The Federation of Universities

Sterlite Industries Limited

This is a great moment for me. I started to build the largest company in the world for metal and mining four years ago, and this acquisition will add greatly towards my effort. With Asarco in our fold, we will become a significant player in the global copper business. Mr. Anil Agarwal, Chairman, Sterlite Industries Limited On 31st May, 2008, Sterlite Industries Limited agreed to buy the entire operating assets of Asarco LIC for $2.6 billion in cash. Being a major subsidiary of Vedanta Resources Plc., Sterlite is into manufacturing aluminum, zinc and lead while Asarco is a US-based copper mining company. Sterlite was the highest bidder in the court-approved auction wherein the other bidders included Group Mexico, which owned Asarco before the latter became bankrupt. In 2005, Asarco filed for bankruptcy after it was sued for $1 billion in claims related to environmental issues. This deal is subject to the approval of the US Bankruptcy Court, and Sterlite plans to fund this deal through a mix of equity and debt though it has more than $5 billion in cash reserves. Asarco, formerly known as American Smelting and Refining Company, is a century old company. It is a profit-making company and employs more than 3,000 people. It is the third largest copper producer in the US with assets comprising three open-pit copper mines, a smelter in Arizona, and a copper refinery, rod unit and precious metals plant in Texas. Asarco has mines with an estimated reserves of 5 million tons of copper; and for the year 2007, it produced 0.235 million tons of copper with an earned revenue of about $1.9 billion. After acquiring Asarco, Sterlite will have a copper smelting capacity of 0.63 million tons and proven copper reserves of 5 million tons. Sterlite plans to acquire the assets of Asarco on cash-free and debt-free basis. It will assume operating liabilities, but not legal liabilities for asbestos and environmental claims for ceased operations. It also plans to invest more for the modernization of Asarco. Markets reacted positively to the news of Asarco acquisition agreement; consequently, the price of Sterlite scrip was up 2.83 percent from its previous close of Rs.934.9 on May 31, 2008. Global economic meltdown and the subsequent fall in commodity prices had put a pressure on Sterlite to re-negotiate the deal with Asarco for a lower price. As a result of which, the company is planning to close the acquisition deal at a price that is lower by $1.4 billion than the earlier agreed price of $2.6 billion, after discounting the goodwill and liabilities. Reacting to these developments, Mr. Anil Agarwal, Chairman, Sterlite Industries Limited said on 3rd March, 2009, They (Asarco) understand our point of view. We had done the deal when the price of copper was USD 8,500 per ton. Today, the price has come down to around USD 3,000 per ton. So, we need adjustment of the price, they can take whatever time they want to take. Thats fine with me. Industry Overview. Non-ferrous metal industry is a key sector in the Indian economy as it fulfills the requirements of various other industries. Aluminum, copper, zinc, lead and tin are some of the non-ferrous metals.

Sterlite These metals are used to make alloys, castings, forgings, extrusions, wires, cables, pipes, etc., so as to be used in different sectors such as power, oil and gas, construction, automobile, consumer durables, beverage can manufacturing shipbuilding, jewelry making etc. India has large reserves of non-ferrous metal ores such asbauxite (aluminum ore) zinc, lead and copper.. India imports scrap or concentrates of copper and zinc to be processed by secondary/custom smelters, and exports around 40% of its copper production. On net basis, India is a net exporter of copper and net importer of zinc. This industry mainly mines the raw materials and through its value chain, transforms the raw materials into products useful as key inputs in various industries.

Industry Value Chain

Figure 1: Non-Ferrous Metal Industry Value Chain

Source: Icfai research Team. Copper Concentrate, Bauxite, Aluminum Fluoride, Caustic Soda, Calcined Petroleum Coke, Rock Phosphate, Ammonia, Pitch etc., are the various raw materials used in the production of nonferrous metals. Some companies undertake a range of operations from mining, refining, smelting to downstream rolling, and manufacturing extrusions, foils and alloy wheels. These products are then distributed and marketed to the end-users.

Industry Segments
Table 1: Non-Ferrous Metals Name Aluminum Composition Pure metal Properties Greyish-white, soft, malleable, conductive to heat and electricity. It is corrosion resistant. It can be welded but with difficulty. Needs special processing. Red, tough, ductile, high electrical conductor, corrosion resistant. Needs frequent annealing. Uses Aircrafts, boats, window frames, saucepans, packaging and insulation, pistons and cranks. Electrical wire, cables and conductors, water and central heating pipes and cylinders. Printed circuit boards, roofs. Makes brass. Coating for steel galvanized corrugated iron roofing, tanks, buckets, rust-proof paints.

Copper

Pure metal

Zinc

Pure metal

A layer of oxide protects it from corrosion, bluish-white, easily worked.

Source: http://www.design-technology.org/CDT10metalsproperties.htm and Icfai Research Team. Aluminum: It is extracted from bauxite ore and is combined with oxygen to make alumina. Around 10% of the worlds bauxite reserves are in India. The main energy inputs are electricity, coal and furnace oil. Most of the aluminum refineries in India have their own captive power units so as to get uninterrupted and low cost power supply. In India, energy costs constitute around 40% of the manufacturing cost for aluminum and 30% for finished rolled products. Power sector is the primary market for aluminum in the country consuming around 35% of the domestic production. However, globally, the construction and packaging sectors are the primary markets for aluminum. 2

Sterlite India imports primary products such as ingots, billets, bars and rods while exports products such as powder and flakes, bar rods, foil, pellets, sheets, tubes and pipes. Copper: With high electrical conductivity, corrosion resistance, ductility, malleability and rigidity, copper is an important metal for industrial applications. It is used in various sectors like telecom, power, construction, transportation, handicrafts, engineering, and consumer durables in the form of cables, transformers, generators, radiators and other ancillary components. The main products of copper are continuous cast copper rods, copper cathode and copper wire while the by-products include sulphuric acid, selenium, copper sulphate, palladium, anode slime, reverts, tellurium, and dump slag. Till 1997, Hindustan Copper Limited was the only copper producing company in India. While it met 25-30% of the countrys refined copper requirements, the balance was imported. There is a significant growth in the countrys copper industry and presently, India has four major players and is the net exporter of refined copper. Zinc: Zinc was being produced from oxide ores; but now abundant supply of sulphides became the major source to produce it. In India, the steel industry consumes around 47% of zinc for galvanizing. Galvanizing is the process of coating iron or steel with a thin layer of zinc. The recycle life of galvanized steel can be up to 100 years while it is only 20 years for ungalvanized steel. In India, besides galvanizing, zinc is consumed in other segments consisting batteries (10%), zinc alloys (10%), die-casting (5%), chemicals and others (5%). Around 70% of the zinc products include zinc tubes and sheets while the remaining 30% comprise structurals and wires. Zinc production is a power intensive process; to cut down the overheads, most of the companies use cheap scrap, dross or ash and other low means of power. Copper, along with zinc and with smaller amounts of lead and tin, makes the metal brass. Zinc is mainly used in building materials, fittings, electrical components, medical equipments, rubber goods, paint pigments and ceramics.

