Corporate Presentation

“Explore the true potential”

MAHARASHTRA SEAMLESS LTD
May 2010

FORWARD LOOKING & DISCLAIMER STATEMENT
This presentation contains “forward-looking statements” about our business, financial performance, skills and prospects. Statements about our plans, intentions, expectations, beliefs, estimates, prediction or similar expression for the future are forward-looking statements. Forward looking statement should be viewed in the context of many risk issues, and events that could cause our actual performance to be different from that contemplated in this presentation, including but not limited to, the impact of changes in Oil, Steel Prices worldwide & domestic, economic & political conditions. We can not assure that outcome of this forward-looking statements will be realized. The Company disclaims any duty to update the information presented here. The material presented can not be used for any other purpose in any form without our express written consent.

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Group & Company Overview Market & Industry Overview Financial Overview Awards SWOT Analysis & Future Outlook Conclusions & Contacts 3 Pg: 4 to 9 Pg: 10 to 15 Pg: 16 to 18 Pg: 19 to 20 Pg: 21 to 24 Pg: 25 to 27 .

Having turnover of Over USD 825 Millions or INR 4000 Crores and having Market Cap in excess of USD 525 Million or INR 2500 Crores. JINDAL is a brand synonymous with “Steel Pipes & Tubes” within & outside India.. JPL – Jindal Pipes Ltd. Today D.GROUP STRUCTURE D P Jindal Group Pipes MSL Jindals embarked into business activity long back in 1952 Drilling JPL One of the largest producer of Steel Pipes & Tubes (in both Seamless & ERW) JDIL Jindals are pioneer & major contributory in Growth of Seamless & ERW Pipes & Tubes Industry. 4 .. P. Jindal Group is one of the leading industrial House in India.. MSL – Maharashtra Seamless Ltd. JDIL – Jindal Drilling & Industries Ltd.

High Frequency Induction Welding Technology. “Plug Mill Technology”. Both Seamless & ERW Plants are first of its kind in India and are having Technical Tie-up with SMS MEER (earlier known as MANNESMANN DEMAG) of Germany. is the world renowned technology. is the most reliable technology. Is an ISO 9001 : 2000 Company and having API (5CT & 5L) and IBR Licenses. 5 .A BRIEF ABOUT MSL Leading manufacturer of Seamless & ERW Carbon & Alloy Steel Pipes & Tubes in India. used for Higher Dia Seamless Pipes & Tubes production (from 7” to 14” OD). A unique track record of putting up the plant at the lowest CAPEX levels. about 100 Kms. Having made a strategic business decision of foraying into Wind Power Generation business for captive consumption leading to low cost of Power Generation & substantial saving thereby. from Mumbai Port. used for Seamless Pipes & Tubes production (upto 7” OD). Plant is strategically located at Nagothane. “CPE Technology”. is used for ERW Pipes & Tubes (upto 21” OD). in higher dia segment.

000 TPA acquired from Romania JV Arrangement with Tenaris reconstituted (post Hydril acquisition) Allocation of Non Coking Coal Block near Nagpur (Maharashtra) in consortium. 6 .MAJOR MILESTONES OF MSL 1988 1991 1992 1993 1995 1996 2000 2001 2004 2005 2005 2006 2007 2008 2008 Incorporated IPO Launched 7” Seamless Plant Commissioned API Certification and Production of Casing & Line Pipes IBR Certification by Central Boiler Board ISO Certification by BVQI 21” ERW Plant Commissioned 7 MW Wind Power Plant Commissioned 14” Seamless Plant Commissioned JV facility with Hydril USA for premium Connections Commissioned FCCB issue of USD 75 Million (entirely converted in Indian Equity Shares) Coating facility Commissioned 6” Seamless Plant having 2.00.

