1
SYNOPSIS
Jindal Steel and Power Limited (JSPL) is
one of India’s major steel producers
with a significant presence in sectors
like Mining, Power Generation and
Infrastructure.
Company’s annual turnover of over US
$2.9 billion.
The Company has acquired Shadeed
Iron & Steel Co. LLC (SISCO), Oman, in
June, 2010. SISCO is setting up a 1.5
MTPA gas based DRI plant in Oman.
JSPL has consistently tapped new
opportunities by increasing production
capacity, diversifying investments, and
leveraging its core capabilities to
venture into new businesses.
Orissa steel plant Expansion with an
investment of over US $ 8.00 billion (Rs.
40,000 crore). The first phase of 3
million tonne is expected to be
commissioned by 2011.
Net Sales and PAT of the company are
expected to grow at a CAGR of 15% and
9% over 2010 to 2013E respectively.
Years Net sales EBITDA Net Profit EPS P/E
FY 11 131116.00 64746.00 38040.10 40.18 15.68
FY 12E 149472.24 72648.68 42710.66 45.73 13.78
FY 13E 167408.91 80511.43 47075.91 50.41 12.50
Stock Data:
Sector: Steel
Face Value Rs. Rs.1.00
52 wk. High/Low (Rs.) 755.25/572.70
Volume (2 wk. Avg.) 79000
BSE Code 532286
Market Cap (Rs.In mn) 588357.00
Share Holding Pattern
1 Year Comparative Graph
Jindal Steel & Power
Ltd BSE SENSEX
C.M.P : Rs.630.00 Target Price : Rs.718.00 Date : 10th June 2011 BUY
JINDAL STEEL & POWER LTD
Result Update: Q4 FY 11
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Peer Group Comparison
Name of the company CMP(Rs.) Market
Cap.(Rs.Mn.) EPS(Rs.) P/E(x) P/Bv(x) Dividend (%)
Jindal Steel 630.00 588357.00 40.18 15.68 4.16 125.00
SAIL 144.60 597255.9 11.82 12.23 1.56 33.00
Ispat Indus 20.85 49764.8 - - 6.58 0.00
JSL Stainless 105.90 19836.7 16.99 6.23 1.04 0.00
Investment Highlights
Q4 FY11 Results Update
Jindal Steel & Power Ltd disclosed results for the quarter ended March 2011. Net
sales for the quarter moved up 21% to Rs.38545.40 million as compared to
Rs.31755.90 million during the corresponding quarter last year. Total Income has
increased from Rs 32058.90 million for the quarter ended March 31, 2010 to Rs
39151.50 million for the quarter ended March 31, 2011. During the quarter, the
company has reported Net Profit increased to Rs.10017.00 million from
Rs.9633.80 million in previous year same quarter. The Basic EPS of the company
stood at Rs.10.73 for the quarter ended March 2011.
Quarterly Results - Standalone (Rs in mn)
As At March-11 March-10 %change
Net sales 38545.40 31755.90 21
PAT 10017.00 9633.80 4
Basic EPS 10.73 10.35 4
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Break up of Expenditure
Expenditure for the quarter stood at Rs.21271.00mn, which is around 24%
higher than the corresponding period of the previous year. Raw material cost of
the company for the quarter accounts for 27% of the sales of the company and
stood at Rs.10552.80mn from Rs.6243.70mn of the corresponding period of the
previous year. Other Expenditure cost increased 31%YoY to Rs.5679.8mn from
Rs.4329.20mn and accounts for 15% of the revenue of the company for the
quarter.
OPM and NPM for the quarter stood at 46% and 26% respectively from 47% and
30% respectively of the same period of the last year.
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FY11 Performance
Net profit of the company has increased at 3% yoy Rs.37538.80mn from
Rs.36345.60mn of same period of last year. Total revenue for the year stood at
Rs.131116.00 mn from Rs.110915.40 which is 18% increased than that of a year
ago. EPS for the year stood at Rs.40.18 per equity share of Rs.1.00 each.
