Marketing of Steel

Presented By
Ashwani Kumar
AVP-Sales & Marketing

Presentation to JLMT

CREATING
STEEL
FROM
IRON ORE

Presentation to JLMT

IRON ORE PROCESSING

MINING
CRUSHING
SEPARATING
CONCENTRATING
MIXING
PELLETIZING
PRODUCT -

IRON ORE
PELLETS

Presentation to JLMT

IRON MAKING

REDUCTION OF IRON ORE i.e IRON OXIDE

TO OBTAIN IRON USING REDUCING AGENT
THROUGH THE BLAST FURNACE OR COREX AND
ROTARY KILN OR SHAFT FURNACE

PRODUCT
- LIQUID IRON
- SOLID IRON

Presentation to JLMT

Iron Making Process

Rotary Kiln Iron Ore , Wash Coal ,Dolomite
are fed in kiln and air is injected to create
chemical reaction :
C + O2 -> CO2 +C -> 2 CO
3 Fe2O3 + CO -> 2Fe3O4 + CO2
Fe3O4 + CO -> 3FeO + CO2
FeO + CO -> Fe + CO2
CO2 + C -> 2 CO and continues
Presentation to JLMT

FORMS OF IRON
HOT METAL ( LIQUID IRON)
contains 93-94% Iron and balance other elements / impurities
such as C , Si, Mn , S & P
Used in Production of Steel in ISP
PIG IRON
A product in solid form obtained from Liquid Iron as
-Foundry Grade
-Steel Making Grade

Presentation to JLMT

Sponge Iron/ Direct Reduced Iron(DRI)/

Hot Briquetted Iron(HBI)
Direct Reduced Iron(DRI):
Solid metallic iron product obtained upon Direct Reduction
of high grade iron ore in solid state itself
Sponge Iron(SI):
DRI is also known as Sponge Iron because of its spongy nature
Hot Briquetted Iron(HBI):
DRI/SI furnace is converted into a bigger compact mass i.e.
Briquettes for ease in transportation/charging in steel making
furnace, which are known as Hot Briquetted Iron (HBI)

Presentation to JLMT

USAGE OF SI/DRI/HBI
SI/ DRI/HBI is primarily used for production of
Steel (as a substitute of steel melting scrap),
in the Electric Furnaces like the Electric Arc
Furnace (EAF) or the Induction Furnace (EIF). Hot Metal is used
in steel making process of Basic Oxygen Furnace (BOF)

Steel Steel is an iron based alloy containing elements

Carbon, Silicon, Manganese , Sulphur , Phosporous etc.
Other alloying elements are Cr , Ni , V , Ti , Nb , B etc to
improve the properties

Presentation to JLMT

WHAT IS STEEL
STEEL Making is an oxidation process where C is removed by
injecting Oxygen to react with C to make CO and adjust the desired
C content whereas Iron making is reduction process where O is
removed from Iron Oxide to obtain Iron
Steel is categorised as Low, Medium- or High-carbon steels according to
the % of carbon they contain, although this is most often lower than 1.5
%.
Low Carbon - Up to 0.25%.
Medium carbon steel >0.25% to 0.45%.
High carbon steel >0.45% to 1.50%.

9
Presentation to JLMT

Steelmaking Route With Hot Metal

Iron
Making
Hot Metal
Handling

Hot Metal
Pre-treatment

Primary
Steelmaking

Secondary
Steelmaking

Continuous
Casting

BF

TORPEDO

COREX

MIXER

HMDS

HMPT

BOF

EAF
Presentation to JLMT

LHF

RH (OB)

CASTER

10
SMS II

Conarc Process

Scra
p

Hot
Metal

Pig Iron

DRI
VD/
VD-OB

Steel Melting Facilities (EAF / Conarc)

Secondary Refining Process

Ladle Furnace

Presentation to JLMT

11

A MACRO LEVEL FLOW SHEET

FOR JSPL RAIGARH
Iron Ore
from
Mines

Coal
from
Mines

Sale

Coal
Washery
COAL

Char/Flu
Gases

Washe
ry
Reject
s
POWER
PLANT

ROTARY
KILNS

COKE
OVEN

Cokin
g
Coal

COKE

SINTER
PLANT

BF

Pig Iron

PLATE MILL

Sale

PLATES

EA
F
Rounds/
Blooms/
Slabs

Sinter
Sale

CSEB/OTHE
RS

FINES

Spong
e Iron

Sale

Sale

RAIL &
UNIVERSAL
BEAM MILL

Rails

Structurals

Sale
Sale

Captive Power Plant supplies power to all facilities

Presentation to JLMT

12

12

Steel Making
Steel making:
Steel making is the process of selective oxidation
of impurities present in the charge material
(Hot metal/Scrap/DRI) in the presence of suitable
fluxes in the Steel Melting Shops (SMS).
Steel/Steel Products as per Form/shape/size:

Liquid Steel : Product from Steel Melting Shop

(LD Converter/Electric Arc Furnace/Electric
Induction Furnace/Energy Optimising Furnace).
It is further cast into ingot/Slab/bloom/billet/ thin
slab

