Documente Academic
Documente Profesional
Documente Cultură
Investor Presentation
3Q FY16 (Feb 16)
Copyright @ 2015 Jindal Steel & Power Limited
Table of Content
S No.
Content
Slides
3-12
13-16
17-27
Power Business
27-36
Global Ventures
37-47
48-53
54-58
Facilities at a glance
59-72
CSR Initiatives
73-80
10
Contact us
81
Jindal Saw
Mr. P.R. Jindal
JSL Limited
Mr. Ratan Jindal
2015
2014
1,000 MW
Tamnar I
commissioned
Setup a Coal Washery
with a
2.5 MTPA capacity for
DRI, Raigarh
2012
2010
1,200 MW (2*600MW) of
Tamnar II commissioned
2009
2008
Promoted as Orbit
Steel Private
Limited (OSPL) by
Late Mr. O.P. Jindal.
Commercial production of
India's widest 5.0 meter wide
plate mill production at Angul
2005
2001
1979
1998
Jindal Power
Ltd (JPL)
became a
subsidiary
Commissioned 4.5MTPA
pellet plant at Barbil
What differentiates us
Technological innovation
Coal gasification plant first time in India
Conversion of EAF into BoF
Hot Charge DRI and Slab
What differentiates us
Lowest cost producer
Low cost of steel manufacturing on account of
Captive power supply and
Low logistics overhead due to strategic plant locations
Power projects set up at extremely competitive project cost
Integrated operations
Presence across the entire steel making value chain
Own railway sliding at each of the plants
Ravi Uppal
MD & Group CEO
Experience: >36
years
Qualification: MBA
(IIM A)
Ratan Jindal
Non Executive Director
Experience: 21
years
Qualification: MBA
(University of
Texas)
Qualification: MBA
Qualification: M.Com
Arun Kumar
Independent Director
Chandan Roy
Independent director
Director of Jindal
Power Limited
Qualification: MBA
(Wharton School of
Management)
R.V. Shahi
Independent Director
Shallu Jindal
Non Executive
Director
Experience: >11
years
Qualification: LLB
Experience: 40 years
Qualification: Mechanical
Engineering
Experience: 38 years
Qualification: MSc
Haigreve Khaitan
Independent Director
Experience: >18
years
Qualification: LLB
Rajeev Bhadauria
Whole time director
Experience: 28
Qualification: LLB
Experience: 32 years
Experience: 18 years
Qualification:
Mechanical
Engineering
Experience: 39 years
Qualification:
Chemical Engineering
Qualification:
Bcom & CA
Anand Goel
Chief Advisor
Experience:
>36 years
Rajesh Bhatia
CEO-Global
business
Experience:
>25 years
VK Mehta
Director, S&M
Experience:
>36 years)
N.A. Ansari
CEO, Oman
Experience:
>38 years.
Copyright @ 2015 Jindal Steel & Power Limited 10
Business
Segments
Core
Management
Team
ManCo
UniCo
For each
Business
For each
Location
Group
Executive
Committee
Global Ventures
Construction Material & Solution
Capacity Utilization
Operational Efficiency
Financial Prudence
Copyright @ 2015 Jindal Steel & Power Limited 13
Focus Area
Steel Business
Ensure full capacity utilization
Increase operational efficiency of all processes
Focus on Value added products
Reduction of Product costs
Thrust on Heavy Fabrication business
Realign machinery division business and business alliances for augmentation of
capability
Commission Rebar mill in Angul
Power
Securing Raw Material Coal Mines / Linkages Auctions , Spot E-auctions
Ensuring High availability of plants Minimize Operational risks
Maximizing Capacity Utilization
Focus Area
Mines & Minerals
Two pronged sourcing of iron ore From own mines as well as local miners through long
term alliance
Sourcing of Thermal coal from own overseas mines; coal linkage and e-auction.
Reduce logistics cost for inward movement of Coal & Iron ore fines
General
Reduce Working capital Receivables & Inventories
Exploring options to reduce interest costs
Skill Enhancement to enable multiskilling & productivity improvements
15
Indias per capita steel consumption at 59.4 Kg below World average of 217 Kg
(2014)*
Consumption of steel products is bound to increase with economic growth.