Operating profit of the company stood at Rs.64746.00mn. OPM for the year stood
at 49.38%. Expenditure of the company increased 28% YoY to Rs.67190.00 mn.
Interest expenses for the year stood at Rs.3355.80mn.
Segment Revenue
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Subsidiary to Set up 2.52 mmtpa MIDREX DRI plant in Bolivia
Jindal Steel & Power (JSPL) announced that its subsidiary Jindal Steel Bolivia
(JSB) will build a 2.52 MMTPA natural-gas-based MIDREX direct
reduction plant at EL-Mutun, Puerto Suarez, Bolivia, and South America. The
project will be known as the Naveen Ultra Mega Mod DRI and will feature the
latest MIDREX Shaft Furnace innovations and will have the flexibility to
produce both quality hot DRI and hot briquetted iron for use in a new proposed
Greenfield melt shop. The contract for this new MIDREX plant was signed on
Mar. 30, 2011.
Iron ore and iron pellets will be supplied from JSB`s EI Mutun Iron Ore
Reserves in Bolivia where JSB is also installing a pellent plant and a steel
making facility. Based on the stellar performance of MIDREX DRI Plants, this
new facility at JSB will be capable of producing more than the rated
capacity. The Naveen Ultra Mega Mod plant can produce up to 2.70 million
metric ton per year of DRI depending upon the quality of inputs, operating
parameters and skill of the workforce.
Board recommends Final Dividend
Jindal Steel & Power Ltd has recommended final dividend @150% i.e. Rupees
1.50 per equity share of Re. 1/- each.
To Acquire Rocklands Richfield
Jindal Steel & Power Ltd is announce its intention, through a step down wholly
owned subsidiary namely, Jindal Steel and Power (Australia) Pty Ltd (JSPA) to
make an on-market takeover offer (Offer) for all of the shares in Rockland’s
Richfield’s Limited (Rockland’s) listed on Australian Stock Exchange (ASX code:
RCI). Under the terms of the Offer, JSPA is offering AUD $ 0.25 cash for every
Rocklands share held. The Offer values Rocklands' total equity at approximately
7
AUD $ 88 million. JSPA currently holds a 14.46% interest in Rocklands and
has received approval of Foreign Investment Review Board, Australia to increase
its stake above the 15% threshold.
Allotment of shares under ESOS
Jindal Steel & Power Ltd has allotted 2,40,564 equity shares of Re. 1/- each in
accordance with the terms of Company's Employees Stock Option Scheme
(ESOS-2005). Consequently with effect from April 14, 2011 the issued,
subscribed and paid up share capital of the Company stands increased to Rs.
93,45,09,595/- (Rupees ninety three crores forty five lacs nine thousand five
hundred ninety five only) divided into 93,45,09,595 equity shares of Re. 1/-
each.
Company Profile
Jindal Steel & Power Limited (JSPL) was established in the year 1990 by hiving off
the Raigarh & Raipur Divisions of Jindal Strips Ltd. JSPL forms a part of the $ $12
billion (over Rs. 60,000 crore) Jindal Group. JSPL is a leading player in Steel, Power,
Mining, Oil & Gas and Infrastructure. The company produces economical and
efficient steel and power through backward integration from its own captive coal and
iron-ore mines and passes on the benefits to its customers. Naveen Jindal, the
youngest son of the legendry late O P Jindal, drives JSPL and its group companies
Jindal Power Ltd, Jindal Petroleum Ltd., Jindal Cement Ltd. and Jindal Steel Bolivia.
