Finished steel production in India during fiscal 2007-08 was 55 million tons, higher by 5% over previous year. Currently, India ranks 5th in terms of crude steel production worldwide.

Apparent steel consumption in 2007-08 stood at 52 million tons, up by 11%. Consequently, exports of both flat and long steel products were lower in comparison to previous year.

Steel consumption is expected to grow by 8% annually during Eleventh Plan period from 2007 to 2012.

For the first quarter ended June 2008, finished steel demand growth in the country was a robust 10.5%, while production growth was at about 5% compared to same period last year. The demand for Hot Rolled Coils has grown by over 14% during the quarter.

The estimated growth in GDP by over 7% is likely to propel steel-demand. However, the current inflationary trends and concerns over prices of oil may marginally impact steel prices.

In 2007, world crude steel production was 1.344 billion tons, signifying a growth of approximately 8%. In the same year, apparent steel consumption was 1.208 billion tons, an increase of 7% over the previous year. Finished steel consumption in China was 408 million tons, up by 13% compared to the previous year.

In the year 2008, global steel consumption is projected to grow by nearly 7%. But the crude steel demand growth in Brazil, Russia, India and China (BRIC) nations is projected to be higher at 10%.

Additions to global crude steel capacity projected at 90 million tons during 2008.

As I stated earlier, the company’s strategic mission aims to ensure raw material security and enhance operational efficiency. For this, the Company has undertaken several key projects, as a part of the strategy mission.

First, a 1.0 million tons per annum Coke Oven plant, in joint venture, at Dolvi Steel Complex and a 2.0 million tons per annum Pellet Plant are being built. Second, we are increasing the capacity of the existing Hot Rolled Coils plant from 3.0 to 3.6 million tons per annum, with an additional Blast Furnace of the capacity of 1.25 million tons per annum to meet the metallic requirements.

Ispat is undertaking iron ore mining operations in Brazil, and coal mining operations in Columbia and Mozambique, through subsidiaries, in joint ventures.

In India, Ispat has been awarded prospecting iron ore leases in Damkodwadvi, Maharashtra and work has since commenced.

Highlights of the Company’s financial results for the year ended 31st March, 2008 were as under :-

This year, global steel demand is continuing to grow in all major economies. Ispat is developing its marketing strategies to continue to strengthen its presence in all mature markets. The Company has realigned marketing strategies to meet high-end speciality steel requirements. We are concentrating on value – added products and growth segments, both in domestic and overseas markets. Our ongoing thrust on various CRM initiatives will cater to the diverse market needs.

Ispat’s Corporate Governance philosophy is based on imbibing best practices for governance, which are dynamic. Our practices are driven by principles of fairness, accountability, transparency, ethics and responsibility. The Company has institutionalized best governance practices. The mandatory requirements of Clause 49 of Listing Agreements with Stock Exchanges have been duly implemented.

CSR initiatives are crucial to the Company’s growth. The Company seeks to improve socio-economic status of the community in which it operates. We are doing integrated interventions, such as the strengthening of infrastructure, community participation, ecological improvement etc. The Company actively seeks to promote a better sustainable society.

Ispat seeks to foster an environment – friendly ethos. We have a high level of commitment to protection of environment, ecology and climate - change issues. Our environment performance has been benchmarked to stringent norms of regulators.

Significant pollution control and environment management efforts have been undertaken at our plant locations.

Our Human Resources Plan is closely aligned with the Company’s Business Plan.

We have in place Human Resources processes, such as Talent Management, Organization Development and Retention Policy.

We have a well – structured Balance Score Card and Performance Management System to evaluate employee performance. Various schemes have been developed to recognize employee competencies and reward deserving performers. A Mentoring Scheme has also been implemented.
We encourage and facilitate our employees to undergo advance Management Programmes in well-known institutes. This year, we are proposing an Employees Stock Option Scheme.

I thank our lenders and investors for their assistance and support. I would like to place on record our appreciation to our employees for their unstinted efforts. My sincere thanks to you for your patient hearing and confidence reposed on us.