CONFIDENTIAL

May 2010

CEMENT & LIMESTONEA Presentation

byV S Bajaj

Jaiprakash Associates Limited

id1885984 pdfMachine by Broadgun Software - a great PDF writer! - a great PDF creator! - http://www.pdfmachine.com http://www.broadgun.com

CONFIDENTIAL

INDIA - ON GROWTH PATH

It is a matter of great pride for all Indians to be part of country�sdevelopment over the last 50 years, more so in the last 10 years.

We are witnessing Industrial growth, adoption of newertechnologies in agriculture sector, development in IT sector andlately emphasis given to the Infrastructure sector.

Cement & Steel have played an Important role in infrastructuredevelopment of the nation.

It is believed that this is only the beginning and we have to go along way on this growth path to ensure each and every citizen ofthe country enjoys the fruits of development.

CONFIDENTIAL

OUR STRENGTHS

Strong Cultural Base

Human Resource with Large base of Educated & Skilled Manpower

Strong Knowledge Base

Vast mineral resources

Willingness to Adopt and Pragmatic use of Newer Technologies

Almost Self Sufficiency in Agriculture produce

Large consumer base reducing dependency on Exports for our produce

CONFIDENTIALCEMENT MANUFACTURING & LIMESTONE RESERVES

India is the second largest cement producer in the world but stillhas per capita consumption about 150 as compared to worldaverage of about 400 - A Huge Potential

Pan-India cement manufacturing capacity is 258 Mn Tons perannum - An Exponential Growth over the last 4 to 5 years

Cement consumption in the country has been growing @10% perannum in the last few years. This growth pattern is expected to bemaintained

Cement grade limestone, the main raw material for cementmanufacture is abundantly available � Current Reserves areestimated at about 110,000 Mn Tons

CONFIDENTIAL

GROWTH IN CEMENT INDUSTRYGROWTH IN CEMENT INDUSTRY

219.17

181.61

150

200

250

Mn

.t.

Capacity

Cem ent Production

29.22

20.91

0

50

100

19

81

-82

19

84

-85

19

89

-90

19

90

-91

19

91

-92

19

92

-93

19

93

-94

19

94

-95

19

95

-96

19

96

-97

19

97

-98

19

98

-99

19

99

-00

20

00

-01

20

01

-02

20

02

-03

20

03

-04

20

04

-05

20

05

-06

20

06

-07

20

07

-08

20

08

-09

Y ear s

Mn

.t.

CONFIDENTIAL

GDP/CEMENT GROWTHGDP/CEMENT GROWTH

7.1 2

1 1.1 1

8 .2 5 8 .407 .94

15 .40

9.6 7

8.6 7

5 .8 3

8 .09

1 0 .14 10 .16 9.8 3

8.5 1

7.3 0 7.3 07 .8 0

8 .5 0

7 .50

9 .50 9 .709.0 0

6

8

10

12

14

16

18

Pe

rce

nta

ge

C em e nt C ons um pt io n G row th

G D P G row t h

5 .8 37.3 0 7.3 0

7 .8 0

4 .80

6 .50 6 .10

4 .4 0

5.8 0

3.8 0

7 .506.7 0

- 1.9 2

-4

-2

0

2

4

6

199

4-95

199

5-9

6

199

6-9

7

19

97-9

8

1998

-99

199

9-00

200

0-01

200

1-02

200

2-0

3

200

3-0

4

20

04-0

5

2005

-06

200

6-07

200

7-08

200

8-09

Ye a rs

Pe

rce

nta

ge

CONFIDENTIAL

CEMENT PRODUCTION CAPACITY CEMENT PRODUCTION CAPACITY -- NORTHERN REGIONNORTHERN REGIONCEMENT PRODUCTION CAPACITY CEMENT PRODUCTION CAPACITY -- NORTHERN REGIONNORTHERN REGION

0.50, 1%

0.20, 0%

4.75, 8%

2.47, 4%

2.20, 4%

11.90, 20%

UTTARAKHAND

HARYANA

PUNJAB

6

11.90, 20%

36.27, 63%

PUNJAB

RAJASTHAN

HIMACHAL PRADESH

DELHI

JAMMU & KASHMIR

TOTAL CAPACITY � 58.29 Mn Tons

CONFIDENTIAL

CEMENT PRODUCTION CAPACITY CEMENT PRODUCTION CAPACITY -- EASTERN REGIONEASTERN REGIONCEMENT PRODUCTION CAPACITY CEMENT PRODUCTION CAPACITY -- EASTERN REGIONEASTERN REGION