Presentation to JLMT

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Steel Making
Semi-Finished Steel Products (Semis):
Intermediate solid steel products obtained by
Hot rolling/Forging of ingots (in conventional process)
or by Continuous casting of liquid steel are known as
Semis. These are called so since they are intended
for further rolling/forging to produce Finished steel
products.
Finished Steel :
Products obtained upon hot rolling/forging of
semi-finished steel (blooms/billets/slabs)
These cover 2 broad categories of products,
namely Long Products and Flat Products

Presentation to JLMT

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Types of Finished Steel

Long Products:
Finished steel products produced normally by hot
rolling/forging of blooms/billets into usable shape/sizes
Normally supplied in straight length/ cut length
except Wire rods which are supplied in ir-regularly
wound coils.

Different types of long products

Bars & Rods :They include Rounds, Flats (flat bars)
Squares, Hexagons, Octagons etc. direct use in
wide variety of products in Engg, & Agricultural,
House hold, Furniture sector etc. with/without further processing.

Presentation to JLMT

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Types of Finished Steel

CTD (Cold-worked Twisted & Deformed)/
TMT (Thermo Mechanically Treated)Bar & Rods:

Hot rolled round bars/rods with indentations/ribs

normally supplied in straight length or in folded bundles.
Used directly in civil construction.
Wire Rod : Hot

rolled plain bar/rods (i.e without

indentation) in Coil Form, normally used to produce
Steel Wires and at times Steel Bright Bars.
Angles, Shapes & Section : Hot

rolled Structural
Sections include Angles, Channels, Girders, Joist,
I Beams, H Beams etc..
used in civil/mechanical construction.
Presentation to JLMT

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Types of Finished Steel

Rails : Hot rolled Rail Sections obtained upon hot
rolling of Blooms/Billets. Used in railways/tramways,
on which rail/tram moves .
Wires: Wires are produced by cold drawing of wire
rod through a die. They are normally supplied in coils.
Bright Bars : There are cold drawn/ ground/ Peeled
plain bars produced from hot rolled plain bars/wire rods.

Presentation to JLMT

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Types of Finished Steel

Flat Products (Flat Rolled Products) :

Finished steel thin flat products, produced from slabs/thin slabs in rolling mills
using flat rolls. These are supplied in Hot Rolled (HR), Cold Rolled (CR) or in
Coated condition depending upon the requirement.
Different types of flat products are :
Plate: Thick flat finished product of width: +500mm & Thickness: (+)5mm

which supplied in cut/straight length. Plates are normally produced/supplied

in as hot rolled condition with or without specific heat treatments.
Sheet: Thin flat finished steel products, Width: +500MM, Thickness:(-) 5mm
Supplied in cut/straight length. Sheets are produced/ supplied in hot rolled
/cold rolled/coated condition and accordingly, known as Hot Rolled (HR)
Sheets or Cold Rolled (CR) Sheets or Coated Sheets.

Presentation to JLMT

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Types of Finished Steel

Strips : Hot/cold/coated flat rolled products, supplied in regularly wound

coils of super imposed layers known as HR Strips or CR Strips or Coated

Strips depending upon width, strips are sub-classified as
Wide Strips : Strips of widths 600mm & above
Narrow Strips : Strips of widths less than 600mm

Hot Rolled (HR) flat products are produced by re-rolling of

slabs/thin slabs at high temperature (>1000 deg.C) in Plate Mills (which

produce plates) or in Hot Strip Mills (which produce strips). Hot Rolled
Strips are cut into straight length to produce HR Sheets or Thin Plates

Presentation to JLMT

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Types of Finished Steel

Cold Rolled(CR) Strips are produced by cold rolling of HR Strips

in Cold Rolling Mills (normally at room temperature)
CR Strips are cut to produce CR sheet.
CR Strips/sheets are characterised by lower thickness, better/bright finish,
closer dimensional tolerance and specific mechanical/metallurgical properties.
directly used in automobiles (cars/ scooters, motorcycles etc.), white goods,
consumer durable etc. or for production of coated sheet products.

Cold Rolled Sheets/Strips :

supplied in as rolled condition (CRFH- Cold Rolled Full Hard) or in
closed annealed (CRCA Cold Rolled Close Annealed) condition or in
closed annealed & skin passed/temper passed condition, depending upon
the requirement of the end users

Presentation to JLMT

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Types of Finished Steel

Coated Products :
cold rolled products coated with metals or organic chemicals are :
i)Galvanised Plain/ Corrugated (GP/GC) Sheets - Cold Rolled Sheets/Strips
coated with zinc metal through Galvanising process.
Used in roofing, paneling etc.
GP sheets are normally produced by Hot Dip Galvanising of CR Sheets/Strips
in liquid zinc bath.
GC sheets are obtained upon corrugating of GP sheets in corrugating machine.
Galvanised sheets- used in roofing, paneling, auto bodies, Trunks/Boxes etc.

ii)Tinplate: TMBP coated with tin metal. Used for manufacture of containers.

iii)Colour coated products :

Cold Rolled/ galvanised steel sheets/strips coated with PVC/ plastics or any
other organic material. Process known as Colour Coating.
Used for mfr. of furniture, auto bodies, roofing, paneling etc.