Organized Vs Unorganized
All the segments of non-ferrous metal industry consist of primary producers and secondary producers. Primary producers process the mined ore into primary metal available in the form of rods, ingots, cathodes, wires etc., while secondary producers manufacture value added products like foils, extrusions, dry batteries, castings etc., either by procuring the metal from the primary producers or from scrap metal. The industry has very few primary producers but has many secondary producers. A majority of the primary producers in this industry are organized whereas the consolidated category of secondary producers is highly fragmented and largely unorganized.

Key Players
There are many major players in the organized chunk of the non-ferrous metal industry. The major players in the aluminum and copper segments are the Aditya Birla Group with the companies like Hindalco Industries Limited (Hindalco) and Indian Aluminium Company Limited (Indal), Sterlite Industries with companies like Bharat Aluminium Company Limited (BALCO) and Madras Aluminium Company Limited (MALCO), and Public Sector Undertakings like National Aluminium Company Limited (NALCO) and Hindustan Copper Limited. Jhagadia Copper Limited is also one of the key players in the Indian copper industry, while Hindustan Zinc Limited (HZL) and Binani industries are major players in the Zinc segment. The sustainability of all the players in this industry hugely depends on the policies and regulations drawn by the government.

Regulations and Policy

The Indian government realized the importance of the metal sector and introduced various policy initiatives. The government also modified its Foreign Direct Investment policy in order to attract foreign investments into this industry. It also took many initiatives to boost the end-user segments such as telecom, power, construction, transportation, engineering, and consumer durables etc., which in turn gave a significant positive impact on the demand for metals. In order to provide a 3

Sterlite favorable environment for investments and exports in the sector, the government liberalized the overall policy regime with specific incentives. To boost investments, the government allowed 100 percent foreign equity holding in the automatic route for all non-fuel, non-atomic minerals except diamonds and precious stones. Additionally, thirteen minerals, which were reserved exclusively for the public sector, such as iron ore, manganese ore, chrome ore, sulphur, gold, diamond, copper, lead, zinc, molybdenum, tungsten, nickel and platinum group of minerals, were opened up for private players. Also, customs duty was reduced from 15 percent to 10 percent on primary and secondary metals. The Free Trade Agreement with Sri Lanka facilitated import of copper and copper products at zero duty from Sri Lanka; in addition, exclusive duties on copper and copper products were reduced progressively. The initiatives taken by the government reflected in the financial performance of the industry.

Financial Performance
Aluminum production in India for the year 2007-08 stood at 1236704 tons an increase of 7.30% over the previous year. The price of aluminum during the same period decreased by 3.67% and stood at Rs.131,610 per ton. During April-August 2008-09, aluminum production in the country was 526859 tons with an increase of 3.18% while it was 510623 tons for the same period in 2007-08. During April-October 2008-09, the price of aluminum was Rs.140,930 per ton while it was Rs.134,350 per ton during 2007-08. Aluminum prices peaked in July 2008 due to sharp rise in energy costs and later decreased as the global economy slowed down. The total installed production capacity of four major copper producing companies in India is 997500 tons of refined copper. The production capacity of Hindalco Industries Limited, Sterlite Industries India Limited, Hindustan Copper Limited and Jhagadia Copper Limited is 500000, 400000, 47500 and 50000 tons per annum respectively. Hindalco and Sterlite are shore-based smelters relying on imported concentrate while Jhagadia produces refined copper through the secondary route i.e., by using copper scrap as raw material. The private companies have the benefit of large-scale operations along with locational advantages while Hindustan Copper Limited has the competitive advantage of mines ownership. Copper industry grew significantly in the last few years due to strong growth in the end-user segments like power cables, housing and construction, and infrastructure. For the year 2007-08, the total production was around 704966 tons with a growth rate of 9.86%. According to the estimates of Indian Copper Development Center (ICDC), the total refined copper usage in India was approximately 530000 tons while the exports were 200000 tons. Zinc ore resources in India are estimated at 385 million tons. The two main producers of zinc in the country are Hindustan Zinc Limited (HZL), and Binani Industries, with a smelting capacity of 411000 tons and 38000 tons per annum, respectively. During 2002-06, Zinc production increased at a CAGR of 2.73 percent and consumption increased at a CAGR of 3.77 percent. The fast growth in the galvanizing sector led to a strong increase in the demand for zinc by 9.5% to 0.47 million tons as the galvanizing sector alone accounted for 70% of the zinc demand in the country. For the year 2007-08, the total production of zinc in India was 457075 tons. For the first five months in 2008-09, the production was around 217252 tons while for the first five months in 2007-08 it was 169475 tons.

Future Outlook
The performance of this industry hugely relies on the performance of the user industries. Industry sources expect a sustained growth in all these user segments because of various factors such as increasing domestic demand, investment in capacity addition, rising supply deficit in other countries and favorable government regulations. This makes the non-ferrous metals industry

Sterlite improve its global competitiveness by constantly improving its performance through innovative products with higher quality. Availability of raw materials plays a key role in the performance of an industry. India has rich reserves of non-ferrous ores like bauxite, copper, zinc etc. It has 3037 million tons of high-grade bauxite deposits. It also has a well-developed mining sector to leverage these resources. These two factors will reduce the industrys dependence on imports and will increase the production of required metals as per the demand. The ongoing global financial crisis is expected to affect this industry in the short- to to mediumterm. The impact is not only on the demand for products but also on metal prices and exchange rates. Analysts expect a cut in non-ferrous metal prices by 11-24% for FY09 and 26-32% for FY10. They also expect trough cycle metal prices, currency volatility and speculative positions in metals. Aluminum, whose major demand is from exports, is expected to face turbulence till FY2011 as the demand from Chinese energy sector is slowing although a collapse is unlikely. The market is still in deficit for copper in spite of slower demand growth resulting in prices to remain well above trough cycle levels. With regard to zinc, there is oversupply and prices are expected to fall in future.

Sterlite Industry
The company was originally incorporated as Rainbow Investments Limited on September 8, 1975, to manufacture and deal in all kinds of electrical wires and cables. The name was changed to Sterlite Cables Limited on October 19, 1976. The company undertook production of cables, conductors and enameled copper wires at its factories in Mumbai and Pune. Mr. Anil Agarwal and his family acquired the business in 1979 and once again there was a change in the name of the company; it was named Sterlite Industries (India) Limited on February 28, 1986 and went for Initial Public Offering of its shares in India in the year 1988. Emphasizing its copper business, the company commissioned a copper rod plant in 1991; also, it commissioned the first privately developed and licensed copper smelter in India at Tuticorin in 1997. In April 1999, to source copper concentrate for the Tuticorin copper smelter, Monte Cello BV (a subsidiary of Monte Cello Corporation NV, which was wholly owned by Twin Star Holdings Limited (Twin Star) at that time) acquired Copper Mines of Tasmania Pty Ltd, which owned the Mt Lyell copper mine. In October 1999, Monte Cello BV acquired Thalanga Copper Mines Pty Ltd (TCM). Monte Cello Corporation NV subsequently sold Monte Cello BV to Sterlite. In order to broaden its presence in aluminum business, Sterlite acquired 51% interest in Bharat Aluminium Company Limited (Balco) on March 2, 2001. Through Sterlite Energy, Sterlite Opportunities and Ventures Limited (SOVL), it acquired 26% stake in Hindustan Zinc Limited (HZL) from the Government of India. It further increased its stake by 20% in HZL through an open market offer. It increased its stake to 64.9% in 2003 through SOVL by exercising the call option granted by the Indian government. TCM, which Sterlite acquired in the year 1999, ceased its operations from July 2005. In 2006, it acquired 100% stake in Sterlite Energy from Twin Star Infrastructure Limited for a total consideration of Rs.4.9 million ($0.1 million).