000 MT p.a. of Seamless Pipe Plant is under erection) At Satara (Maharashtra) 20 Wind Turbine Generators (WTG) of 350 KW each.000 MT p.00.INSTALLED CAPACITIES At Raigad (Maharashtra) 3. of ERW Pipes (from 6” to 20” OD) + External / Internal Coating Facility (from 1” to 48” OD) (2.000 MT p.00.a.50. aggregating to 7 MW 7 .a. of Seamless Pipes (from 1/2 ” to 14” OD) 2.

PRODUCT ACCREDITION 8 .

D. D. P. Agarwal Mr. S. Raj Chairman Managing Director Director Director Director Whole-Time Director Mr. C. U.BOARD OF DIRECTORS Mr. P. Saket Jindal Mr.CFO 9 . Jindal Mr. K. D. Parikh Mr. S. Anil Jain . Sharma Mr.

Automobiles. 10 . Process.L SAW 16” – 50” Steel Plates High Pressure Application Cross Country Line Pipes for Oil & Gas Transport Low Pressure Application Cross Country Line Pipes for Oil & Gas and Water Transport ERW 1/2 ” – 20” HR Coils DUCTILE IRON / CAST IRON 3” – 39” Pig Iron & Scrap Water & Sewage Transport. Refineries Low Pressure Application Cross Country Line Pipes for Oil & Gas and Water Transport SPIRAL . Remi Metals Jindal Saw PSL Welspun Gujarat Man Industries Jindal Saw Welspun Gujarat Man Industries Maharashtra Seamless Jindal Pipes Surya Roshni Welspun Gujarat Electrosteel Castings Jindal Saw Lanco Kalahasti Kesoram Industries Main Application Wide Application in High Pressure Oil & Gas Exploration & Drilling. Boiler.AN OVERVIEW OF INDIAN PIPES & TUBES INDUSTRY Types of Pipes SEAMLESS Size 1/2” – 14” Major Raw Material Round Steel Billets Domestic Players Maharashtra Seamless Indian Seamless Tubes Jindal Saw BHEL.H SAW 18” – 100” HR Coils . Pipelines.

Auto & Boiler Water & Sewage Transport Seamless HSAW LSAW ERW Seamless DI / CI HSAW ERW 11 .DEMAND DRIVERS FOR INDIAN PIPES & TUBES INDUSTRY Pipe Sector Oil & Gas Non-Oil E&P Transport General Engg..

. IISCO. ICF Bearing Industry FAG (India) National Engineering Industries Exports Energy Tubular.. KOC. Rashtriya Ispat Nigam. Mecon.. GAIL. SAIL. BHEL. Cairn Energy. DLW.Scooter India Mechanical & General Engineering Hindalco. HPCL. LML. RPL. Alstom. Aramco. BRPL. ISGEC. L&T. British Gas (India) Hydraulic Cylinder UT Ltd. Petronas 12 . MRPL. Indian Railways. Texaco. CPCL Boiler. BPCL. Thermax. Parharpur Cooling Automotive Industry Bajaj Auto. NALCO. AMCO Mining & Drilling Hydrocarbon & Process Industry IOCL. Mahanagar Gas Ltd. Heat Exchanger & Condenser ABB. Telco. Cethar Vessels. EIL. Salzgitter Hydraulic Pvt Ltd. Greaves Ltd. Chevron. Mahindra & Mahindra. RIL. Oxy. Forest Petroleum.VALUED CUSTOMERS Oil & Gas Sector ONGC. Encanna KNPC. NTPC. Indraprasta Gas. OIL.

0.a. 13 .5 Million MT p.DOMESTIC MARKET SHARE OF SEAMLESS PIPES MSL 50% JINDAL SAW 10% 10% 15% 25% 50% IMPORT 15% ISMT 25% The present Indian Market is approx.

