APL Apollo Tubes

Investor Concal

Hi. Good evening. Thank you for the opportunity. Congratulations on
consistently meeting the stated targets and good to see how they will play out as well. First question,
Sanjay ji was more on the competitive landscape. We hear from certain regional channels that Tata
Structural and JSW Steel both have ramped up their capacity in structural tubes and JSW Steel has
actually started manufacturing that. Few regional players also we hear are picking up quite a decent
amount of volumes on a monthly basis. I just wanted to hear your thoughts because what is happening
is, there is a lot of competition now building up for APL Apollo which was absent for many years and we
had a very clear runway of growth. Just your thoughts on, you know, is it really real and what do you
expect going into next two to three years?

What are the thoughts of Forum members in this regard.
Management reply was defensive and elusive

Mr. Sanjay Gupta (00:11:13): Thank you, Rahul. Rahul, I also hear and read in the presentation of Tata
Steel, right now they have a capacity of 1 million tonne and they want to go to 4 million tonnes by 2030.
But I have no plans in which sector Tata is going to or want to go for 4 million tonne in the next six,
seven years. If we go for 4 million tonne, right now it is in the structure to buy 2 million tonne. If we
calculate, so he has the capacity for structural tube of 1 million tonne or 1.5 million tonne, this is not a
big threat for us as well as Tata is a responsible player in the market. He never destroyed the market so
we are not worried about the Tata Steel. JSW just taken a plant called Bhushan Power in Orissa. They
have a little bit of capacity of tube in the parental plant. Still we have no such as information from the
market towards their planning in that commercial. In JSW, we have no worry so when they are helping
JSW or Tata Steel also, they are healthy players. They is not worry if anyone comes I don’t worry about it that as they are not a market destroyer, if they increase a little bit of capacity my cost is in control, my
everything is in control, I have a good value addition product with me. I have good branding in the
market, I have a good social network, I am not worried at all. Market is also growing very fastly in the
two business. What we are saying is that there is a good lot of work, maybe all can survive it is not a big
issue for us, but time to time, there is a healthy concern, we will learn from it and take the collective
action and go forward. I don’t see today any big threat.