Jai Balaji Industries Limited

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First Company in West Bengal to start operation by setting up a Sponge Iron Plant. First Company in West Bengal to start operation by setting up a Sponge Iron Plant.

Executed 1 MT fully integrated green field steel manufacturing facilities within a short span of 4 years .

Executed 1 MT fully integrated green field steel manufacturing facilities within a short span of 4 years .

First to set up Waste Heat Recovery Power Plants in West Bengal. Presently, 111 MW Power Plants are operational.

First to set up Waste Heat Recovery Power Plants in West Bengal. Presently, 111 MW Power Plants are operational.

Presence in mineral rich states of the country viz. West Bengal, Chhattisgarh & Jharkhand.

Presence in mineral rich states of the country viz. West Bengal, Chhattisgarh & Jharkhand.

Entire value chain of steel manufacturing from processing iron ore to manufacturing finished products.

Entire value chain of steel manufacturing from processing iron ore to manufacturing finished products.

Acquired Steel division of HEG Ltd. and Nilachal Iron & Power Ltd. in the FY 2007-08.

Acquired Steel division of HEG Ltd. and Nilachal Iron & Power Ltd. in the FY 2007-08.

Successfully raised equity from IPO, Private Placements and QIP Route. Successfully raised equity from IPO, Private Placements and QIP Route.

JBIL – A Brief Profile

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Financial Indicators

Share Price Movement

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Financial Overview

Particulars FY 06 FY 07 FY 08 FY 09 FY10 Q1 FY11

Sales 8811.1 10733.8 12907.6 16948.8 19143.8 4143.9

Other Income 91.0 19.3 565.2 284.2 259.0 14.8

Total Revenue 8902.1 10753.1 13472.8 17233 19402.8 4158.7

Less: Cost of Sales

7924.1 9206.6 10575.7 15352.5 16790.6 3524.9

EBIDTA 978 1546.5 2897.1 1880.5 2612.2 633.8

Depreciation 103.9 234.2 433.5 507.9 692.9 178.2

EBIT 874.1 1312.3 2463.6 1372.6 1919.3 455.6

Interest 189.7 354.1 1101.7 1305.6 1427.1 299.4

EBT 684.4 958.2 1361.9 67 492.2 156.2

Tax provision 232.2 338 173.2 54.2 174.1 52.2

PAT 452.2 620.2 1188.7 12.8 318.1 104.0

EPS (Rs.) 9.6 13.16 25.23 0.27 5.66 1.63

Rs in mn.

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Shareholding Pattern

No. of shares 63.7 million

Share Capital Rs.637 million

Market Cap Rs.16.5 billion

Net Debt Rs.15.9 billion

Net Worth Rs.9950 million

Debt Equity Ratio 1.59  

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The Business Model (Full Flexibility)Non coking coal

Dumri 37 MT by FY 11Non coking coal

Dumri 37 MT by FY 11Coking coal

Rohne 17 MT by FY 12Coking coal

Rohne 17 MT by FY 12

Sinter0.608 MT

Sinter0.608 MT

Iron Ore / FinesPresently from Market

Allocated (will take 3 Years)

Iron Ore / FinesPresently from Market

Allocated (will take 3 Years)

DRI0.45 MT +

DRI0.45 MT +

Pig Iron / Hot metal0.51 MT

Pig Iron / Hot metal0.51 MT

Induction Furnace Billets0.473 MT

Induction Furnace Billets0.473 MT

Electric Arc Furnace0.433 MT

Electric Arc Furnace0.433 MT

Coal Washery 0.26 MT +

Coal Washery 0.26 MT + Coke Oven 0.35 MT by FY 12

(Coke Presently from Market)Coke Oven 0.35 MT by FY 12(Coke Presently from Market)

