COMPANY PROFILE Sterlite industries Sterlite Industries India Limited (SIIL) is the principal subsidiary of Vedanta Resources Plc,

a diversified and integrated FTSE 100 metals and mining company, with principal operations in India and Australia. Sterlite is Indias largest metals and mining company and is the one of the fastest growing private sector companies. Sterlite is listed in BSE, NSE, and NYSE. It was the first Indian metals and mining company to be listed on the NYSE. As the largest metals and mining group in India, Sterlite remains continually committed to managing its business in a socially responsible manner.

Vision 2015: To be the worlds leading copper producer delivering sustainable value to all stakeholders by leveraging technology and best practices. Mission To harness technology to its full potential in a safe and clean environment in the entire business cycle and integrate quality with continuous improvements To harness the profitable and growing CCR market from 125 KMT to 300 KMT per annum To achieve and sustain cost leadership in the global market

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The following are some of the highlights of sterlite industries: Indias first custom based copper smelter $2b+annual revenue 1200 strong workforce Sterlite is the only Indian manufacturing company to list on NYSE Largest contributor to the exchequer of Tamil Nadu Single largest user of Tuticorin Port

ISO 9001,14001 and 18001certified company First company in South India to have Secure Land fill (SLF) for solid waste disposal.

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MANAGEMENT The significant employees for the company are as follows: NAME Mr. Anil Agarwal Mr. Navin Agarwal Mr. D D Jalan Mr. BerjisMinoo Desai POSITION Non-Executive Chairman Executive Vice -Chairman Whole Time Director

Non-Executive Director Non-Executive Director Non-Executive Director

Mr. Gautam Bhailal Doshi Mr. Sandeep H. Junnarkar

Competitive strengths of Sterlite industries: High quality assets and resources making Sterlite a low-cost producer in copper: Ideally positioned to capitalize Indias growth and resource potential: Experience for entry into commercial power generation projects: Experienced and focused management with strong project execution and acquisition skills Ability and capacity to finance world class products.

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Copper business of sterlite: As a custom smelter sterlite buys copper concentrate at LME (London Metal Exchange) linked prices and sells the refined copper at the LME linked prices in the domestic and export markets. The TcRc cost is affected by global concentrate demand, supply of copper and refining capacity, LME trend and LME linked price participation and other factors. Sterlite acquires its copper concentrate from global suppliers and its mine in Australia. Sterlite have a very high efficiency and lower unit cost which includes reducing the power cost and construction of the captive power plant in Tuticorin. Mining Sterlite Industries (India) Ltd. (SIIL) operates one copper mine in Australia through its subsidiary. Copper Mines of Tasmania operates the Mount Lyell Mine in Western Tasmania, Australia. This is an underground mine and it has an ore resource of approximately 14.2 million tons of ore at an average grade of 1.3% Copper. The life of the mine is approximately 4 years at the current operating rate. Smelting Copper concentrates from Sterlite Industries (India) Ltd. (SIIL)s copper mine is blended with bought out concentrates from other sources and treated to get optimum results. The Smelter is based on a proven energy efficient and environment friendly technology, viz. Isa Process from MIM, Australia, and world leaders in Copper smelting technology.

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The ISA furnace is a vertical shaft type furnace completely lined with refractory into which wet copper is charged along with quartz and limestone into the molten bath. As a result of the chemical reactions that take place in the bath, the Copper Concentrate gets converted into two products-Matte, a mixture of sulphide (containing copper and iron), and Slag. Matte is taken to the Rotary Holding furnace where the slag separates out due to differential density. The Copper Matte is converted into Blister Copper in the Pierce Smith Converter in two stages

In the first stage, called Slag Blow, most of the iron and a small quantity of sulphur are oxidized and removed. In the second stage, called Copper Blow, sulphur is removed to get Blister Copper. Converter Slag is treated in a Slag cleaning furnace for recovery of copper. Blister Copper is further refined by oxidation and then by reduction to approximately 99.7% copper purity in the Anode Furnace, and cast as Copper Anodes. Gases produced at various stages are fully recovered and converted into Sulphuric Acid. Latest Version of CS 3000 Distributed Control System of Yokogawa, Japan controls the entire Copper Smelter. Advance Process Control (APC) implementation methodology involves data collection, approximate candidate controller design, prototype controller design, simulation, testing, and final implementation. APC is implemented to control critical factors like Bath temperature and Lance height control.

