Welspun Group | Welspun Corp Ltd

WCL - Investor Presentation World’s 2nd Largest Pipe Manufacturer

Welspun Group | Welspun Corp Ltd

February 2013

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Welspun Group | Welspun Corp Ltd

On The Path of Global Leadership…

WELSPUN CITY, ANJAR

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Welspun Group | Welspun Corp Ltd

278 318

232

107

-

100

200

300

400

500

FY 10 FY 11 FY 12 9M FY13

1,548 1,762 1,872

1,368

-

500

1,000

1,500

2,000

FY 10 FY 11 FY 12 9M FY13

Promoter37.96%

Mutual Funds0.25%

FII17.31%

Public, Banks, Financial Institutions

and others44.48%

WCL – An Introduction

• Flagship company of Welspun Group - one of the largest pipe manufacturing companies in the world; declared 2nd biggest large

diameter pipe company by FT in 2007

• International footprint with manufacturing and marketing facilities

worldwide offering a One-Stop-Solution for all line pipe requirements

• Partner of Choice for more than 50 Oil & Gas Giants across the globe;

geographically diverse client base including Chevron, Exxon Mobil, Saudi Aramco, British Gas , Kinder Morgan etc

• Accredited with ISO 9001, ISO 14001 and OHSAS 18001 certifications

• Strong order book of 1.1 million MT ~ US$ 1.4 billion

(US$ million)

Consolidated Total Revenues

Summary Market Statistics

As of February 15,

2013 INR Mn US$ Mn

Share Price 90.45 1.68

Market Capitalization * 23,787 442

Enterprise Value ** 59,516 1,106

Shareholding Pattern as on December 31, 2012

*Total # shares outstanding: 262.98 million including 35.04 million of CCD’s due for conversion in February 2013

**Net Debt at INR 35,729 million as on December 31, 2012

Exchange Rate

(US$ million)

Operational EBITDA

3

FY 10 FY 11 FY 12 9M FY13 Feb 15th, 2013

INR/US$ 47.47 45.53 47.95 54.54 53.81

Welspun Group | Welspun Corp Ltd

The Growth Story

Merger of coating J.V. with WCL

New Capacity at Anjar, Gujarat for HSAW & Coating

Incorporated

350,000 tons US Spiral Mill commissioned

Approvals from O&G majors for new facility

Anjar Facility , A Key Contributor

Embarked on a Growth Journey

HSAW, Dahej, Gujarat

LSAW, Dahej, Gujarat

Pipe Coating in JV with EUPEC, Germany

Dahej, Gujarat

Growth

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2006

2005

2004

2001

2000

1998

1995

$ 5 mn.

$ 14 mn.

$ 56 mn.

$ 180 mn.

$ 231 mn.

$ 413 mn.

2007 $ 593 mn.

$ 991 mn. 2008

$ 1,250 mn. 2009

$ 1,548 mn. 2010

2011 $ 1,762 mn.

Revenue

150,000 tons Spiral Mill commissioned

- 350,000 tons LSAW capacity in Anjar commissioned

- Initiated Mandya Plant Capacity Expansion to 150,000 MT

- Initiative of Setting up new ERW Plant 175,000 tons in US

2012 $ 1,872 mn.

Saudi Plant - capacity of 300,000 MTPA operational

100,000 MTPA HSAW Plant at Mandya operational

9M 2013 $ 1,368 mn. - ERW Plant construction in US completed. Secured maiden

orders

- Mandya plant expansion completed

* Annualized on basis of 9M FY13 Revenue

Anjar capacity expansion of 350,000 tons and HSAW capacity

of 100,000 tons in Mandya initiated

Recognized 2nd largest pipe producer in the world by Financial Times, UK

Welspun Group | Welspun Corp Ltd

PIPES

LSAW

- Anjar (India)

- Dahej (India)

HSAW

- Anjar (India)

- Dahej (India)

- Mandya (India)

- Dammam (Saudi Arabia)

- Little Rock, Arkansas (US)

ERW

- Anjar (India)

- Little Rock, Arkansas (US)

Coating

- Anjar (India)

- Little Rock, AK (US)

- Dammam (Saudi Arabia)

