jindal corporate ppt
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steel industry outlooksupply chain managementTRANSCRIPT
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JINDAL STEEL & POWER LIMITEDJINDAL STEEL & POWER LIMITED
CORPORATE PRESENTATIONCORPORATE PRESENTATION1
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Jindal Steel & Power Limited (JSPL)
Jindal Power Limited (JPL)
Jindal Petroleum Limited (JPTL)
JSPL Group CompaniesJSPL Group Companies
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Operating 3 Million Ton capacity Steel Plant in Central India (Chhattisgarh)
Operating largest Coal Based Sponge Iron Plant in the world (Capacity - 1.4 Million ton)
The Company has track record of continuous growth of 10 years
The corporate philosophy of JSPL has been consistent growth through focus on its core sectors
Produces ‘A Class’ 120 mtr long rails, the world’s longest rails
Total Sales of INR 54.60 billion and PAT of INR 12.37 billion in FY 2007-08
EBIDTA level of around 40% consistently, which is amongst the highest in the industry
Snapshot Snapshot -- SteelSteel
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Set up 1000 MW Thermal Power Plant in Central India (Chhattisgarh)
First Mega Power Project in the Private Sector
Constructed 258 Km long 400 KV double circuit transmission line
Constructed 55 Km long 220 KV double circuit transmission line
Operating 340 MW power plant based on washery rejects & waste gases
2nd largest power producer in the private sector in India
Snapshot Snapshot -- PowerPower
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Extracting 12 million ton thermal coal from captive mines
Largest producer of Coal in private sector
Operating 6 milion ton capacity coal washery
Setting up additional 6 million ton capacity coal washery
Extracting about 3.0 million ton iron ore from captive mine
Coal & Iron Ore Mines
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Established an Industrial Park where 32 Industrial Units are already in operation
Supplying 100 MW power to these units through 220 KV dedicated transmission line
Total 70 units are planned in this Industrial Park- Ultimately 300 MW power will be supplied to the Industrial Park
Tariff of power supply is far less as compared to State Govt. tariff
Holding distribution licence for supply of power to Industrial Park
Industrial Park
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Business Segments
Iron and Steel ManufacturingIron Ore and Coal MiningPower Generation
Product PortfolioSponge Iron / Pig IronHot Rolled Parallel Flange Beams & StructuralsSemis (Slabs, Blooms, Rounds, Billets)RailsPlates & CoilsPower
Product MixProduct Mix
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Iron Ore from Mines
Coal from Mines
Coal Washery
BF
Coking
Coal
Pig Iron
POWER PLANT* CSEB/OTHERS
EAF
RAIL & UNIVERSAL BEAM
MILL
ROTARY KILNS
Rails Structurals
WasheryRejects
Sponge Iron
Char/Flu Gases
Rounds/Blooms/Slabs/ Billets
Sale
Sale
Sale
Sale
Sale
Sale
SINTER PLANT
PLATE MILL
Sale
PLATES &COILS
Sinter
COKEOVEN
COKE
* Captive Power Plant supplies power to all facilities
COAL
FINES
IntegrationIntegration
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Existing Capacity (MTPA)
Sponge Iron (coal based) 1,370,000
Steel 3,000,000Rails & Structurals 750,000
Plates 1,000,000Slabs,Rounds,Blooms & Billets 1,250,000
Hot Metal 1,500,000Captive Power Plant 340 MW
Raigarh, Chhattisgarh
FacilitiesFacilities
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Steel Production Globally: 2008Steel Production Globally: 2008
•Global crude steel output has shrunk 1.2% (-) in 2008. It is nearly 25% lower, yoy. •Liquidity shrinkage has discouraged inventory holding and encouraged excessive inventory liquidation, raised speculation on prices, caused raw materials supply disruptions and affected Steel producers.
