jindal corporate ppt

1

JINDAL STEEL & POWER LIMITEDJINDAL STEEL & POWER LIMITED

CORPORATE PRESENTATIONCORPORATE PRESENTATION1

2

Jindal Steel & Power Limited (JSPL)

Jindal Power Limited (JPL)

Jindal Petroleum Limited (JPTL)

JSPL Group CompaniesJSPL Group Companies

3

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

4

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

5

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

6

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

7

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

8

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

9

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

10

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)

11

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)


12


13

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

14

FinancialsFinancials

15

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)

16

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

17

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)

18

Future Growth DriversFuture Growth Drivers

19

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

20

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

21

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

22

Facilities under implementationFacilities under implementationJharkhandJharkhand

March, 2012


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


Capacity

23

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

24

Facilities under implementationFacilities under implementationRaigarhRaigarh

June, 2010

March, 2011

September, 2010

March, 2010


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

25

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

26

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

27

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.

28

1000 MW O P Jindal Super Thermal Power Plant, Raigarh

29

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)

30

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

31

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%

32

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)

33

Thermal (MW)

1202

76299

14716

(83% Coal)

(1% Diesel)

(16% Gas)

Thermal Installed Capacity till May 2008Thermal Installed Capacity till May 2008

34

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)

35

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

36

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

37

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………………

39

Operating largest coal mine in the Indian private sector


Largest 6 Million Ton Capacity Coal Washery in Indian Power Sector

40

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)


41

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

42


43

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


44

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


45

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

46

Jindal Petroleum LimitedJindal Petroleum Limited

47

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

48

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

49

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

50

Corporate Social Responsibilities undertaken by the company in the vicinity of its Steel Plant and Upcoming Projects

Jindal Steel & Power Ltd.

51

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:

52

THANK YOUTHANK YOU

jindal corporate ppt

Documents

supply of power

mw power plant

mw thermal power plant

largest power producer

ton capacity steel plant

sponge iron plant

mega power project

ton iron ore