The O P Jindal Group has emerged as one of India's most dynamic business groups
over the past three decades. Today, the group is a multi-billion, multi-location, multi-
product business empire. From mining iron ore and coal, the group produces sponge
iron, ferro alloys and a wide range of hot-rolled and cold-rolled steel products ranging
from HR coils/sheets/plates, hot-rolled structural sections and rails to CR
coils/sheets, high-grade pipes and value added items such as stainless steel,
galvanized steel & coated pipes. It has not only diversified into power generation but
8
also into petroleum, infrastructure, diamond and high value metals & mineral
exploration. The group has manufacturing facilities across India, US & Indonesia and
marketing/representative offices across the globe.
An enterprising spirit and ability to discern future trends have been the driving force
behind the company's remarkable growth. The company has scaled new heights with
the combined force of innovation, adaptation of new technology and the collective
skills of its 15,000 strong, committed workforce. It has won wide acclaim for its
efficient operations and commitment to environment & society.
JSPL has consistently tapped new opportunities by increasing production capacity,
diversifying investments, and leveraging its core capabilities to venture into new
businesses. JSPL’s investment commitments in steel, power, oil & gas and mining
have touched more than $ 30 billion (Rs. 1,50,000 crore). The company, today, is the
largest private sector investor in the state of Chhattisgarh with a total investment
commitment of over $ 6.25 billion (Rs. 31,250 crore).
The company is having altogether eight facilities in India, of which four are in
Chhatisgarh, two in Orissa and one in Jharkhand while its international facility is
located at Bolivia (South America). JSPL is exploring steel production and mining
projects in other parts of the world, such as Mozambique, South Africa, Mongolia,
Brazil and Indonesia. JSPL has diversified into exploration of diamond, gold, precious
stones and other high value metals and minerals in Chhattisgarh, Jharkhand and
Republic of Congo.
Expansion Projects:
Orissa
A 12.5 million tonne integrated steel plant and 2600 MW captive Power Plant in
phases, with an investment of over US $ 8.00 billion (Rs. 40,000 crore). The
first phase of 3 million tonne is expected to be commissioned by 2011.
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Jharkhand
An 11 million tonne integrated steel plant and 2600 MW captive Power Plant in
phases, with an investment of over US $ 6.00 billion (Rs. 30,000 crore).
Chhattisgarh
7 million tonne steel plant, 2 million tonne cement plant and 1600 MW Captive
Power Plant with a total investment of over US $ 5.20 billion (Rs. 26,000 crore).
Jindal Power Limited, a subsidiary of JSPL, is expanding the capacity of its
existing 1000 MW Thermal Power Plant at Tamnar by setting up a 2400 MW
thermal power plant with an investment of US $ 2.40 billion (Rs. 13,410 crore).
Other group company’s are:
JSL Ltd.
Jindal Saw Ltd.
JSW Steel Ltd.
Chhattisgarh Energy Trading Company Limited (CETCL) is an affiliate of Jindal
Steel and Power Limited. It was incorporated in Sept.2008 .Currently CETCL is
category ‘II’ licensee.
Jindal Power Limited - Jindal Power Limited (JPL), an affiliate of JSPL has set
up India’s first mega power project – the 1000 MW O P Jindal Super Thermal
Power Plant at Raigarh, Chhattisgarh.
Product Range of the company includes:
Rails- Giving impetus to the significant rail sector, JSPL has pioneered the
manufacturing of 120 meter long track rails in the Indian sub-continent. The world’s
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longest track rails are a testimony of JSPL’s manufacturing capabilities where
continuous innovation is a practice rather than an exception.
Parallel Flange Sections - JSPL pioneered the production of medium and large size
Hot Rolled Parallel Flange Beams and Column Sections (H-Beams) in India. The
beams are cost effective and provide design-flexibility.
Plates & Coils- JSPL is equipped with India's first 'one of a kind' state-of-the-art
plate mill that produces plates and coils of 3.5 and 3 meters width, respectively, for
the first time in the private sector. The products are of premium quality, owing to its
sound steel refining properties.
