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CEO’s PerspectiveHR Convention - 2014Ravi Uppal, MD & Group CEO - JSPL13 December 2014

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Copyright @ 2014 Jindal Steel & Power Limited 2

Jindal Steel and Power Ltd

Driven by Entrepreneurship & Passion

Copyright @ 2014 Jindal Steel & Power Limited 3

Jindal Steel and Power Ltd

Annual turnover of JSPL

US$ 3.3 bn+Future investments

committed across continents

US$ 30 bnSteel making capacity Mining capacity

20.96 MTPA

Power capacity

5,200 MWPellet making capacity

9 MTPA 29 CountriesEnsuring pan-India presence,

covering 400 districts for retail business

People strength

20,000+Lives impacted by JSPL’s

social endeavours

9 Lakh+Saplings planted

7.4 mn+

8.50 MTPA

Export presence

1,400 Dealers

Copyright @ 2014 Jindal Steel & Power Limited 4

JSPL Business Segments

PowerMines & Minerals

Global Ventures

Steel 8.50 MTPA

Mining 20.96 MTPA

Power5200 MW

Business segments

Current Capacities – Domestic & Global

Pellet9 MTPA

Cement0.7 MTPA

Steel & Cement

Copyright @ 2014 Jindal Steel & Power Limited 5Version 4 | 01.09.2014

Global Business – A Two Pronged Focus• A Platform to Enhance Backward Integration

• A Driver for Profitable Growth - New Markets & Strategic Beachheads

JSPL – The Global Footprint

Vision

“To be a globally admired organization that enhances the quality of life of all stakeholders through sustainable industrial and business development.”

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Mission

We aspire to achieve business excellence through:

The spirit of entrepreneurship and innovation Optimum utilization of resources Sustainable environment friendly procedures and

practices The highest ethics and standards Hiring, developing and retaining the best people Maximizing returns to stakeholders Positive impact on the communities we touch

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Jindal Steel and Power

Highly Entrepreneurial organization

Excellent Business model

Quite innovative and nimble footed

Energetic management team

Largely owner driven

Owner – highly dynamic and ambitious

Informal structure and communication

Rapid growth – Turnover of 20,000 Cr in 25 years

Limited number of operational locations

Consistently Profitable

Party of Nifty index

Largely centralized decision making

So Far…

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To become....USD 20 Billion Company with Market Cap of USD 30 Billion To become ....Global Organization - 25% of Revenue from International Business To become .... A trusted Brand : From Commodity to Brand!

Performance Excellence

Vision

Imperatives

Excellence Drivers

Culture (Will)Capability (Skill)

Now….Owner Driven Ownership Mindset

Now…Individual brilliance Institutionalized excellence

Now…Information flow through informal networks Single source of truth

Now…Business segment performance Power of the Enterprise

Entrepreneurial- Speed, Efficacy, Probity

Leadership, Business& People CapabilitiesRU - 13 Dec 2014 V1 9

Jindal Steel and Power

New business segments

Rapidly growing Global footprint

Targetting > 20% annual growth rate during the next 10 years

Operations in Multiple location

Increasing competition from local and international players

Need for “Cost Leadership”

Policy impediments

Future Challenges

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Jindal Steel and Power

Changing from “Owner driven” to “Ownership Mindset” culture

Need for elaborate system and institutionalized processes

Clarity on “Roles” and “Responsibilities”

Formal targets and budgets

Strengthen Leadership – Multiple leaders

Robust governance system

“Good to Great” Agenda

Imperatives

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Copyright @ 2014 Jindal Steel & Power Limited 12

New Initiatives at JSPL

Creation of dedicated business segments, business units and “Mini CEOs”

Creation of dedicated Mines and Minerals segment

Creation of Central functions cutting across businesses

Monthly financial performance review with BUs and cost centres

Robust bottom up, zero based budgeting systems

Strategic and Operational Governance Structure

Constitution of Investment and Risk management committee

Constitution of Product Committees

Portfolio Governance

• Positioning Businesses for Growth and setting overall targets

Strategic Governance

• Driving Inclusive & Participative Management and setting group strategies

Operational Governance

• Enhancing Efficiency & Effectiveness and executing agreed strategies

Three Fold Governance Mechanism

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Moving towards Plural Leadership