PLATES

- Anjar (India)

WCL – An Introduction; Pipes & Plates

5

700

1,350

375

2,425

1,500

0

500

1,000

1,500

2,000

2,500

3,000

LSAW HSAW ERW Total Pipes Plates

Manufacturing Capacities in K MT

Welspun Group | Welspun Corp Ltd

LSAW Pipes – Dahej & Anjar ERW Pipes - Anjar

HSAW Pipes – Anjar,Dahej & Mandya Pipe Coating – Anjar, US and Dammam

Global Manufacturing Capacities & Products

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Welspun Group | Welspun Corp Ltd

Plates - Anjar HSAW pipes – Little Rock US

Skilled Workforce across all locations

Global Manufacturing Capacities

HSAW pipes – Dammam, Saudi

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Welspun Group | Welspun Corp Ltd

71% 66% 70% 72%

29% 34% 30% 28%

0%

20%

40%

60%

80%

100%

FY10 FY11 FY12 9M FY13

ROW India

Robust Business Fundamentals Strongly Positioned

Consistent Export Revenue

• Strong presence in 2 of the bigger Oil & Gas markets – North America and Middle

East; well positioned to take advantage of higher realization margins in Latin

American markets.

• WCL marquee clients - Exxon Mobil, Kinder Morgan, TCPL and GAIL

• Long term contract - TransCanada & Statoil, Framework Agreement - Chevron

*

Consistent Production & Sales

‘000 MT

Pipe Orders Booked Pipe Orders Executed Closing Pipe Orders

Year MT (in '000 tons) MT (in '000 tons) MT (in '000 tons)

FY 2008-09 807 695 781

FY 2009-10 824 814 791

FY 2010-11 844 909 726

FY 2011-12 1,163 835 1,029

9M FY 2012-13 697 655 1,072

*Current Order book (1,072K MT of pipes and 49K MT of external plates)

stands at US$ 1.1 billion

ROW82%

India18%

*Current Pipe Order Book – Geographical Distribution by Volume

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0

200

400

600

800

1000

FY 10 FY 11 FY 12 9M FY13

814

958

819

656

816909

835

655

Total Pipe Production Total Pipe Sales

Welspun Group | Welspun Corp Ltd

What Sets WCL Apart From Competition

• Decade Long Experience

• One stop solution

• High Capacity Equipment to Meet Future Demand

• Proven execution and strong management experience

World’s largest diameter steel pipe producers(1)

2007 output (million tonnes)

Salzgitter/Europipe* (Germany) 1.3

Welspun (India) 1.0

JFE (Japan) 0.7

Sumitomo (Japan) 0.7

Evraz** (Russia) 0.6

Nippon Steel (Japan) 0.6

Riva (Italy) 0.6

PSL (India) 0.5

JSW (India) 0.3

ArcelorMittal (Luxembourg) 0.2

Stupp (US) 0.1

Tata/Corus (India/UK/Netherlands) 0.1

Others*** 7.3

WCL was rated 2nd largest Pipe Company in 2007 and has since reached capacity of 2.25 MTPA

• Features - Selected few companies considered for supplies that meet stringent process of qualification

- Typically customers with large requirement over a period of time

- Flexibility in pricing terms and continuous business

• Current Framework Agreements - Chevron

Framework Agreements

Global Market Expansion

Canada

US (Trader Mkt.)

US (Projects)

Mexico

Venezuela

Columbia

Spain

Algeria

Egypt

Sudan

Qatar

Oman

Saudi Arabia

Indonesia

Malaysia

Bangladesh

Iraq

China

Russia

Canada

US (Trader Mkt.)

