Announcement

Friday, May 21, 2010

WSD rankings of Indian steel makers as of January 2010

Factor Weight SAIL JSW Steel TATA Corus Essar RINL

Annual Shipments in Million tonnes 14 7 25 8 3

Size 0.06 5 4 7 4 3

Expanding capacity 0.06 10 10 9 10 10

Location in high-growth markets 0.06 10 10 7 9 10

Dominance in mature markets 0.04 1 1 5 3 1

Downstream businesses 0.04 6 4 6 4 4

M&A. Alliances and JVs 0.06 7 9 9 10 2

Harnessing tech revolution 0.06 7 8 7 7 5

Environment and safety 0.04 9 9 9 9 9

Country risk factor 0.06 7 7 9 7 7

"Pricing Power" with large buyers 0.06 8 5 8 6 6

Threat from nearby competitors 0.04 7 7 6 6 7

Conversion costs; yields 0.05 5 10 8 8 8

Cost-cutting efforts 0.04 10 7 6 6 6

Raw material costs 0.03 8 8 6 6 6

Iron ore mines 0.03 10 9 9 7 5

Coking coal mines 0.03 4 4 3 3 2

Location to procure raw materials 0.03 9 8 8 7 6

Labor costs 0.04 9 10 7 8 10

Skilled and productive workers 0.03 6 9 8 7 6

Liabilities for retired workers 0.03 9 9 7 9 9

Energy costs 0.04 6 7 6 6 6

Profitability (2009) 0.04 8 5 5 4 8

Balance sheet 0.03 10 5 6 5 9

Average Score 7.43 7.17 7 6.57 6.3

Ranking 4 7 10 10 27

Weighted Average Score 7.41 7.24 7.17 6.74 6.31

Ranking 2 7 10 20 30



All companies included in this list, in WSD's opinion, are positioned to be winning performers in the future.

The purpose of the rankings are to better understand the companies' attributes rather than to imply that one company is better or more worthy than another.

The rankings reward pro active management, size, and integration from raw materials to downstream businesses. The ranking system is subjective and duplicative.

World Class non Chinese companies represent about 50% of non Chinese deliveries. World Class Chinese companies represent about 23% of Chinese deliveries.

(Sourced from World Steel Dynamics)

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