Jai Balaji Industries Limited

JBIL A Brief Profile

First
FirstCompany
CompanyininWest
WestBengal
Bengalto
tostart
startoperation
operationby
bysetting
settingup
upaaSponge
SpongeIron
IronPlant.
Plant.
Executed
Executed11MT
MTfully
fullyintegrated
integratedgreen
greenfield
fieldsteel
steelmanufacturing
manufacturingfacilities
facilitieswithin
withinaashort
short
span
spanof
of44years
years..
First
First to
to set
set up
up Waste
Waste Heat
Heat Recovery
Recovery Power
Power Plants
Plants inin West
West Bengal.
Bengal. Presently,
Presently, 111
111
MW
MWPower
PowerPlants
Plantsare
areoperational.
operational.
Presence
Presence inin mineral
mineral rich
rich states
states of
of the
the country
country viz.
viz. West
West Bengal,
Bengal, Chhattisgarh
Chhattisgarh &&
Jharkhand.
Jharkhand.
Entire
Entire value
value chain
chain of
of steel
steel manufacturing
manufacturing from
from processing
processing iron
iron ore
ore to
to manufacturing
manufacturing
finished
finishedproducts.
products.
Acquired
Acquired Steel
Steel division
division of
of HEG
HEG Ltd.
Ltd. and
and Nilachal
Nilachal Iron
Iron && Power
Power Ltd.
Ltd. inin the
the FY
FY2007200708.
08.
Successfully
Successfullyraised
raisedequity
equityfrom
fromIPO,
IPO,Private
PrivatePlacements
Placementsand
andQIP
QIPRoute.
Route.
2

Financial Indicators

Share Price Movement

Financial Overview
Particulars

FY 07

FY 08

FY 09

FY10

8811.1

10733.8

12907.6

16948.8

19143.8

4143.9

91.0

19.3

565.2

284.2

259.0

14.8

Total Revenue

8902.1

10753.1

13472.8

17233

19402.8

4158.7

Less: Cost of
Sales

7924.1

9206.6

10575.7

15352.5

16790.6

3524.9

978

1546.5

2897.1

1880.5

2612.2

633.8

Depreciation

103.9

234.2

433.5

507.9

692.9

178.2

EBIT

874.1

1312.3

2463.6

1372.6

1919.3

455.6

Interest

189.7

354.1

1101.7

1305.6

1427.1

299.4

EBT

684.4

958.2

1361.9

67

492.2

156.2

Tax provision

232.2

338

173.2

54.2

174.1

52.2

PAT

452.2

620.2

1188.7

12.8

318.1

104.0

9.6

13.16

25.23

0.27

5.66

1.63

Sales
Other Income

EBIDTA

EPS (Rs.)

FY 06

Rs in
mn.

Q1 FY11

Shareholding Pattern

No. of shares
Share Capital
Market Cap
Net Debt
Net Worth
Debt Equity Ratio

63.7 million
Rs.637 million
Rs.16.5 billion
Rs.15.9 billion
Rs.9950 million
1.59

The Business Model (Full Flexibility)

Non coking coal
Dumri 37 MT by FY 11

Iron Ore / Fines

Presently from Market
Allocated (will take 3 Years)

Coal Washery
0.26 MT + 1.0 MT

Sinter
0.608 MT

DRI
0.45 MT + 0.06 MT

Coke Oven 0.35 MT by FY 12

(Coke Presently from Market)