Presentation to JLMT

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Types of Finished Steel

Other Galvanised Coated Products :
Galfan alloy coated sheets : CR Sheets/Strips coated with an
Zinc- Aluminium alloy comprising of 95% zinc and 5% aluminium.
Uses are similar to GP/GC sheets but it has better life and better
corrosion properties
Galvalume alloy coated sheets : CR Sheets/ Strips coated
with an alloy comprising of approx. 55% aluminium and approx. 45% zinc
with nominal amount of silicon.
Uses are similar to that of GP/GC sheets but it has better life and much
better high temperature performance.

Presentation to JLMT

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Steel as per Composition :

Non-alloy/Carbon Steel/Plain carbon /Un-alloyed Steel

do not contain any alloying element in specified proportions
Non- alloy steel is divided into 3 categories namely
(i) Low carbon steel or Mild steel ( normally containing upto 0.3% carbon)
(ii)Medium carbon steel ( normally containing 0.3 0.6% carbon) and
(iii) High carbon steel (normally containing more than 0.6% carbon).
Non-alloy steel constitutes approx. 90% of total steel production in India ,
of which, mild steel takes the lions share.
Alloy Steel :
SteAel produced with intended amount of one or more alloying elements in
specified proportions to impart specific physical, mechanical, metallurgical
and electrical properties. Common alloying elements are manganese,
silicon, nickel, lead, copper, chromium, tungsten, molybdenum, niobium,
vanadium etc.

Presentation to JLMT

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Stainless Steel

Common examples of alloy steels :

Stainless Steel: essentially contains chromium (normally more than
10.5% with/without nickel or other alloying elements.It resists staining/corrosion
and maintains strength at high temperatures
Used widely in Utensils, architectures and in Industrial applications viz
automotive & food processing products as well as medical & health equipment.
Common grades of stainless steels (SS) are:
Type 304: Chrome Nickel Austenitic S S accounting for more than half of SS
produced in the world. 18:8 SS used for utensils are the most common example
Type 316: Chrome Nickel (Austenitic) SS containing 2-3% Molybdenum ,
intended for specific industrial use.
Type 410: Plain Chromium (Martensitic) S S with exceptional strength.
It is a low cost, heat treatable grade suitable for non-corrosive applications.
Type 430: Plain Chrome (Ferritic) S S, offering general purpose corrosion
resistance, often in decorative applications.
Type 201/202 etc.: Low Nickel Austenitic S S containing 2-5% Nickel.
Used as cheaper substitute of Type 304 grade for production of utensils

Presentation to JLMT

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Special Steel

Silicon-Electrical steel: which usually contains 0.6 6% silicon

and exhibit certain magnetic properties, which make it suitable for use in
transformers, power generators, and electric motors.
They are normally supplied in 2 categories:
i)CRGO: Cold Rolled Grain Oriented Silicon-electrical steel sheets/strips,
normally recommended for use in transformers and generators.

ii)CRNO/CRNGO: Cold Rolled Non-Grain Oriented Silicon-electrical

steel sheets/strips, normally recommended for use in rotating machines
such as electric motors.

High Speed Steel: Alloy steel containing tungsten, vanadium,

chromium, cobalt and other metals.
Depending upon composition, they are classified as Cobalt Grade and
Non-Cobalt Grade. Used for manufacture of cutting tools.

Presentation to JLMT

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Special Steel

Special Steel :

Special care is taken in production of steel to attain the special /

desired properties, such as, cleanliness, surface qualities and mechanical
and metallurgical properties. All steel other than mild steel fall under this
Category of special steel.
However, metallurgically, even mild steel/low carbon steel may still fall under
the category of special steel if any special properties is specified in the steel
Examples are DD / EDD steel, Forging Quality steel, Free Cutting steel etc.

In terms of usages, steels are often classified as Structural steels,

Construction steel, Deep Drawing Steel, Forging quality, Rail steel
and the likes..

Classifications of Steel based on end use :

Presentation to JLMT

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Properties of Steel

Lusture - Shines
Malleable - Rollable
Ductile - Stretchable
Strength - Strong
Tough Resistant to fracture
Good Conductor Transfers heat and electricity
Durable Long lasting
Hard - Resistant to wear

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End Use based on properties

Architecture

Appliances
Building frames & Building
Security doors
Trains
Ships
Roofing & Structurals
Rail lines & bridge Structures
Gears
Tools
Wire Fences
Auto body panels
Electric Motors
Solar Hot Water system
Machines and Equipments

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Product Applications

Cold
Rolling

Pipes &
Tubes

Cold
Formed &
Coated

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Product Applications

Transport

Heavy
machines

Auto
parts

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Product Applications

Engineering

Ship bldg.
& Marine
containers

Other end
usage

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Global Steel Production: Phases of Growth