Sterlite As time passed, Sterlite grew from being a small wires and cables manufacturer to become one of Indias leading non-ferrous metals and mining companies. The growth of the company is mainly attributed to its emphasis on quality and constant benchmarking with the best in the world as also its emphasis on being a low-cost, high quality, high-efficiency producer by global standards. It is a principal subsidiary of the Vedanta Resources Group. The promoter group holds 60.63% stake while public shareholders hold 24.54% stake in the company, and the custodians hold 14.83% shares against which depository receipts were issued. Sterlite has a copper mine (Copper Mines of Tasmania) in Australia with copper ore reserves of 14.2 million tons. It has a facility in Silvassa, which consists a Refinery with installed capacity to produce 195000 TPA of Copper Cathode and a Rod plant with installed capacity to produce 150000 TPA of Copper rods. Its Tuticorin Complex in Tamilnadu has a smelter with installed capacity to produce 400000 TPA Copper Anode, a refinery to produce 205000 TPA Copper Cathode, a Rod Plant with a capacity to produce 90,000 TPA Copper rods, a sulphuric acid plant that can produce 1300000 TPA of sulphuric acid, a phosphoric acid plant that can produce 180000 TPA of phosphoric acid and a captive power plant with 46.5 MW. Figure 2: Products of Sterlite

Source: Icfai Research Team.

Business Model
The various products discussed above come under Sterlites core business of copper. Its subsidiary CMT satisfies 8% of copper segment concentrate requirement wherein it has 100% stake, while it 6

Sterlite also operates in aluminum, energy, zinc and lead through its subsidiaries. Sterlite produces aluminum ingots, rods and rolled products through its subsidiary Bharat Aluminium Company Limited (BALCO) and through its associate Vedanta Aluminum Limited (VAL). Sterlite holds 51% stake in BALCO and 29.5% stake in VAL. Hindustan Zinc Limited (HZL), a leading and only integrated zinc-lead producer in India operates Sterlites zinc business. Sterlite has 64.9% stake in HZL and 100% stake in Sterlite Energy Limited. Figure 3: Sterlite Business Model

Source: Company Website.

Strategy
A key strategy of Sterlite is to increase its ownership through consolidating various subsidiaries so as to achieve its goal of generating strong financial returns and be a world-class metals and mining company. It plans to exercise its option to acquire the Government of Indias remaining 49.0% ownership interest in BALCO and 35.1% ownership interest in HZL. Individually, it plans to increase its capacity in every business segment through both greenfield and brownfield projects. It intends to capitalize upon the growing demand for metals in India and abroad, particularly in China, Southeast Asia and the Middle East with the expansion projects. As mentioned earlier, in its core business of copper, the company plans to expand by acquiring the assets of Asarco. Under aluminum segment, Sterlite is in the process of expanding the smelting capacity at BALCO to 700,000 tpa from 350,000 tpa, which is scheduled for commissioning in September 2011. The total project cost is expected to be US$2 billion of which US$900 million would be for the smelter and the remaining amount is for setting up a captive power plant. Vedanta Alumina will source the new capacity of BALCO besides utilizing a coal block of 210 million tons allocated to it for meeting its thermal coal requirements. Sterlite holds 30% stake in Vedanta Alumina wherein it invested Rs.56 billion as equity and Rs.150 billion as convertible debt. The first phase of the 500,000 ton aluminum smelter of Vedanta Alumina is in process and the company expects the 250,000 tons smelter to be fully commissioned by the end of FY09. Vedanta, which is buying power from Sterlite Energy, plans to establish a captive power plant as an associate to the aluminum smelter at a later stage. Sterlite is constructing a 210000 ton zinc smelter and 100,000 ton lead smelter at Rajpura Dariba with its associated 160 MW captive power plant. It plans to complete these projects by mid 2010. 7

Sterlite After this expansion, HZL will be the worlds largest integrated zinc and lead producer with a total capacity of 1,064,000 tons. Silver production of the company is expected to increase from 2.8 million oz to over 16.1 million oz per annum with this expansion. Based on its experience in building and managing captive power plants, the company plans to develop its subsidiary, Sterlite Energy Limited, as a stand-alone entity because commercial power generation business has attractive growth opportunity in India. By the end of 2009, it expects to complete a 2400 MW (4 x 600 MW) coal-based thermal power plant at Jharsuguda in Orissa and it also plans to commence a 1,980 MW power plant at Talwandi Sabo. It is also looking out for new growth and acquisition opportunities in the metals and mining, and related businesses, primarily in India, including through government privatization programs. In addition to the expansion projects, Sterlite intends to focus on asset optimization and production cost reduction. It plans to maximize throughput and plant availability, reduce energy costs and consumption, increase automation, improve recovery ratios, reduce its raw material costs, and seek better utilization of byproducts in order to reduce its production costs. On 9th September, 2008, Vedanta Resource, its parent group, as part of its long-term business restructuring plan announced to simplify the group structure into three verticals copper, zinc and lead, aluminum and energy, and iron ore, for better synergies in the metals business. However, within a fortnight it deferred its restructuring plan because of adverse reaction from investors and negative developments in the global financial markets. After six months of deferment, the company now wants to resume the previously announced restructuring plan. Once we have the residual shares of BALCO and Hindustan Zinc, and positive response from shareholders, I think we will initiate it (the corporate restructuring) by end of this year, Vedanta Resources Group Chairman Mr. Anil Agarwal said in an interview on 3rd March, 2009.

Financial Performance
Following the strategy, Sterlite recorded a remarkable financial performance for the year 2007-08. Net sales of the company were Rs.247.05 billion recording an increase of 1.3% during the FY2007-08 when compared to that of 2006-07. This increase is mainly due to higher sales volume, which was significantly offset by softer international zinc prices and also with the appreciation of Indian rupee. Other income for 2007-08 was Rs.15.66 billion, which mainly represents the proceeds received through ADS. The company offered US American Depositary Share (ADS) in June 2007 and was successful in raising $2 billion. This was recorded as the largest ever IPO by an Indian company in the US till date. The expenditure Sterlite incurred during 2007-08 increased significantly compared to the year 2006-07. The total value of raw material consumed increased by 10% to Rs.118.68 billion in 2007-08. This is mainly because CMT filled only 8% of the companys concentrate requirement while other mines, sourced through a mix of long-term contracts and spot purchases, filled the remaining 92% of its concentrate requirement. Price of raw material increased due to tight market conditions during the year, while total expenditure increased by 12.8% due to increase in fuel prices, cost of coal for the captive power plants, and other basic inputs. As a result of increased expenditure, EBITDA margin decreased from 38.79% in 2006-07 to 31.85% in 2007-08. Though Sterlite retained its net profit margin at 25%, net profit decreased by 0.8% from Rs.63.27 billion in 2006-07 to Rs.62.74 billion in 2007-08. The companys debt increased from Rs.46.10 billion in 2006-07 to Rs.50.74 billion in 2007-08. The debt was mainly raised to meet increased buyers credit of Rs.6.44 billion and to meet working capital loans from banks to the tune of Rs.6.37 billion. Term loans and foreign currency loans of Rs.8.62 billion were repaid during 2007-08. Long-term debt in Sterlite, BALCO and HZL 8

Sterlite was also repaid from the funds generated through operations. During 2007-08, CAPEX was Rs.4.15 billion. The company used cash flows from operating profits and proceeds from the ADS issue for its better working capital management and for its expansion projects. It also maintained a strong balance sheet so as to fund its future growth.