Pig Iron / Hot metal

0.51 MT

Induction Furnace Billets

0.473 MT

TMT Rods
0.300 MT

Coking coal
Rohne 17 MT by FY 12

Electric Arc Furnace

0.433 MT

CPP
111 MW

Ductile Iron Pipe

0.240 MT
Legend

Ferro Alloys
0.106 MT

Installed
Under Installation
Material Movement
Sales Points

Sales

Free Fuel
Power Captive Use
6

Project Implementation

2010

2006

2005

2004

2003

2001
79200 TPA
MS Ingot
105000
TPA
Sponge
iron

40250 TPA
Pig iron Plant
80000 TPA
Re-Rolling
Mill

120000 TPA
Sponge Iron

31118 TPA
Ferro Alloy
88210 TPA
MS Billets
40250 TPA
Pig Iron Plant
12 MW Power
Plant

240000 TPA
Ductile Iron
Pipe
25500 MTPA
30 MW Power
2008
Ferro Alloy
433000 TPA
100000 TPAAlloy Steel
MS Billets Billets
2007
220000 TPA6.2 MW
51000 TPA Sponge IronPower
Ferro Alloy 608000 TPA
117610 TPA Sinter Plant
12.8 MW
MS Billets
180000 TPA power
Re-Rolling
Mill
428750 TPA
Pig Iron
50 MW Power
2009

88210
TPA
MS Billets
216000
TPA Coal
Washery

Journey of the excellent

project execution

Existing Facilities
Existing Facilities

Capacity

Sponge Iron

445000 MT

Pig Iron

510000 MT

MS Billets

473000 MT

Alloy Steel Billets

433000 MT

Ferro Alloy

106000 MT

Sinter

608000 MT

Rolling Mill

260000 MT

Ductile Iron Pipes

240000 MT

Coal Washery

216000 MT

Captive Power Plant

Railway Rakes under WIS
Pvt. Railway Siding

111 MW
4 (61 wagons each)
Durgapur , Muripar & Barbil
8

Brownfield expansions
Low Incremental Capex as compared to substantial margin expansion

Capex Description
Sponge Iron

Capacity

Capex (mn.)

Timeline

Benefits

0.06 MT

400.0

FY 11

JBIL will be short in captive metallics

in the FY11. Proposed Unit planned
at Jharkahnd where land and other
infrastructure is already available and
coal mine starting in the FY 2011.

Non Coking Coal Mine

and Washery

Peak
Capacity
1.40 MT

950.0

FY 11

Will reduce cost of DRI by around

Rs.1400 per ton. JBIL has 0.45 MT
existing DRI capacity. Reserves
sufficient for more than 30 years.

Coking Coal Mine

Peak
Capacity
0.56 MT

250.0

FY 12

Coke Ovens

0.35 MT

3620.0

FY 12

Will reduce cost of hot metal by

around Rs.5000 per ton. JBIL has
0.51 MT Blast Furnace capacity.
Reserves sufficient for more than 30
years. Additional waste heat sufficient
for 20 MW power.

290.0

FY 12

Roads & infrastructure for

existing Durgapur plants
Total

Since all the capex of the Durgapur

plant is complete, Roads, Drainage
and other infrastructure at the plant
shall also be complete.

5510.0
9

Manufacturing Facilities post completion

10

Proximity to Raw Material and captive mines

11

Cost Effective Logistics Infrastructure

12

Existing Power Generation Capacities

The
Thecompany
companyisisoperating
operating111
111MW
MWof
ofcaptive
captivepower
powerat
atits
itsintegrated
integratedPower
PowerPlants
Plants..
Power
Power isis generated
generated by
by utilizing
utilizing waste
waste gases
gases of
of Sponge
Sponge Iron,
Iron, Blast
Blast Furnaces
Furnaces && solid
solid
wastes
wastessuch
suchas
asdolochar
dolochar&&coal
coalfines
finesgenerated
generatedfrom
fromthe
theintegrated
integratedoperations.
operations.
Total
Total cost
cost of
of power
power generation
generation including
including depreciation
depreciation && interest
interest isis around
around Rs.1.25
Rs.1.25
wherein
whereincost
costof
offuel
fuelisisaround
aroundRe.0.65
Re.0.65per
perunit.
unit.
The
The Power
Power plant
plant has
has strong
strong grid
grid support
support wherein
wherein total
total power
power requirement
requirement for
for the
the
integrated
integratedsteel
steeloperation
operationisisapproximately
approximately145
145MW.
MW.
The
The company
company has
has tie-ups
tie-ups with
with DVC
DVC && DPL
DPLfor
for the
the balance
balance requirement
requirement of
of power
power @
@
Rs.2.75
Rs.2.75per
perunit.
unit.
Power
PowerPlants
Plantseligible
eligiblefor
forCDM
CDMbenefits
benefitsunder
underKyoto
KyotoProtocol.
Protocol.