Semi-Finished Products- JSPL has a capacity to produce about three million tonnes
per annum of semis which are primarily used for captive use in JSPLs’ 0.75 million
tonne per annum capacity Rail & Universal Beam Mill and 1.0 million tonne per
annum capacity Plate & Stackle Mill. Power- the company started power generation
over a decade back. In the beginning it was a captive power facility using waste heat
from the rotary kiln boilers and the coal rejects of the washery. Over the years
however, Jindal Steel and Power Ltd (JSPL) and its affiliate Jindal Power Ltd. (JPL)
have come up in a big way and are producing about 1400 MW power through both
captive and commercial facilities.
Ferro Chrome - At JSPL, high-grade chrome ore, one of the pre-requisites for making
ferro chrome, is sourced from the captive chrome ore mines in Sukinda Valley of
Orissa.
Sponge Iron - JSPL has world's largest coal-based sponge iron manufacturing facility
and stands out as the market leader in coal-based sponge iron industry within India.
Efficient backward integration has rendered JSPL as the only sponge iron
manufacturer in the country, with its own captive raw material resources and power
generation capacity helping the company to monitor both price and quality of its
products.
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Financial Results
12 Months Ended Profit & Loss Account (Consolidate)
Value(Rs.in million) FY10A FY11A FY12E FY13E
12m 12m 12m 12m
Description
Net Sales 110915.40 131116.00 149472.24 167408.91
Other Income 602.80 820.00 902.00 992.20
Total Income 111518.20 131936.00 150374.24 168401.11
Expenditure -52438.30 -67190.00 -77725.56 -87889.68
Operating Profit 59079.90 64746.00 72648.68 80511.43
Interest -3575.80 -3355.80 -3789.44 -3978.92
Gross Profit 55504.10 61390.20 68859.23 76532.52
Depreciation -9969.60 -11510.00 -12661.00 -14180.32
Profit before Tax 45534.50 49880.20 56198.23 62352.20
Tax -9188.90 -11840.10 -13487.58 -15276.29
Profit after Tax 36345.60 38040.10 42710.66 47075.91
Minority Interest 0.00 -659.10 0.00 0.00
Share of Profit & Loss Asso
0.00 157.80 0.00 0.00
Net profit 36345.60 37538.80 42710.66 47075.91
Equity Capital 931.20 934.30 933.90 933.90
Reserves 98412.00 140557.90 183268.56 230344.46
Face Value(Rs.) 1.00 1.00 1.00 1.00
EPS 39.03 40.18 45.73 50.41
*A=Actual, *E=Estimated
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Quarterly Ended Profit & Loss Account (Consolidate)
Value(Rs.in million) 30-Sep-10 30-Dec-10 30-Mar-11 30-Jun-11
3m(A) 3m(A) 3m(A) 3m(E)
Description
Net Sales 30820.90 31739.90 38545.40 36618.13
Other Income 37.40 87.10 606.10 91.46
Total Income 30858.30 31827.00 39151.50 36709.59
Expenditure -15804.10 -15753.00 -21271.00 -19059.74
Operating Profit 15054.20 16074.00 17880.50 17649.85
Interest -781.80 -812.60 -900.00 -954.00
Gross Profit 14272.40 15261.40 16980.50 16695.85
Depreciation -2730.50 -2925.90 -3344.50 -3277.61
Profit before Tax 11541.90 12335.50 13636.00 13418.24
Tax -2599.50 -2824.50 -3619.00 -3488.74
Profit after Tax 8942.40 9511.00 10017.00 9929.50
Minority Interest 0.00 0.00 0.00 0.00
Share of Profit & Loss Asso
0.00 0.00 0.00 0.00
Net Profit 8,942.40 9,511.00 10,017.00 9,929.50
Equity Capital 933.90 933.90 933.90 933.90
Face Value(Rs.) 1.00 1.00 1.00 1.00
EPS 9.58 10.18 10.73 10.63
*A=Actual, *E=Estimated
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Key Ratio
Particulars FY10 FY11 FY12E FY13E
EPS (Rs.) 39.03 40.18 45.73 50.41
EBITDA Margin (%) 53.27% 49.38% 48.60% 48.09%
PAT Margin (%) 32.77% 29.01% 28.57% 28.12%
P/E Ratio (x) 16.14 15.68 13.78 12.5
ROE (%) 36.59% 26.88% 23.19% 20.35%
ROCE (%) 26.81% 23.19% 21.69% 20.20%
EV/EBITDA (x) 9.93 9.09 8.10 7.31
Debt-Equity Ratio 0.84 0.62 0.50 0.42
Book Value (Rs.) 106.68 151.44 197.24 247.65
P/BV 5.91 4.16 3.19 2.54
Charts:
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Outlook and Conclusion
At the current market price of Rs.630.00, the stock is trading at 13.78 x FY12E and 12.50 x FY13E respectively.