US (Projects)

Mexico

Venezuela

Peru

Columbia

Spain

Algeria

Egypt

Sudan

Qatar

Oman

Saudi Arabia

Malaysia

Bangladesh

Iraq

China

Russia

Note

1. As reported by Financial Times on April 13, 2008

Bolivia

Thailand

Kuwait

Global Expansion

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Welspun Group | Welspun Corp Ltd

Canada

USA

Mexico Bahamas

Trinidad & Tobago

Venezuela

Colombia

Peru

Bolivia

Spain

Czech Rep. Russia

China

India Bangladesh

Malaysia

Indonesia

Thailand

Iraq Qatar

UAE Saudi Oman

Sudan

Egypt Algeria

Nigeria

Welspun’s Worldwide Reach

Plants

Mktg Office

Countries served

Plant Locations

Anjar, India

Dahej, India

Mandya, India

Little Rock, USA

Dammam, Saudi

Marketing Offices

Mumbai, India

Delhi , India

Houston, USA

Dammam, Saudi Arabia

Dubai, UAE

Source: Welspun Corp Ltd.

AMERICAS

MENA

SOUTH

EAST ASIA

AUSTRALIA

EUROPE & CIS

DOMESTIC

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Welspun Group | Welspun Corp Ltd

AGIP, Jordan NTPC, India

Al WASIT, UAE ONGC, India

BECHTEL, US PETRO CHINA

BRITISH GAS PETRONAS, Malaysia

BRITISH PETROLEUM PDO, Oman

CHINA NATIONAL PETROLEUM CORPORATION PGN, Indonesia

CPMEC, China QATAR PETROLEUM

CHEVRON, US (Framework Agreement) RELIANCE INDUSTRIES LIMITED, India

DOW, US SAIPEM, Italy

ELPASO, US SAUDI ARAMCO

EGYPTIAN GENERAL PETROLEUM CORPORATION SHELL, US

ENTERPRISE, US STOLT OFFSHORE – Acergy, UK

EXXON-MOBIL (GOLDEN PASS PIPELINE), US SONATRACH, Algeria

GROUP FIVE , Saudi Arabia TOTAL, France

GAIL, India TECHNIP, France

GASCO, UAE TRANSCANADA (Long Term Contract)

GASCO, Egypt UNOCAL, US

GAZPROM, Russia (STROYTRANSGAZ) PERU LNG, US (HUNT OIL)

KINDER MORGAN, US VIETSOPETRO, Russia/Vietnam

N.A.O.C. - Nigeria SWCC, India

NPCC, UAE

Relationship with Oil & Gas Majors

3 - 5 years

Setting up plant

1-2 years

Seeking API

approval

1 year

Approval from major domestic / international

oil and gas companies

2 – 3 years

Accreditation Process

A significant entry barrier

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Welspun Group | Welspun Corp Ltd

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Consolidated Financial Snapshot

INR million

Particulars FY11 FY12 9M FY13

NET WORTH 33,735 49,139 48,914

Gross Debt 38,067 53,407 60,374

Cash & Liquid Investments 21,875 29,686 24,644

NET DEBT 16,192 23,721 35,729

Net Fixed Assets 41,731 67,322 66,747

Net Current Assets 5,793 5,305 12,113

Balance Sheet Extract

Profitability Extract INR million

Particulars FY10 FY11 FY12 9M FY13

Revenue 73,637 80,221 89,766 74,622

Reported EBITDA 13,372 13,784 11,247 6,379

Operational EBITDA 13,186 14,461 11,120 5,855

Cash PAT 9,055 9,699 6,192 2,171

Note: 9M FY13 EBITDA is impacted by foreign exchange provision of Rs. 1,589 million

