Jindal SAW Limited O.P Jindal Group

Transcription

1 Jindal SAW Limited O.P Jindal Group 22 nd May 2015

2 O P Jindal Group - Brief profile Saw Pipes Largest line pipe producer in India and 2 nd largest in Asia (excluding China) Ductile Iron Pipes One of the largest player in DI pipes, manufacturing facilities in India, UAE and Europe Crude Steel Flat Products Long Products Stainless Steel Ferro Alloys Flat Products Crude Steel Flat Products Long Products Seamless Pipes Among major player in Seamless pipes segment in the Country Iron Ore & Pellet Fully Integrated facility at Mine Head for Beneficiation, Pallet and Steel in Bhilwara (Rajasthan) Coated Products Coal & Gas based Energy Cement Sponge Iron Ferro Alloys Energy Iron Ore Mines Pellets The USD 18 billion O.P. Jindal Group has an asset base of USD 25 billion and human asset base of more than of 70,000 people. 1

3 Jindal SAW Limited

4 Jindal Saw Promoter Profile Pioneering the production of SAW pipes three decades ago Mr. Prithvi Raj Jindal has been at the helm of affairs of Jindal SAW Ltd. a part of the fourth largest industrial house in India, the OP Jindal Group. A perfectionist to the core Mr. Jindal guided the company s global ambitions. His sharp business acumen complemented by a futuristic vision and a hands on approach has made Jindal SAW Ltd. A force to reckon with not only on the home but also global turf. A firm believer of delivering not just quality but value to its clients the organization has adopted corporate practices that are guiding beckons to others and make Jindal SAW Ltd. stakeholder and shareholder friendly organization. Today Mr. Jindal s untiring efforts have firmly placed India on the map of Line Pipe Manufacturing Nations. A man of simple tastes Mr. Jindal s human nature finds expression in various employee friendly practices that have earned Jindal SAW Ltd. the enviable reputation of one of the most preferred employers in the country. 3

5 Jindal Saw : Overview Leading Indian Pipes Manufacturer Largest pipe manufacturer in India offering Total Pipe solutions including SAW Pipes, Ductile Iron Pipe and Seamless Tubes. 35% market share in energy sector and water sector in India Diversified multi-product producer Global Presence World-class customer base Financial Strength Produces LSAW pipes, HSAW Pipes, Ductile Iron Pipes, Seamless Pipes and External & Internal Coatings. Backward integration to Iron Ore Mines, Pellet and Steel World s largest pipe producer (By Capacity) One of the largest producer of water pipes (DI) in the world. Strong Marketing & Manufacturing presence in US, UAE, Europe besides India. Customers include leading players in Oil & Gas, Transportation of Fluids, Water Infrastructure Projects, Boilers, Automotive industry, Steel. Global clients roster include, among others, Shell, Chevron, BHPB, Bechtel, Centre Point Energy, Questar, PDO, Oman Gas, Gulf South and Saipem, Petronet, Saudi Aramco, British Gas, GASCO, ADCO etc.. Order book of India app. USD One billion Exports approx. 30%. Solid credit profile with top notch Basel II ratings Long Term Debt Rating of AA (-), A 1(+) for short term financing 4 Multi Product : Multi Locational : Mutli National

6 Diverse Product Profile Longitudinal Saw Pipes (LSAW) Spiral/Helical Saw Pipes (HSAW) Seamless Ductile Iron Pipes (DI) Application Size & Capacity Oil & Gas, Sea Water & Slurry Transportation 16 to 60 Diameter 1.1 Million MTPA (India) Double Jointing and Anti Corrosion Coating (TX, US) Oil & Gas Transportation Water Transportation 18 to 128 Diameter 740,000 MTPA (India) 1,400,000 MTPA (J.Tubular, India) 375,000 MTPA (MS, US) Petroleum, Exploration General Engineering Boilers Automotive ½ to 7 Diameter 260,000 MTPA (India) Drill Pipe, Helical Anchor, Tool Joint, Forging (TX & MN, US) Water Transportation Sanitation & Housing 3 to 39 Diameter (India) 8 to 87 Diameter (UAE) 450,000 MTPA (India) 350,000 MTPA (UAE) 100,000 MTPA (ITALY) Key Differentiator Used under high pressure conditions Demand directly related to investments in Oil & Gas sector Used under low pressure conditions Demand directly related to investments in Oil & Gas sector and water projects Wide application in oil related and non-oil industries Ductile is rapidly replacing Cast Iron steel pipes Images We also make Pellets (1.2 MTPA) in Bhilwara, Rajasthan 5