Segmental Analysis
The company generated its total revenue through three segments copper, aluminum and zinc, and lead. Its subsidiary BALCO mainly generated revenues from the aluminum segment while HZL generated revenues from zinc and lead.

Copper
Being the largest producer of copper in terms of volumes in India, Sterlite produced its highest ever production in the year 2007-08. The copper segment involves smelting and processing of copper and its byproducts. Assets in this segment includea smelter, refinery, phosphoric acid plant, sulphuric acid plant, and copper rod plant at Tuticorin and a refinery and two copper rod plants at Silvassa. CMT produces clean concentrate that is used in the smelting process and fulfills around 8% of the companys copper concentrate requirement. Revenues from this segment increased by 8% and touched Rs.1,26,580 million in 2007-08. Operating profit of the company reduced by 30% to Rs.9,980 million due to more than 11% appreciation in the rupee against the US dollar and rising fuel prices though the company achieved major reductions in production costs. Though copper contributes more than 50% to the companys top line, its contribution to operating profit is only 10-15% as it makes most of the profit from Treatment and Refining (TC/RC) margins. Figure 4 (a) Segment-wise Sales Contribution (2007-08) (b) Segment-wise Operating Profit Contribution (2007-08)

Source: Company Website and Icfai Research Team.

Aluminum
BALCO, a subsidiary of Sterlite, is one of the four primary producers of aluminum in India. The new smelter at its korba site helped it to produce its highest ever hot metal production in 2007-08. Production increased by 15% to 362296 tons, while sales volume increased by 15% to 358328 tons. Its captive power plants generated 6,505 million units of power; which fulfilled its requirements and made it a major energy-integrated aluminum producer. 9

Sterlite

Zinc and Lead

Hindustan Zinc Limited, which is a major subsidiary of Sterlite, produces integrated zinc and is Indias largest producer of zinc in terms of volume. It has zinc and lead mines in Rajasthan and smelters in Rajasthan and Andhra Pradesh. For the year 2007-08, metal production increased by 23% to 484569 tons, refined zinc production increased by 22% to 426323 tons and refined lead production increased by 31% to 58247 tons. Its reserves and resources position increased at 22.9% to 232.3 million tons as on March 31, 2008. Its mined ore increased by 13% to 5.78 million tons for the same year.

Future Outlook
All the segments of Sterlite are prone to get affected by the global economic slowdown. Metal prices, especially aluminum, zinc, and copper, plunged more than 50% from their highs during 2008. Consumption demand continues to be weak even after production cuts in China. Against this difficult scenario, Sterlite plans to maintain its profitability by emphasizing on its strength of being a cost-efficient aluminum producer with backward integration. Similarly, the copper segment of Sterlite is also expected to be under pressure due to the falling prices of by-products like sulphuric acid. While the company may marginally get influenced with the changes in the copper prices, it may mainly get affected with the lower TC/RC rates in addition to falling prices of by-products. This is expected to lower the profitability of this segment. With the recent sharp correction in zinc prices, near-term earnings of the company in this segment will be under pressure. HZL with its expansion plans wants to grow by 50% in the next two years. It plans to become the worlds largest zinc producer with a capacity to produce 1,064,000 tons per annum, which comes around to 7% of global capacity. It even plans to expand its silver production capacity from 120 tpa to 600 tpa, which would make it the worlds third largest producer. According to company sources, HZL would continue to be under pressure with its huge expansion plans and realizations, and may still manage to create some profits being among the lowest cost producers. The only business segment, which is least affected with the current financial crises in the country is the power sector with more than 73,000 million units of electricity shortage. Sterlite is aggressively expanding its power generation capacity so as to take advantage of the scarce power supply situation in India. Sterlite plans to set up a 2,400 MW (4x600 MW) power plant in Jharsuguda by the end of 2009. For this project, it has received full coal linkage and has been allocated a coal block with 112 million tons reserves, which will be developed by 2013. It even plans to set up a 1,980 MW (3x660 MW) power plant in Talwandi Sabo. In the long-term, it targets to achieve a capacity of 10,000 MW. Sterlite is on an expansion spree. Its plan to expand has a good back up from its strong balance sheet with lower debt-equity ratio and high liquid investments (of around Rs.70 billion) and these figures are expected to insulate the company from the current credit crisis. It has a diversified portfolio with two of its business segments i.e., zinc and aluminum being extremely profitable. It also has a successful record of acquiring and managing some of the government-owned companies. Based on these factors, analysts view that Sterlite with its lower debt position, higher liquid investment, integrated expansion plan, and diversified portfolio can grow big in the longterm if it is able to overcome the present crisis.

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Sterlite Annexure I

Income and Expenditure

Sterlite Industries (India) Ltd. Rs. Million (Non-Annualised) Total income Sales Industrial sales Income from non-financial services Income from financial services Interest Dividends Treasury operations Other income Prior period income & extraordinary income Change in stock Total expenses Raw material expenses Packaging expenses Purchase of finished goods Power, fuel & water charges Compensation to employees Indirect taxes Lease rent & other rent Repairs & maintenance Insurance premium paid Outsourced professional jobs Directors' fees Selling & distribution expenses Travel expenses Miscellaneous expenses Other operational exp. of indl. enterprises Fee based financial service expenses Treasury operations expenses Total provisions Write-offs Less: Expenses capitalised Prior period & extraordinary expenses Interest paid Depreciation Amortisation Provision for direct taxes PAT PBDITA PBDTA PBT Mar 2003 12 mths 24109.9 23782.2 23782.2 0 269.5 269.1 0.4 0 17 41.2 891.9 23325.1 15667.4 65.1 0 1216.9 268.5 1741 1.4 287.8 32.5 3.3 0.2 256.1 42 302.7 228.3 126.1 258.7 6.7 15.1 20.7 0.2 1490.8 1059.4 9.5 266.1 1676.7 4502.5 3011.7 1942.8 Mar 2004 12 mths 33930.3 32895.9 32808.7 87.2 834 179.1 0 654.9 31.9 168.5 46 32004.8 23952.9 100.9 0 1322.5 348.2 2235 2.5 252.9 35.9 3.5 0.3 376.7 42.2 406.4 281.1 209.6 0 10 58.4 81.5 159.9 1093.8 1084 7.5 102.1 1971.5 4258.9 3165.1 2073.6 Mar 2005 12 mths 43974.6 42790.5 41452.5 1338 1021.8 589.5 137.5 294.8 46.9 115.4 1131.9 44042.3 32701.6 135.2 1318.2 1372.9 443 2908.8 3.6 297.3 47.2 5.3 0.2 410.7 51.1 462.5 325 161.6 74.2 13.9 0 59.5 1530.1 894.7 1140.6 4.5 -200.4 1064.2 2903.6 2008.9 863.8 Mar 2006 12 mths 80426 79231 79170.2 60.8 1053.4 629.2 295.3 128.9 77.1 64.5 2534.2 77808.2 63855.6 183.2 0 2298.8 464.7 4278.6 6.5 326.8 47.6 5.1 0.1 632.8 61.1 470.6 444.7 136.3 584.8 0 8.4 65.8 31.7 1074.5 1282.3 3.4 1676.4 5152 9188.6 8114.1 6828.4 Mar 2007 12 mths 127041.9 124575.7 124383.3 192.4 1375.8 437 484.6 454.2 71.5 1018.9 3588.5 122790.1 104379.4 0 141.6 2543.4 574.4 6378 8.8 359.4 41.6 5.9 0.5 717.8 84.1 467.4 519.8 158.9 1023.6 784 338.7 65.6 39.3 1671 1332 3.4 1282.7 7840.3 12129.4 10458.4 9123 Mar 2008 12 mths 143104.5 134515.9 134453.9 62 7660 992.7 4114.6 2552.7 253.8 674.8 1308 134896.2 115534.4 0 20.8 2955.3 661.8 7883.3 10.1 520.6 55 7.2 0.8 731 85.8 483.4 400.1 131.5 406.1 527.9 0 0 3.4 1513 1389.8 0 1574.9 9516.3 13994 12481 11091.2

