seml presentation
TRANSCRIPT
CORPORATE CORPORATE PRESENTATIONPRESENTATION
M I N I N G P O W E R F E R R O-A L L O Y S S T E E L
Synergy in Energy
1SEML
An ISO 9001:2008 Certified Company
S E M L
AHEMDABAD | BARBIL | DELHI | MUMBAI | NAGPUR | RAIPUR | VISAKHAPATNAM | BEJING | HONGKONG | INDONESIA | SINGAPORE
2SEML
THE COMPANY
About The Company…
Sarda Energy & Minerals Limited (SEML) is a flagship company of the Sarda Group incorporated in 1973
It is a manufacturer and exporter of niche and premium grade manganese alloys in India.
SEML is fully integrated producer of steel with interest in mining, power and Ferro alloys.
3SEML
4SEML
• Coal Mines
o Started extraction of coal from Raigarh Coal Mines for captive use in sponge iron plant at Siltara
• Power Plant
o Installed 3rd turbine with another 90 TPH FBC boiler to augment the power generation capacity from 48 MW to 78 MW
• Ferro Alloys
o Installed raw material preparation unit to agglomerate Mn Ore fines into lumps
• Iron Ore Pelletisation
o Trial production started in 0.6 MTPA Pellet Plant. Commercial production commenced from April ,10.
• Wire Rod Mill
o 1.8 Lac TPA Wire Rod Mill operationalised.
• Fly-Ash Bricks & Blocks
o Started state-of-the-art fly ash brick manufacturing facility with installed capacity of 60 million bricks per annum
• Railway Siding
o Operationalized railway siding inside the plant along with wagon tippler and truck tippler, connected to Mandhar Railway Station.
Developments in 2009-10
Capacity Creation
Sponge Iron
Year Addition (TPA)
Total Capacity (TPA)
1993 30,000 30,000
1995 30,000 60,000
2004 150,000 210,000
2009 150,000 360,000
Steel
Ferro Alloys
Year Addition (TPA)
Total Capacity (TPA)
2001 33,000 33,000
2003 16,500 49,500
2005 16,500 66,000
2006 16,500* 82,500
Year Addition (TPA)
Total Capacity (TPA)
2001 40,000 40,000
2006 100,000 140,000
2008 100,000 240,000
Power
Year Addition (MW)
Total Capacity (MW)
2001 24 24
2005 24 48
2010 30 78
*Used as standby
6SEML
Project Name Capacity (MW)
Managed B y Status
Loharkheth, Uttarakhand
5Parvatiya Power Ltd.(54% stake)
Operational
Ronghni, Sikkim
96Madhya Bharat Power Corporation Ltd.(52% stake)
Civil work started
Gullu, Chhattisgarh
24Chhattisgarh Hydro Power (P) Ltd.(60% stake)
Financial Closure achieved
Rehar-I, Chhattisgarh
24Chhattisgarh Hydro Power (P) Ltd. (60% stake)
Clearances in process
Mand, Chhattisgarh
24Chhattisgarh Hydro Power (P) Ltd. (60% stake)
Clearances in process
Kotaiveera, Chhattisgarh
24Chhattisgarh Hydro Power (P) Ltd. (60% stake)
Clearances in process
Ganeshpur, Chhattisgarh
9Chhattisgarh Hydro Power (P) Ltd. (60% stake)
Clearances in process
Total 206
Hydro Power Projects
Manufacturing Facilities
Sl. No. Facility Unit Capacity/Yr
1. Sponge Iron MT 360,000
2. Steel MT 240,000
3. Ferro Alloys MT 82,500
4. Power (Thermal) MW 61.5#
5.Iron Ore Pelletisation Plant MT 600,000
6.Wire Rod Mill MT 180,000
7. Iron Ore mining (Rajnandgaon Dist.) MT 1,500,000
8.Iron Ore Beneficiation Plant MT 600,000
9. Coal mining (Raigarh Dist.) MT 1,200,000
10. Coal Washery MT 960,000*
Existing
7SEML* Under Installation, # currently operational
Mineral Resources
8SEML
Sufficient to feed for 30 years ( Lease period)
Location
9SEML
SEML Plant at Siltara – Just 20 Km from Raipur
Coal Mines at Karwahi near Raigarh – Approx 320 Km from Raipur
Iron Ore Mines at Dongarbore – Approx 70 Km from Raipur
Infrastructure
• Factory Land at Raipur: 600 Acre (Sufficient to take care of our proposed 1 Million ton steel plant for which environmental clearance has been received)
• Power: – Directly connected with 132 KV electric line– 220 KV line is passing through adjacent plot.• Water: Dedicated 8 Km system from river to plant.• Industrial Infrastructure: Plant is in the Industrial growth Center.• Railway Siding:– Private railway siding inside the plant connected to Bombay-Howrah main
railway line– Another railway siding nearby owned under a joint venture .– Near Iron Ore Mines area. (In operation)
• Staff Colony:
– 80 Dwelling units at the plant area with all amenities
– 25 Dwelling units in Raipur City for senior Executives.