Key initiatives being undertaken by Government would propel Steel demand:
Business Segments
Steel
Mines &
Minerals
Power
Global
Ventures
Construction
Material &
Solution
IPP 3400** MW
CPP 1649 MW
4.75 MTPA Steel*
Renewable 24 MW
3.11 MTPA*
Domestic
**Includes 600 MW - synchronized & will be commissioned in FY16
2 MTPA Steel
6.25 MTPA Mines
Cement
Road solutions
LGS
17
Intermediate inputs
Processing
Coal washery
End-products
Washery rejects
Char/Flu gases
Rotary kilns
Pelletisation
plant
Pellets
Sponge
iron
Iron ore
from
mines
EAF/BoF
Fines
Coking coal
Coke
oven
Sinter
plant
Sinter
Electricity
Power plant
Rounds/
Blooms/
Slabs/Billets
Blast furnace
Plate mill
Plates &
Coils
Rail &
universal
beam mill
Rails
Structurals
Pig iron
Coke
Point of sale
Hot Metal
Liquid Steel
Finished Steel
(6.75 MTPA)
(6.75 MTPA)
(5.25 MTPA)
WRM 0.60 MTPA
DRI 3.12
MTPA in
Capacity
deail
BF 2.13 MTPA
19
Angul
Barbil
Patratu
(Chhattisgarh)
(Odisha)
(Odisha)
(Jharkhand)
BF 1.67
MTPA
DRI 1.32
MTPA
SMS
3.25MTPA
CGP
225,000
Nm3/Hr
DRI 1.8 in
Capacity
MTPA
deail
Plate Mill
1.00 MTPA
SMS 1.5
MTPA
RUBM 0.75
MTPA
MLSM 0.70
MTPA
CPP 839
MW
WRM
0.60
MTPA
Oman
JPL
Mining
SMS 2.0
MTPA
Tamnar
2800
MW
Iron Ore
3.11
MTPA
600
MW*
Coal
Overseas
6.20
MTPA
Pellet
Plant
9 MTPA
Rebar
Mill 1.0
MTPA
Plate Mill
1.2 MTPA
CPP 810
MW
Power
Hot Metal
HBI 1.5
MTPA
Liquid Steel
Finished Steel
** To be commissioned
20
Rails
Fabricated Structures
TMT Rebars
Wire Rods
Power
Copyright @ 2015 Jindal Steel & Power Limited 21
Cement
EPS Panels
Welded Mesh
Road Stabilizer
LGS
Speed Floor
LWA
22
Plants
Distributors
Stockyards
S.E ASIA, 1%
MIDDLE EAST,
42%
USA/CANADA
, 24%
NEPAL/
BANGLADESH
/ SRILANKA,
24%
MEXICO, 4%
WRT/TMT
AFRICA,
5%
SEMIS
PLATE
EU, 0%
STRUCTURAL
RAIL
PREFAB
Tamnar 2(a)
Satara (b)
Capacity
(MW)
Fuel
Configurati
Status
on
1,000
Coal
4x250 MW Operational
2,400
Coal
1,800 MW
operational,
4x600 MW
balance 600 MW
synchronized
24
Wind
18x1.5 MW Operational
Project
Capacity
(MW)
Fuel
Configuration
Status
Satara
DCPP, Raigarh
IPP
540
Coal
JSPL, Raigarh
299
Coal &
waste
heat
Angul, Odisha
810
Coal
CPP
4x135 MW
Operational
2x25 MW & 40 MW
(Waste heat)
2x55 MW
3x25 MW
24 MW
Operational
6 x135 MW
Operational
EUP -I
EUP -II
EUP -III
1000MW (4 X 250)
1200MW (2 X 600)
1200MW (2 X 600*)
Coal Block
FSA
auction
TNEB 400MW
CSEB 60MW
PPA
Bilateral/short term/
merchant
CSEB 60MW
KSEB 200MW
KSEB 150MW
Evacuation
against PPAs
Raw materials, transmission & PPAs in place for achieving higher PLF
(a)
PPA Arrangements
Period
Project
Buyer
Type
From
To
Long Term
Feb-14
Sep-28
400
Long Term
Jun-16
May-41
200
Tamnar II
(Phase 1)
Long Term
Oct-17
Sep-42
150
Tamnar II
(Phase 1)
Long Term
60
Long Term
60
Tamnar II
(Phase 1)
Tamil Nadu
Tamnar II
(Phase 1)
Quantum (MW)
KSEB