Source: Steel and Natural Resources Strategy Research (SNRSR)
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Country Rank 2008 2007China 1 502.0 489.2Japan 2 118.7 120.2
United States 3 91.5 98.2Russia 4 68.5 72.4India 5 55.1 53.1South Korea 6 53.5 51.5Germany 7 45.8 48.6Ukraine 8 37.1 42.8Brazil 9 33.7 33.8Italy 10 30.5 31.5
Top ten Steel Producing Countries in the World(Production figures in million tonnes)
Source: Steel and Natural Resources Strategy Research (SNRSR)
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Source: Steel and Natural Resources Strategy Research (SNRSR)
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Source: Steel and Natural Resources Strategy Research (SNRSR) Estimates based on Joint Plant Committee (JPC) and industry information
India India -- Projected Trends of Steel ConsumptionProjected Trends of Steel Consumption
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FinancialsFinancials
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Financials at a GlanceFinancials at a Glance
# EPS adjusted to reflect a 1:5 stock split w.e.f 27 Dec,07
2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09AUDITED AUDITED AUDITED AUDITED AUDITED AUDITED Unaudited
(12 Months) (12 Months) (12 Months) (12 Months) (12 months) (12 months) (Apr-Dec-08)
INCOME STATEMENT Gross Turnover 10017 14039 24673 29055 39487 61807 65628Net Turnover 8891 12729 2271 26177 35488 54560 58914Net Profit After Tax 1451 3054 5157 5729 7030 12369 11796Cash Profit 2671 4342 7658 8581 11745 17681 15039
BALANCE SHEETGross Fixed Assets (incl. WIP) 15040 19669 28759 43893 58669 65794 83639Networth 5712 8539 13174 18379 24742 37211 49650Borrowings 8852 10260 14959 27454 35077 38633 50131Share Capital:Preference 100Equity 146 154 154 154 154 154 155
SIGNIFICANT RATIOSOperating Margin (%) 39% 40% 40% 40% 41% 40% 36%Net Profit to Sales (%) 16% 24% 23% 22% 20% 23% 20%Return on Net Worth (%) 25% 36% 39% 31% 28% 33% 32%Long Term Debt Equity Ratio (Time) 1.41 1.09 1.11 1.20 1.07 0.90 0.81Book Value (INR/Share) 195 277 428 597 803 242# 321#EPS (INR/Share) 52 100 167 186 228 80# 76#
(Rupees in Million)
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Consistent GrowthConsistent Growth-- 30 Quarterly PAT 30 Quarterly PAT (Consolidated)(Consolidated)
3191
2774
15711531
296
263 263
316
389603
595
502
583802
11661215
1235 12391466
15021454
12641506 1899
20252501
0
1000
2000
3000
4000
5000
6000
7000
8000
9000
10000
S ep -0 1
Dec -0 1
Mar -0 2
J un -0 2
S ep -0 2
Dec -0 2
Mar-0 3
J un -0 3
S ep -0 3
D ec -0 3
Mar -0 4
J un -0 4
S ep -0 4
Dec -0 4
Mar-0 5
J un -0 5
S ep -0 5
D ec -0 5
Mar-0 6
J un -0 6
S ep -0 6
Dec -0 6
Mar -0 7
J un -0 7
S ep -0 7
D ec -0 7
Mar-0 8
J un -0 8
S ep -0 8
Dec -0 8
*
(Rupees in Million)
8998
7647
4436
4097
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Promoters59%
FI/Banks/MFs/ FIIs24%
Public17%
1544631677
5765572303
159718
020000400006000080000
100000120000140000160000
RS
INM
ILLI
ON
2003-04 2004-05 2005-06 2006-07 31 Jan'09
Financials Financials -- Investors FaithInvestors Faith
Shareholding Pattern Shareholding Pattern -- Dec,08Dec,08 Market Market CapitalisationCapitalisation
10 Times
10 Times
(Rupees in Million)
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Future Growth DriversFuture Growth Drivers
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Future Growth Drivers Future Growth Drivers -- OrissaOrissaProject ProfileProject Profile
PROJECT : 6 MTPA Integrated Steel Plant & Captive Power Plant
LOCATION : Angul, Orissa
FACILITIES : 1. Coal Gasification & Gas Based DRI : 4.0 MTPA2. Blast Furnace : 3.0 MTPA3. Steel Making Facilities : 6.0 MTPA4. Flat Products (Plates and HR Coils) : 6.0 MTPA5. Power Plant : 810 MW
RESOURCES : 1. Coal Mine , estimated reserves 228 Million Tons, allotted2. Iron Ore Mine, to be allotted as per MOU with the Govt of Orissa
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Facilities under implementationFacilities under implementationOrissaOrissa
December, 2010
1st Unit - August, 2010. Thereafter one unit after every two months
July, 2009
December, 2010
September, 2010
Expected date of Commissioning
Expected by June, 2009
Expected by April, 2009
Achieved
Achieved
Achieved
Status of Financial Closure
5.