– 24 Dwelling units at Iron Ore mines
– 77 Dwelling units under construction at Coal Mines.10SEML
Subsidiaries & Group Companies
Subsidiaries
Sarda Metals & Alloys Ltd. (WOS)
Greenfield project of 66 MVA Ferro Alloys plant & 80MW Captive Power Plant near Vizag
Sarda Energy Ltd. (wos)– 1100 MW Thermal Power Project in Chhattisgarh
Sarda Energy & Minerals Hongkong Ltd., Hongkong. (WOS)
International trading & investment
Sarda Global Ventures Pte. Ltd (Singapore) (WOS)
Global mineral resource acquisitions – Coal Mine in Indonesia in JV (Reserves: 300 MMT)
Parvatiya Power Ltd.(54% stake) – Operating hydro power of 4.8MW in the state of Uttrakhand
Madhya Bharat Power Corporation Ltd. (52% stake)– Hydro power project of 96MW in the state of Sikkim
Chhattisgarh Hydro Power Pvt. Ltd.(60% stake) – Hydro power projects totaling to 110 MW in the state of Chhattisgarh
Joint Ventures
Raipur Infrastructure Company Ltd. – Railway siding at Mandhar
Madanpur South Coal Company Ltd. – Coal block with our share of 36 Million Tones
12SEML
BUSINESS MODEL
Value Addition Chain
STEEL
POWER
MINERALS
(COAL, IRON ORE &
MANGANESE ORE)
13SEML
14SEML
FLY ASH BRICKS
SPONGE IRON
Lu
mps
Waste Heat
IRON ORE MINES
Fin
es
PELLET PLANT
STEEL BILLETS
FERRO ALLOYS
POWER
Operational Synergy
Re
jects
Washed Coal
COAL MINES
COAL WASHERY
Waste Gas
Proposed
SINTERINGPLANT
BLAST FURNACE
MANGANESE ORE MINES
Sarda Energy and Minerals Ltd. 6
ROLLING MILL
ROLLED PRODUCTS
Power
15SEML
MARKET
Major Ferro Alloys Customers
Tata Steel
16SEML
Domestic Export
17SEML
Export Details
18SEML
Export Countries
19SEML
Country-wise exports of Ferro Alloys
22,227 MT 12,586 MT
20SEML
FINANCIALS
Financial Data (Million INR)
21SEML
TURNOVER
MILLION INR MILLION INR
2,412
4,118
7,029
10,321
CASH PROFIT
5,559
22SEML
NETWORTH
MILLION INR
PROFIT
Financial Data (Million INR)
23SEML
Earning Per Share
RUPEES IN INR
Dividend Per Share
Financial Data
Financial Data Q1FY11
24SEML
25SEML
PE RATIO TOL/TNW
CURRENT RATIO DEBT EQUITY RATIO
Financial Ratios
Performance
26SEML
Particulars 2006-07 2007-08 2008-09 2009-10
Installed Capacity Per Annum (Quantity)
Sponge Iron (MT) 210,000 210,000 360,000 360,000
Steel Billets (MT) 100,000 200,000 200,000 200,000
Steel Ingots (MT ) 40,000 40,000 40,000 40,000
Ferro Alloys (MT) 66,000 66,000 66,000 82500
Power (Kwh in Millions) 480 480 615 615
