Jai Balaji Industries Limited
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 200708.
Successfully raised equity from IPO, Private Placements and QIP Route.
2
Financial Indicators
Total Revenue (Mn.)
EBIDTA (Mn.)
25000
3500
19402.82
20000
17233
2612.22
2500
13472.8
15000
2897.1
3000
1880.5
2000
1546.5
10753.1
10000
8902.1
1500
1000
978
5000
500
0
0
FY 06
FY 07
FY 08
FY 09
FY 10
PAT (Mn.)
FY 06
FY 07
FY 08
FY 09
FY 10
Share Price Movement
1400
1188.7
1200
1000
800
600
620.2
452.2
318.09
400
200
12.8
0
FY 06
FY 07
FY 08
FY 09
FY 10
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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
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Shareholding Pattern
FDI
13.11%
Individuals
11.63%
Promoters
50.75%
Bodies Corporate
11.23%
Mutual Funds/ UTI
2.83%
FII
10.44%
Banks & FIs
0.01%
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
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The Business Model (Full Flexibility)
Non coking coal
Dumri 37 MT by FY 11
Coal Washery
0.26 MT + 1.0 MT
Iron Ore / Fines
Presently from Market
Allocated (will take 3 Years)
Sinter
0.608 MT
Coking coal
Rohne 17 MT by FY 12
Coke Oven 0.35 MT by FY 12
(Coke Presently from Market)
DRI
0.45 MT + 0.06 MT
Pig Iron / Hot metal
0.51 MT
Induction Furnace Billets
0.473 MT
Electric Arc Furnace
0.433 MT
TMT Rods
0.300 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
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Project Implementation
2010
2009
25500 MTPA
Ferro Alloy
433000 TPA
100000 TPA Alloy Steel
MS Billets
Billets
220000 TPA 6.2 MW Power
Sponge Iron
608000 TPA
Sinter Plant
12.8 MW
power
240000 TPA
Ductile Iron Pipe
30 MW Power
2008
2007
2006
2005
2004
2003
2001
40250 TPA Pig
iron Plant
80000 TPA ReRolling Mill
120000 TPA
Sponge Iron
31118 TPA
Ferro Alloy
88210 TPA
MS Billets
40250 TPA Pig
Iron Plant
12 MW Power
Plant
88210 TPA
MS Billets
216000
TPA Coal
Washery
51000 TPA
Ferro Alloy
117610 TPA
MS Billets
180000 TPA
Re-Rolling Mill
428750 TPA
Pig Iron
50 MW Power
Journey of the excellent
project execution
79200 TPA
MS Ingot
105000 TPA
Sponge iron
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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
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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
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
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Manufacturing Facilities post completion
Backward
Integration
Metallic's
[1055000]
Non Coking Coal Mine 37 Million tons
Coking Coal Mine 17 Million Tons
Sinter Plant [608000]
Coke Oven [350000]
Captive Power Plant [111 MW]
Coal Washery [1016000]
Metal Capacity
[906000]
Finishing Lines
Sponge
Iron
[545000]
M.S Billets
[473000]
TMT Rolling
Mills
[560000]
Pig iron
[510000]
Alloy Steel
Billets
[433000]
Ductile Iron
Pipes
[240000]
Ferro Alloys
[106000]
3 Private Railways siding
4 Railways rakes
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Proximity to Raw Material and captive mines
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Cost Effective Logistics Infrastructure
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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 @
Rs.2.75 per unit.
Power Plants eligible for CDM benefits under Kyoto Protocol.
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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
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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.
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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
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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.
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