(JV Company of Mobile & NNPC) Ministry of Oil & Gas. Malaysia) Saudi Aramco. Bharat Heavy Electrical Ltd. National Thermal Power Corpn. Indian Oil Corpn. Oman Encanna. Indian Railway International Sat Joint Operation. Saudi Arabia & Kuwait (JV Company of Chevron. Engineers India Ltd. Bharat Petroleum Corpn. Kuwait Mobile Producing Nigeria. USA 14 .VENDOR REGISTRATION FOR MSL BY MAJOR CUSTOMER Domestic Oil & Natural Gas Corpn. Saudi Arabia Occidental of Oman (OXY).Ltd. (subsidiary of Petronas. USA Chevron. USA Oxydental Petroleum.Ltd. Oil India Ltd. Libya Malaysian International Trading Corpn. Oman Arabian Gulf Oil Company. Steel Authority of India Ltd. Gas Authority of India Ltd. Texaco & KOC) Kuwait Oil Company (KOC).Ltd.

Mexico (Siderca. Tamsa. Remi Metals BHEL (Captive Consumption) International Tenaris Group. Tavsa. Dalmine.. France Volski Tube Mill.. Japan Kawasaki Steel Corpn.MAJOR GLOBAL SEAMLESS PLAYERS Domestic Maharashtra Seamless Ltd. Romania Tianjin Pipe Corpn. NKK Tubes & Algoma Tubes) Vallourec. Indian Seamless Metals Tubes Jindal Saw Ltd. Japan 15 . China Sumitomo. Russia Petrotub.

3 38.21 226 16 .0 5144 186 (Rs.00 3530 72 FY07 Audited 15196 315 15511 3725 3410 35 163 1166 23 2338 2524 350 9241 22.1 19.9 16.56 5.70 5.9 11.9 15.) Adj. Million) FY10 Unaudited 16901 200 321 17422 4524 4203 33 190 1466 (1) 2836 3025 353 15936 24.8 17.3 13.0 14.9 27.4 21. Mn.9 18.8 36.13 7.4 15.8 17.8 25.8 11.0 4432 155 FY09 Audited 21835 253 468 22556 4145 3677 116 179 1243 8 2599 2786 353 13100 16.FINANCIAL POSITION PROFIT & LOSS ACCOUNT EXTRACT Description Sales Operating Income Other Income Total Income PBIDT Operating Profit(EBIDTA) Intrest Depreciation Tax Deferred Tax Profit After Tax (PAT) Cash Profit Equity Share Capital Net Worth Ratios EBIDTA as % of Sales PAT as % of Sales ROCE RONW Basic EPS (Annualised) Dividend Per Share Gross Block of FA (Rs.8 40.2 17.7 24.38 5.5 3742 132 FY08 Audited 16404 145 292 16841 3230 2938 37 174 1058 8 1953 2135 353 10934 17. Book Value Per share FY06 Audited 10769 182 10951 2262 2080 48 146 627 46 1395 1587 288 4139 19.8 33.

IN MHSM.MARKET SUMMARY IPO FCCB Issue Stock Split Market Cap Free Float BSE Code NSE Code NSDL/CDSL–ISIN Bloomberg Code Reuters Code 17 1991 2005 2006 Approx USD 600 Million 46% 500265 MAHSEAMLES INE271BO1025 MHS.BO .

32% 28.05% MFs / Institutional Investors 18 . 5) INR 226. 52 Weeks High/Low at NSE INR 422 / 162.91% Highlights Shares listed in NSE. Book Value per equity share (FV Rs. 353 Million Share Holding Pattern as on 31/03/2010 Public / Others 16.72% Promoters 53. & MSE. NRIs 1.SHAREHOLDING & CAPITAL STRUCTURE The Equity Share Capital of Rs. BSE.

MSL Awards… We are proud and honoured to bring home various Awards. “Winning is acknowledgement of our sincere efforts and the best practices that we follow” 19 .

Best Under a Billion” .Business Sphere Awards (2007-08) “Asia’s Top 200 Small & Mid size Companies.Asian Economic Community.Dun & Bradstreet American Express Corporate Awards “Udyog Rattan Award” .Awards “Steel Pipe Manufacturer Of The Year” . 2006 & 2007” . IMM “India’s Top 500 Companies.Institute of Economic Studies 20 . 2007” .Forbes Asia “IMM Award for Excellence.