4.
3.
2.
1.
S.No
10,109Total
1.6 MTPA
810 MW
5.0 MTPA
2.0 MTPA
1.5 MTPA
Capacity
1,288Steel Melting Shop
3,482Power
650Pellet Plant (at Barbil)
3,141DRI
1,548Plate Mill
Project Cost (Rs. Crore)
Project
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PROJECT : 6 MTPA Integrated Steel Plant
& Captive Power Plant
LOCATION : Patratu, Jharkhand
FACILITIES : 1. Blast Furnace : 6.0 MTPA2. Steel Making Facilities (BOF Route) : 6.0 MTPA3. Flat Products : 3.0 MTPA4. Long Products : 3.0 MTPA5. Power Plant : 1000 MW
RESOURCES : 1. Two Coal Mines, combined estimated reserves 320 Million Tons, allotted
2. Iron Ore Mine, with estimated reserves of 80 Million Tons, allotted
Future Growth Drivers Future Growth Drivers -- JharkhandJharkhandProject ProfileProject Profile
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Facilities under implementationFacilities under implementationJharkhandJharkhand
March, 2012
Expected date of Commissioning
By December, 2009
5,700Steel Plant 2.0 MTPA(Wire Rod & Rebars)Facilities-Coke Oven : 1.0 MTPA-Blast Furnace : 2.2 MTPA-Sinter Plant : 3.0 MTPA
Financial Closure
Project Cost (Rs. Crore)
Capacity
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PROJECT : Addition of 3 MTPA Integrated Steel Plant
& Captive Power Plant
LOCATION : Raigarh, Chhattisgarh
FACILITIES : 1. DRI (Gas based) : 2.0 MTPA2. Steel Making Facilities : 3.0 MTPA3. Medium Section Mill : 0.6 MTPA4. Power Plant : 540 MW
RESOURCES : 1. Existing Coal Mines at Raigarh having reserves of about 200 million tons
2. Existing Iron Ore Mines at Sundergarh, Orissa3. Prospecting licence for new Iron Ore Mine in Bailadila
recommended by State Government.(Estimated Reserves : 80 Million Tonnes)
Future Growth Drivers Future Growth Drivers -- RaigarhRaigarhProject ProfileProject Profile
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Facilities under implementationFacilities under implementationRaigarhRaigarh
June, 2010
March, 2011
September, 2010
March, 2010
Expected date of Commissioning
Expected by September, 2009
Expected by September, 2009
Expected by June, 2009
Achieved
Status of Financial Closure
3.
2.
1.
S.No
5,350Total
0.6 MTPA
2.0 MTPA
270 MW
270 MW
Capacity
650Medium Structural Mill
2,500DRI - Gas Based
1,100
1,100Power Plant
Project Cost (Rs. Crore)
Project
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Agreement with the Bolivian government approved by the parliament
Estimated reserves of Iron Ore in area of exploitation - 20 Billion tons
The Company proposes to set up the followingfacilities.
• Pelletization Plant - 10.00 Million MTPA
• Direct Reduced Iron - 6.00 Million MTPA
• Steel Making Facilities - 1.81 Million MTPA
• Power Plant - 450 MW
The total investment proposed is $2.1 billion over the next 8 years
Proposed financing at a debt-equity ratio of 60:40
The revenues will start flowing from the year 2010
Future Growth Drivers Future Growth Drivers -- El El MutunMutun, Bolivia, BoliviaProject ProfileProject Profile
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Future Growth DriversFuture Growth DriversCaptive Power Generation Captive Power Generation
Jindal Steel & Power LimitedJindal Steel & Power Limited
2690 MWTotal Proposed Capacity (between 2012-15)
by 2011-121000 MWProposed addition at Jharkhand
by 2010-11810 MWProposed addition at Orissa (135 x 6)
by 2010-11 540 MWAdditional proposed Raigarh (135 MWx4)
Operational340 MWExisting Capacity at Raigarh
Expected Date of Commissioning
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Government of India allotted Ramchandi Promotional Coal Block in the State of Orissa with estimated reserves of 1,500 Million MT
Production Capacity of 80,000 Barels per day (4.0 MMTPA)
Technical tie-up with M/s Lurgi of Germany
Fixed Bed Dry Bottom Technology will be used
Total Project Cost : Rs. 42,000 Crores
JSPLJSPL’’ss Coal To Liquid ProjectCoal To Liquid Project
The above project is aimed at enhancement of energy security by reducing dependence on imported Crude.