Price to Book Value of the stock is expected to be at 3.19 x and 2.54 x respectively for FY12E and FY13E.
Earning per share (EPS) of the company for the earnings for FY12E and FY13E is seen at Rs.45.73 and Rs.50.41 respectively.
Company’s annual turnover of over US $2.9 billion.
The Company has acquired Shadeed Iron & Steel Co. LLC (SISCO), Oman, in June, 2010. SISCO is setting up a 1.5 MTPA gas based DRI plant in Oman.
JSPL has consistently tapped new opportunities by increasing production capacity, diversifying investments, and leveraging its core capabilities to venture into new businesses.
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Orissa steel plant Expansion with an investment of over US $ 8.00 billion (Rs. 40,000 crore). The first phase of 3 million tonne is expected to be commissioned by 2011.
Net Sales and PAT of the company are expected to grow at a CAGR of 15% and 9% over 2010 to 2013E respectively.
On the basis of EV/EBITDA, the stock trades at 8.10 x for FY12E and 7.31 x for FY13E.
We expect that the company will keep its growth story in the coming quarters also. We recommend ‘BUY’ in this particular scrip with a target price of Rs.718.00 for Medium to Long term investment.
Industry Overview
Sector Structure/ Market Size
Steel industry has a major role to play in the economic growth of India. With new
global acquisitions by Indian steel giants, setting up of new state-of-the-art steel mills,
modernisation of existing plants, improving energy efficiency and backward integration
into global raw material sources, India is now on the centre of the global steel map.
Consumption of steel in the construction sector, industrial applications, and transport
sector has been on the rise and special steel usage in engineering industries such as
power generation, petrochemicals and fertiliser industry is also growing.
India has retained its position as the 5th largest producer in 2010 and recorded a
growth of 11.3 per cent as compared to 2009. India has also emerged as the largest
sponge iron/direct reduced iron (DRI) producing country in the world in 2010, a rank
it has held on since 2002. Sponge iron production grew at a CAGR of 11 per cent to
reach a level of 20.74 million tonne (MT) in 2009-10 as compared to 14.83 MT in
2005-06. India is expected to become the second largest producer of steel in the world
by 2015-16, on account of growing steel demand, rich resources base of iron ore,
skilled manpower and vast experience of steel making and the huge capacity
expansion planned and being executed in the steel sector.
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With the expanding consumer market, Indian steel industry is likely to receive huge
domestic and foreign investments. Nearly 222 memorandums of understandings
(MoUs) for planned capacity of around 276 MT have been signed between the investors
and various State Governments, mostly in Orissa, Jharkhand, Chhattisgarh and West
Bengal.
India has recorded a growth of over 8.6 per cent, producing 6.35 MT of steel in March
2011 as against 5.85 MT in the corresponding month in 2010, according to World
Steel Association (WSA).
Steel exports has increased by 17.3 per cent as it reached an estimated 2.46 MT, while
steel imports were at an estimated 5.36 MT, a growth of 2.8 per cent in 2010.
