Contents. 1 Corrosion. 2 The Wonder Metal. 3 Indian Situation. 4 Challenges. 5 Opportunities. 6 Jindal Stainless Limited.

Transcription

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2 Contents 1 Corrosion 2 The Wonder Metal 3 Indian Situation 4 Challenges 5 Opportunities 6 Jindal Stainless Limited 7 Outlook 2

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4 Economic Impact World USD 5 Trillion India USD 0.12 Trillion Corrosion 5-6% of GDP USA USD 1 Trillion 4

5 Industrial Accidents BHOPAL GAS TRAGEDY; Bhopal, India 3,787 immediate Deaths 8,000 died within two weeks Over 500,000 people exposed December,1984 GUADALAJARA SEWER EXPLOSIONS; Mexico March, people killed 500 injured 15,000 left homeless PRUDHOE BAY 2006 OIL SPILL; Prudhoe Bay, Alaska April, ,000 Gallons Oil Spill 5

6 Corrosion Map of India 6

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8 Stainless Steel 8

9 INDIAN SITUATION 9

10 Global Stainless Steel Consumption Per Capita : Flat Products Region/ Country SS/Capita (in kgs) India < 2 Brazil 2 United States 6 China 9 Germany 15 Italy 17 World 4 10 Source: World Atlas & CRU

11 Stainless Steel Consumption Pattern (%) Construction Transport Industrial Equipment World India Catering and Hhld Prod. Other 11 Source: CRU & JPC

12 India 12

13 CHALLENGES 13

14 Challenges India Others 1 Duty Structure Imports: RM FG 2.5% 7.5% China Brazil Turkey ~0% 10% 14% 8% Exports: RM 0% 10-40% Cost Interest Cost 12-13% China: 4-5% 2 Power Cost 30% higher power cost China: Low power cost Pollution Very stiff environmental norms Large no. of small furnaces producing FeCr & NPI 3 Trade Agreements Surge in imports from Japan & Korea due to FTAs with the ASEAN bloc Huge trade imbalance with all these countries 14

15 Challenges India Others 4 Dumping Excess capacity worldwide (esp. China) being dumped into India at low prices Anti Dumping action has been taken up against China in other countries like Brazil, US, EU, Vietnam and Malaysia 5 Circumvention 6 Infrastructure -Rampant -Tax evasion -Logistics -Ports -Roads 15

16 OPPORTUNITIES 16

17 India: Poised for Strong Economic Growth Make IN India Made IN India. 7.0% 6.0% 5.0% 4.7% 4.5% 5.6% 6.4% 4.0% 3.0% 2.0% 1.0% 0.0% * 2015* GDP Growth Rate 17 Source: The Statistics Portal

18 Automobile Sector Production Turnover SS Usage/ vehicle Present: 17.5 mn vehicles : USD 58.5 bn World Avg: 25 kgs Projected: 48.7mn by Projected in 2016: USD 145 bn India Avg: 6-8kgs 18 Source: JPC

19 Railways Projected Demand : 24-25k wagons/year 50% in SS at present 9.5% CAGR of growth in SS usage Wagons Present: 650LHB coaches/year Growth: 900 LHB coaches/year by % PA growth of SS Coaches Metro cities = 10 Metro transit= 6 State cities= 19 Metro Transit= 0 Metros 19 Source: JPC

20 Architecture,Building & Construction Real Estate Hospitality Health Care Expected CAGR of 11 % till 2020 Industry Growing at a CAGR of 14% Industry Growing at a CAGR of 17% 50 Million Sq. Feet addition yearly in Commercial Real Estate SS Usage: 250 tones per 1 million Sq. Feet Addition of 52,000 new hotel rooms by 2017 SS Usage: 0.75% of project cost per Premium Room World Avg: 3 beds / 1000 people India: 0.6 beds/ 1000 people SS Usage: 55% of Hospital Furniture cost; 35% of Surgical Instrument cost 20 Source: IBEF & JPC

21 Power Per Capita Consumption India:684 kwh China:3,298 kwh USA:13,246 kwh Projected Industry Growth: 10-12% PA Expected Demand in 2030: 950GW SS usage per MW Thermal Power: 0.78 MT Nuclear Power: 2.26 MT 21 Source: IBEF & JPC

22 Process Industry Production Growth of 12.5% CAGR of last 5 years Projects worth USD 89.5 Billion under implementation SS Usage to increase from 194K tonnes to 445K tonnes in Source: JPC

23 JINDAL STAINLESS 23

24 JSL Manufacturing Facilities and Capacities Mining Linkage Power & Coke Oven Ferro Alloys Melt Shop Hot Rolling Cold Rolling Chrome Mines-Sukinda MOU for Chrome Ore with State Coal JV for 500MW Ore Mines from centre & state 264 MW at Odisha 0.43 MTPA Coke Oven at Odisha 0.25 MTPA at Odisha 40,000TPA at Vizag 0.8 MTPA SS at Hisar 1.0 MTPA SS at Odisha 0.80 MTPA 1.60 MTPA at Odisha 0.275MTPA CRSS, 35000TPA special steel at Hisar 0.95MTPA HRAP, 0.45MTPA CRSS at Odisha 0.15MTPA CRSS at Indonesia 24