Ductile Iron Pipe0.240 MT

Ductile Iron Pipe0.240 MTTMT Rods

0.300 MTTMT Rods0.300 MT

Sales

Ferro Alloys0.106 MT

Ferro Alloys0.106 MT

CPP 111 MW

Material Movement

Legend

Sales Points

Free Fuel

Power Captive Use

Under Installation

Installed

0.06 MT0.06 MT

1.0 MT1.0 MT

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79200 TPA MS Ingot105000 TPA Sponge iron

40250 TPA Pig iron Plant80000 TPA Re-Rolling Mill

120000 TPA Sponge Iron

31118 TPA Ferro Alloy88210 TPAMS Billets40250 TPA Pig Iron Plant12 MW Power Plant

88210 TPAMS Billets216000 TPA Coal Washery

51000 TPA Ferro Alloy117610 TPA MS Billets180000 TPA Re-Rolling Mill428750 TPA Pig Iron50 MW Power

100000 TPA MS Billets220000 TPASponge Iron608000 TPASinter Plant12.8 MW power

25500 MTPAFerro Alloy433000 TPAAlloy Steel Billets6.2 MW Power

240000 TPA Ductile Iron Pipe30 MW Power

2001

2003

2004

2005

2006

2007

2008

2009

2010Project Implementation

Journey of the excellent project executionJourney of the excellent project execution

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Existing Facilities

Existing Facilities Capacity

Sponge Iron 445000 MT

Pig Iron 510000 MT

MS Billets 473000 MT

Alloy Steel Billets 433000 MT

Ferro Alloy 106000 MT

Sinter 608000 MT

Rolling Mill 260000 MT

Ductile Iron Pipes 240000 MT

Coal Washery 216000 MT

Captive Power Plant 111 MW

Railway Rakes under WIS 4 (61 wagons each)

Pvt. Railway Siding Durgapur , Muripar & Barbil

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Brownfield expansions

Capex Description Capacity Capex (mn.) Timeline Benefits

Sponge Iron 0.06 MT 400.0 FY 11 JBIL will be short in captive metallics in the FY11. Proposed Unit planned at Jharkahnd where land and other infrastructure is already available and coal mine starting in the FY 2011.

Non Coking Coal Mine and Washery

Peak Capacity 1.40 MT

950.0 FY 11 Will reduce cost of DRI by around Rs.1400 per ton. JBIL has 0.45 MT existing DRI capacity. Reserves sufficient for more than 30 years.

Coking Coal Mine Peak Capacity 0.56 MT

250.0 FY 12 Will reduce cost of hot metal by around Rs.5000 per ton. JBIL has 0.51 MT Blast Furnace capacity. Reserves sufficient for more than 30 years. Additional waste heat sufficient for 20 MW power.Coke Ovens 0.35 MT 3620.0 FY 12

Roads & infrastructure for existing Durgapur plants

290.0 FY 12 Since all the capex of the Durgapur plant is complete, Roads, Drainage and other infrastructure at the plant shall also be complete.

Total 5510.0

Low Incremental Capex as compared to substantial margin expansion

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Manufacturing Facilities post completion

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Proximity to Raw Material and captive mines

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Cost Effective Logistics Infrastructure

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Existing Power Generation Capacities

The company is operating 111 MW of captive power at its integrated Power Plants . The company is operating 111 MW of captive power at its integrated Power Plants .

Power is generated by utilizing waste gases of Sponge Iron, Blast Furnaces & solid wastes such as dolochar & coal fines generated from the integrated operations.

Power is generated by utilizing waste gases of Sponge Iron, Blast Furnaces & solid wastes such as dolochar & coal fines generated from the integrated operations.

Total cost of power generation including depreciation & interest is around Rs.1.25 wherein cost of fuel is around Re.0.65 per unit.

Total cost of power generation including depreciation & interest is around Rs.1.25 wherein cost of fuel is around Re.0.65 per unit.

The Power plant has strong grid support wherein total power requirement for the integrated steel operation is approximately 145 MW.

The Power plant has strong grid support wherein total power requirement for the integrated steel operation is approximately 145 MW.