Pellet ( MT ) -- -- -- 600,000
Production ( In MT)
Sponge Iron (MT) 139,283 154,796 176,292 202,788
Steel Billets (MT) 30,979 58,667 53,190 7,322
Steel Ingots (MT) 29,800 24,327 20,909 4,948
Ferro Alloys (MT) 52,263 56,910 47,432 35,819
Power (Kwh in Millions) 329 340 358 331
Pellet ( MT) -- -- -- 27,121
Facility CARE Rating*
Non Convertible Debenture CARE AA-
Long Term Facilities
Secured Rupee Term Loan CARE AA-
Fund based Working Capital Limit CARE AA-
External Commercial Borrowing CARE AA-
Short Term Facilities PR1+
27SEML
Credit Rating
Rating Symbol Rating Meaning
CARE AA –Considered to offer high safety for timely servicing of debt obligations– Carry very low credit risk
PR-1 –Strong capacity for timely payment of short term debt obligations– Carry lowest credit risk– Facilities with relatively better credit characteristic are assigned PR1+ rating
* CARE letter dated March 24, 2010
28SEML
PROJECTS
Ferro Alloy Plant, Vizag
• Sarda Metals & Alloys Limited (SMAL) (WOS) is putting up a ferro alloy plant along with CPP in Visakhapatnam.
29SEML
Place Kantakapalli Village, Kothavalassa Mandal
District Vijaynagaram
State Andhra Pradesh
Nearest Railway Station Kantakapalli (Chennai-Kolkata main line), 2 Kms
Nearest Airport Visakhapatnam, 25 Kms
Nearest PortVisakhapatnam Port, 38 Kms
Gangavaram Port, 45 Kms
Road Access- Vijaynagaram State Highway, adjacent to site
- Chennai-Kolkata NH-5, 25 Kms from site
30SEML
Location Details – 36 Km From Vizag
Ferro Alloy Plant, Vizag
31SEML
Location Details – 2 Km from Kantakapalli Railway Station
Ferro Alloy Plant, Vizag
Ferro Alloy
• Production Facility
2x33 MVA Submerged Arc Furnace (Phase 1)
• Production Capacity
125,000 MTPA
• Major Products
Silico Manganese & Ferro Manganese
Captive Power Plant
• Production Capacity
1x80 MW Turbine
1x240 TPH CFBC Boiler
32SEML
Ferro Alloy Plant, VizagProduct Details
Land280.96 Acres from Andhra Pradesh Industrial Infrastructure Corp.
Water Pumped from Raiwada Reservoir
Manganese OreBHP Biliton, Australia; Assamang, South Africa; MOIL, AML and UMK
Coal Indonesian & Indian Coal
FinanceProject cost: Rs. 550 CroreDebt: 70% (Rs. 385 Crore)Equity: 30% (Rs. 165 Crore)
33SEML
Resources
Ferro Alloy Plant, Vizag
Land280.96 Acres. Acquisition completed from Andhra Pradesh Industrial Infrastructure Corp.