Ratios

* 9M FY13 EBITDA Annualized

Particulars FY11 FY12 9M FY13

Fixed Asset Coverage 1.24 1.48 1.20

Net Debt / EBITDA* 1.12 2.13 4.58

Net Debt / Net Worth 0.48 0.48 0.73

Welspun Group | Welspun Corp Ltd

Consolidated Financial Snapshot

Balance Sheet Extract US$ Million

Profitability Extract US$ Million

Note: 9M FY13 EBITDA is impacted by foreign exchange provision of $29.13 million

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Exchange Rates

Year FY10 FY11 FY12 9M FY13

Avg. INR/US$ 47.47 45.53 47.95 54.54

Period Ending INR/US$ 44.9 44.60 50.87 54.99

Particulars FY10 FY11 FY12 9M FY13

Revenue 1,551 1,762 1,872 1,368

Reported EBITDA 282 303 235 117

Operational EBITDA 278 318 232 107

Cash PAT 191 213 129 40

Particulars FY11 FY12 9M FY13

Net Worth 756 966 890

Gross Debt 854 1,050 1,098

Cash & Cash Equivalents 490 584 448

Net Debt 363 466 650

Net Fixed Assets 936 1,323 1,214

Net Current Assets 130 104 220

Welspun Group | Welspun Corp Ltd

Q3 FY13 Highlights

Production and Sales Volume Status of Projects

• Construction of ERW Plant in US completed

• Trial runs in progress

• Received API certification

• Maiden orders booked

Key Snapshot

• Revenue Growth at 38% QoQ

• Adjusted Cash PAT up 73% QoQ

• 1.1 million MT outstanding pipe order book

• Sales volume at 295KT in Q3FY13 – highest

quarterly figure in Company history

Volume (in KMT) Q3 FY13 Q3 FY12

Production Pipes 258 207

Plates & Coils 98 154

Sales Pipes 295 202

Plates & Coils* 105 139

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*Includes internal Sales

Particulars Q3 FY13 Q3 FY12 Q2 FY13

Sales 28,519 24,671 20,606

Reported EBITDA 1,840 1,585 2,171

EBITDA (Adjusted)# 2,518 3,408 1,432

Finance Cost 1,386 1,245 1,130

Depreciation/ Amortization 1,136 984 1,030

PAT (Adjusted)# (348) 531 (508)

Cash PAT (Adjusted)# 866 1,116 500

Consolidated Highlights In INR Mn

#Total foreign exchange provision of Rs. 678 million was booked in Q3 FY13 and

Rs. 1,589 million for 9M FY13

Welspun Group | Welspun Corp Ltd

• Low pipeline penetration provides huge potential

• PNGRB

- Awarded Rs. 8.5 bn J&K project to GSP consortium,

- Approved 1,104 km Kochi – Koottand – Bangalore- Mangalore

in 2012.

• City Gas Distribution – 200 Cities by 2015

• Liquefied Natural Gas (LNG) terminals – 18.6 MTPA

• Water Infrastructure projects under the 12th Plan and JNNURM

Proposed pipeline of GAIL

Phase I (Under Execution)

Name of Pipeline Length (Kms)

Cost (Rs Cr)

Add. Cap (MMSCMD)

DVPL Ph -II / Vijaypur Dadri 1,109 10,764 80

Dadri - Bawana - Nangal 594 2,358 31

Chainsa - Jhajjhar - Hissar 349 1,315 35

Sub Total 2,052 14,437 146

Phase II (Approved in 2009)

Name of Pipeline Length (Kms)

Cost (Rs Cr)

Add. Cap (MMSCMD)

Jagdishpur - Haldia 2,050 7,596 32

Dabhol - Bangalore 1,414 4,994 16

Kochi - Mangalore - Bangalore 1,126 3,263 16

Sub Total 4,590 15,853 64

Grand Total 6,642 30,290 210

Company Total Length

(kms) Quantity (KMT)

(1)

Business Potential

(US$ Bn)(2)

GAIL* 6,642 1,328 1.6

RGTIL 2,628 526 0.6

IOCL 4,366 874 1.0

Total 13,636 2,728 3.2

Investment Rationale - Strong Industry Outlook Share of Expected Demand 2012 - 2017

Welspun is well placed, with global clients and state-of-the-art technology, to capitalize on this opportunity

Source GAIL India Investor Presentation , May 2012

Source: www.simdex.com August 2012 data update

Source: Simdex and Industry Sources

1. Conversion rate of 200 tons/ km 2. As illustrated in the adjoining tables

Domestic Market Size

Source: *GAIL India Ltd Presentation May 2012

Source: Basic Stats Report – www.petroleum.nic.in

Source: www.simdex.com Aug 2012 data update

Relatively Few Major Players

• Highly capital intensive industry with high barriers to entry

• Niche markets effectively captured by Welspun

• Reliability and reputation for excellence are paramount

• Brighter Prospects for the industry with oil prices at sustainable levels

Global Demand

• Business potential : US$ 489 bn (Source Simdex )

• Shale Gas in US: 13.6 trn cu ft by 2035 from 5.0 trn cu ft in

2010 (source : EIA Energy Outlook 2012)