Only Indian manufacturer of ERW Pipes beyond 16” to 21” OD Pipe. Limited number of Manufacturers Internationally for higher OD Seamless Pipes. a competitive product over SAW Pipes in that range (for Cross Country Line Pipe Application). Cash Rich & Debt Free Company. 21 .Strength SWOT Globally competitive due to lower manufacturing cost and ability to meet stringent International Quality Standards. Strong Presence in Oil and Boiler Sector for Seamless Pipes. MSL casings are well accepted in USA market as “MAHA” Brand and is also having a Global presence in various countries of the world ranging across Middle East and Far East. Major Domestic Customers includes Cash Rich Public Sector Undertakings of Oil & Gas Sector. Only Indian manufacturer of Seamless Pipes for Tubing & Casing beyond 9-5/8” to 14” OD. Presently enjoying “AA+” Rating from CRISIL & ICRA. 50-50 JV with Tenaris for Upstream Premium Threading Connections.

Weakness Limited capacity to cater for Bearing / Auto industries. 22 . Threat Delay in backward integration project. Bearing /Auto industry.SWOT CONTD…. Welded & Coated Pipes. Imports & Dumping of pipes & tubes from China. Opportunities International Tie-up for enhancement and penetration of new export avenues. Higher dia Seamless.

Domestic market conditions more particularly Boiler Sector. Govt. have also improved. Global Economy has already seen a formidable recovery in view of increased Rig Counts and increased E&P activities. more particularly in USA.. Anti dumping on Seamless Pipe has been effected in USA & Europe against China which is having positive impact on other Seamless Tubes suppliers including MSL.MARKET BACKGROUND & CURRENT OUTLOOK The demand outlook in Export Market has improved significantly. Global Market Demand for Seamless Pipes from Oil & Gas Industry is likely to remain up in the forthcoming quarters. The company is now putting up intensive and aggressive marketing approach by penetrating the domestic as well as international market to increase the market presence. of India has also initiated the probe against Anti Dumping of Seamless Pipes in India by Chinese players. Domestic Oil companies are moving on with their ongoing projects including Exploration & Production activities. 23 .

Seamless. To fully exploit the export potential of SEAMLESS & ERW Pipes. 24 . Higher Dia ERW.FUTURE PLANS OF MSL Focusing on Niche products within Pipe business viz. To set up Captive Power Plant for securing Energy requirements. To double the existing Capacity for Seamless Pipe in next 4-5 years. Coated Line Pipes & 13 Chrome Pipe. To set up / to acquire a Backward Integrated Plant for making Steel Round Billets.

Strong Financial Discipline 3. Right move at an early stage of cycle 5. Valued Customer Base / Relationships 7. Constant Creation/Addition of Value 6. Cost competitive manufacturer 4. Innovation 2.Sustaining Success: Key Points 1. Ability to contain both Capital and Operating Cost 25 .

Questions 26 .

4624000 Fax No. B. D.H. N.com Anil Jain Senior Manager Tel.CONTACTS Group CFO.G.402126 (Maharashtra) www. Gurgaon – 122002 (Haryana) Tele.: 91-124-4624321 (Dir. No.91-124-2574325.P. Road. Office & Works : Website : .: 91-124-2574724 (Dir. Raigad .com Rahul Bajaj Corporate Office : Jindal Corporate Centre Plot No.com Sanjiv Gupta Tel.91-124-2574327 Pipe Nagar. No.htm 27 Regd. Taluka Roha Dist. 17. No.K.) E-Mail : sanjiv@mahaseam. No.) E-Mail : aj@mahaseam.com/msl.jindal. Village Sukeli. Jindal Group Tel.: 91-124-4624326 (Dir.) E-Mail : rahul@mahaseam. Institutional Sector-44.30.

We are striving hard to capture the respectable position in the global market. We are happy of having satisfied associates across the globe by maintaining our stringent systems. Let’s grow together and take our relationship further… Thanks! .

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