Detailed Engineering & Design
Completed
Major EquipmentsOrders placed for long delivery items including BTG Ferro Alloys furnaces order in finalization stage
Government Clearance
Environmental clearances for MOES received. Consent for Establishment (CFE) from APPCB expected by March’10 end
Commissioning Date March 2012
34SEML
Current Status
Ferro Alloy Plant, Vizag
• Madhya Bharat Power Corporation Limited is setting up a 2x48 MW Rongni Chu Hydro Electric Project in the state of Sikkim
35SEML
PlaceBarrage Site: Near Namli Village
Powerhouse: Near Rangpo Town
District East Sikkim
State Sikkim
Nearest Railway Station New Jalpaiguri, 102 Km
Nearest Airport Bagdogra, 117 Km
Road Access Near National Highway 31A
Rongni Chu Hydro Electric Project, Sikkim
Catchment Area 190 Sq Km
Catchment Type Rain Fed
Project Capacity 96 MW
Total Project Cost Rs. 544.43 Crores
Financial ClosureSanction received from PFC for 58% of the amountIn-principle sanction received for balance
Construction Work for approach road started
Equipment Tenders floated for major equipment
36SEML
Project Details and Current Status
Rongni Chu Hydro Electric Project, Sikkim
• Chhattisgarh Hydro Power Private Limited is setting up a 2x12 MW Gullu Hydro Electric Project in the state of Chhattisgarh
37SEML
Gullu Hydro Electric Project, Chhattisgarh
Catchment Area 415 Sq Km
Catchment Type Rain Fed
Project Capacity 24 MW
Total Project Cost Rs. 165 Crores
Financial Closure Achieved at D/E of 3:1
Land Acquisition Under Progress
Government Clearances
Obtained draft PPA from CSEBAll statutory clearance obtained except Forest Clearance
38SEML
Project Details and Current Status
Gullu Hydro Electric Project, Chhattisgarh
39SEML
GENERAL & CSR
• SEML has attained Quality Management System (ISO 9001:2008) certification to ensure quality products & services to all its stake holders. Moving towards ISO 14000
• Zero tolerance policy for exports• To incorporate global best practices in the industry,
SEML has implemented SAP• Strong Corporate Governance – out of nine, five are
Independent Director from diverse fields and two professional Directors
• Implementation of 5S and 3M
40SEML
Best Practices
Awards & Appreciation
Appreciation/Awards by Government Departments• Achieved the coveted Star Export House status from Government of India.
(Two Star)
• Certificate of Appreciation by The Commissioner of Central Excise and Customs, Raipur, for outstanding contribution made by the company in collection of Central Excise Revenue in Raipur Central Excise Commissionerate among the large sector units during 2008-09
• Won the Highest Export Award among the large sector units conferred by Govt. of Chhattisgarh.
• Most preferred supplies award for ferro alloys by Rashtriya Ispat Nigam Ltd, Govt of India
Prizes• The Dongarbore mines received first prize for maintenance of good road on
hilly terrain for transportation of material as per the specification and norms of DGMS
• The Dongarbore mines received second prize for maintenance of lighting system as per the specification and norms of DGMS
• Started state-of-art school, R.K. Sarda Vidya Mandir, in association with Bharatiya Vidya Bhavan near Raipur
42SEML
Corporate Social Responsibility
• Adopted 270 Single teacher schools (Ekal Vidyalya) in tribal area near Iron ore Mines for students from class 1 to 3.
43SEML
Corporate Social Responsibility
• Providing Ambulance & free medical facilities, nursing staff covering 30 villages nearby mines area.
44SEML
Corporate Social Responsibility
• Founder member of Siksha Deep Trust, to extend financial assistance for higher education to the underprivileged
• Built drinking water facility for villages near factory area.
• Providing Infrastructure & aid to Schools.
• Adopted & Developed Motibag, City Garden of Raipur.
45SEML
Corporate Social Responsibility
Sarda Energy & Minerals Limited
125, B Wing, Mittal Court
Nariman Point, Mumbai
Maharashtra
url: www.seml.co.inemail: [email protected]
Mumbai Office
Sarda Energy & Minerals Limited
73/A, Central Avenue,
Nagpur
Maharashtra
Registered Office
Sarda Energy & Minerals Limited
Industrial Growth Center
Siltara, Raipur
Chhattisgarh
Works Office
47SEML