.50 1.00 1.50 2.00 2.50 3.00 3.50 4.00 4.50 5.00 2001-02 2002-03 2003-04 2004-06 2006-07 2007-08 2008-09 2009-10 2011-12 2014-15

PRODUCTION CAPACITY (MMTPA)

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)