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1000 MW O P Jindal Super Thermal Power Plant, Raigarh
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3.48
5.86
6.75
9.64
25.22
% of World Generation
Thermal Hydro Nuclear Others Total MW Per Capita Cons. 2005-
06 (KWH)
United States 689.5 79.4 98.7 17.4 884.9 13338
China 253 83 2.2 0 338 2180
Japan 168 22 46 0.7 237 8076
Russia 139.6 44.7 21.2 0.02 205 5642
India 92.2 36.0 4.1 12.2 144.50 631
Installed Capacity of Top 5 CountriesInstalled Capacity of Top 5 Countries(In Thousand MW)(In Thousand MW)
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Comparative per capita consumption of Comparative per capita consumption of electricity (electricity (KwhKwh))
0
2500
5000
7500
10000
OCCDCountries
Middle East LatinAmerica
China Asia Africa India WorldAverage
8365
2980
1695 1802
646 563 612
2596
Source: Central Electricity Authority
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The Power Situation in IndiaThe Power Situation in India
•Capacity in 1947 : 1363 MW•Capacity in 2008 : 144,000 MW•Demand Rise : 10% p.a.•Present peak demand deficit : 12%
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Total 144550 MW
Generation Capacity (MW)
92216
12194
36033
412064% (Thermal)
8% (Renewable)
25% (Hydro)
3% (Nuclear)
Generation Capacity (May 2008)Generation Capacity (May 2008)
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Thermal (MW)
1202
76299
14716
(83% Coal)
(1% Diesel)
(16% Gas)
Thermal Installed Capacity till May 2008Thermal Installed Capacity till May 2008
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Thermal : 59,693 MW (75.8%)
Nuclear : 3,380 MW (4.3%)
Hydro : 15,627 MW (19.9%)
Total : 78,700 MW (100.0%)
Capacity Addition Target DuringCapacity Addition Target DuringXI Plan (2007XI Plan (2007--2012)2012)
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1097
9340
660
11061
125 310 0 4350
2000
4000
6000
8000
10000
12000
Hydro Ther. Nec. Total
Target Achievement
Generation Capacity Addition 2008Generation Capacity Addition 2008--0909and Achievement till May 2008and Achievement till May 2008
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250 MW - Unit 1 : December 2007250 MW - Unit 2 : April 2008 250 MW - Unit 3 : June 2008 250 MW - Unit 4 : September 2008
Jindal Power Limited - Subsidiary CompanyCommissioning of 1000 MW Power Plant Commissioning of 1000 MW Power Plant
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First Mega Power Project in the Private Sector JPL has been assigned ‘AA’ Rating by ICRA in the 1st year of Production
Salient Features of 1000 MW ProjectSalient Features of 1000 MW Project
3838
• Constructed 6.948 kms Cross country Pipe conveyor for coal transportation. This is the longest pipe conveyor in India.
• Constructed a Dam which was completed in a record time
period of 2 working seasons.