Production
Crude steel production was registered at 51.57 MT during April-Dec 2010 in the
country as per Joint Plant Committee (JPC). The production is expected to be nearly
110 MT by 2012-13.
Crude steel production grew at a compound annual growth rate (CAGR) of 8.4 per cent
during the five years, 2005-06 to 2009-10. The crude steel performance accounted for
31 per cent of the total crude steel production in the country during 2009-10,
contributed largely by the strong trends in growth of the electric route of steel making,
particularly the induction furnace route, which was a key driver in the growth of the
segment. In case of total finished steel (alloy + non-alloy), production for sale was
recorded at 47.30 MT, a growth of 7.9 per cent during Apr-Dec 2010.
Steel Authority of India (SAIL) Ltd has planned to enhance its hot metal production
capacity from the level of 13.82 million tonnes per annum (MTPA) to 23.46 MTPA
under its current phase of expansion and modernisation which is expected to be
completed by financial year 2012-13. In the next phase, SAIL would increase its
capacity further to 26.18 MTPA.The indicative investment for current phase is about
US$ 13.28 billion. Additionally, approximately US$ 2.21 billion has been earmarked
for modernisation and expansion of SAIL Mines.
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NMDC Ltd plans to increase the production of iron ore from the present level of about
24 MT to 40 MT by 2014-15. Besides, setting up a 3 MTPA Integrated Steel Plant at
Nagarnar in Chhattisgarh. The environmental clearance for the plant has been
accorded by Ministry of Environment and Forests (MoEF).
Consumption
The Indian steel industry has been on a high-growth trajectory led by buoyancy in
sectors such as infrastructure and construction, oil and gas and automobiles. The
demand for steel is expected to further increase with major international automobile
manufacturers setting manufacturing facilities in India.
The consumption of steel domestically was recorded at 44.28 MT, indicating further
strengthening of demand during Apr-Dec 2010. The consumption of steel in the
country has shown an increase of 10.3 per cent during April 2010 to January 2011 as
compared to the same period of previous year.
Major Developments
The Indian steel market has witnessed the announcements of mega expansion plans
from leading domestic producers in the form of greenfield and/or brownfield projects.
Furthermore, with an expanding consumer market, the steel industry in India is likely
to receive huge domestic and foreign investments.
Posco, South Korea, plans to set up a 12 MT integrated steel plant in Orissa.
Mittal Group's announced plans to set up their 12 MT integrated steel unit in
Orissa.
Tata Steel Ltd (TSL) has taken over US$ 12 billion Anglo-Dutch giant Corus
Group Plc, transforming the former into a significant global steel producer,
which may well be regarded as a benchmark even in the history of the Indian
steel industry.
Bhilai Steel Plant (BSP), the flagship entity of the Steel Authority of India
Limited (SAIL), has secured a fresh order of exporting rails to Sri Lanka. The
order of about 14,000 tonnes is for the UIC-60 grade of rails. Earlier, the
company had received an order to supply 6,500 tonnes of rails to Sri Lanka.
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The Essar Group, through Essar Africa Holdings Ltd (EAHL), has bought 54 per
cent stake in Zimbabwe’s state-owned steelmaker, Zisco. The total deal is
valued at US$ 750 million.
The State Level Single Window Clearance Authority (SLSWCA) in Orissa has
cleared four investment proposals in the steel sector worth US$ 632.86 million.
Orissa through its nodal agency for land acquisition, Industrial Infrastructure
Development Corporation of Orissa Ltd (Idco), has allotted 20684.06 acres of
land to steel companies that have signed memorandum of understanding (MoU)
with the State. The steel sector in Orissa has already recorded an investment of
US$ 11.64 billion till the end of December 2010.
Tata Steel Ltd (TSL) and Nippon Steel Corporation (NSC) have signed a joint
venture (JV) agreement to setup India's first continuous annealing and
processing line (CAPL) for the production of 600,000 tonnes per annum of
automotive cold-rolled steel at Jamshedpur, India. TSL will hold 51 per cent
and NSC will hold 49 per cent of equity capital of the JV Company. The project
will be set up at a capital cost of approximately US$ 509.08 million and is
expected to come on stream in 2013.
