JINDAL STEEL

WORKS

Presented By:
Group 1
Section ‘I’
AIBS
 Steel Industry - Global
Scenario
2007
• World Crude Steel Output – 1343.5 Mn Mt.
• Growth Rate – 7.5% YoY.
• Top Crude Steel Producers:

• Steel use predicted to rise by 6.7% in 2008.

• Top 10 steelmakers still have less than 30%
of total steel supply even after Arcelor-Mittal
and Tata-Corus deals.
Sector wise steel
consumption
Top 20 Steel Producing
Companies in World
 Steel Industry – Indian
Scenario
• India’s Steel consumption estimated to rise at
16% annually till 2012.
• Capacity: 60 MnT
• Crude steel production: 54 MnT
• Export: 4.6 MnT
• Finished steel consumption: 51 MnT
• Per capita consumption: Average 47 kgs and 2
kgs in rural areas
• Import: 6.5 MnT
• Import duty on steel has been reduced from 30%
to 25% and then further to 15%
Trends in Market Share
Steel Production in year 06-
07
 Consumption Production
pattern and Import Export
scenario
Indian Steel Industry Today
and Tomorrow
Demand projections for
finished steel-INDIA
 "The USD 10 Billion Jindal Group has developed
into a multi-faceted organisation
and is one of the largest steel producers
in India with 12 plants in India and 2 in USA."

JSW steel
“It is said that in the journey of life,
more important than where you are, is
where you are heading to..”

- Sajjan Jindal, Vice Chairman & MD, JSW

Steel Ltd.,
 
 Overview
• India’s third largest steelmaker.
• Sajjan Jindal led enterprise has grown
from a steel rolling mill in 1982 to a
multi business conglomerate worth Rs.
14700 crore (US $ 3.7 billion).
• ISO:9001 for Quality Management
System
• ISO:14001 for Environment
Management System
• OHSAS:18001 for Occupational Health
 Product Profile
• Hot Rolled Products
• Cold Rolled Products
• Galvanised Products
• Pre- Painted Galvanised
Products
• Jindal Vishwas
 Hot Rolled products
HR Coil HR Plates & HRPO HRSPO
Product Sheets

Thickness(mm) 1.60-150 mm 8-150 1.6-6 1.6-6

Width (mm) 900-1500 800-1500 900- 900-1250

1250
 Applications
• Automobile    
• Boiler and Pressure Vessels
• Ship Building    
• Railways    
• Transmission Towers    
• Oil and Petro Chemicals    
• Marine Containers    
• Coal and Mining    
• General and Heavy Engineering    
 Cold Rolled products
- Applications
• Automobile
• White good
• Cold rolled formed section
• General engineering & fabrication
• Packing
• Drums/ barrels
• Furniture
 Galvanised products
Galvanised Corrugated GP sheet & Coil
Product Sheet

Thickness(mm) 0.09 to 0.80 0.10 – 2.50 mm

Width (mm) 720,740,760,780,800,875 760 - 1250 mm

& 1065
 Applications
• Automobile    
• Boiler and Pressure Vessels
• Ship Building    
• Railways    
• Transmission Towers    
• Oil and Petro Chemicals    
• Marine Containers    
• Coal and Mining    
• General and Heavy Engineering    
 Pre Painted Galvanised
Product
products
PPGI Coil PPGI Sheet PPGI Profile

Thickness(mm) 0.25-1.00 0.25 - 0.80 0.30-1.00

Width (mm) 600-1250 800 & 1065 980

 Applications
• Roof, Wall cladding and other building
products    
• Household appliances    
• Furniture    
• Automotives
 Jindal Vishwas GC Sheets
• Durability
• Light Weight
• Ease of Installation
• Low Maintenance
• Environment Friendly
• Thermal Comfort
• Allergens
• Fire Protection
• Value for Money  
 Facilities- Vijaynagar Works
• Vijayanagar Works is a fully
• integrated steel plant.
• located in Bellary district,
• 340 kms from Bangalore.
• first Greenfield project in the world to have
Corex technology to produce Hot Metal.
• Vijayanagar Works will achieve 7 MTPA
status by 2008
 Vasind and Tarapur Works
• leading manufacturer of cold
rolled and color coated steel,
• India’s biggest producer &
largest exporter of galvanized
steel.
• The total capacity of Vasind and Tarapur Works
is 0.9 MTPA of Galvanised, GALVALUME &
Colour Coated Cold Rolled products.
Key Persons
 Production Process
Upstream Process Flow
Downstream Process Flow
 Improvements in the
Processes
• Had engaged JFE steel, Japan to improve the
practices at the steel making shop
• Result - increased availability of converter
• Introduced hanging chain to improve distribution
& fuel rate reduction at the hot metal making
facility.
• In Pellet plant - relating to adjustment of feed bed
height, increasing pressure in the fuel pipeline,
reduction in hearth layer in the furnace and
improvement in the content of raw materials at
the pellet plant.
• Introduced hanging chain to improve distribution
& fuel rate reduction at the hot metal making.
Operations- Sales network
 The Companies
• JSW Steel Ltd.
• JSW Energy Ltd.
• JSW Holdings Ltd.
• JSW Infrastructure & Logistics Ltd.
• Vidyanagar Minerals Pvt. Ltd.
• Jindal Praxair Oxygen Co. Ltd.
• Jsoft Solutions Ltd.
 Cost Cutting Initiatives
• Acquired ECEPL with a coke making
capacity of 0.6 mtpa.
• The waste heat from the coke ovens
- utilised for captive power
generation.
• Strategic tie-up with South West Port
Ltd.
 R&D
Major tasks
1. Developments of high value products
to serve niche market.