25 Reaching the End User PT Jindal Stainless (Indonesia) Jindal Stainless Steelways Ltd Jindal Architecture Ltd Artt dinox Iberjindal (Spain) Cold Rolling Unit Stainless Steel Service Centers Fabrication & Designing Lifestyle Products International SS Service centre Acquired in 2004, largely caters to domestic & Asian markets Customized stainless steel products for various applications Fabricator for architectural building and construction segment Manufacturer of lifestyle products and accessories under brand name Artd nox JV with leading Spanish white goods manufacturer Fagor, for European market 25

26 Reaching Domestic Market Manufacturing Facilities- 3 Sales Offices- 21 Service Centers- 4 26

27 With Global Presence United Kingdom France Italy Malaysia Manufacturing Facilities- 1 Sales Offices- 16 Service Centers

28 Products Products Width (mm) Thickness (mm) Max Min Max Slab Hot Rolled Coil Plates / Sheets HRAP Coil / 2E CRAP Coil Precision Strips Grades: 200 Series, 300 Series, 400 Series, Duplex & Super-Austenitic Finishes: N1, 2D, 2B, 2E, BA, N3, N4, Scotch Brite, Moon-rock, Embossed 28

29 Grades of Stainless Steel Offered 300 Series 301, 304/L/LN/H, 316/L/LN, 317/L/LN, 321, 347, 316 Ti, 309, 310/S 200 Series (Cr Mn Series) 201, 201 LN, 204Cu, 216, J4, JSLAUS, JSL U DD, JSL U SD, JSL U KP, JT 400 Series 410 S, 420, 415, 440 A/B/C, 430, 409/L, 436 Duplex & Superaustenitic 2205, 2304, 904L 29

30 Major Sectors & Applications Catered ABC ART Process & Engineering Consumer Durables SS roofing sheets Decorative and color coated SS Street furniture Escalators, elevators Claddings Railings Airports Railway station up gradation Bus bodies Auto chassis, trims, suspension parts, fuel tanks, catalytic convertors Railway Wagons Metro Coaches Nuclear power plants Boilers Desalination plants Water treatment & Supply facilities Petrochemical industries Sugar Industry Pharmaceutical Industry Fertilizer Industry Dairy Brewery Kitchen Applications Bathroom Accessories White Goods Lifestyle Products Interior Decoration Razor Blades Coin blanks 30

31 JSL The Mills HISAR ODISHA Capacity : 0.8 MTPA Capacity : 1.0 MTPA Total : 1.8 MTPA MTPA :Million Tons Per Annum 31 31

32 Ensuring Reach - Jindal Stainless Steelway limited GURGAON MUMBAI PATALGANGA CHENNAI VADODARA JSL s Service Centre Network 32 32

33 JSL Cold Rolling at Indonesia Capacity : 150,000 TPA 33 33

34 Global end reach IberJindal S.L. Ltd. Capacities Combo Line 18,000 TPA Polishing Line 14,500 TPA 34 34

35 Promoting Stainless Steel JSL Architecture Limited 35

36 JSL Lifestyle Ltd

37 SUCCESS STORIES 37

38 Nuclear Power: ITER Project INTERNATIONAL THERMONUCLEAR EXPERIMENTAL REACTOR Funded by 9 countries - 15 Billion Euros Headquarters : Cadarache, France Fabrication: Larsen and Toubro, Hazira World largest equipment 3800 tons stainless structure 38

39 Nuclear Power: Projects in India BARC: NRB Mumbai IGCAR : Kalpakkam JSL : Online UT 39

40 Process Industries: PTA /J-3 Projects MAIN FABRICATORS IN PTA PROJECT 1) Godrej & Boyce Mfg. Co. Ltd. 2) Techno Process Equipments (India) Ltd. 3) G.R. Engineering Pvt. Ltd. 4) Consolidated Chem equip (Mfr.) Corporation. 5) Industrial Manufacturers 6) Raj Engineering 7) Triofab India Pvt. Ltd. 8) Gemini Engi Fab Limited 9) Prabha Engineering 40

41 Infrastructure: Rail Cum Road Bogibeel Project River Brahmaputra in Assam 4.94km long- Longest in India 41

42 Power: AREVA Solar Thermal Project - 240MW 42

43 Duplex Orders References Customer Name Grade GMM Pfaudler 2205 Kirloskar Brothers Ltd 2205 Thyssenkrupp Industries, Pune 2205/2304 GEA BGR Energy, Chennai 2205 WPIL Ltd., Kolkata 2205 GEI Hammon Godrej & Boyce Ltd Hindalco S32101 Industrial Manufacturer 2205

44 Petrochemical Industry: Tanks RABIGH-II-IKEPC Utilities &Storage tank- Saudi Arabia. JV of Saudi Aramco and Japan s Sumitomo Chemical, EPC Contractor Petrofac 44

45 OUTLOOK 45

46 Indian Stainless Steel Industry Outlook Outlook High economic growth & consumer spending Consumption of SS Growing more than world average Growth Area New applications will drive the consumption High Growth in all the segments Large potential for SS Products / Downstream Industries Challenges Indian Infrastructure to facilitate business China Factor Capacity Utilization Level Playing Field FTA s Jindal Stainless Large role in SS Growth and market development 46

47 Together We Shall Achieve