Steel Tube Summit 2011 Boiler Industry - User Perspective

1. Steel Tube Summit 2011 Boiler Industry - User Perspective Sustainable Solutions in Energy and Environment

2. To be a globally respected high performance organization offering sustainable solutions in energy and environment Vision

3. Our Belief “Profit is not only a set of figures, but of values.” Rohinton D. Aga 1935 - 1996 Founder Chairman, Thermax

4. Thermax Evolution • Established in 1966 as Wanson (India) • Rs. 5,000 Crore Group with sales & service network in Asia, Middle East, Africa, Europe and the Americas. • Manufacturing facilities in India and China. • Supports customers in over 75 countries with solutions to conserve energy and preserve the environment.

5. Our Core Business THERMAX Boilers & Heaters Cooling & Heating Power Generation Chemicals & Water Air Pollution Control Renewable Enviro • ESP & Bag filters • Scrubbers • Air purification • Retrofit & Revamp Turnkey Power Plants • Solid fuel based • Gas based combined cycle • Waste heat recovery based • RE based incl. Biomass, Bagasse, solar, etc. • O&M of power plants Cooling • Exhaust & Multi-energy fired chillers • Steam fired chillers • Hot water fired chillers • Direct fired chillers Chemicals • Ion exchange resins • Cooling water chemicals • Fireside chemicals • Polyelectrolyte Water and wastewater • Wastewater & Effluent water treatment systems • Water recycling • Waste management Solar • Heating • Cooling Boiler & Heater • Package boilers • Large capacity power boilers • Thermal oil / water heaters • Energy recovery systems Heating • Steam/Hot water power plants • Packaged solid/oil/gas fired boilers • Fired thermic fluid heaters • Exhaust waste heat recovery boilers

6. THERMAX - Boiler Business Industrial Boilers - Present • Capacity - Max 500 T / Hr, • 165 Kg / cm2 pressure range, • 570 deg C Utility Boilers • Capacity – Max 1000 T / Hr, • 180 Kg / cm2 pressure range, • 570 deg C Critical and Super Critical range of Boilers • For and up-to 1000 MW.

7. BOILER TUBES / PIPES - APPLICATION • Smoke Tubes • Boiler Panels • In bed tubes • Convection Bank • Super-heater • Re-heater • Economizer • Air Preheater • Mineral Oil Heaters • Fired Heaters • Header’s • RCDC • Internal Piping

8. Boiler Tubes / Pipes Grades • Types of Grades • Seamless Carbon & Alloy Steel Tubes SA 210 A1 , SA 213 T 11, T12, T22, T23 , T 91 and T92 • Seamless Carbon & Alloy Steel Pipes SA 106 Gr B , Gr C, SA 335 P11, P22 & P91 • ERW Tubes BS 3059 , Part I / II , Gr 320/360 • Air Preheater Tubes IS 6323 , Part V , NKLM • Stainless Steel Tubes SS 304 / 316 / 316 L / 430 TI • Tube Sizes • OD 31.75 mm OD to 101 mm OD • Thickness range of 3.25 mm to 10 mm • Maximum length 13 meter

9. Industry Scenario Growing Industries Stagnant, Contracting Industries Cement Paper & Pulp Textile Power Generation Tea Steel Automobile Refineries & Petrochemical Oil & Gas Sponge Iron Chemicals Plywood Non Ferrous Hospitality Pharma Packaging Food Man Made Fiber Edible Oil Beverage

10. Power Scenario • Installed Capacity as on 31st March 2011 – 174,364.4 MW • Per Capita Energy consumption (2008-09) – 733.54 Kwh / year • Per Capita Global Energy Consumption – 2,340 Kwh / year (USA – 15,000 Kwh / year, China – 1,800 Kwh / year) • Thermal Power generation – 65% ( 113,337 MW) • “POWER FOR ALL” Mission • Target to add by 2012 (end of 11th Plan) – 78,000 MW(could be curtailed to 58,000 MW) • Power required by 2020 – 400,000 MW by 2030 – 950,000 MW • A significant reason for missing capacity addition for the 10th & current 11th five year plan has been equipment shortage “Boiler”.

11. Power Capacity Addition Plan

12. Source Countries for Tubes & Pipes China Japan Germany France Spain Italy Romania

13. Market Expectations • Deliveries Boiler supply completion • Process Boilers up-to 10 TPH (Tubes – BS 3059) Required within Current Performance • < 1 TPH : 8 Weeks 10-12 Weeks • 1-6 TPH : 12-14 Weeks 16 Weeks • 7-10 TPH : 16 Weeks 22 Weeks • Bi-drum Boilers • 15-25 TPH : 7 Months 9 Months • Power Boilers • 200 TPH 12 months Tubes are expected on 3rd month from the O date in plant • 500 T / Hr 18 months Tubes are expected on 4th month from the O date in plant

14. Market Expectations Deliveries • Heaters • 8 - 10 Mkcal/hr : 5 Months 8 Months • Europe manufacturers’ take 3/4 months , • China supplies within 2 / 3 months. • Indian manufacturers’ For Carbon Steel Tubes 4 / 6 months. However, there are in-ordinate delays. On Alloy Steel tubes There no firm commitment. • Allocation of capacities OCTG vs Boiler • Competition from China – is now a reality to the Indian Boiler manufacturers !!! Also there is a substantial price difference ?

15. Market Expectations Availability • Along with schedule pipes – Heavy sizes above 14” & extra wall thickness like 28 mm, 35 mm , 40 mm , 60 mm thk seamless pipes for higher pressure ranges for Headers • T11, T22 & T 91 seamless tubes & P11 , P22 , P91 – heavy thick seamless pipes with straightness requirement of 3 mm / meter • Availability of alloy steel tubes / pipes from Indian mills on a firm schedule basis. Quality • For Seamless Tubes/ Pipes – Improvement in surface coating/treatment • For ERW tubes/ Pipes – Improvements in Stenciling / Surface finish desired. • Value addition - Finning facility , Tube bending by Tube manufacturers ?

16. Market Expectations Others • Fixed Prices • Latent defects – Warranty / Guaranties (as desired by end users) • Completion of a Boiler with assembly-wise 100% tubes supply of fixed length – No waiting time on the shop floor – cycle time reduction • Regular production update with status on Billet / Strip availability to plan in house production • Documentation – As desired.

17. Thank you