Jai Balaji Industries Limited

1
Jai Balaji Industries Limited
2
JBIL A Brief Profile
First Company in West Bengal to start operation
by setting up a Sponge Iron Plant.
Executed 1 MT fully integrated green field steel
manufacturing facilities within a short span of 4
years .
First to set up Waste Heat Recovery Power Plants
in West Bengal. Presently, 111 MW Power Plants
are operational.
Presence in mineral rich states of the country
viz. West Bengal, Chhattisgarh Jharkhand.
Entire value chain of steel manufacturing from
processing iron ore to manufacturing finished
products.
Acquired Steel division of HEG Ltd. and Nilachal
Iron Power Ltd. in the FY 2007-08.
Successfully raised equity from IPO, Private
Placements and QIP Route.
3
Financial Indicators
Share Price Movement
4
Financial Overview
Rs in mn.
Particulars FY 06 FY 07 FY 08 FY 09 FY10 Q1 FY11
Sales 8811.1 10733.8 12907.6 16948.8 19143.8 4143.9
Other Income 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
EBIDTA 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
EPS (Rs.) 9.6 13.16 25.23 0.27 5.66 1.63
5
Shareholding Pattern
No. of shares No. of shares 63.7 million 63.7 million
Share Capital Share Capital Rs.637 million Rs.637 million
Market Cap Market Cap Rs.16.5 billion Rs.16.5 billion
Net Debt Rs.15.9 billion Rs.15.9 billion
Net Worth Rs.9950 million Rs.9950 million
Debt Equity Ratio Debt Equity Ratio 1.59  
6
The Business Model (Full Flexibility)
Iron Ore / Fines Presently from Market Allocated
(will take 3 Years)
Non coking coal Dumri 37 MT by FY 11
Coking coal Rohne 17 MT by FY 12
Coal Washery 0.26 MT
Sinter 0.608 MT
Coke Oven 0.35 MT by FY 12 (Coke Presently from
Market)
1.0 MT
DRI 0.45 MT
Pig Iron / Hot metal 0.51 MT
0.06 MT
Induction Furnace Billets 0.473 MT
Electric Arc Furnace 0.433 MT
CPP 111 MW
Ductile Iron Pipe 0.240 MT
TMT Rods 0.300 MT
Legend
Installed
Ferro Alloys 0.106 MT
Under Installation
Material Movement
Sales Points
Sales
Free Fuel
Power Captive Use
7
Project Implementation
2010
240000 TPA Ductile Iron Pipe 30 MW Power
2009
25500 MTPA Ferro Alloy 433000 TPA Alloy Steel
Billets 6.2 MW Power
2008
100000 TPA MS Billets 220000 TPA Sponge
Iron 608000 TPA Sinter Plant 12.8 MW power
2007
51000 TPA Ferro Alloy 117610 TPA MS
Billets 180000 TPA Re-Rolling Mill 428750 TPA Pig
Iron 50 MW Power
2006
88210 TPA MS Billets 216000 TPA Coal Washery
2005
31118 TPA Ferro Alloy 88210 TPA MS Billets 40250
TPA Pig Iron Plant 12 MW Power Plant
2004
120000 TPA Sponge Iron
2003
Journey of the excellent project execution
40250 TPA Pig iron Plant 80000 TPA Re-Rolling Mill
2001
79200 TPA MS Ingot 105000 TPA Sponge iron
8
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 111 MW
Railway Rakes under WIS 4 (61 wagons each)
Pvt. Railway Siding Durgapur , Muripar Barbil
9
Brownfield expansions
Low Incremental Capex as compared to substantial
margin expansion
Capex Description Capacity Capex (mn.) Timeline Benefits
Sponge Iron 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 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.
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.
Roads infrastructure for existing Durgapur plants 290.0 FY 12 Since all the capex of the Durgapur plant is complete, Roads, Drainage and other infrastructure at the plant shall also be complete.
Total 5510.0
10
Manufacturing Facilities post completion
11
Proximity to Raw Material and captive mines
12
Cost Effective Logistics Infrastructure
13
Existing Power Generation Capacities
The company is operating 111 MW of captive power
at its integrated Power Plants .
Power is generated by utilizing waste gases of
Sponge Iron, Blast Furnaces solid wastes such
as dolochar coal fines generated from the
integrated operations.
Total cost of power generation including
depreciation interest is around Rs.1.25 wherein
cost of fuel is around Re.0.65 per unit.
The Power plant has strong grid support wherein
total power requirement for the integrated steel
operation is approximately 145 MW.
The company has tie-ups with DVC DPL for the
balance requirement of power _at_ Rs.2.75 per unit.
Power Plants eligible for CDM benefits under
Kyoto Protocol.
14
Project Purulia Green field expansion
5 MT Steel 1215 MW Power 3 MT Cement
Project Site
1130 Acres Land Coal Blocks of Appx 700 Mn
ton of Superior Grade Ranigunj Coal
Update
15
Project Purulia- Updates Plans
Signed MoA with the Govt. of WB to set up an 5 MT
integrated steel plant, 3 MT Cement Plant and
1215 MW Power Plant at Raghunathpur, Purulia.
JBIL has already been handed over approx 1130
acres of land for the project.
Captive Coal Mines for steel making and power
plants already available and under development.
Water Drawl Permission, Railway Traffic Clearance
in-principle approval from State Electricity
Board for construction power already in place.
Application for environment clearance submitted,
Public Hearing complete and TOR received.
Project to be completed in modular fashions in
phases.
Phase I planned to be of 2 MT metallic and 400 MW
of Power, work starting in the FY 2011.
16
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 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 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, 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, 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, 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

17
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.