Salient FeaturesSalient Features………………
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Operating largest coal mine in the Indian private sector
Salient FeaturesSalient Features………………
Largest 6 Million Ton Capacity Coal Washery in Indian Power Sector
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Constructed 258 km long 400 kV double circuit transmission line which was completed in the record time of 1.5 years
This 400 KV transmission line is the first line constructed without any Joint Venture with Power grid
First private power plant which is connected to the Central Transmission Utility (CTU, Power Grid)
Salient FeaturesSalient Features………………
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FinancialsFinancials
Fin. Year 2007-08Few Days Operation* Q1 Q2 Q3
Gross Generation (Million units ) 113 962 1490 1951 4403.0PLF % 75% 59% 70% 88% ----Net Sales ( Rs Crores ) 125.3 293.6 653.9 1160.7 2108.1PAT ( Rs Crores ) 19.4 41.3 314.7 574.6 930.6* For the Period 8th Dec '07 till 31st March '08
ParticularsFinancial Year 2008-09 2008 -09
Total
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Future Growth DriversFuture Growth Drivers
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Brownfield Expansion Plant (4x600 MW) : 2400 MW
Status :
Order placed on BHEL in December 2008 for BTG Unit
Order Value on BHEL - Rs. 5040 Cr.
Water approvals received
Land for main plant already acquired
Technical Consultant ‘Development Consultant Pvt. Ltd. (DCPL)’appointed
SBI Capital Markets Ltd. appointed as advisor and syndicator
Future Growth DriversFuture Growth Drivers
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Project Cost :
Project Cost : 12,800 Cr.Financing on 75 : 25 Debt Equity
Debt : Rs. 9,600 Cr.
Equity : Rs. 3,200 Cr.
Equity to be funded from internal accruals Financial closure expected by December, 2009
Future Growth DriversFuture Growth Drivers
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Two Joint Venture Agreements executed with Hydro Power Development Corporation of Arunachal Pradesh Limited (HPDCAPL) for development of 4500 MW Hydro Projects in Arunachal Pradesh
Detailed Project Report (DPR) and infrastructure development to be completed in 5 years
Setting up of these projects will take about 8 years after preparation of DPR
Estimated project cost of Etalin (4000 MW) is Rs. 21,820 Crore and Attunli(500 MW) is Rs. 4,172 Crore
Hydro PowerHydro Power
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Jindal Petroleum LimitedJindal Petroleum Limited
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Jindal Petroleum Ltd. is currently engaged in Oil & Gas Exploration
Awarded 4 Oil & Gas Exploration Blocks in Georgia in Jul./Aug. 2008
Awarded 1 Block in India under New Exploration Licensing Policy-(NELP - VII) in Rajasthan
Development of Palmer Gas and Condensate Field in Bolivia in progress
Jindal Petroleum LimitedJindal Petroleum Limited
IntroductionIntroduction
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Production Sharing Contract (PSC) for 4 Oil & Gas Exploration Blocks in Georgia (Block No. - VIIA, IX, X & XIIIA) executed in January, 2009
Exploration activities commenced
Many blocks have large nos. of test wells done earlier showing oil
Looking forward to speedy Exploration of Oil & Gas in Georgia so as to be able to contribute to Economic Development of Georgia
Jindal Petroleum Limited Jindal Petroleum Limited
Planning for Exploration & Production of Oil & Planning for Exploration & Production of Oil & Gas in GeorgiaGas in Georgia
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Photos of some of the test wells
Block X Block X Block IX
Jindal Petroleum Limited Jindal Petroleum Limited
Planning for Exploration & Production of Oil & Planning for Exploration & Production of Oil & Gas in GeorgiaGas in Georgia
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Corporate Social Responsibilities undertaken by the company in the vicinity of its Steel Plant and Upcoming Projects
Jindal Steel & Power Ltd.
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National Energy Conservation Awards 2001, 2002, 2003, 2004, 2005, 2007 & 2008 in Integrated Steel Plants Category JSPL figures among Top-20 "BEST COMPANIES TO WORK FOR" as per a survey by Business Today January 2009 One of the Ten Fastest Growing Large Size Companies (Dalal Street Journal 2006) 2nd Most Investor Friendly Company, Business Today 2008 Golden Peacock National Quality Award 2008 Golden Peacock Environment Management Award 2008 Think Odisha Leadership Award in Corporate Social Responsibility 2008 FICCI Annual Award in recognition of Corporate Initiatives in Sports 2006 Greentech Environmental Excellence Award 2006 and 2003 Golden Peacock Award for CSR Initiatives 2006 National Safety Award (Mines) 2004, 2005 and 2006
Some of the accolades that we have to our credit include:
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