The company has tie-ups with DVC & DPL for the balance requirement of power @ Rs.2.75 per unit.

The company has tie-ups with DVC & DPL for the balance requirement of power @ Rs.2.75 per unit.

Power Plants eligible for CDM benefits under Kyoto Protocol.Power Plants eligible for CDM benefits under Kyoto Protocol.

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Project Purulia – Green field expansion

5 MT Steel+

1215 MW Power+

3 MT Cement

Project Site

1130 Acres Land &

Coal Blocks of Appx 700 Mn ton of

Superior Grade Ranigunj Coal

Update

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Project Purulia- Updates & Plans

Signed MoA with the Govt. of WB to set up an 5 MT integrated steel plant, 3 MT Cement Plant and 1215 MW Power Plant at Raghunathpur, Purulia.

Signed MoA with the Govt. of WB to set up an 5 MT integrated steel plant, 3 MT Cement Plant and 1215 MW Power Plant at Raghunathpur, Purulia.

JBIL has already been handed over approx 1130 acres of land for the project. JBIL has already been handed over approx 1130 acres of land for the project.

Captive Coal Mines for steel making and power plants already available and under development.

Captive Coal Mines for steel making and power plants already available and under development.

Water Drawl Permission, Railway Traffic Clearance & in-principle approval from State Electricity Board for construction power already in place.

Water Drawl Permission, Railway Traffic Clearance & in-principle approval from State Electricity Board for construction power already in place.

Application for environment clearance submitted, Public Hearing complete and TOR received.

Application for environment clearance submitted, Public Hearing complete and TOR received.

Project to be completed in modular fashions in phases. Project to be completed in modular fashions in phases.

Phase I planned to be of 2 MT metallic and 400 MW of Power, work starting in the FY 2011.

Phase I planned to be of 2 MT metallic and 400 MW of Power, work starting in the FY 2011.

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Captive Resources – Coal Coking & Non coking

JBIL has been one of the largest allottee of coal blocks for captive consumption in steel making JBIL has been one of the largest allottee of coal blocks for captive consumption in steel making for its existing facilities and Greenfield Purulia project in West Bengal due to the excellent track for its existing facilities and Greenfield Purulia project in West Bengal due to the excellent track record of project execution.record of project execution.

Coking coal block of RohneRohne: JBIL's share in the reserves is 17m tons in Joint Venture with two other companies. The block is expected to commence in FY 12.

Non-coking coal at DumriDumri: This coal block was allotted to its subsidiary, Nilanchal Ispat (NIPL), in Jharkhand. NIPL's share is 38m tons in this block. Forest clearance is expected soon because there are only few trees in the mine area. Mining is likely to commence in FY 11.

Non-coking coal at ArdhgramArdhgram, West Bengal: JBIL's share in reserves is 15-16%, equivalent to 4m tons. This is a small block where mining should start in 2-3 years.

Non-coking coal at AndalAndal, West Bengal: JBIL's share is 33%, equivalent to 229.50m tons. Coal mining will start in 48 months.

Non-coking coal at Jagannathpur A & BJagannathpur A & B, West Bengal: These blocks have been allotted to West Bengal Mineral Trading Development Corporation (WBMTDC). On 4 October 2007, Government of West Bengal (GoWB), West Bengal Industrial Development Corporation (WBIDC), WBMTDC signed an agreement with JBIL to provide these blocks to JBIL for setting up an integrated Greenfield steel plant. Already started exploration and drilling activities for development. Theses mines will be a source of low cost coal in three years

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Thank You !

Safe Harbor Statement :

Some forward looking statements on projections, estimates, expectations & outlook are included to enable a better comprehension of the Company prospects. Actual results may, however, differ materially from those stated on account of factors such as changes in government regulations, tax regimes, economic developments within India and the countries within which the Company conducts its business, exchange rate and interest rate movements, impact of competing products and their pricing, product demand and supply constraints. Nothing in this article is, or should be construed as, investment advice.