0.20, 1%

14.21, 36%

5.54, 14%

1.00, 3%

1.55, 4%

ASSAM

MEGHALAYA

BIHAR

7.55, 19%

8.92, 23%

14.21, 36% BIHAR

JHARKHAND

ORISSA

WEST BENGAL

CHHATTISGARH

TOTAL CAPACITY � 38.97 Mn Tons

CONFIDENTIAL

0.62, 1%

39.21, 41%

20.29, 22%

ANDHRA PRADESH

CEMENT PRODUCTION CAPACITY CEMENT PRODUCTION CAPACITY -- SOUTHERN REGIONSOUTHERN REGIONCEMENT PRODUCTION CAPACITY CEMENT PRODUCTION CAPACITY -- SOUTHERN REGIONSOUTHERN REGION

33.26, 36%

TAMIL NADU

KARNATAKA

KERALA

TOTAL CAP ACITY � 93.38 Mn Tons

CONFIDENTIAL

CEMENT PRODUCTION CAPACITY CEMENT PRODUCTION CAPACITY -- WESTERN REGIONWESTERN REGIONCEMENT PRODUCTION CAPACITY CEMENT PRODUCTION CAPACITY -- WESTERN REGIONWESTERN REGION

15.2, 41%

22.33, 59%

GUJARAT

MAHARASTHRA

TOTAL CAPACITY � 37.53 Mn Tons

CONFIDENTIAL

9.34, 30%

UTTAR PRADESH

CEMENT PRODUCTION CAPACITY CEMENT PRODUCTION CAPACITY -- CENTRAL REGIONCENTRAL REGIONCEMENT PRODUCTION CAPACITY CEMENT PRODUCTION CAPACITY -- CENTRAL REGIONCENTRAL REGION

21.38, 70%

UTTAR PRADESH

MADHYA PRADESH

30.72 Mn TonsTOTAL CAPACITY � 30.72 Mn Tons

CONFIDENTIAL

CEMENT DESPATCHES CEMENT DESPATCHES -- NORTHERN REGIONNORTHERN REGION

Northern Region

2.73, 7%1.19, 3%

5.28, 14%

0.59, 2% 8.18, 21%

UKT

Haryana0.59, 2%

2.18, 6%

11.38, 28%7.17, 19%

8.18, 21% Punjab

Rajasthan

HP

Chandigarh

Delhi

J&K

TOTAL DESPATCH � 38.70 Mn Tons

CONFIDENTIAL

CEMENT DESPATCHES CEMENT DESPATCHES -- EASTERN REGIONEASTERN REGION

Eastern Region

0.07, 0%

6.97, 21%0.68, 2%

4.43, 13%

0.13, 0%

Mghlya

Chtsgarh

Tripr

WB

Manpr

Orissa

9.03, 28%

0.06, 0%6.28, 19%0.09, 0%

3.69, 11%

0.04, 0%

1.97, 6%

0.07, 0% 0.13, 0% Orissa

Nglnd

Jrhhand

Arnpd

Assam

Mizo

Bihar

33.44 Mn TonsTOTAL DESPATCH � 33.44 Mn Tons

CONFIDENTIAL

CEMENT DESPATCHES CEMENT DESPATCHES -- SOUTHERN REGIONSOUTHERN REGION

Southern Region

17.86, 31%

8.24, 15% AP

Pndchery

TN

12.32, 22%

0.1, 0%

17.61, 31%

0.47, 1%

TN

A&N

Karnatak

Kerala

TOTAL DESPATCH 56.60 Mn TonsTOTAL DESPATCH � 56.60 Mn Tons

CONFIDENTIAL

CEMENT DESPATCHES CEMENT DESPATCHES -- WESTERN REGIONWESTERN REGION

Western Region

0.49, 1%

Goa

23.93, 62%

14.33, 37%

Goa

Gujarat

Mharshtr

TOTAL DESPATCH � 38.75 Mn Tons

CONFIDENTIAL

CEMENT DESPATCHES CEMENT DESPATCHES -- CENTRAL REGIONCENTRAL REGION

Central Region

9.43, 30% UP

21.5, 70%

UP

MP

TOTAL DESPATCH � 30.92 Mn Tons

CONFIDENTIAL

CEMENT � ON GROWTH PATH

Cement industry has shown over the last 4 to 5 years that it is ableto meet the challenge posed by the added demand by buildingseveral green field & brown field projects and many of them areunder implementation