Source: CMIE.

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Sterlite

Annexure II Balance Sheet

Sterlite Industries (India) Ltd. Rs. Million (Non-Annualised) Gross fixed assets Land & building Plant & machinery Transport & comm. equipment/infrastructure Furniture,amenities & other fixed assets Capital work-in-progress Intangible assets Net pre-operative expenses pending allocation Less: Cumulative depreciation Less: Arrears of depreciation Net fixed assets Investments Equity shares Preference shares Mutual funds Debt instruments Others Less: Provision for dimunition in value of investments Group companies Non-group companies Market value of quoted investments Deferred tax assets Current assets Cash & bank balance Inventories Receivables Expenses paid in advance Loans & advances Deferred revenue expenditure Total assets Liabilities Net worth Authorised capital Issued equity capital Paid up equity capital (net of forfeited capital) Paid up preference capital (net of forfeited capital) Reserves & surplus Free Reserves Security premium reserves (Net of deductions) Other free reserves Specific Reserves Revaluation Reserves Total borrowings Bank borrowings Short term bank borrowings Long term bank borrowings Debentures / bonds 12539.9 400 179.6 179.5 0 12360.4 10488.9 5263.6 5225.3 1871.5 0 17274.6 3022.4 2969.3 53.1 8372.4 14399.4 600 358.9 358.9 218.8 13821.7 12724.1 6645.5 6078.6 1097.6 0 24121.2 2116.6 2116.6 0 6142.3 35797.4 600 548.9 548.9 218.8 35029.7 34278.1 27347.9 6930.2 751.6 0 24395 1394.8 1394.8 0 1133.3 41224.1 1200 558.7 558.7 218.8 40446.6 39695 28412.2 11282.8 751.6 0 20347.9 383 383 0 1000 44579.3 1850 1117 1117 0 43462.3 42553.9 26136.7 16417.2 908.4 0 28097.5 90.8 90.8 0 1000 131650.2 1850 1417 1417 0 130233.2 129214.1 106346 22868.1 931.9 87.2 32578.1 4778.3 4778.3 0 1000 Mar 2003 12 mths 21343 1545.1 18436.7 52.4 148.6 1120.3 0 39.9 4597.5 0 16745.5 11885.4 7652.8 0.1 117.3 4115.2 0 0 11768 117.4 122.7 66.4 9709.5 668 3490.5 5222.6 328.4 1919.5 18.9 40345.2 Mar 2004 12 mths 24266.4 1718.8 18959.9 57.6 153.2 3263.6 0 113.3 5605.7 0 18660.7 16125 7347.8 240 51.2 8486 0 0 16073.7 51.3 130.5 54 10761.6 1638.9 3743.4 5052.2 327.1 3338.6 11.4 48951.3 Mar 2005 12 mths 24839 1755.7 20303.1 68.9 178.3 2346 0 187 6688.2 0 18150.8 29863.3 9003.7 240 932.7 11456 8230.9 0 20199.6 1432.8 1044.5 55.3 20173.2 6154.1 5716.7 8178.7 123.7 843.5 6.8 69092.9 Mar 2006 12 mths 26039 1938.1 23031.1 91.6 195.3 706.2 72.9 3.8 7938.3 0 18100.7 26717.8 9003.6 240 4466.8 13007.4 0 0 19759.6 6958.2 4703.3 80.3 30588.6 7937.7 10191.8 11100 1359.1 5840.9 3.4 81331.7 Mar 2007 12 mths 26568.5 1726.7 24839.5 80.6 165.4 490.5 72.9 3.8 9072.1 0 17496.4 29129.6 10331 0 3708 15098.5 0 7.9 25429.5 3708 351.3 83.5 38256 2320.7 18491.6 15980.3 1463.4 5461.5 0 90427 Mar 2008 12 mths 27539.4 1830.4 25497.5 75.9 176.7 696.9 72.9 0 10457.9 0 17081.5 123570.3 22278.2 0 77433.4 23866.6 0 7.9 46144.8 77433.4 364.3 71 37010.9 769.8 23059.9 12049.9 1131.3 7747 0 185480.7

12

Sterlite
Sterlite Industries (India) Ltd. Rs. Million (Non-Annualised) Non-convertible Foreign borrowings Commercial paper Deferred credit Other borrowings Secured borrowings Unsecured borrowings Current portion of long term debt Current liabilities & provisions Sundry creditors Acceptances Interest accrued Share application money Other current liabilities Provisions Deferred tax liability Total liabilities Net worth (net of reval & DRE) Contingent liabilities Mar 2003 12 mths 8372.4 3600.1 350 329.7 1600 13219.2 4055.4 5897.3 6926.2 1842.8 4296.4 310.3 2.5 119 355.2 3604.5 40345.2 12521 13053.8 Mar 2004 12 mths 6142.3 2158.1 0 9071.2 4633 10799.4 13321.8 10773.3 6943.7 1806.1 2972.3 259.7 0 938.7 966.9 3487 48951.3 14388 9641.4 Mar 2005 12 mths 1133.3 8985.9 0 523.7 12357.3 6269.1 18125.9 11940.2 5755.3 2593.3 664.6 204.1 0 1147.1 1146.2 3145.2 69092.9 35790.6 10572.6 Mar 2006 12 mths 1000 6364.2 0 677.4 11923.3 1259.2 19088.7 12219.9 16405.3 7233.1 0 116 0 1729.6 7326.6 3354.4 81331.7 41220.7 16715.4 Mar 2007 12 mths 1000 5914.3 0 871.1 20221.3 1000 27097.5 24675 14474 8977.6 0 97.1 0 2019.3 3380 3276.2 90427 44579.3 20420.4 Mar 2008 12 mths 1000 1590.5 0 441.2 24768.1 5720.5 26857.6 26391.6 17558.1 6927.9 0 117.1 0 828.9 9684.2 3694.3 185480.7 131563 7950.2

Source: CMIE.

