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 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 2 December 2010
Introduction 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 of 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 3 December 2010
Company Overview 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 4 December 2010
CSIL Organization Managing Board of Director Directors General Manager HOD HOD – QA & HOD - P & A Operation QC HSE Rolling Mill Lab Logistics Workshop Process QC PGP Excise Chandi Steel Industries Limited Business Presentation 5 December 2010
Group Turnover 30000 24610.38 23090.19 25000 18960.12 20000 Rs. in Million 14070.48 15000 10000 6320.2 5000 0 05-06 06-07 07-08 08-09 09-10 Chandi Steel Industries Limited Business Presentation 6 December 2010
Group’s Financial Summery (Consolidated ) Gross Revenue EBITDA 30000 4000 3500 25000 ₹ in million 3000 ₹ in million 20000 25020.47 2500 23690.48 3050.65 3380.35 15000 2000 2440.06 19630.56 1500 14290.77 10000 1750.18 6420.16 640.89 1000 5000 500 0 0 05-06 06-07 07-08 08-09 09-10 05-06 06-07 07-08 08-09 09-10 PAT Capital Employed 1400 25000 1200 20000 20160.92 ₹ in million ₹ in million 1000 18430.75 15000 800 1320.28 380.04 15600.47 600 50.31 10000 670.06 4030.52 7760.27 400 290.89 5000 200 0 0 05-06 06-07 07-08 08-09 09-10 05-06 06-07 07-08 08-09 09-10 Chandi Steel Industries Limited Business Presentation 7 December 2010
Group’s Product Profile 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 8 December 2010
CSIL Products Profile Cathode Collector Bars for Aluminum Electrolyzers; Flats of various sizes in Mild Steel and other 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 9 December 2010
Initiative Highlights 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 10 December 2010
Business Strategies 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 operating cost base at national & international standards; Chandi Steel Industries Limited Business Presentation 11 December 2010
Growth Drivers 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 12 December 2010
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