chandi steel industries limited - jai balaji group · chandi steel industries limited ... and is...

Chandi Steel Industries Limited

Business Presentation

December 2010

Harsh Jajodia, Director

Email: [email protected]

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Disclaimer

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This presentation and the accompany slides (the “Presentation”), which have been prepared by Chandi Steel Industries Limited, solely for informationpurposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securities, and shall not form the basis of or berelied upon in connection with any contract or binding commitment whatsoever. This presentation is confidential and may not be copied ordisseminated, in whole or in part, and in any manner. The information contained in this presentation is subject to change without notice and pastperformance is not indicative of future results.This Presentation has been prepared by the company based on information and data which it considers reliable, but the company makes norepresentation or warranty or undertaking, express or implied, whatsoever, and no reliance shall be placed on, the truth, accuracy, completeness,fairness, correctness and reasonableness of the contents of this Presentation. This presentation has not been approved and will not be reviewed orapproved by any statutory or regulatory authority in India or by any Stock Exchange in India and may not comply with all the disclosure requirementsprescribed thereof. This Presentation may not be all inclusive and may not contain all of the information that you may consider material. Any liability inrespect of the contents of, or any omission from, this Presentation is expressly excluded.Certain matters discussed in this Presentation may contain statements regarding the company’s market opportunity and business prospects that areindividually and collectively forward-looking statements. Such forward-looking statements are not guarantees of future performance and are subject toknown and unknown risks, uncertainties and assumptions that are difficult to predict. These risks and uncertainties include, but are not limited to: theperformance of the Indian economy and of the economies of various international markets, the performance of the Steel industry competition, thecompany’s ability to successfully implement its strategy, risks associated with acquisitions of, and investments in, other entities, the company’s futurelevels of growth and expansion, the company’s market preferences and its exposure to market risks, as well as other risks. The company’s actual results,levels of activity, performance or achievements could differ materially and adversely from results expressed in or implied by this Presentation. Thecompany assumes no obligation to update any forward-looking information contained in this Presentation. Any forward-looking statements, projectionsand industry data made by third parties included in this Presentation are not adopted by the company and the company is not responsible for such thirdparty statements and projections.This presentation does not constitute an offer or invitation to purchase or subscribe for any securities in any jurisdiction, all around the world. No part ofthis Presentation should form the basis of or be relied upon in connection with any investment decision or any contract or commitment to purchase orsubscribe for any securities. None of our securities may be offered or sold in the United States, without registration under the U.S. Securities Act of 1933,as amended, or pursuant to an exemption from registration there from.The distribution of this Presentation in certain jurisdictions may be restricted by law and persons into whose possession this Presentation comes shouldinform themselves about and observe any such restrictions.

Chandi Steel Industries LimitedBusiness PresentationDecember 2010

Introduction

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Chandi Steel Industries Limited (CSIL), situated at Liluah in West Bengal,India is the oldest wing of ₹25 Billion Jai Balaji Group, established in1978. Heavy Rounds and Flats in various Carbon, Mild and Alloy Steelgrades are being manufactured in this facility with an installed capacityof 60,000 tons per annum. The products are supplied to various well-known aluminum smelters all around the world.

CSIL has the production capacity of 5,000MT per month, producingrounds upto 180 mm, Dia and Squares up to 160 RCS, Steel flats withthickness upto 80 mm and width of 300 mm.

CSIL has approximately 80% market share in India in the Cathode Barsand Anode bars market, and is approved and registered by Nalco, Balco,Hindalco, Vedanta, Dubal, Rio-Tinto and other large smelters of theworld.


Company Overview

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A subsidiary of ₹25 Billion Jai Balaji Group, established in 1978;

A leading manufacturer of forging and engineering quality alloy and non-alloy steel Rounds, Flats and Squares using the Blast Furnace route;

Exclusive ability to commercialization of modern technology;

Exclusive ability to manufacture various sophisticated grades of steel conforming to national and international standards;

Certificate holder of ISO 9001 : 2008;

Strong Customer base all around the world including DUBAL, RIO-TINTO, HINDALCO, NALCO, VAL, BALCO, MALCO, KCM, KENYA FLUORSPAR, HZL, HCL, UCIL, OMC etc.;


Managing Director

General Manager

HOD Operation

Rolling Mill

Workshop

PGP

HOD - P & A

HSE

Logistics

Excise

HOD – QA & QC

Lab

Process QC

Board of Directors

CSIL Organization

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Group Turnover

6

6320.2

14070.48

18960.12

23090.1924610.38

0

5000

10000

15000

20000

25000

30000

05-06 06-07 07-08 08-09 09-10

Rs.

in M

illio

n


Group’s Financial Summery

(Consolidated)

7

64

20

.16

14

29

0.7

7

19

63

0.5

6

23

69

0.4

8

25

02

0.4

7

0

5000

10000

15000

20000

25000

30000

05-06 06-07 07-08 08-09 09-10

Gross Revenue

64

0.8

9

17

50

.18

33

80

.35

24

40

.06

30

50

.65

0

500

1000

1500

2000

2500

3000

3500

4000

05-06 06-07 07-08 08-09 09-10

EBITDA 2

90

.89

67

0.0

6 13

20

.28

50

.31

38

0.0

4

0

200

400

600

800

1000

1200

1400

05-06 06-07 07-08 08-09 09-10

PAT

40

30

.52

77

60

.27

15

60

0.4

7 18

43

0.7

5

20

16

0.9

2

0

5000

10000

15000

20000

25000

05-06 06-07 07-08 08-09 09-10

Capital Employed

₹ i

n m

illio

n₹ i

n m

illio

n

₹ i

n m

illio

n₹ i

n m

illio

n


Group’s Product Profile

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Product Capacity

DRI : 6,90,000 TPA

Pig Iron : 5,10,000 TPA

Ferro Alloys : 1,06,000 TPA

Steel Billets : 11,37,000 TPA

Rolling Mill : 4,68,000 TPA

Sinter : 6,00,000 TPA

DUCTILE IRON PIPE : 2,50,000 TPA

Captive Power Plant : 111 MW


CSIL Products Profile

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Cathode Collector Bars for AluminumElectrolyzers;