13

Sterlite

Annexure III

Cash Flow
Sterlite Industries (India) Ltd. Rs. Million (Non-Annualised) Net cash flow from operating activities (indirect method) Net profit before tax & extra ordinary income Adjustments for depreciation Adjustments for interest payable Adjustments for foreign exchange (gain)/loss Adjustments for add back of amortisations & others written off Adjustments for add back of other provisional adjustments Adjustments for (profit)/loss on sale of investments Adjustments for (profit)/loss on sale of assets Adjustments for interest income Adjustments for dividend income Adjustments for other expenses / income Adjustments for provision / liabilities written back Operating cash flow before working capital changes Cash inflow/(outflow) due to decrease/(increase) in trade & other receivables Cash inflow/(outflow) due to decrease/(increase) in inventories Cash inflow/(outflow) due to increase/(decrease) in trade & other payables Cash flow generated from operations Cash (outflow) due to direct taxes paid Cash flow before extraordinary items Cash inflow/(outflow) from extraordinary items Cash (outflow) due to miscellaneous expenditure Net cash inflow/(outflow) from investment activities Cash (outflow) due to purchase of fixed assets Cash inflow due to sale of fixed assets Cash (outflow) due to purchase of investments Cash inflow due to sale of investments Cash inflow/(outflow) due to loans to subs./group cos. Cash inflow/(outflow) due to loans to other cos. Cash inflow due to interest received Cash inflow due to dividend received Net cash inflow/ (outflow) from financing activities Cash inflow due to proceeds from share issues Cash inflow due to proceeds from total borrowings Cash inflow due to proceeds from long term borrowings Cash inflow due to proceeds from short term borrowings Cash (outflow) due to repayment of total borrowings Cash (outflow) due to repayment of long term liabilities Cash (outflow) due to repayment of short term liabilities Mar 2003 12 mths 3451.3 1942.8 1059.4 1510.3 0 24.6 6.7 17.4 0.2 -162.5 -0.4 -41.2 0 4357.3 -1447.4 -1051.8 1784.8 3642.9 -191.6 3451.3 0 0 -4922.3 -1023.6 14.2 -4708.8 519.5 113.5 0 162.5 0.4 -73.8 -2169.9 5463.6 5463.6 0 -1759.9 -1133.7 -626.2 Mar 2004 12 mths 3202 1968.5 1084 1160.2 -259.2 65.9 0 -38 159.9 -107.9 0 0 0 4033.4 -376.6 -253 -32.6 3371.2 -115.8 3255.4 -53.4 0 -9301.1 -3103.2 22.3 -45902.3 40910.7 -1367.1 0 138.5 0 7070 1758.6 10747.8 4541.1 6206.7 -3964.6 -3964.6 0 Mar 2005 12 mths -2375.2 2308.1 1139.3 949.2 -209.2 4.5 13.9 -265.1 85.8 -512.1 -137.5 0 -115.4 3261.5 -3041.8 -1973.3 -723 -2476.6 0 -2476.6 101.4 0 -12894.5 -1369.4 78.9 127361.3 113887.6 0 1278.7 453.5 137.5 19784.9 19723 5843.8 3316.5 2527.3 -4539.4 -4539.4 0 Mar 2006 12 mths 8549.8 6787.6 1279.9 1203.7 0.4 3.5 0.7 -121.8 31.7 -629.2 -295.3 0 -16.1 8245.1 -2935.2 -4475.1 9052.5 9887.3 -1337.5 8549.8 0 0 -2142.3 -1389 23.1 125021.8 123289.4 0 -13 673.7 295.3 -4623.9 0 166.8 166.8 0 -3371.8 -1947.4 -1424.4 Mar 2007 12 mths -7802.7 9123 1332 1826.6 373.7 342.1 784 194.5 -907.6 -433.7 -484.6 0 -72 12078 -7577.4 -9824.3 -882.5 -6206.2 -1596.5 -7802.7 0 0 -375.5 -1717.2 2569.8 122473.2 119866.9 0 438.4 455.2 484.6 2561.2 0 11254.2 236.3 11017.9 -1471.9 -1471.9 0 Mar 2008 12 mths 8554.2 11044.7 1389.8 1644.5 -277.8 0 527.9 -34.5 3.4 -992.7 -4114.6 -5.5 -149.8 9035.4 6146.4 -4568.3 -502.2 10111.3 -1032.1 9079.2 0 -525 -93975.5 -1044.7 12.1 613028.7 519337.2 0 -4342.7 976.7 4114.6 83870.4 82071.4 9308.7 41.4 9267.3 -4323.6 -4323.6 0

14

Sterlite
Sterlite Industries (India) Ltd. Rs. Million (Non-Annualised) Mar 2003 12 mths Mar 2004 12 mths Mar 2005 12 mths Mar 2006 12 mths Mar 2007 12 mths Mar 2008 12 mths

Cash (outflow) due to issue expenses Cash (outflow) due to interest paid Cash (outflow) due to dividend paid Cash inflow/(outflow) due to other cash receipts/payables from financing activities Net cash inflow/(outflow) due to net increase/ (decrease) in cash & cash equivalents Cash flow -- opening balance Cash flow -- closing balance

0 -1415.7 -179.9 -12 -1544.8 2212.8 668

0 -1319.6 -238.4 86.2 970.9 668 1638.9

0 -1104.1 -277.1 138.7 4515.2 1638.9 6154.1

0 -1291.8 -370.1 243 1783.6 6154.1 7937.7

0 -1923.2 -3338 -24 -5617 7937.7 2320.7

-1562.1 -1614.2 -9.8 0 -1550.9 2320.7 769.8

Source: CMIE.