13

Project Purulia Green field expansion

Project Site

5 MT Steel
+
1215 MW Power
+
3 MT Cement

Update

1130 Acres Land

&
Coal Blocks of
Appx 700 Mn ton of
Superior Grade
Ranigunj Coal

14

Project Purulia- Updates & Plans

Signed
Signed MoA
MoA with
with the
the Govt.
Govt. of
of WB
WB to
to set
set up
up an
an 55 MT
MT integrated
integrated steel
steel plant,
plant, 33 MT
MT
Cement
CementPlant
Plantand
and1215
1215MW
MWPower
PowerPlant
Plantat
atRaghunathpur,
Raghunathpur,Purulia.
Purulia.
JBIL
JBILhas
hasalready
alreadybeen
beenhanded
handedover
overapprox
approx1130
1130acres
acresof
ofland
landfor
forthe
theproject.
project.
Captive
Captive Coal
Coal Mines
Mines for
for steel
steel making
making and
and power
power plants
plants already
already available
available and
and under
under
development.
development.
Water
Water Drawl
Drawl Permission,
Permission, Railway
Railway Traffic
Traffic Clearance
Clearance && in-principle
in-principle approval
approval from
from
State
StateElectricity
ElectricityBoard
Boardfor
forconstruction
constructionpower
poweralready
alreadyin
inplace.
place.
Application
Application for
for environment
environment clearance
clearance submitted,
submitted, Public
Public Hearing
Hearing complete
complete and
andTOR
TOR
received.
received.
Project
Projectto
tobe
becompleted
completedin
inmodular
modularfashions
fashionsininphases.
phases.
Phase
Phase II planned
planned to
to be
be of
of 22 MT
MT metallic
metallic and
and 400
400 MW
MW of
of Power,
Power, work
work starting
starting in
in the
the
FY
FY2011.
2011.
15

Captive Resources Coal Coking & Non coking

JBIL has been one of the largest allottee of coal blocks for captive consumption in steel making
for its existing facilities and Greenfield Purulia project in West Bengal due to the excellent track
record of project execution.
Coking coal block of Rohne:
Rohne JBIL's share in the reserves is 17m tons in Joint Venture with two other
companies. The block is expected to commence in FY 12.
Non-coking coal at Dumri:
Dumri This coal block was allotted to its subsidiary, Nilanchal Ispat (NIPL), in
Jharkhand. NIPL's share is 38m tons in this block. Forest clearance is expected soon because there are
only few trees in the mine area. Mining is likely to commence in FY 11.
Non-coking coal at Ardhgram,
Ardhgram West Bengal: JBIL's share in reserves is 15-16%, equivalent to 4m tons.
This is a small block where mining should start in 2-3 years.
Non-coking coal at Andal,
Andal West Bengal: JBIL's share is 33%, equivalent to 229.50m tons. Coal mining will
start in 48 months.
Non-coking coal at Jagannathpur A & B,
B West Bengal: These blocks have been allotted to West Bengal
Mineral Trading Development Corporation (WBMTDC). On 4 October 2007, Government of West Bengal
(GoWB), West Bengal Industrial Development Corporation (WBIDC), WBMTDC signed an agreement
with JBIL to provide these blocks to JBIL for setting up an integrated Greenfield steel plant. Already
started exploration and drilling activities for development. Theses mines will be a source of low cost coal
in three years
16

Thank You !
Safe Harbor Statement :
Some forward looking statements on projections, estimates, expectations & outlook are included to enable a better comprehension
of the Company prospects. Actual results may, however, differ materially from those stated on account of factors such as changes
in government regulations, tax regimes, economic developments within India and the countries within which the Company conducts
its business, exchange rate and interest rate movements, impact of competing products and their pricing, product demand and
supply constraints.
Nothing in this article is, or should be construed as, investment advice.
17