2. Quality up gradation of existing

products enabling global acceptance.

3. Cost reduction by process

development, optimization and
refinement to improve competitive
edge

4. Technology enhancement to increase

production with quality.

5. Market segment improvement by

interacting and sharing knowledge
with customers and assisting them in
trouble shooting operation.
 Results of R & D Initiative
• Value added products - ASTM - A653 grade 57
structural quality GI and GI CQ grade.
• Completed trials to identify suitable indigenous
coals for iron making.
• Improvements to increase yield in beneficiation
process.
• Software were developed - coal-blend design for
coke ovens, mould level fluctuation index in
continuous casting, submerged entry nozzle
clogging index in continuous casting and
temperature prediction model for superheat
control in BOF – CCP.
• Improved slag splashing practice
• New grades of HR coils manufactured
 Expansion Projects
• Various initiatives to enhance
capacities beyond 2.5 mtpa and
improve the product range.
• Currently increasing Slab making
capacity to 3.8 mtpa and plan to
increase to 7 mtpa thereafter.
• Increase Pellet plant capacity by 0.8
mtpa
• HR Coils capacity to increase by 1.2
mtpa in two phase
 Improvement in Product
Range
• 0.1mtpa Colour coating plant
installed at Tarapur.
• CRM complex of 1.0 Mtpa capacity at
upstream facility.
 Environment Management
Initiatives to minimize pollution:
• Monitoring of emissions
• Appropriate effluent treatment
• Efficient process control
• Waste identification, segregation and eco friendly disposal
• Disposal of waste oil and lead acid batteries to authorised
re-processors
• Vacuum cleaners for roads - in plant and township
• Compulsory emission test of all the two and four wheelers
• Re-use of blow down water in dust suppression system and
greenbelt development
• BOF sludge utilisation in pellet plant
• Recycling of waste acid coming from pickling instead of
discharging in environment.
• Strategic tie-up with Mumbai Waste Management Ltd. for
disposal of hazardous waste.
• Compliance to all statutory norms for green environment.
• Tree plantation in and around the plant
 CSR
Few of the programmes supported are:
• Livelihood study
• Computer Aided Learning Center
(CALC) at Vijayanagar
• Early Childhood Education Project
• Vocational Training Centres
• HIV Awareness program
• Sports Initiatives
 Major Successes
• Jindal Steel pitches rails using new technology.
For four years, Jindal Steel & Power Ltd’s overture
to sell steel to India’s largest customer - Indian
Railways.
• Jindal steels continued to be 3rd largest steel
producing company in in India.
• Marubeni Corporation jointly with Mitsubishi-
Hitachi Metals Machinery is awarded a contract
by JSW Steel Limited, for supply of Hot Strip Mill
valued at Japanese Yen 16 billion.
• The Timken Company will supply JSW Steel Ltd.
of India with bearings for its new cold-rolling steel
mill & its MILLTEC[TM] rolling mill maintenance
 Major Failures
• JSW Steel, which was setting up a 2
million tonne per annum coking coal
facility in Mozambique, was not able
to complete its project on time.
• JSW vision to produce 32 million tons
of steel by 2020 may be affected if
pressure continues to be on their
margins, thereby resulting in a
decline in surplus production and
growth,
 Principle Weakness
• The company’s dependence on iron
ore,zinc and imported coking coal may
impact its profitability.
• The company has only flat products in its
product portfolio.
• Very high financial cost compared with
Tata Steel and SAIL.
• Investor’s low confidence in the stock
 Recommendations for
weaknesses
• JSW should actively take steps to
rationalize further their high cost debt to
reduce their interest burden.
• JSW should enter into strategic tie-ups /
sourcing contracts with raw material
suppliers, any adverse fluctuations in the
input costs would affect the margins of the
Company.
• Company should expand its product
portfolio.
• Should improve its Brand Building efforts.
Q & A session……