15

Sterlite

Annexure IV

Sources and Uses of Funds

Sterlite Industries (India) Ltd. Rs. Million (Non-Annualised) Sources of funds Internal sources Retained profits Depreciation External sources Fresh capital Share premium reserves Borrowings Bank/Fin. Inst. borrowings Debentures & bonds Borrowings from corporate bodies Borrowings from group/associated cos Foreign borrowings Loan from promoters/directors Other borrowings Current liabilities & provisions Sundry creditors Deferred tax liability Uses of funds Gross fixed assets Capital work-in-progress Investments Investment in group cos. Current assets Inventories Total receivables Sundry debtors Loans & advances Loans & advances to group & associated cos Expenses paid in advance Cash & bank balance Deferred tax assets Total sources/uses 1044.9 533.3 4172 4172.8 892.4 1051.8 1425.7 271 -113.5 -113.5 16 -1487.6 3.3 6112.6 2923.4 2143.3 4239.6 4305.7 2471.2 252.9 -170.4 1320.4 1419.1 1419.1 -1.3 970.9 -12.4 9621.8 572.6 -917.6 13738.3 4125.9 6916.5 1973.3 3126.5 1048.6 -2495.1 -2495.1 -203.4 4515.2 1.3 21228.7 1127.1 -1639.8 -3145.5 -440 15412.8 4475.1 2921.3 1663.3 4997.4 4997.4 1235.4 1783.6 25 13419.4 -283.1 -215.7 2411.8 5669.9 7288 8299.8 4880.3 3382.7 -379.4 -379.4 104.3 -5617 3.2 9419.9 883.7 206.4 94440.7 20715.3 1040.4 4568.3 -3930.4 -821.9 2285.5 2285.5 -332.1 -1550.9 -12.5 96352.3 2470.9 1417 1053.9 3489.4 -3178.2 -2879.8 4700 -334.1 6052.4 0 0 -1045.6 0 27.3 1967.6 1829.7 152.3 1274.3 266.1 1008.2 8465 1600.9 1381.9 6846.6 -905.8 -3080.1 0 0 -1442 0 12274.5 17.5 -1360.8 -117.5 1592.7 510.2 1082.5 19977.8 20892.4 20702.4 273.8 -721.8 -4822.7 0 0 6827.8 0 -1009.5 -1188.4 -1520.5 -341.8 5533.2 4356 1177.2 7677 1074.1 1064.3 -4047.1 -1011.8 -180.6 0 0 -2621.7 0 -233 10650 3975.2 209.2 6045.6 5724.4 321.2 3452.5 -2365.8 -2275.5 7749.6 -292.2 -889 0 0 -449.9 0 9380.7 -1931.3 1744.5 -78.2 7860.2 6474.4 1385.8 88074 80509.3 80209.3 4480.6 4687.5 0 0 0 -4323.8 0 4116.9 3084.1 -2049.7 418.1 Mar 2003 12 mths Mar 2004 12 mths Mar 2005 12 mths Mar 2006 12 mths Mar 2007 12 mths Mar 2008 12 mths

Source: CMIE.

16

Sterlite

Annexure V

Return Ratios (%)

Sterlite Industries (India) Ltd. (Non-Annualised) Return ratios On Net worth PBIT Net of P&E/Avg. net worth PAT Net of P&E/Avg. net worth PAT/Avg. net worth Cash profit/Avg. net worth On Capital Employed PBIT Net of P&E/Avg. capital employed PBIT/Avg. capital employed PAT Net of P&E/Avg. capital employed PAT/Avg. capital employed On Total Assets PBIT Net of P&E/Avg. total assets PBIT/Avg. total assets PAT Net of P&E/Avg. total assets PAT/Avg. total assets On GFA PBIT Net of P&E/Avg. GFA (excl. reval. & WIP) PBIT/Avg. GFA (excl. reval. & WIP) PAT Net of P&E/Avg. GFA (excl. reval. & WIP) PAT/Avg. GFA (excl. reval. & WIP) Asset utilisation ratios Total income / Avg. total assets Total income / Compensation to employees Sales / Avg. GFA (excl. reval. & WIP) Sales /Avg. net fixed assets Liquidity ratios (times) Cash to current liabilities Cash to avg. cost of sales Quick ratio Current ratio Current ratio (incl. mktbl. securites) Debt to equity ratio Interest cover Interest incidence (%) Structure of current assets Inventories Sundry debtors (outstanding less than six months) Sundry debtors (outstanding over six months) Bills receivable Acccured income, lease rent & other receivables Expenses paid in advance Deposits Sale of investments & other receivables Cash & bank balance 3490.50 1515.00 210.70 0.00 2855.70 328.40 641.20 0.00 668.00 3743.40 2972.00 74.10 0.00 1369.30 327.10 636.80 0.00 1638.90 5716.70 4032.60 62.10 0.00 3085.90 123.70 998.10 0.00 6154.10 10191.80 5517.00 241.00 0.00 2878.80 1359.10 521.40 1941.80 7937.70 18491.60 9088.00 52.70 0.00 4554.40 1463.40 261.00 2024.20 2320.70 23059.90 8287.90 30.90 0.00 2170.30 1131.30 107.70 1453.10 769.80 0.07 11.56 0.49 0.95 0.96 1.38 2.28 9.99 0.18 19.52 0.66 1.19 1.19 1.68 2.89 5.28 0.86 55.95 1.86 2.82 2.95 0.68 3.55 3.69 0.47 39.49 1.09 1.82 2.09 0.49 7.32 4.80 0.16 7.32 1.23 2.63 2.88 0.63 5.87 6.90 0.03 2.14 0.57 1.66 5.12 0.25 7.89 4.99 0.64 89.79 1.19 1.42 0.76 97.44 1.60 1.86 0.75 99.27 1.97 2.32 1.07 173.07 3.31 4.37 1.48 221.17 4.85 7.00 1.04 216.24 5.09 7.78 16.99 17.20 8.19 8.40 15.32 15.37 9.52 9.56 14.59 8.09 11.40 4.89 32.91 33.05 21.41 21.54 38.18 41.99 26.69 30.50 45.17 47.71 33.48 36.02 8.97 9.08 4.32 4.43 7.07 7.09 4.40 4.42 5.38 2.98 4.20 1.80 10.46 10.51 6.81 6.85 11.43 12.57 7.99 9.13 8.65 9.14 6.41 6.90 13.61 13.77 6.56 6.73 10.05 10.08 6.24 6.27 6.67 3.69 5.21 2.24 13.12 13.17 8.53 8.59 14.67 16.14 10.26 11.72 10.29 10.87 7.63 8.21 25.27 12.18 12.49 20.26 23.45 14.57 14.64 21.92 12.64 9.88 4.24 8.06 20.44 13.29 13.38 16.57 22.88 15.99 18.28 21.82 13.54 10.04 10.80 11.61 Mar 2003 12 mths Mar 2004 12 mths Mar 2005 12 mths Mar 2006 12 mths Mar 2007 12 mths Mar 2008 12 mths