Source: WSA/OECD Steel Committee Meeting 8-9th June 2009

Grown by 6 times in last 50 years

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Global Steel Production: Regions Behind Growth

Future of Global Steel Industry now lies with Asian Tigers

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Historical Price Trend: 1980-2009

Source: CRU/OECD Steel Committee Meeting 8-9th June 2009

2005-2008s DREAM RUN was unprecedented

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Crude Steel Production Globally: 2009

Apparent Steel Use, 2009 & 10

Countries

App Steel Use

( mn MTA)

% Change

Mn MT

2010(f)
China

552.5

5%

USA

71.7

18.8%

Japan

60.8

15.8%

Russia

27.1

8.5%

India

62.7

12.1%

Source: World Steel Association

Source: WSA, Short range Outlook, Oct 2009

The first half of 2009 witnessed monthly steel production levels go below
100mn MT due to global economic recession
The production levels picked up from 2nd half driven by China as consumers
across sectors started replenishing stocks
With signs of a recovery across the world now apparent, global steel demand in
2010 is forecast to grow by 9.2% to 1,206mn MT which is a recovery to the level
of 2008
Presentation to JLMT

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Top 10 Steel Producing Countries

Crude Steel Production Growth Trend

Top 10 Crude Steel producing countries (million tonnes)

Rank

Country

2009*

2008*

%2009/2008

China

567.8

500.3

13.5

Japan

87.5

118.7

-26.3

Russia

59.9

68.5

-12.5

US

58.1

91.4

-36.4

India

56.6

55.1

2.7

South Korea

48.6

53.6

-9.4

Germany

32.7

45.8

-28.7

Ukraine

29.8

37.3

-20.2

Brazil

26.5

33.7

-21.4

10

Turkey

25.3

26.8

-5.6

Source: World Steel Association

*calendar year

Source: World Steel Association

3 Asian countries among top 5

Presentation to JLMT

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DOMESTIC IMPORT & EXPORT OF STEEL, Apr Nov 09

Imports (in '000 tonnes)
Category

Apr-Nov
'09

Apr Nov '08

Growth
(%)

Semis

286

346

-17

Bars & Rods

374

349

61

37

64

555

717

-23

1897

1499

27

Structurals
Plates
HR Coils

Exports (in '000 tonnes)

Category

Apr-Nov
'09

Apr Nov '08

Growth
(%)

Pig Iron

202

288

-30

Sponge
Iron

28

-96

Semis

276

436

-37

Bars &
Rods

138

125

10

Structurals

39

64

-39

Plates

49

176

-72

239

652

-63

HR Coils

Source: JPC, India

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Per Capita Consumption of Steel

in Major Countries

(in Kilograms)

Source: World Steel Association

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Indian Steel Sector

60 mn MTPA crude steel capacities

54 mn MTPA crude steel production
55 mn MTPA finished steel production
8 major producers-60 % of total capacities
1600+ re-rollers- 40 % total capacities
Around ~40 mn MTPA capacity expansion by 2015

Our capacity is 5% of total capacities available

Presentation to JLMT

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Crude Steel Making Capacities

Existing Crude Steel Capacities
COMPANY

Location/Units

Capacity(MTPA)

Bhilai

Bokaro

Durgapur

1.9

IISCO

0.5

Rourkela

Total

13.2

ESSAR

HAZIRA

4.6

JSW

BELLARY

ISPAT

DOLVI

RINL

VIZAG

3.3

JSPL

RAIGARH

2.4

TISCO

JAMSHEDPUR

5.5

BHUSHAN

ORISSA

MAIN PRODUCERS

TOTAL

36.2

SECONDARY

ALL INDIA

23

ALL INDIA

ALL INDIA

59.2

SAIL

Secondary producers a sizable section

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Demand to grow from 51 in FY08 to 71 MTPA in FY13

India ASC*
~71
6.8%

~51

Key Assumptions : GDP Growth @ 5% CAGR, IIP Growth @ 5-6 %

Source : CRU, IISI &Team Analysis
Presentation to JLMT

ASC : Apparent Steel Consumption

41

JSPL: Wider Presence in Long & Fla

RUBM

Steel making Capacity : 3 mn MTA

RUBM : 0.75 mn MTPA
Plate Mill : 1.0 mn MTPA
Beam Welding Plant: 0.2 MTPA

TMT is sourced from our sister

concern NSPL(0.2 MTPA)
Plate Mill

Raigarh,Chattisgarh

Product Range
Heavy & Medium Structurals
Track and Crane rails
Channels: 250 mm-400 mm
Universal Beams: 200 x 100 to 900 x 300 mm
Universal Columns: 150x150 to 350 x 350 mm
Crane Rails: CR 80, CR 100
Track Rails: UIC 54 & 60 & IRS 52 Kg & 60 Kg

Hot Rolled Plates & Coils

HR Plates
Width 1500mm - 3500 mm
Thickness 8 mm - 120 mm
Cut to Length Plates
Width 1500mm to 2500mm
Thickness 6 mm - 20mm
Hot Rolled Coils
Width up to 2500 mm
Thickness 6mm 25.4mm

