Automotive Sector: Re-Establishing India’s Manufacturing Prowess,

What it means for Secondary Metal Producers?

S D Chhabra

Vice President - Supply Chain

Maruti Suzuki India Ltd

27th Jan 2017

4th MRAI International Indian Metals Recycling Conference

EU ~1.6% China

~6.2%

Japan ~-0.1%

USA ~2.5%

India ~7.1%

• Fastest Growing Economy

Global Scenario : GDP Growth Rate

Indian Economy:- • High Growth Rate expected to continue • Huge potential for growth • Stable & Robust Macro-Economic Conditions

4th MRAI International Indian Metals Recycling Conference

Positives in India…

Inflation under

control..

Focused Initiative to

help improve

industry..

Make in India Inflation

Confident & Progressive Economic Outlook …..

Impetus to Infrastructure

Infrastructure

Revival of

Commodities

Commodities

4th MRAI International Indian Metals Recycling Conference

Indian Auto Industry

4th MRAI International Indian Metals Recycling Conference

2nd Largest Two Wheeler Manufacturer.

5th Largest Manufacturer of Passenger Vehicles 5th Largest Producer of Commercial Vehicles

Indian Auto Industry Accounts for 7.1% of India’s GDP

Source: IBEF

AMP 2026 envisages a

3 – 3.5x growth in volumes over

its tenure

Target ~3.5x to 4.0x

growth in revenues

In Mn Units

Automotive Mission Plan : Outlook

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1.29

1.43 1.52

FY-1415 FY-1516 FY-1617 (Est.)

Maruti Suzuki India Ltd: An Overview

Production Volume (Million)

MSIL, 47%

Others, 53%

Passenger Car Market Share

New Launches New Network Channels

NEXA

Commercial

Vehicle

Channel

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Mid Term Target: 2 Million Vehicles by 2020 - New Facility at SMG Gujarat

~

Regulations: Impact on Automotive

Fuel Efficiency Safety

Environment Regulations

Vehicle Scrapping

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Vehicle Life cycle

Rubber

Steel

Plastic

Recycled material

ELV

PURVIEW

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Govt.Vehicle Scrapping Policy : Boost for Recycling Industry

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Steel

Aluminum

Lead

What it means to Metal Industry

Aluminum Lead

Copper

Nickel

Zinc

Increase in Metal Consumption due to Increase in Automotive

Requirement

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Steel

Increasing Metal Usage: e.g. Aluminum

4th MRAI International Indian Metals Recycling Conference

Recycling Trends

In India, Recycling of Metals is currently very low and largely

unorganized. However, the increasing demand and policy

initiatives will be an opportunity for Secondary Metal Producers.

Recycling of Metals- Globally

Steel

Aluminum

Copper Nickel

Lead Primary Input 67%

Secondary Input

33%

Primary Input 65%

Secondary Input 35%

Primary Input 76%

Secondary Input 24%

Primary Input 60%

Secondary Input 40%

Primary Input 60%

Secondary Input 40%

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Conclusion

Indian Passenger Car Production is expected to Grow rapidly

Requirement of Metals like Steel, Aluminum, Copper, Lead will grow exponentially.

With the increased requirement of metals there will be

opportunity for Secondary Metal Producers.

Regulations related to mandatory scrapping of vehicles will promote the recycling industry.

However threats are emerging from the growth of electric vehicles and development of new generation plastics which are replacing Metals from Vehicles.

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Thank You