NMDC Ltd has signed a pact with Russian steel and mining major Severstal to
set up a 5 MTPA steel plant in Karnataka as part of a strategy that aims to
boost the company's revenue by increasing presence in value added product
chain. It has also set up a 3 MTPA integrated steel plant at Nagarnar,
Chhattisgarh, which is likely to be commissioned in 2014.
It has also set up a 3 MTPA integrated steel plant at Nagarnar, Chhattisgarh,
which is likely to be commissioned in 2014.
Essar Steel has commissioned a state-of-the-art Compact Strip Production
(CSP) mill with a capacity of 3.5 MTPA. The CSP mill is a part of the company's
expansion plans of raising the steel production capacity at Hazira at a cost of
US$ 3.03 billion. The company has also commissioned two iron making units–a
blast furnace with a capacity of 1.73 MTPA and a DRI unit of 1.74 MTPA, a
conarc furnace of 2.5 MTPA, besides commissioning India’s first 5-metre wide
plate mill with a capacity of 1.5 MTPA and a pipe mill with an annual capacity
of 0.6 MTPA.
21
Sesa Goa, a Vedanta Group company, has acquired the assets of Bellary Steel
and Alloys (BSAL) for US$ 48.94 million in a competitive bidding process
conducted by Industrial Financial Corporation of India (IFCI) Ltd.
JSW Steel plans to infuse US$ 83.54 million in Ispat industries in the next 2-3
years. JSW Steel plans to invest US$ 16.86 billion over the next 10 years to
ramp up capacity from 7.8 to 32 MTPA through greenfield and brownfield
projects.
Government Initiatives
The current policy regime allows 100 per cent foreign domestic investment (FDI) in
steel sector, as per Mr Beni Prasad Verma, Minister of State for Steel (Independent
Charge). Some multinational steel companies like POSCO and Arcelor Mittal have
signed MoU with respective to State Governments to set up steel production units in
the country. The total proposed capacity under FDI is approximately 45 MT.
Some of the initiatives undertaken by the Indian Government in the Eleventh Five
Year Plan (2007-12) to promote the steel sector include:
The Planning Commission has approved a total outlay of US$ 9.5 billion for the
development and promotion of the iron and steel sector.
The scheme for the promotion of research and development in the iron and steel
sector has been approved with a budgetary provision of US$ 24.6 million to
initiate and implement the provisions of the scheme.
National Steel Policy 2005 is under review and the process for drafting a
'National Steel Vision' has since been initiated.
Five year strategy paper has been prepared for promotion of Steel sector in the
country.
Moreover, in the Union Budget 2010-11, the Government has allocated US$ 37.4
billion to the infrastructure sector and has increased the allocation for road transport
by 13 per cent to US$ 4.3 billion which will further promote the steel industry.
Ministry of Steel in association with United Nations Development Programme (UNDP)
is carrying out a project on ‘Removal of Barriers to Energy Efficiency Improvement in
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Steel Re-rolling Mill Sector in India’ at an estimated cost of US$ 14.03 million. The
project seeks to reduce greenhouse gas emissions by providing technical assistance to
small and medium sized steel re-rolling mills in the country to enable them to adopt
more energy efficient and environmentally friendly technologies.
______________ ____ _________________________ Disclaimer:
This document prepared by our research analysts does not constitute an offer or solicitation
for the purchase or sale of any financial instrument or as an official confirmation of any
transaction. The information contained herein is from publicly available data or other
sources believed to be reliable but do not represent that it is accurate or complete and it
should not be relied on as such. Firstcall India Equity Advisors Pvt. Ltd. or any of it’s
affiliates shall not be in any way responsible for any loss or damage that may arise to any
person from any inadvertent error in the information contained in this report. This document
is provide for assistance only and is not intended to be and must not alone be taken as the
basis for an investment decision.
23
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