With the current growth rate, new capacity of about 20 to 25 MnTons per annum is expected to be added every year

India�s cement producing capability is expected to touch about400 Mn. tons per annum over the next 5 years

CONFIDENTIAL

LIMESTONE RESERVES IN INDIALIMESTONE RESERVES IN INDIA

Total Cement Grade Limestone Reserves are estimated at 110,907 million tons

Zone � Wise Reserves : Mn. Tons

North

(Haryana, H.P.J&K, Rajasthan, Uttrakhand, U.P) 34,775

East East

(Assam, Manipur, Meghalaya, Arunachal, Orissa, W.B., Jharkhand, 9,571

Nagaland)

West 20541

(Chhattisgarh, Gujarat, M.P., Maharashtra Diu)

South 46,019

(A.P., Karnataka, Kerala, Tamilnadu, Andeman, Lakshdweep)

CONFIDENTIAL

LIME STONE RESERVES OF GUJARAT800 6.67%16.58

0.14%

435.313.63%40.04

0.33%

402.313.36%

107.660.90%

540.854.51%

Kutch

Bharuch/Narmada

Junagadh & porbandar

Dahod / Panchmahal

Amreli

Data : Mineral Treasure of Gujarat � published by commissioner of geology & Mining, Gandhinagar 2002Data : Mineral Treasure of Gujarat � published by commissioner of geology & Mining, Gandhinagar 2002

1499.9612.51%

15.290.13%

146.971.23%

3.36%

7982.3866.59%

Sabarkantha

Bhavnagar

Surat

Banaskantha

Rajkot / Surendranagar

kheda

TOTAL � 11987.35 Mn Tons

CONFIDENTIAL

Mn. TonsMn. Tons

Cement Grade Limestone Deposit in the State(about 11% of Country�s deposit) : 12,000 (App)

Cement Production Capacity

Mn. TonsMn. Tons

Cement Grade Limestone Deposit in the State(about 11% of Country�s deposit) : 12,000 (App)

Cement Production Capacity

GUJARAT � THE LAND OF OPPORTUNITIESGUJARAT � THE LAND OF OPPORTUNITIES

Cement Production Capacity (i.e. 8.6% of total capacity) :22.33 Mn tpa

Cement Production Capacity (i.e. 8.6% of total capacity) :22.33 Mn tpa

CONFIDENTIAL GUJARAT � THE LAND OF OPPORTUNITIES

Gujarat is famous for turning challenges into opportunities andharness such opportunities to successful business ventures

Gujarat has about 11% of lime stone reserves but has cementproducing capacity of 8.6% of total Indian capacity

The challenge is to harness the God given gift of substantial limestonereserves and use it for development of the State and the Nation

Beside increasing cement usage within the State, creating Beside increasing cement usage within the State, creating/strengthening infrastructure it may act as a feeder State to otheradjoining State

Gujarat has a large coast line providing sea route access, optimizinglogistics cost

Good road network for on land transportation exist in the Statehowever certain Limestone rich area need improved infrastructure

Skilled & Educated man power is available in the State

And the best of all Business-like Environment exists in the State

CONFIDENTIAL

SUGGESTIONS Kutchh with vast Limestone and other mineral resources has potential to

be developed into an Integrated Industrial City, with State of the ArtInfrastructure facilities, equipped with a modern technology � perhaps amodern version of Jamshedpur

The Industrial City could have large manufacturing base for Cement andBauxite etc. based Industries

A Residential Township with Commercial Complexes, EducationalInstitutions, Health Services and other support services will help inInstitutions, Health Services and other support services will help inattracting professionals and entrepreneurs

Power generation and Distribution network in the area. Thermal, Wind &Solar Power units are already under development in the area

A centralized treated Water source for the Industrial and Domestic Usecould be considered

A comprehensive and consolidated Environment Impact Study could beinstituted for the Integrated City to evaluate real consolidated effect onthe environment. This may, perhaps help in getting EnvironmentClearances for the Projects from MoEF, at a faster pace

21

CONFIDENTIAL

SUGGESTIONS

The State may consider the following for development of the Industrial City:

Take up development through PP route.

The State may treat the Integrated City under special Incentive Schemes towards:

Exemption / Deferment of Taxes & Duties

Support on Skill Development Programs of the Industry Support on Skill Development Programs of the Industry

A real �Single Window Concept� would help in expeditiousimplementation of the projects for:

Acquiring Land for the individual projects

Power

Water

Various Statutory clearances

22

CONFIDENTIAL