Chandi Steel Industries Limited Business Presentation December 2010 - - PowerPoint PPT Presentation

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Chandi Steel Industries Limited Business Presentation December 2010 - - PowerPoint PPT Presentation

Chandi Steel Industries Limited Business Presentation December 2010 Harsh Jajodia, Director Email: harsh@jaibalajigroup.com 1 Disclaimer This presentation and the accompany slides (the Presentation), which have been prepared by Chandi


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Chandi Steel Industries Limited

Business Presentation December 2010 Harsh Jajodia, Director Email: harsh@jaibalajigroup.com

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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 information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securities, and shall not form the basis of or be relied upon in connection with any contract or binding commitment whatsoever. This presentation is confidential and may not be copied or disseminated, in whole or in part, and in any manner. The information contained in this presentation is subject to change without notice and past performance 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 no representation 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 or approved by any statutory or regulatory authority in India or by any Stock Exchange in India and may not comply with all the disclosure requirements prescribed thereof. This Presentation may not be all inclusive and may not contain all of the information that you may consider material. Any liability in respect 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 are individually and collectively forward-looking statements. Such forward-looking statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties and assumptions that are difficult to predict. These risks and uncertainties include, but are not limited to: the performance of the Indian economy and of the economies of various international markets, the performance of the Steel industry competition, the company’s ability to successfully implement its strategy, risks associated with acquisitions of, and investments in, other entities, the company’s future levels 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. The company assumes no obligation to update any forward-looking information contained in this Presentation. Any forward-looking statements, projections and industry data made by third parties included in this Presentation are not adopted by the company and the company is not responsible for such third party 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 of this Presentation should form the basis of or be relied upon in connection with any investment decision or any contract or commitment to purchase or subscribe 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 should inform themselves about and observe any such restrictions.

Chandi Steel Industries Limited Business Presentation December 2010

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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 in

  • 1978. Heavy Rounds and Flats in various Carbon, Mild and Alloy Steel

grades are being manufactured in this facility with an installed capacity

  • f 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, producing rounds upto 180 mm, Dia and Squares up to 160 RCS, Steel flats with thickness upto 80 mm and width of 300 mm. CSIL has approximately 80% market share in India in the Cathode Bars and Anode bars market, and is approved and registered by Nalco, Balco, Hindalco, Vedanta, Dubal, Rio-Tinto and other large smelters of the world.

Chandi Steel Industries Limited Business Presentation December 2010

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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.;

Chandi Steel Industries Limited Business Presentation December 2010

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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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Chandi Steel Industries Limited Business Presentation December 2010

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Group Turnover

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6320.2 14070.48 18960.12 23090.19 24610.38 5000 10000 15000 20000 25000 30000 05-06 06-07 07-08 08-09 09-10

  • Rs. in Million

Chandi Steel Industries Limited Business Presentation December 2010

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Group’s Financial Summery

(Consolidated)

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6420.16 14290.77 19630.56 23690.48 25020.47

5000 10000 15000 20000 25000 30000

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

Gross Revenue

640.89 1750.18 3380.35 2440.06 3050.65

500 1000 1500 2000 2500 3000 3500 4000

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

EBITDA

290.89 670.06 1320.28 50.31 380.04

200 400 600 800 1000 1200 1400

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

PAT

4030.52 7760.27 15600.47 18430.75 20160.92

5000 10000 15000 20000 25000

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

Capital Employed

₹ in million ₹ in million ₹ in million ₹ in million

Chandi Steel Industries Limited Business Presentation December 2010

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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

Chandi Steel Industries Limited Business Presentation December 2010

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CSIL Products Profile

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 Cathode Collector Bars for Aluminum Electrolyzers;  Flats of various sizes in Mild Steel and

  • ther special customized composition as

specified by the customer with lengths up to 4500 mm, width up to 300 mm and thickness of 20mm to 80mm;  Rounds for similar use in required sizes and specifications;  Anode pins manufactured from special Steel Rounds of 50 mm to 180 mm Dia;  Grinding Media Rods for Cement, Copper and Zinc Industries;

Chandi Steel Industries Limited Business Presentation December 2010

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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;

Chandi Steel Industries Limited Business Presentation December 2010

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Business Strategies

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 Focus on world wide markets with sustainable margins;  High value products allows raw material price fluctuations to be passed on to customers;  Increasingly expand manufacturing capacity;  Higher average selling price on new capacity yields higher profit margin;  Building highly competitive national and international leading products;  Influence India’s lower

  • perating

cost base at national & international standards;

Chandi Steel Industries Limited Business Presentation December 2010

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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

Chandi Steel Industries Limited Business Presentation December 2010

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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

Chandi Steel Industries Limited Business Presentation December 2010

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Manufacturing Process

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The process involves converting the ingots, billets to the desired finished section in the hot condition by way

  • f

passing the material between a pair of grooved rolls and providing suitable drafts at various stages. The whole

  • peration

is conducted at a particular temperature range and within a limited time span. The stages

  • f

rolling

  • peration

are comprised of heating of feed stock to rollable temperature, rolling the feeding stock in different mill stands, cropping the hot bar during the process of rolling between mill stands as applicable and subsequently finishing in form of hot rolled bar in straight length. The hot bar coming out of the last pass is then conveyed through and collected in a cool bed. The bars at almost ambient temperature are sheared to commercial length stored and kept ready for dispatch.

Steel Billets Re-Heat Furnace Roughing Stands Intermediate Stands Finishing Stands Cooling Bed Finished Bar Domestic Distribution / Remanufacture Export

Chandi Steel Industries Limited Business Presentation December 2010

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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 Hot Rolling for Reduction in Size Stand II Hot Rolling for Reduction in Size Stand III Hot Rolling for Reduction in Size Stand IV

Cooling Bed

Chandi Steel Industries Limited Business Presentation December 2010

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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

Chandi Steel Industries Limited Business Presentation December 2010

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Special care packing

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Chandi Steel Industries Limited Business Presentation December 2010

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

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Proficient Manpower

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TECHNICAL EXPERTS MECHANICAL ENGINEERS ELECTRICAL ENGINEERS METALLURGICAL ENGINEERS SERVICES & SAFETY EXPERTS MARKETING PROFESSIONALS SKILLED LABOURS

Chandi Steel Industries Limited Business Presentation December 2010

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Quality Pledge

19 CSIL’s pledge is to be the benchmark in product quality for our customers. We work closely with customers to understand and comply with their specific quality requirements. Customer and

  • ur
  • wn

quality requirements are introduced at the concept phase of each new technology and product introduction. Zero Defect and Design for Quality processes, practices and methodologies are embedded in each development and manufacturing phase of the new product introduction to ensure our quality standards and goals are met. We ensure that all parts of the organization deliver the quality pledge through clear processes, metrics and attention to detail. You may experience a rare quality problem, in which case we promise prompt, professional resolution through our customer returns and quality incident solution programs. Our goal is to ensure customers trust us and want to work with us because of our commitment to product quality and customer satisfaction. We have been creating high-quality products for a long period and will continue to build our brand based upon

  • ur quality pledge.

Chandi Steel Industries Limited Business Presentation December 2010

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Chandi Steel Industries Limited Business Presentation December 2010

Appreciations

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Strong Customer Base

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National (Majors) International (Majors)

Chandi Steel Industries Limited Business Presentation December 2010

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Snaps Overview

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Chandi Steel Industries Limited Business Presentation December 2010

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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: harsh@jaibalajigroup.com

Chandi Steel Industries Limited Business Presentation December 2010

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Chandi Steel Industries Limited Business Presentation December 2010