JSPL to become an 8 mn MTPA (Crude steel) ISP by FY 2011-12

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JSPLs Products
Strength & Weakness

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Structurals - SWOT
Strength

Weakness

Customers reluctance with PFB as JSPL

Only producer of PFB in the country

is the only supplier

Established quality

Wider range further supplemented by beam welding

Limited product range for tapping international

market :- will improve once LMSM is commissioned

facility, conversion route and the new LMSM

Brand awareness & loyalty

TMT to further enlarge our product

basket and to provide complete solution to
construction industry

Opportunity

Threat

Domestic demand for long products to grow

Secondary re-rollers can provide cheaper products

at a healthy rate (CAGR of 9-10% in next 5 years)*

owing to investment of around $100 bn in Power,
Telecom, Urban Infra, Ports, Airports in 2007-2012*

to the large price sensitive segment of the market

New RUBM being set up by SAIL , MLSM by RINL
Cheaper imports / localized distribution by leading

Entry of experienced , world-class fabricators will

global steel producers on cards(Arcelor Mittal)

increase use of structurals in high rise building

Potential for replacement of heavy fabricated
*Source: CRISIL Research Steel Product Review , Oct 2008

beams by rolled sections in 700-900mm

Presentation to JLMT

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Plates & Coils - SWOT

Strength

Weakness
Limited edge trimming facility for our plates

First integrated private sector company to

restricted up to19 mm only

manufacture 3.5 m wide plates in India. 2.5 m

Internal processes like order tracking, logistics

wide HR Coil only producer in India

Wider product range including value added
products such as shipbuilding quality steel and

delivery commitments timely delivery in full,

API grade, Boiler Quality, HT Steel

etc need further improvement

Opportunity

Threat

The domestic demand for flat products is expected

Upcoming capabilities by players such as

to grow driven by pipes, tubes and infrastructure

ESSAR steel (Commercial Production started)

sectors

(to manufacture plates up to 5m wide), Welspun

(manufactures plates up to 4.5 m) can eat into

Major pipelines projects planned by companies

the market share of JSPL

such as GAIL, RIL to drive demand for pipelines.

Cheap imports from CIS countries/China

Presentation to JLMT

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JSPL: Taking a Quantum Leap

Locations

Existing

PhaseI(2011-12)

PhaseII(2014-15)

MLSM-0.6

CSP-3.0

Longterm
Target

RUBM-0.75
Raigarh

Plates &
Coil-1.0

Steel
making
capacity
-2.6

Patratu

NIL

3mn MTA crude steel(Phase-I)

0.6 MTPA Wire Rod Mill
2 MTPA Rebar Mill

7.0

Semis-0.6
Total After
Expansion

3mn MTA crude steel

1 MTPA Plate Mill
0.8 MTPA Rails & Heavy
Beam Mill
0.65 MTPA medium and
light structural mill MTPA

Steel
making
capacity -3.0

Steel
making
capacity -7.0

2mn MTA crude steel(Phase-I)

1.5 MTPA Plate Mill

WR- 0.6
NIL

11.0

Rebar-2.0
Total After
Expansion

Steel
making
capacity
-0.0

Steel
making
capacity -3.0

Steel
making
capacity -3.0

Angul

NIL

Plates-1.5

HSM-4.5

Total After
Expansion

Steel
making
capacity
-0.0

Steel
making
capacity -2.0

Steel
making
capacity -6.0

Grand Total
after Finished
expansion

2.6
8
16
Steel
Capacity:6.5
MTPA

12.5

30.5
Presentation to JLMT

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JSPLs Product Mix

JSPL's Expansion Plan
Plants

Mills

Products

Capacity (Mn
MTA)

Sizes

Plate

Plates

1.5

Up to 5000 mm width

Angul
HSM

HR Coils

Total
WRM

Patratu

Bar Mill-I

Bar Mill-II

4.5

Target Markets

Status

Shipbuilding, Line pipe, Gen

Under
Fabrication, Yellow Goods,
Commissioning
Penstock (Dam )

Pipes & Tubes, Cold Rolling/

900-2150mm & 1.2 -25 Forming, Elec Equipments,
mm
LPG, Corten, API, Cold
Rolling

Delayed

6
Wire Rod

0.6

5.2-22 mm

Wire drawing, electrodes,

construction

Rebar/RCS
Rods/ RCS
Angles
Rebar/RCS
Rods/ RCS
Angles

0.72
0.18
0.1
0.72
0.18
0.1
2.6

8-40 mm
20-63 mm
50-90 mm
8-40 mm
20-63 mm
50-90 mm

Construction, projects
Construction, projects
Construction, projects
Construction, projects
Construction, projects
Construction, projects

Total

Under
Commissioning
Under
Commissioning

Delayed

RUBM

Rails, Beams,
Column, Channels

0.7

up to 900 mm

Projects, Industrial sheds,

railways, cranes

Running

Plate Mill

Coil, CTL, Plates

3500 mm wide & 6120mm thick

Shipbuilding, Line pipe, Gen

Fabrication, Yellow Goods,
Penstock (Dam )