• Replacement of the old pipelines in US

• US oil boom and Alaska Pipeline project expected to

significantly boost demand

Domestic Demand

International Demand Outlook 2012 –

2017 (Future Pipeline Projects)

Region Projects

Total Length

(kms) Quantity

(MMT)

Business Potential

(US$ Bn)(1)

North America 221 68,187 14 80

Latin America 55 33,500 7 52

Europe 187 60,915 12 116

Africa 59 24,349 5 31

Middle East 125 38,912 8 63

Asia 115 63,791 13 116

Australasia 75 17,978 3 31

Total 837 307,632 62 489

North America

23%Latin

America11%Europe

19%

Africa8%

Middle East13%

Asia21%

Australasia5%

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Welspun Group | Welspun Corp Ltd

Investment Rationale – Robust company fundamentals

• Outlook for the pipe business remains positive amidst challenges in the global economy.

• Continued new pipe orders both locally and internationally during such challenging times on the back of its strong customer

reach and proven execution track record.

• Key demand markets continue to be North America, Middle East and India; potential for other markets in Latin America,

Africa and Asia driven by strong growth in energy and oil demand.

• With tremendous development activities in US leading to it becoming self reliant on energy in the next few years, countries

like Canada which have been dominant supplier of Oil and Gas to US are exploring export of their products to the Asian

countries. This would lead to higher pipe demand

• Key differentiating factor going forward - Ability to offer a portfolio of high quality products to

customers.

• Confident of positive growth through higher utilization levels across manufacturing capacities.

• Saudi and US plants booked till November 2013.

• Strong customer relationship enables repeat orders from key customers.

• Offering complete solution for any Line Pipe requirements making WCL the One-Stop-Solution

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Welspun Group | Welspun Corp Ltd

Proven and Experienced Management Team

Mr. B.K. Goenka is the Chairman, and the chief architect

of the Welspun Group. Today, with his entrepreneurial

ability and professionalism, he has built up one of the most

admired business conglomerates

Mr. R.R. Mandawewala is the Group Managing Director,

a key contributor in Welspun’s journey. A Chartered

Accountant by profession and with over 25 years of

experience, he has expertise varying from Textiles to SAW

pipes.

Mr. Mintoo Bhandari, serves as Director on Board

(Nominee of a shareholder) in WCL. Mr. Bhandari also

serves on the board of directors of SOURCECORP, Dish TV

India Limited and Wire & Wireless (India) Ltd. Mr.

Bhandari graduated with an BS in Mechanical Engineering

from MIT and with an MBA from the Harvard Business

School.

Mr. Akhil Jindal serves as Director, Group Strategy &

Finance. He graduated with an Engineering Degree , MBA

from Indian Institute of Management, Bangalore. Mr. Jindal

is responsible for strategic inorganic/organic initiatives

within the Group and has spearheaded large fund raisings,

cross border acquisitions, private equity raisings and

financial closure of projects exceeding over US$ 1 bn.

Mr. Vipul Mathur is the Director Sales & Marketing (Pipes).

A Science Graduate and Masters in Business Administration

(MBA) in Marketing, he has a rich experience of over 16 years in

the Oil & Gas Pipe Industry

Mr. Prashant Mukherjee serves as Director of Welded Pipes.

A Graduate in Science (Engineering, Mech) with over 24 years

experience mostly in the Oil & Gas Pipe Industry, Mr. Mukherjee

has been instrumental in implementing expansion projects in the

Company

Mr. B.R. Jaju serves as Director & CFO. A Chartered

accountant by profession, member of Company Secretary (FCS),

as well as a Law Degree (LL.B). He has a rich experience over

30 years in finance and global M&A activities. Mr. Jaju has been

awarded 3 times as Best Performing CFO in the year 2003, 2005

and 2006, by the most credible nationally renowned jury.

Mr. David J. Delie serves as President Welspun Tubular

LLC. A graduate in Science (Electrical Engineering) and a

Masters Degree in Engineering Management from the

University of Pittsburgh, he has an extensive 33-year

background in the steel and pipe industry. Mr Delie has

served on the Board of Directors of Berg Steel Pipe Corp.,

EB Pipe Coating, Inc., the American Iron & Steel Institute

(AISI).