Chhattisgarh
Tamnar II
(Phase 2)
Upcoming PPAs
Type
Procurer
Quantum (MW)
Uttar Pradesh
Long Term
2,800
Oct-16
15
Bihar
Long Term
500
3 year after
submission of RFP
NA
Uttar Pradesh
Long Term
1,000
Oct-16
15
Kurukshetra
NR
Agra
Jaipur
3000 MW
+ 3000
MW
Gorakhp
ur
Vanara
si
Barh
Gwalior
Bishwanath Charali
Orai
Rapp
C&D
Chittorgarh
Rihan
d
Gaya
NE R
ER
DharamjaigarhOct1
5
Banaskantha
Vidhyanchal
Shujalpu
r`
Jabalpur Champa
Wardha
Warora
WR
Ranc
hi
Jharsugu
da Ang
Raigarh P.S
ul
Kolhapur
Nizamabad
Srikakulam
Warangal
Narendra
S
R
6000
MW
Legends:
400 kV D/C Line
765 kV D/C Line
765 kV S/C Line
800 kV HVDC Line
Pugalur
JPL Financials
Particulars
Net Sales
(Million USD)
PAT
(Million USD)
Generation
(MU)
PLF
Year 2014-15
3,228
(171)
10636
93% (EUP 1)
Year 2013-14
2,457
1,107
8282
92%
Year 2012-13
2,510
1,113
7973
91%
Year 2011-12
3,040
1,765
8589
98%
Particulars
Q3
Turnover
EBITDA
EBITDA%
PBT
PAT
Depreciation + Amortization
Cash Profit
Generation (million units)
PLF (%) - 4X250 MW
PLF (%) - 3X600 MW
Q2
815
186
23%
51
38
130
171
2,580
70%
26%
889
168
19%
61
45
130
178
2,728
60%
35%
2014-15
Q3
825
414
50%
(798)
(758)
131
-532
2699
96%
20%
35
36
Indonesia, Asia
Shadeed, Oman
Mozambique,
Africa
Coal resources
estimated at 1.2 bn
tonnes including coking
coal
Australia
Oman
2 MTPA Steel plant
Australia
Coking Coal
South Africa
Anthracite Coal
Mozambique
Thermal/ Coking Coal
1.5 HBI
2 MTPA SMS
41
Natural Gas from Oman Government through long term contract (at concessional
prices)
Scrap from External Purchase
Key Markets
Sales break up by geography (FY-15)
Saudi Arabia
Others
Italy
Others
Fecat
US
South Korea
Vilmeks
UAE
Ethiopia
Arcellor
South Africa
Al- Wataniyah
Conares
JSW
Emirates
Sohar Steel
China
India
Kuwait
Oman
42
Reserves: 22 MT
Products : Anthracite coal
Mining Capacity : Can be expanded to 1.2 MTPA capacity annually
Copyright @ 2015 Jindal Steel & Power Limited 43
Reserves: 132 MT
Products : Semi Hard coking coal , High Grade Thermal Coal
Mining Capacity : 3 MTPA
Copyright @ 2015 Jindal Steel & Power Limited 44
Large size deposit of low ash low sulphur thermal coal for open cast operation
MoU signed with Bupati Barito to develop road for coal hauling
Return load for 200,000 MT tonnages secured resulting in decrease of logistics costs
Infrastructure developed in Moatize for storage and loading of coal into trains
Copyright @ 2015 Jindal Steel & Power Limited 45
Wollongong
(80 kms. South of Sydney)
Experienced mining
community available
Port Kembla:
Less than 20 kms with
sufficient coal handling and
Cape size capacity
Easy and reliable
connectivity through Rail
and Road
JSPL Financials
&
Operational
Highlights
50
51
JSPL welded and despatched 260 Meter long Rail Panels from its Raigarh Plant.