17

Sterlite
Structure of current assets (%) Inventories Sundry debtors (outstanding less than six months) Sundry debtors (outstanding over six months) Bills receivable Acccured income, lease rent & other receivables Expenses paid in advance Deposits Sale of investments & other receivables Cash & bank balance Net working capital Net working capital (as per cost of sales method) Profitability ratios (%) PBDITA/Total income PBDTA/Total income PBIT/Total income PBT/Total income PAT/Total income Cash profit/Total income PBDITA Net of P&E/Total income Net of P&E PBDTA Net of P&E/Total income Net of P&E PBIT Net of P&E/Total income Net of P&E PBT Net of P&E/Total income Net of P&E PAT Net of P&E/Total income Net of P&E Cash profit Net of P&E/Total income Net of P&E PBDITA Net of PE&OI/Sales PBDTA Net of PE&OI/Sales PBIT Net of PE&OI/Sales PBT Net of PE&OI/Sales PAT Net of PE&OI/Sales Cash profit Net of PE&OI/Sales PAT Net of PE&OI/Net sales Working cycle & turnover ratios Working cycle (days) Raw material cycle WIP cycle Finished goods cycle Debtors Gross working capital cycle Creditors Net working capital cycle Turnover ratios (times) Raw material turnover Finished goods turnover Debtors turnover Creditors turnover 12.54 13.26 14.96 10.75 16.72 12.84 13.79 14.21 16.71 11.24 11.98 15.93 19.07 14.89 16.08 13.30 14.82 15.53 16.72 12.92 10.14 15.03 15.41 14.91 28.98 29.20 6.73 24.41 89.32 111.41 -22.09 21.74 24.90 5.04 26.47 78.15 69.89 8.26 21.75 26.38 3.14 30.46 81.73 39.03 42.70 19.08 22.44 2.98 22.70 67.20 44.34 22.86 24.62 23.06 2.22 21.83 71.73 34.26 37.47 36.00 26.98 1.76 23.69 88.44 21.73 66.70 18.67 12.49 14.24 8.06 6.95 11.28 18.54 12.34 14.10 7.90 6.80 11.30 18.76 12.49 14.27 8.00 6.88 11.44 7.42 12.55 9.33 9.34 6.11 5.81 8.70 12.59 9.35 9.36 6.12 5.81 9.22 12.92 9.60 9.60 6.28 5.97 9.46 6.40 6.60 4.57 4.00 1.96 2.42 4.60 9.85 7.81 7.23 5.20 5.65 7.48 10.09 8.00 7.42 5.32 5.79 7.67 6.22 11.42 10.09 9.83 8.49 6.41 7.93 11.39 10.06 9.79 8.46 6.37 7.98 11.56 10.20 9.93 8.58 6.46 8.09 6.83 9.55 8.23 8.50 7.18 6.17 7.37 8.85 7.52 7.79 6.46 5.44 6.71 8.95 7.61 7.88 6.54 5.51 6.79 5.80 9.78 8.72 8.81 7.75 6.65 7.15 9.35 8.29 8.38 7.32 6.21 7.19 9.90 8.78 8.87 7.75 6.58 7.61 6.98 35.95 15.60 2.17 0.00 29.41 3.38 6.60 0.00 6.88 -536.00 -1275.99 34.78 27.62 0.69 0.00 12.72 3.04 5.92 0.00 15.23 1701.30 693.20 28.34 19.99 0.31 0.00 15.30 0.61 4.95 0.00 30.51 13023.10 4696.98 33.32 18.04 0.79 0.00 9.41 4.44 1.70 6.35 25.95 13800.30 4593.91 48.34 23.76 0.14 0.00 11.91 3.83 0.68 5.29 6.07 23691.20 11874.16 62.31 22.39 0.08 0.00 5.86 3.06 0.29 3.93 2.08 14674.50 23987.25

Source: CMIE.

18

Sterlite

Annexure VI

Distribution of Equity Holding by type of Investors

(% to total)
Dec 2007 Total Shares Promoters Indian Individuals & HUF Central & State Govt. Corporate Bodies FIs & Banks Others Foreign Individuals(NRIs) Corporate Bodies Institutions Others Persons acting in concert Non-promoters 21.54 21.82 20.72 24.54 26.92 28.13 56.98 56.98 56.98 56.98 56.98 57.44 56.98 56.98 56.98 56.98 56.98 57.44 4.7 4.7 4.7 3.62 3.98 3.72 100 62.47 5.49 0.79 Mar 2008 100 62.47 5.49 0.79 Jun 2008 100 62.47 5.49 0.79 Sep 2008 100 60.63 3.65 0.03 Dec 2008 100 60.99 4.01 0.03 Mar 2009 100 61.19 3.75 0.03

Institutions Mutual Funds/UTI Banks, FIs,Insurance Cos. Insurance Companies Financial Institutions & Banks Central & State Government FIIs Venture Capital Funds Foreign Venture Capital Others Non-institutions Corporate Bodies Individuals Nominal invest. Upto Rs. 1 lakh Nominal invest. Over Rs. 1 lakh Others Custodians

14.01 3.4 2.6 2.52 0.08 8.01

13.93 3.37 3.03 2.93 0.1 7.52

13.32 2.67 3.02 2.94 0.08 7.63

13.59 3.62 3.64 3.48 0.16 6.32

14.67 3.93 3.93 3.81 0.12 6.81

16.94 3.53 4.82 4.73 0.09 8.6

7.53 1.73 3.1 2.8 0.3 2.7 16

7.9 1.94 3.11 2.83 0.28 2.85 15.7

7.39 1.58 3.02 2.73 0.29 2.8 16.81

10.95 3.66 4.19 3.15 1.04 3.11 14.83

12.25 4.71 4.35 3.3 1.05 3.2 12.09

11.19 3.81 4.08 3.02 1.06 3.3 10.68

Source: CMIE.

19

Sterlite

Annexure VII

Sensex Vs. Sterlite

Date 21-Aug-09 14-Aug-09 7-Aug-09 31-Jul-09 24-Jul-09 17-Jul-09 10-Jul-09 3-Jul-09 26-Jun-09 19-Jun-09 12-Jun-09 5-Jun-09 29-May-09 22-May-09 15-May-09 8-May-09 30-Apr-09 24-Apr-09 17-Apr-09 9-Apr-09 2-Apr-09 27-Mar-09 20-Mar-09 13-Mar-09 6-Mar-09 27-Feb-09 20-Feb-09 13-Feb-09 6-Feb-09 30-Jan-09 23-Jan-09 16-Jan-09 9-Jan-09 2-Jan-09 26-Dec-08 19-Dec-08 12-Dec-08 5-Dec-08 28-Nov-08 21-Nov-08 14-Nov-08 7-Nov-08 31-Oct-08 24-Oct-08 17-Oct-08 10-Oct-08 3-Oct-08 26-Sep-08 19-Sep-08 12-Sep-08 5-Sep-08 29-Aug-08 Sterlite 628.65 662.35 628.85 644.95 652.95 587.65 575.7 629.4 612.05 606.7 718.1 672.2 622.7 507.95 459.95 491.95 409.05 397.85 388.4 395.85 372.2 373.95 315.65 283 250.05 245 248.4 275.5 264.75 276.2 239.45 260.2 273.1 274.95 249 280.7 292.85 245 236.95 218.75 227.2 246.15 282.2 208.65 272.25 274.25 395.75 447.2 467.6 487.1 587.8 627.2 Sensex 15,240.83 15,411.63 15,160.24 15,670.31 15,378.96 14,744.92 13,757.46 14,913.05 14,764.64 14,521.89 15,237.94 15,103.55 14,625.25 13,887.15 12,173.42 11,876.43 11,403.25 11,329.05 11,023.09 10,803.86 10,348.83 10,048.49 8,966.68 8,756.61 8,325.82 8,891.61 8,843.21 9,634.74 9,300.86 9,424.24 8,674.35 9,323.59 9,406.47 9,958.22 9,328.92 10,099.91 9,690.07 8,965.20 9,092.72 8,915.21 9,385.42 9,964.29 9,788.06 8,701.07 9,975.35 10,527.85 12,526.32 13,102.18 14,042.32 14,000.81 14,483.83 14,564.53

Source: CMIE.

20

Sterlite

References
1. 2. 3. 4. 5. 6. 7. 8. 9. www.sterlite-industries.com www.vedantaresources.com www.balcoindia.com www.hzlindia.com www.sterliteenergy.co.in www.vedantaaluminium.com www.cmt.co.au www.ibef.org www.design-technology.org

10. www.copperindia.org 11. www.moneycontrol.com 12. www.business-standard.com 13. www.mc-ir.com 14. www.infomine.com 15. www.myiris.com 16. www.indiainfoline.com 17. www.bseindia.com 18. www.nse-india.com 19. CMIE.

21