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A Session with the MD (for year 2007-2008)

• How did Bhushan Steel perform in FY 2007-08?

The Company has shown a growth of 37% in gross sales during the financial year despite prevailing volatile steel prices, which reflects the positive effect that a better product mix and continuous value additions has brought to the company. On the back of the successful Implementation of various CR and GP/GC projects, we have been able to establish a strong presence as the preferred supplier for automobile and white goods sector. Besides, we increased our footprints in the export market, which resulted in better realization and expanding global clientele.

• What changes, in your opinion, has happened in the global steel market over the past years?

The world steel industry has undergone some dramatic changes over the recent past. After experiencing a sharp downturn in demand starting in 1998, the world crude steel production peaked at 1.23 billion tons in 2006, marking an increase of 9.7% over the past year. This, along with other factors, is creating favors for steel producers that have advantages such as being in close proximity to raw material deposits & markets. Because of our captive raw material supply, Bhushan Steel would be a key beneficiary.

• How Bhushan Steel plans to capitalize upon current market opportunities?

Bhushan Steel is poised to capitalize on the growing market opportunities with its technological advantage and integrated steel & power plant at Orissa. The 2.2 MTPA plant (expandable up to 4 MTPA) would meet the company's Hot Rolled steel requirements. Phase I of the project is already complete with 6 kilns, 110 MW power plant, Steel Melt shop and Raw material handling facilities. There are plans to enhance the capacity by another 6 million tones, after full commissioning of present capacity.

• How do you see Bhushan Steel's performance after commissioning of the fully integrated Orissa project?

On completion, the Orissa plant will be one of the largest integrated HR steel and power projects of India. This backward integration will enable us with 1.9 MPTA of HR Steel, 300,000 TPA of billets and 110 MW captive powers besides adding heavily to our bottom-line and expanding our margins. With the full commissioning of the project, we shall be the pioneers in making auto grade HR coils in India.

• Where do you see Bhushan Steel by FY 2012?

I see a very bright future for Bhushan Steel in the coming years. The major thrust is anticipated to come from infrastructure (ports, power, transportation and raw material supply), consumer items (automobile & white goods) and housing. Due to our self-reliant approach, mitigating impediments would not be a major concern. The existing Cold Rolling operations will continue to move up the value chain and target the high-end applications like auto and consumer durables. It's our vision to be a fully integrated (end-to-end) steel & power manufacturer that would play a pivotal role in the country's growth, and we are sure to achieve this well by 2012.