Flats of various sizes in Mild Steel andother special customized composition asspecified by the customer with lengthsup to 4500 mm, width up to 300 mmand thickness of 20mm to 80mm;

Rounds for similar use in required sizesand specifications;

Anode pins manufactured from specialSteel Rounds of 50 mm to 180 mm Dia;

Grinding Media Rods for Cement,Copper and Zinc Industries;


Initiative Highlights

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Rapidly growing berth segment;

Developing leading brands in India;

Expanding manufacturing capacity;

Experienced management team;

Expanding to international markets;

Patent protected technology;


Business Strategies

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Focus on world wide markets withsustainable margins;

High value products allows rawmaterial price fluctuations to bepassed on to customers;

Increasingly expand manufacturingcapacity;

Higher average selling price on newcapacity yields higher profit margin;

Building highly competitive nationaland international leading products;

Influence India’s lower operatingcost base at national & internationalstandards;


Growth Drivers

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Manufacturing Excellence Low cost billet production Low conversion cost bar mill Safety - Goal Zero Provide flexibility to the market Reinforced products; India’s booming exports support

increasing demand for Commercial and Special steel;

Designed to operate at capacity; Reaching to end user Directly as

well as through Steel distribution companies;

Customer service and satisfaction


Production Facilities

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Furnace 60 T Blast Furnace (BF) Ladle Furnace (LF) Vacuum Degassing (VD) Vacuum Oxygen Decarburisation (VOD)

Rolling Mill Rolling Mill 60000 TPA; Billet Pre-Heating Furnace

(Hydraulic Pusher), capacity 10TPH backed with Producer gas Plant

WMW Plano Miller; Drill Machines, Shapers, Lathes

Hydraulic Straightening, Milling & Plano Milling Machines etc.;

Modern Tool Room & Standard Room;

Metallurgical Lab; Designing & Process Facilities; Modern testing Equipments;

Billets & Blooms through EAF route transfer to Rolling Mill

Round Bars; Square Bars; Rectangular Bars; Grinding Media Rods; Cathode Bars; Collector bars;

Finished Products


Manufacturing Process

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The process involves converting the ingots,billets to the desired finished section in the hotcondition by way of passing the materialbetween a pair of grooved rolls and providingsuitable drafts at various stages. The wholeoperation is conducted at a particulartemperature range and within a limited timespan. The stages of rolling operation arecomprised of heating of feed stock to rollabletemperature, rolling the feeding stock indifferent mill stands, cropping the hot bar duringthe process of rolling between mill stands asapplicable and subsequently finishing in form ofhot rolled bar in straight length. The hot barcoming out of the last pass is then conveyedthrough and collected in a cool bed. The bars atalmost ambient temperature are sheared tocommercial length stored and kept ready fordispatch.

Steel Billets

Re-Heat Furnace

Roughing Stands

Intermediate Stands

Finishing Stands

Cooling Bed

Finished Bar

Domestic Distribution / Remanufacture

Export


Material Flow Chart

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Cutting into Length

Physical Testing

Cutting into Length

Machining

Final Inspection, Bundling & Packing

Dispatch

Raw Material in Shape of

Billets/Blooms/Slab

Physical & Chemical testing

Cutting in respect of Product Size

Pusher for Feeding in Pre-Heating

Furnace

Inside of Furnace at 1250°C

Hot Rolling for Reduction in Size

Stand I


Stand II


Stand III


Stand IVCooling Bed


Testing Facilities

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Currently Tests are being carried out on regular basis

Tensile Test Hardness Testing Micro Examination for Grain Size, Inclusion Rating, Micro Structure Macro Examination for Segregation, Internal Sounded, Surface defect, Grain Flow Ultrasonic Tests Dry Penetration Test Wet Analysis in a well-equipped Chemical Laboratory Spectro Analysis


Special care packing

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While packing special care is given to prevent abrasion, rust and scratch during transportation and shipment.

Proficient Manpower

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TECHNICAL EXPERTS

MECHANICAL ENGINEERS

ELECTRICAL ENGINEERS

METALLURGICAL ENGINEERS

SERVICES & SAFETY EXPERTS

MARKETING PROFESSIONALS

SKILLED LABOURS


Quality Pledge

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CSIL’s pledge is to be the benchmark in product qualityfor our customers.We work closely with customers to understand andcomply with their specific quality requirements.Customer and our own quality requirements areintroduced at the concept phase of each new technologyand product introduction. Zero Defect and Design forQuality processes, practices and methodologies areembedded in each development and manufacturingphase of the new product introduction to ensure ourquality standards and goals are met. We ensure that allparts of the organization deliver the quality pledgethrough clear processes, metrics and attention to detail.You may experience a rare quality problem, in whichcase we promise prompt, professional resolutionthrough our customer returns and quality incidentsolution programs.Our goal is to ensure customers trust us and want towork with us because of our commitment to productquality and customer satisfaction.We have been creating high-quality products for a longperiod and will continue to build our brand based uponour quality pledge.


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Appreciations

Strong Customer Base

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National (Majors)

International (Majors)


Snaps Overview

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Contact Us

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Chandi Steel Industries Limited

3 Bentinck Street, Kolkata – 700001 (WB), India

Telephone: +91 33 2248 9808 / 8173

Telefax: +91 33 2243 0021

Email: [email protected]


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