Running

Light & Medium

Structural

Beams , Columns

0.8

Compact Strip
Production (CSP)

Coils

Raigarh

Total

Grand Total

5.5

14.1
Presentation to JLMT

HR Coils

Projects, Industrial sheds

Under
Commissioning

Cold rolling, tubes, pipes

Delayed

47

JSPLs Market Share Post Expansion

Getting into lighter sections
where secondary presence
is quite strong

Creating an USP for

wider plates to be
a challenge

JSPL to be 5th ISP

To enter..presence
of secondary

Heavy presence
of secondary players

Source: JPC/Industry, Growth rates estimates

Presentation to JLMT

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Challenges Ahead
30 mn MTPA
by 2020

Market Entry

Diversification

Consolidation

16 mn MTPA

HSM products
CSP

8.0 mn MTPA
2015

8 mn MTPA
Light & medium Structurals
Wire rods
TMT
Wider Plates/yellow goods

2.6 mn MTPA
Heavy Structurals
Rails
Plates
Coil

5.4 mn MTPA
2012

2.6 mn
MTPA

Project customers
Cold Rollers- Service
centers

LPG
Pipe & Tubes

Project customers
Retail customers
New sectors- SBQ, Penstock
Line pipes

Capacity

Project customers

2009
Time Horizon
Presentation to JLMT

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Major Challenges-Entry Stage

Establishing new products
o Wire rods
o TMT
Extending existing product basket
o Expanding into MLSM
o Acquiring markets for wider plates
Acquiring new sets of customers
o Retail customers
o Ship builders
Initiate process for approval/certifications
Building up product brands
Establishing a successful retail model
Constant upgrading of products , process and setting standards
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Major Challenges-Diversification Stage

Compete in Existing Market
o Rails still to sell to Indian Railways
o Structurals- Face competition from SAILs new mill, re-rollers
o Plates- Wider plates by Essar , Welspun
Growing in existing market
o Expanding customer base
o Expanding application sets- eg. Approval for gas/oil pipelines by EIL
o Expanding into new geographies
Enhancing service quality
o Post sales technical service
o Handholding customers for development work
o Wider stockyard coverage
Exploring export market
Brand Building
Setting new footprints, improving service levels
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Major Challenges-Consolidation Stage

Handling huge volume of products
o HSM- 4.5 mn MTPA
o CSP- 3.0 mn MTPA
Buliding customers with long term commitment
o Big ticket customers roped in thru long term contracts
o Key Account management
Customer centric approach
o Service centers
o Application development- R & D centers, development centers
Upgrading sales & distribution network to handle volume, international sales
o Matrix structure product based + region based
o Business development teams
Expanding horizons, securing markets and benchmarking your processes
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Industry Challenges

PQRST

Proactive : Proactive means preparing to move in tune with technology

developments and adopting appropriate cost effective process technologies and
improvements in the plant in line with global steel market trend , customers shift
and moves, dynamics of products and segments . Early vendor involvement and
understanding their expectations are essential to devise a plan for appropriate
technology selection and continuous development in process and products.

Quality: In B-B business, quality is no longer a sufficient product differentiator but

a necessary product attribute. Since customers, especially the auto makers are
working on ppm quality levels, it is required to aim for 100%. This may not be easy
is not easy, but with the help of efficient quality management systems and adoption
of latest practices, we can nearly achieve this figure.

Reach : How near and how far geographically we can take the end products to
customers. As the Steel market demands are not driven by special niche market
alone, it is the mass application and low segment that will consume bulk quantity.
Catering to every user of steel directly is an important long term strategy.

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Facing challenges

PQRST

Service: This is an important path to value creationspecialization and

downstream migrationcan move companies into higher-margin
businesses. Service means essentially nearer to the customers and towards
steel solutions

Time: Finally the crucial step in all above strategies is time - be it

technology up gradation, selection, product Development cycle time,
delivery, complaint handling service or reach. Time is the only element
which enables to cross over the kinetic barrier of activation energy in any
business. Strike first, strike potent, and keep striking, all at right time, is
the basic concept of time.

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JSPL Global
operation
An overview

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Structure of International
Business

International Business
South America

Africa

China

Brazil

Congo

Nepal

Bolivia

South Africa

UAE

Peru

Madagascar

Asia Pacific

Mongolia

Mozambique

Indonesia

Malawi

Georgia

Zimbabwe

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International Operation :

Mongolia
Georgia

Nepal

Congo
Brazil
Peru
Bolivia

Malawi
Zimbabwe
Madagascar
Mozambique

Indonesia

South Africa

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International Operation :
Ongoing Overseas Expansions Asia
NEPAL
NEPAL

MONGOLIA
MONGOLIA

Hydro
Hydro

Uranium
Uranium

INDONESIA
INDONESIA

GEORGIA
GEORGIA

Coal
Coal

Oil
Oil&&Gas
Gas

ASIA
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International Operation :
Ongoing Overseas Expansions South America
BRAZIL
BRAZIL