7 Jindal Saw - Global Operations Jindal Saw has global presence for its diversified product range which include: Abu Dhabi- UAE State of the Art Ductile Iron Pipe Manufacturing Facility with 300K MTPA capacity with a capital outlay of app. USD 100 Million. Largest DI pipe plant in MENA region with product range up to 2200 mm diameter. The facility is already operational. USA Baytown Texas and Minneapolis- Coating, Double Jointing and Drill pipe, forging /tool joint, Helical anchor manufacturing facility. USA Bay St. Louis, Mississippi (PSL North America facility Acquired through Bankruptcy process)- Spiral Mill, Coating, Double Jointing manufacturing facility with a capacity of 375K MTPA. Italy (Europe): Ductile Iron Pipe Finishing facility. This facility has been taken for business operations /lease in Aug 2011 for manufacturing and catering to the European DI Pipe Market. United Kingdom (UK): Joint Venture for fabricating DI double Flanged Pipes and Catering to the UK major utilities companies. Algeria: Marketing/ business development set up for marketing of its products. Operations being restructured Spain: Marketing/ business development set up for marketing of its products. Operations being restructured 6

8 Global Customer Base Marque customer base across a wide range of sectors and geographies. Domestic International More than 25 years of experience in providing SAW pipes to the oil and gas sector - caters to top tier oil & gas and EPC companies in India and overseas Strong presence in the export market. Preferred supplier to global clients due to its stringent quality standards certified by the American Petroleum Institute Building customer relationships over time and successfully generated repeat business 7

9 Jindal Saw - Financials

10 Jindal Saw : Financial Trends (Rs. In Crs) Networth 9

11 Jindal Saw : Financial Trends (Rs. In Crs) Fixed Assets: Gross Block 10

12 Major Revenue & Growth Drivers Majority of the capex cycle for pipe business is over. The available operating leverage in all pipe segments should start providing healthy and steady top-line and bottom-line. Large Dia long seam and spiral segment can grow to double, DI and Seamless can also grow by 30-40% without incurring additional capex. Apart from current Pellet production, the Company has plans to set up a 1 Million MTPA mini steel plant at Bhilwara Rajasthan. 30% of the production would be consumed in-house for Seamless Pipe production and balance would be TMT which will be sold in near by markets. This would be a significant booster to profitability. With lower project cost and at current prices, the pay back will be approx 3 years. Infusion of app. Rs 350 Crores by Promoters towards CCD/ equity- additional push to growth and financials of the Company. Demand is expected to improve in India, USA and MENA countries backed by significant focus on water pipelines as well stabilization in oil prices. 11

13 Jindal Saw -Subsidiaries UAE facility of the Company is ramping up. The current production run rate is above 15,000 MT per month. Current order book is approx. 125K MT. Approvals received from all major MENA region countries. Jindal Tubular USA LLC (a 100% step down subsidiary of Jindal Saw Limited) post acquiring the H Saw Plant of PSL North America, has received approval for water pipes from TRWA (torrent Regional Water authority). With Management team already in place, business is now ramping up. Long term debt of USD105 Mio is payable in 2 trenches including app USD30 Mio in FY2020 and balance in FY2032. Debt is not supported by Jindal Saw Limited guarantee. Jindal Tubular (India) Limited (a 100% subsidiary of Jindal Saw Limited) has signed Operations, Maintenance and Management Agreement with PSL India for all pipe and coating facilities. Operations would commence very soon. Jindal Saw Italia (a 100% step down Subsidiary of Jindal Saw Ltd) in Italy is being revamped. Jindal ITF Limited - Few businesses are being restructured and would be demerged through Court scheme. Pursuant to the orders of High Court of Allahabad, the Shareholders, Secured and unsecured creditors meeting have already approved the resolutions. 12

14 Thank You