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Sulphuric Acid Plant The sulphur dioxide gases generated in the smelting process is collected and ducted to the Sulphuric Acid Plant. Set up with basic engineering from Kvaerner Chemetics, Canada, the plant is based on the absorption process known as DCDA, and has a designed capacity to produce 1600 tons of sulphuric acid per day.

Phosphoric Acid Plant Sulphuric acid is reacted with rock phosphate in the Phosphoric Acid Plant to produce phosphoric acid. Technology and basic engineering for this plant has been sourced from Hydro Agri International, UK, and the process used is known as Hemi-hydrate Di Hydrate Process. The plant has an installed capacity to produce 180,000 tons of Phosphoric Acid per annum.

Refining The anode produced by the smelters is processed in the Silvassa and Tuticorin refineries using Isa Process technology sourced from MIM, Australia. The Refineries convert Copper anodes to electrolytic grade Copper cathodes of 99.99% purity. The unique feature of ISA refineries is the use of permanent stainless steel cathode plates and its capacity to ensure consistently high operational efficiency and product quality. Electrolysis process deposits pure copper (99.99%) on the stainless steel cathode plates. The impurities and precious metals contained in anodes settle down as anode slimes. Cathodes are then automatically washed, stripped and packed. The material handling equipment is sourced from Wenmec. Continuous monitoring and analysis of refining process
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through an advanced DCS system ensures close process control. A well-equipped laboratory to test the cathodes for purity and structure of the deposit backs the production facility. A state-of-the-art electrolyte purification plant supplied by Ecotech helps in keeping electrolyte clean and within close limits to get superior quality product and to ensure high operational efficiencies.

An acid purification plant contributes to the purification of the electrolyte, significantly enhancing the quality of the cathodes.

Precious Metals Recovery During the electro-refining process, precious metals like gold, silver and platinum present in the anode settle down at the bottom of the cells along with other impurities. This collection is known as anode slime and it is subjected to atmospheric leaching for recovery of copper -- filtered, dried and bagged. The leached slime is exported for recovery of precious metals.

Continuous Cast Rod (CCR) Sterlite Industries is one of two custom smelters in India and set up two continuous cast copper rods units. The Continuous Cast Copper Rod (CCR) Plants are based on technology and equipment from Continuous Properzi, Italy. The plants have total annual capacity of 240,000 tones.

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Cathodes are melted in a vertical shaft furnace based on technology from ASARCO, USA. The molten copper is transferred to the casting Wheel through a holding Furnace. Highly accurate measurement and control systems, intrinsic to the Properzi technology, are used to maintain optimum level of molten metal, which is cast into the form of a continuous bar. The continuously cast copper bar is fed into the rolling mill consisting of a unique combination of 2-roll and 3-roll configuration designed to produce excellent quality of rods in different sizes. Online pickling, drying and waxing ensure that the rod is free of oxide scales.

Online scanning with the highly sensitive Defect mat, sourced from Dr Foster, Germany enables freedom from surface defects and ferrous contamination. The process parameter data, online scanning data and results of a battery of off-line tests are captured and processed in the central computer to monitor and control the final quality of the rods. Extensive process control, backed by computerized quality analysis make Sterlite CC Rods highly suitable for Telecom, magnet wire, Transformer, housing wire and cable applications.

Copper rod is coiled in an Orbital laying form to ensure freedom from entanglement while uncoiling by the customers. Each coil is compacted, strapped and wrapped with polyethylene wraps, and stretch-wrapped to prevent contamination with dust and ensure excellent arrival condition at the customers end.