Mr. Akbar Umatiya is Vice President & Unit Head of

Welspun Middle East LLC (Saudi Plant) A technocrat

Professional having more than 26 years of versatile experience in

various fields like Operations, Project Executions and Marketing

in India and Overseas. He has proven capability to perform in

International environment studded with a mix of diverse cultures

and to develop Technical and professional abilities for team

building to enhance superior quality work.

Mr. Braja K Mishra is the Managing Director of Welspun

Corp and is a prominent figure in the industry with long and

varied experience. Has over 25 years of experience and

posseses immense critical know-how about the pipe and

plate industry

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Welspun Group | Welspun Corp Ltd

• Technology

• Product profile

• Approvals

• Accreditations

• Serving challenging orders

• People

• Zero Harm - Safety

• Niche markets -deep offshore/ sour

pipelines

• Stringent client specifications

• Local presence in key markets

• Highly trained workforce

• Zero Tolerance – Quality Standard

Today The future

How Welspun reached here

How Welspun will sustain

Humble beginnings

Journey to become the most respected Pipe Company in the World

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Welspun Group | Welspun Corp Ltd

CSR and Environmental Leadership

Empowerment & Health

Education Environment

Tie-ups with Non Governmental Organizations / Developmental

Agencies/ Institutions

Welspun Programs Facilitating Government Initiatives

CSR Initiatives

Implementation Mediums

CORE FOCUS

OUTREACH

When Industry Cares…. The Community Smiles

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Welspun Group | Welspun Corp Ltd

Disclaimer

Certain statements made in this presentation may not be based on historical information or facts and may be “forward looking statements,” including those relating to general business plans and strategy of Welspun Corp. Limited (“WCL"), its future outlook and

growth prospects, and future developments in its businesses and its competitive and regulatory environment. Actual results may differ materially from these forward-looking statements due to a number of factors, inter alia including future changes or developments in

WCL's business, its competitive environment, its ability to implement its strategies and initiatives and respond to technological changes and political, economic, regulatory and social conditions in India. This presentation does not constitute a prospectus, offering

circular or offering memorandum or an offer invitation, or a solicitation of any offer, to purchase or sell, any securities of WCL and should not be considered or construed in any manner whatsoever as a recommendation that any person should subscribe for or

purchase any of WCL's securities. Neither this presentation nor any other documentation or information (or any part thereof) delivered or supplied under or in relation thereto shall be deemed to constitute an offer of or an invitation by or on behalf of WCL to subscribe

for or purchase any of its securities.

WCL, as such, makes no representation or warranty, express or implied, as to, and does not accept any responsibility or liability with respect to, the fairness, accuracy, completeness or correctness of any information or opinions contained herein. The information

contained in this presentation, unless otherwise specified is only current as of the date of this presentation. WCL assumes no responsibility to publicly amend, modify or revise any forward looking statements contained herein, on the basis of any subsequent development, information or events, or otherwise. Unless otherwise stated in this presentation, the information contained herein is based on management information and estimates. The information contained herein is subject to change without notice and past

performance is not indicative of future results. WCL may alter, modify or otherwise change in any manner the content of this presentation, without obligation to notify any person of such revision or changes. This presentation may not be copied and

disseminated in any manner.

THE INFORMATION PRESENTED HERE IS NOT AN OFFER INVITATION OR SOLICITATION OF ANY OFFER TO PURCHASE OR SELL ANY SHARES OR ANY OTHER SECURITY OF WCL.

This presentation is not for publication or distribution, directly or indirectly, in or into the United States, Canada or Japan.

These materials are not an offer or solicitation of any offer of securities for purchase or sale in or into the United States, Canada or Japan.

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Welspun Group | Welspun Corp Ltd

Thank You

For further details, please contact:

Navin Agarwal

VP - Group Strategy and Finance

Email: navin_agarwal@welspun.com

Akhil Jindal

Director – Group Strategy and Finance

Email: akhil_jindal@welspun.com

Company Website: http://www.welspuncorp.com

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