PERU
PERU

Business
BusinessDevelopment
Development
Exploration-Iron
Exploration-IronOre
Ore

Oil
Oil&&Gas
Gas

BOLIVIA
BOLIVIA

SOUTH AMERICA

Steel
Steel
Mining
Mining( (Iron
IronOre)
Ore)
Oil
&
Gas
Oil & Gas

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International Operation
Ongoing Overseas Expansions Africa
MADAGASCAR
MADAGASCAR

CONGO
CONGO

Exploration
Exploration: :Lime
Lime
Stone
Stone

Diamond
DiamondMining
Mining
AFRICA

MALAWI
MALAWI
Exploration
Exploration: :Coal
Coal

SOUTH
SOUTHAFRICA
AFRICA
Business
BusinessDevelopment
Development
Coal
CoalMining
Mining

MOZAMBIQUE
MOZAMBIQUE
Coking
CokingCoal
Coal
Chrome
ChromeOre
Ore
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JSPL Overseas
Country Name

Bolivia

Operation

Steel Project , Iron Ore Mining

Location

Puerto suarez

Name of the company

Jindal Steel Bolivia S.A.

Capacity / Dimension

1.7 MTPA steel plant /Pellet Plant - 10 MTPA / Sponge Iron - 6

MTPA / Power Plant - 450 MW / EL Mutun Iron Ore estimated
reserves- 20 billion tonnes ,

Business Plans

Investment of USD 2.1 Billion for steel project in 8 years , The

revenues may start generating from the year 2010 ; The terms of
the 40-year deal allow Jindal to mine up to 50 percent of the
Mutun deposit, estimated to contain some 40 billion tons of iron
ore.

Heading By

Mr. D N Parida

No. of Employees

5 + 25

Corporate office Co-ordinator

Mr. V Gujral / Kapil Mantri

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JSPL Overseas
Country Name

Congo

Operation

exploration of Diamonds / Platinum and Gold

Location

Kinshasa (H.O) , Mining location at Kahemba, Banalia , Lubao and

Tshikapa

Name of the company

Jindal Minerals and Metals Africa Congo Sprl

Capacity / Dimension

46 concessions spreading over 18000 sq kms.

Business Plans

Exploration rights acquired for alluvial Diamonds / Platinum and

Gold ;
License valid for 20 years , automatically extendable to 120 years ,
will make Investment of USD 20 million I a year time

Heading By

Mr. Mark Coetzee

No. of Employees

6+66

Corporate office Co-ordinator

Mr. Ashish Kumar

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JSPL Overseas
Jindal Minerals and Metals Africa Congo Sprl
Current Exploration
Kahemba 29 concessions (8223 km)
Banalia 11 concessions
Lubao 5 concessions

(3552 km)

(1938 km)

Tshikapa 1 concession

(108 km)

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JSPL Overseas
Country Name

South Africa

Operation

Coal Mining , Business Development

Location

Johannesburg (HO) , Coal mine site at Peit Retief

Name of the company

Jindal Africa Investment Pty Ltd.

Capacity / Dimension

Recently acquired Kipersol Colliery in Peit Retief , Area-2700 Ha ,

Reserve-22 Million Ton (indicated reserves) ; Quality-Anthracite &
Lean Bituminous Coal

Business Plans

Commercial Production (Saleable): 2009-2010 : 0.3 Mtpa , Optimum

Production (Saleable) : 2011 onwards: 1 Mtpa , Investment of USD 40
million (approx)
Shortlisted for 2400 MW Power Project supply to ESKOM, the govt.
owned electricity generator and supplier

Heading By

Mr. Tony Zebert

No. of Employees

1+5

Corporate office Co-ordinator

Mr. Ashish Kumar

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JSPL Overseas
Country Name

Mozambique

Operation

Coal exploration

Location

Maputo (HO) , Coal mine site at Tete

Name of the company

JSPL Mozambique Minerais Limitada

Capacity / Dimension

Location-Tete Province / Area-50,000 Ha / Reserve- 165 Million Ton

(yet to be proved) / Drilling at various blocks are under
progress

Business Plans

Set-up our own Laboratory for proximate analysis of coal and testing
the coking and non coking properties ; Commercial Production
(Saleable): 2010-2011 : 1 MTPA / Optimum Production
(Saleable) : 2011-2012 : 2 MTPA ; 2012 onwards: 3 MTPA /
Investment of USD 150 million
(approx)

Heading By

Mr. Manoj Gupta

No. of Employees

7 + 12

Corporate office Co-ordinator

Mr. Ashish Kumar

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JSPL Overseas
Country Name

Indonesia

Operation

Coal / Iron Ore Mining

Location

Jakarta (HO) , Coal mine site at Kalimantan / Iron Ore site at

Sumatra

Name of the company

PT. Jindal Overseas

Capacity / Dimension

Area :
coal - 5000 hect. /
Iron ore (Dormant)- 16800 hect.