Strategic Governance Structure

Operational Governance Structure

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BS / BU wise Org Structure

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ChairmanNaveen Jindal

Chief AdvisorAnand Goel

MD & Group CEORavi Uppal

Business StrategyCorporate Planning

Group Internal AuditHarish Dua

Group ProcurementPravin Purang

Company SecretaryJagdish Patra

POWERRS Sharma: MD &

CEO JPL;

Mines & MineralsManish Kharbanda

Steel, CementRavi Uppal

MD & Group CEO

Global VenturesRajesh Bhatia

Executive Director

EPC, Construction

MaterialsSS Raju

President

RealtyAnil BehlExecutive Director

HR & Administration

Rajeev BhadauriaDirector

Finance & Accounts

K RajagopalGroup CFO

Corporate Centre

Ravi UppalMD & Group

CEO

Business Segments

Functions

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Organization’s Fabric

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Steel & Cement Power Mines &

MineralsGlobal

Ventures Realty EPC, Const Materials

Finance

HR

IT

HSE

Corp Affairs

Corp Comm

Legal

Logistics

Aviation

CSR

Environment

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Transformation initiatives at JSPL

Clear roles and responsibilites; KPIs

Build strong systems and processes

Decision to be perceived as “Objective”; “Transparent”; and “Fair”

Gain Employee Trust and Respect for the organization

Strong internal communication

Ownership of performance at various levels

Matching “Delegation of Authority” at various levels

Objective measurement of performance and accountability

1. Create a “Performance Enabling” environment

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Transformation initiatives at JSPL

“Vision” and “Target Setting” with active participation of employees

“Buy – in” of new initiatives / policy changes must for its success

2. “Vision” and “Target Setting”

3. Nurture “Plural Leadership”

People believe more what they see than what they hear

4. Leadership to lead by example

Lead from front to set an example

Prompt from behind to inspire

5. Lead from front

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Transformation initiatives at JSPL

Gives employees proud and internal strength to manage

challenges

6. Value based culture a must

Listen to what they say and what they need

7. Leverage power of “Young minds”

8. “Technology savvy” and “Execution oriented” culture

9. Equal respect for all “Employees”

10. Organization should defined what it treasures the “MOST”

11. Continuous Training & Skill upgradation of employees through a structures processRU - 13 Dec 2014 V1 19

Leveraging Young Minds

Success of Organization critically dependent on how we leverage the “Young Minds” making up > 75% of work force

<1%

24%

75%Junior ManagementAge: 25 – 35 years

Middle ManagementAge: 35 – 50 years

Senior ManagementAge: 50 – 65 years

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Building Capabilities (Skill)

Leadership Exploration And Development

Delivering Performance through Leadership Development

Achieve business

Enterpriseleaders(~15)

BU/function

leaders (~25)

Unit leaders(~100)

Functional leaders(~200)

Early functional leaders

Team leaders(~400)

▪ Globally fungible leaders

▪ Managing a P&L in a BU/ division/function

▪ Running units or functions at units as part of a BU/ corporate functions

▪ Functional leaders by archetype (project mgmt, mfg, HR, fin etc)

▪ Manage large teams and work across divisions OR gaining early functional excellence

▪ Managing small teams, focus on basic induction

Leadership culture

Leadership systems

Individual leader

development

+

+

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Building Culture (Will)

Culture A reenergised culture to foster strong foundation for growth across all levels

Vision, mission, values statement

Capability Systems

Reporting Structures

Decision Rights

Training Focus

Internal Communication

Policies

Performance Management

Business Processes & MetricsTone set by senior leaders

Informal networks

Meaningful manager-employee connections

Peer-to-peer interactions

Pride builder Initiatives

Awareness Building

FORMAL

LEVERS

INFORMAL LEVERS

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Approach to Salary Revisions 2011-12

“Compensation Decisions”

Presented By

Manish Kharbanda

Thank You

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