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Principal products: Copper cathode Copper Rods

BY PRODUCTS: Sulphuric Acid Phosphoric Acid Other By-products: Other by-products of the copper smelting operations are gypsum and anode slimes and copper slime which are sold to third parties.

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WORK FLOW OF EXPORTS AND IMPORTS

EXPOR TS

FF

CHA

LINER

IMPORT

LINER AGENT

SHIPPM ENT

CFS

This is the basic out flow of exports and imports. Everything begins either from exporter or from importer. Freight forwarders and clearing house agents does the formalities for importers and exporters. This service is at the option of the importer and exporter. They may go for the third party or they do their all formalities by themselves. Seeking the liner service is such an essential one. This plays the major role in price. Each liner cost different according to their services. For example the liner which is costlier can reach the goods at the destination faster than the other liner services where as the cheaper one reaches the destination port may be delayed. Container freight station is the place where the containers are checked by he authorized authority for the goods to be exported or imported. Unless the goods are verified they cannot be exported. When container is done house stuffing, it must be verified by the central excise officer at the stuffing point when it is loaded. Once the container are verified and approved to export, it can be shipped. When the goods reach the destination port, the liner agent surrenders the goods to the buyer/importer after getting the required documents from him. Payment is made as per the terms agreed by the importer and exporter.

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EXPORTS PROCEDURE:Here the exporter is sterlite. According to their procedure first marketing order to be released by the marketing head mention when, where and how much commodity to be exported. Logistics department act according to that and they seek for the best price which suits them. They contact their third parties either CHA or the liner for the goods to be exported. Once the agreement is mutually satisfied, contract is done with that liner and booking order is released from the liner. The things to be considered while seeking the vessels are I. II. III. IV. AGE OF THE VESSEL. DRAFT OF THE VESSEL. COST. ETA.

When these things satisfy the exporter they go with the liner. Once the liner has given the booking order, the exporter can take the container from the container yard to his loading point. Container number and reference will be given along the booking order. Goods can be done house stuffing or it can be done at container freight station. When goods are done house stuffing, it must be verified and approved by the central excise officer that those goods can be exported. These containers are taken to CFS. The container will be sealed by the custom officer after checking the required documents (requirements are mentioned under CHA).

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EXPORT PROCEDURE AT STERLITE.

MARKETING OREDR

BOOKING LINER

BOOKING RELEASE

CONTAINER YARD

LOADING OF CARGO

VERIFICATION

SEALING
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CONTAINER SENT TO CFS

Requirements for exports. Import Export code (IE Code) Authorized by Bank (AD) DD ACC PAN
These are the few requirements which the exporter must have in order to export the commodity.

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FREIGHT FORWARDERS:Freight forwarders are those who do freight service for the exporter and collects the payment on agreed time. Their main job is to seek for the comparative vessel which provides good service and less costly. They act as middle person between the liner and the exporter. The goods are to the liner in freight forwarders name and the bill of lading which is prepared by the liner is made in the name of freight forwarders. Freight forwarders prepares bill of lading on their for different consumers and surrenders the main bill of lading to the liner agent mentioning that the bill of lading is prepared in their name and distributed to the consignees. TERMS & CONDITION ON B/L: Freight Prepaid. Freight Collected. Receipt for shipment before sailing (RFS). Ship on board.

Freight Prepaid:When freight prepaid is mentioned in the bill of lading freight is collected from the exporter before the goods are delivered to the importer. In short, the freight charges are collected after the goods have reached the importer.

Freight collected:Freight collected is a term used to indicate that the freight charged for the service has been collected from the exporter. These terms are used in bill of lading to avoid the collision of who is paying the amount or who has been paid the amount.

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Receipt for Shipment before sailing:This is issued before the goods are actually loaded in the ship. It is entitlement that these goods are to be loaded in the vessel.

Ship on board:After the containers are loaded in the vessel this term will be used in the bill of lading. In short bill of lading is issued after the goods have been loaded in the ship.