JSPL has successfully converted one of its Electric Arc Furnace(EAF) to a basic oxygen
type furnace.
Would result in i) lower Thermal coal requirement (as more hot metal produced through
Blast Furnace route will be used) ii) power savings and iii) eliminates consumption of
Electrodes.
This will result in substantial saving in our steel making (liquid steel) cost at Raigarh. .
56
Raigarh
Oman
Jeraldaburu
Patratu
Cameroon
Tamnar
Satara
Mozambique
Botswana
Australia
Barbil
Angul
Tensa
Bailadila
South Africa
Coal mine
CPP
Steel plant
IPP
Wind project
JSPL, Raigarh
JSPL, Angul
Developed steel grades for various critical applications like boilers, ship building,
petroleum pipes, high strength grades for automotive and earth movers, structural steel
for oil exploration platforms, grades for making warships , ballistic launch applications
and bullet proof vehicles, stainless steel low thickness plates for nuclear application
Copyright @ 2015 Jindal Steel & Power Limited 68
JSPL, Patratu
JSPL-Barbil Pellet Plant awarded with most prestigious JIPM award for TPM Excellence
First pellet plant in the world to be conferred with this JIPM award
JSPL Raigarh got placed in Limca book of world records for manufacturing longest 121
meter long single piece track rail
JPL received Par Excellence Award for 5S implementation by QCFI on 7th Nov15
15 February 2016
72
International Safety Award with merit 2014 by British Safety Council, UK.
World CSR Congress Award 2013
Greentech CSR Award 2013
2012
Ranked 3rd in the Metals Category of Business Worlds Indias Most Respected Companies Survey
2011
Rated the Worlds 2nd Largest Value Creator by Boston Consulting Group (BCG), based on Total
Shareholder Return from 2005-2009, and the largest Value Creator in Mining and Materials category
2010
2009
SAFETY INDUCTION
SAFETY REVIEWS
SAFETY AWARDS/REWARDS
MOCK DRILLS
For any information please contact: Mr. D. Balasubramanyam Head of Investor Relations
Tel: +91 124 6612 000
Mobile: +91 8130755166
Email: - d.bala@jindalsteel.com
Mr. Nishant Baranwal Investor Relations
Tel : +91 124 6612 000
Mobile:+91 8800690255
Email: - nishant.baranwal@jindalsteel.com
81
DISCLAIMER
This presentation may contain certain forward looking statements concerning JSPLs future
business prospects and business profitability, which are subject to a number of risks and
uncertainties and the actual results could materially differ from those in such forward
looking statements.
The risks and uncertainties relating to these statements include, but are not limited to, risks
and uncertainties regarding fluctuations in earnings, our ability to manage growth,
competition (both domestic and international), economic growth in India and the target
countries for exports, ability to attract and retain highly skilled professionals, time and cost
over runs on contracts, our ability to manage our international operations, government
policies and actions with respect to investments, fiscal deficits, regulations, etc., interest and
other fiscal costs generally prevailing in the economy. Past performance may not be
indicative of future performance. We do not undertake to update our forward-looking
statements.
This presentation is not intended, and does not, constitute or form part of any offer,
invitation or the solicitation of an offer to purchase, otherwise acquire, subscribe for, sell or
otherwise dispose of, any securities in JSPL or any of its subsidiary undertakings or any
other invitation or inducement to engage in investment activities, neither shall this
presentation nor the fact of its distribution form the basis of, or be relied on in connection
with, any contract or investment decision. The numbers in this presentation are purely
indicative and could change later.
Copyright @ 2015 Jindal Steel & Power Limited 82
THANK YOU