Business Plans

Investment planning of USD 100 million (approx) in ten years

Heading By

Mr. Raji Reddy

No. of Employees

1 + 12

Corporate office Co-ordinator

Mr. D N Abrol / Yash Gupta

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JSPL Overseas
Country Name

Mongolia

Operation

Uranium Exploration

Location

Ulaanbaatar (HO)

Name of the company

Jindal Steel & Power Limited

Capacity / Dimension

Area :
4 locations > 200000 Hect.

Business Plans

Investment planning of USD 20 million (approx) in ten years ( JSPL

has purchased uranium sites from Bluerock Resources Ltd. and
Uranerz Energy Corporation in USD $2.6 million in Sept2008.)

Heading By

Mr. D B Sen

No. of Employees

2 +1

Corporate office Co-ordinator

Mr. D N Abrol / Yash Gupta

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JSPL Overseas
Country Name

Madagascar

Operation

Lime stone mining

Location

Antananarivo(HO) , mining site at Mahajanga

Name of the company

Osho Madagascar SARL

Capacity / Dimension

Area - 25000 Hect. / Reserve - 500 million Ton / Investment of USD 18

million

Business Plans

Commercial Production for Steel Grade (Saleable): 2010-2011 : 1

Mtpa / Optimum Production for Steel Grade (Saleable) : 2011-2012
onwards : 2.4 Mtpa ; Investment of USD 20 million (approx)

Heading By

Mr. Rodger Chamberlain

No. of Employees

2+7

Corporate office Co-ordinator

Mr. Ashish Kumar

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JSPL Overseas
Country Name

Brazil

Operation

Iron Ore

Location

Brasilia (HO) , mining site at Goias state

Name of the company

Jindal Steel & Power Limited

Capacity / Dimension

Area - 80000 hect.

Business Plans

Investment planning of USD 150 million (approx) , Survey

work under process

Heading By

Mr. P S Rana

No. of Employees

2+3

Corporate office Co-ordinator

Mr. V Gujral

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JSPL Overseas
Country Name

Georgia
O&G

Operation

Kura Basin

Location

Name of the company

Jindal Petroleum Limited

Capacity / Dimension

4 exploration blocks

Business Plans

JSPL has signed four Production Sharing Contracts (PSCs) with the
Georgian government for exploration and production (E&P) of four blocks
of oil and gas in which it will invest 150 million dollars in phases. In three
blocks (block IX, X and XIII-A), Jindal Petroleum has 85 per cent share,
while Ensearch Petroleum will have 15 per cent. However, in the fourth
block -- VII-A -- the company will have 100 per cent share.
Present status : Opened Office and Guest house ; May onwards ,
revenue start generating
TBI

Heading By
No. of Employees
Corporate office Co-ordinator

Mr. S Maroo / T K Majumder / Kapil Mantri

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JSPL Overseas
Country Name

Peru

Operation

O&G

Location

Maraon and Huallaga basins in northern Peru

Jindal Petroleum Limited

Name of the company

3 exploration blocks

Capacity / Dimesion

Business Plans

JSPL teamed with up Enigma Oil and Gas Exploration to win onshore blocks 147,
159 and 153 in Peru's 2008 bidding round , presently on Hold

Heading By
No. of Employees
Corporate office Co-ordinator

Mr.S Maroo / T K Majumder / Kapil Mantri

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JSPL Overseas
Country Name

Nepal

Operation

Hydro

Location

Kathmandu (HO)

Name of the company

Jindal Steel & Power Limited

Capacity / Dimension

Bid for 402 MW Arun III hydropower project , lost bid

Business Plans

Jindal moves court against Bid , court decision awaited ;

other Hydro project feasibility study under process ; Office
may close in case of unavailability of business.

Heading By

Mr. Ranjan Kumar

No. of Employees

Corporate office Co-ordinator

Mr. Ashok Kumar / Kapil Mantri

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JSPL Overseas
Country Name

China

UAE

Operation

Supply Chain

Finance Management

Location

Beijing

Dubai

Name of the company

Jindal Steel & Power Limited

Jindal Steel & Power Limited

Capacity / Dimension

Material / supply chain

Finance Management

Heading By

Mr. Rupesh Jha

Mr. Hemant Mittal

No. of Employees

1+1

Corporate office Co-ordinator

Mr. P Purang

Ms. Puja

Business Plans

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JSPL Overseas :
New operation :
Country Name

Malawi

Zimbabwe

Operation

Coal Mining

Coal / Iron Ore exploration

Location

Lilongwe (HO) , Establishment of office

is in process

Yet to Zero In

Name of the company

Jindal Steel & Power Limited

Yet to Zero In

Capacity / Dimension

Yet to Zero In

Yet to Zero In

Business Plans

Establishment of office is in process

Yet to Zero In , looking for right

opportunity

Heading By

Mr. Laxman Mamidi

Yet to Zero In

No. of Employees

Yet to Zero In

Corporate office Coordinator

Mr. Ashish Kumar

Mr. Ashish Kumar

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We warmly Welcome You to

JSPL family

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