Why freight forwarders are preferred: Freight forwarders offers best price for the exporter. They pay freight charges instead of the exporter and collect it after agreed time. They have various liners contact.

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SEEKING FOR A VESSEL

BOOKING VESSEL WITH LINER AGENT

PREPARA TION OF B/L ON LINERS NAME

SURREND ERING OF B/L TO LINER.

PREPAR ATION OF OWN B/L

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COLLECTI NG FREIGHTC HARGES FROM SHIPPER

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CUSTOM HOUSE AGENT:-

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RECEIVING INVOICE:CHAs work begins when the invoice is received from the exporter. The invoice contains goods description and all the details of it in it. These detail are help full to compute drawbacks calculation for the commodity.

ENTERING IN CUSTOMS AUTHORIZED SOFTWARE:ROYAL IMPEX is the authorized custom software for the Thoothukudi. This software is helpful to compute draw backs. Draw backs is the amount which is paid by the government to the exporter on total of goods exported. It is computed on certain percentage for example 7.5% draw backs is given for the commodity which has 65% of cotton and 35% of rayon fabrics. Details required: IE code. AD. Quantity. Price. Commodity code. Mode of charges.

When all the required things are done and entered, the work must be uploaded via software. This is done to get approval from Delhi. The officials checks calculation made when they feel the amount is correct they issue Shipping Bill number. This can be checked through www.icegate.in. This website shows whether the wok uploaded is approved or denied. This web site can be logged only if it is registered.

Submitting the required documents to the customs: Check list. Invoice. Packing list. Annexure A. SDF form. Draw back declaration (Filed).
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These are the documents which are to be submitted to the customs for getting approval for the exports. Custom authority verifies it with the Shipping Bill number via online and gives the approval.

If there is a problem with drawbacks declaration, custom officers asks BL Manifest of vessels. Insurance copy.

Goods brought to CFS for stuffing. It is checked before stuffing into the container. Once the container is stuffed with the goods it is sealed by the custom officer. The container is kept ready to export.

EIR (Export Interchange Receipt):Goods can be brought into the port only when there is EIR form with it. It is acknowledgement that these goods can be brought into the port and can be loaded in the concerned vessel. It is legally approved by the government. Goods are taken into the port according to the EIR number. The liner does not approve all the goods into the vessel. It accepts the goods which can be actually loaded into it. Remaining goods are not loaded into the port. Mostly EIR is not issued to those goods. Its kind of first come, first serve basis. Liner gives booking order than the required amount. This is done to avoid the loss faced by the liner. The remaining containers are left out at the port i.e. Stock Out. EIR is an important document for taking the goods into the port and also to load in the vessel.

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IMPORT PROCEDURES:-

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BUSINESS PLANNING:Analyzing and forecasting the demand for production.

VESSEL NOMINATING:Conditions to be fulfilled (THOOTHUKUDI PORT). DRAFT-10.7M LOA-190 AGE OF VESSEL-15 YRS. HATCH DIMENSION. CRANE HANDLING CAPACITY.

PRE SHIPMENT: VESSEL TRACKING. INTIMATING FINANCE DEPT, PRODUCTION DEPT, LOGISTICS AND CUSTOMERS. B/L & LOI. DELIVERY ORDER FROM VESSEL (DOCUMENTATION PURPOSE ONLY). FILING OF IGM AND IMPORT APPLICATION (IA). PROVISIONAL DOCUMENTS FOR FILING BILL OF ENTRY: INVOICE. CERTIFICATE OF ASSAY. CERTIFICATE OF PAYMENT. INSURANCE COPY.
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 POST SHIPMENT:

CERTIFICATE OF ORIGIN. VESSEL BERTHING. ORIGINAL DO. CUSTOM CARGO EXAMINATION. UNLOADING & DELIVERY OPERATION.

DELIVERY. SOF. NOR. LAYTIME CALCULATION. PAYMENT BASED ON LOAD PORT.

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