SEML Presentation

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THE COMPANY

About The Company…

Sarda Energy & Minerals Limited (SEML) is a flagship company of the Sarda Group incorporated in 1973

It is a manufacturer and exporter of niche and premium grade manganese alloys in India.

SEML is fully integrated producer of steel with interest in mining, power and Ferro alloys.

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• Coal Mines

o Started extraction of coal from Raigarh Coal Mines for captive use in sponge iron plant at Siltara

• Power Plant

o Installed 3rd turbine with another 90 TPH FBC boiler to augment the power generation capacity from 48 MW to 78 MW

• Ferro Alloys

o Installed raw material preparation unit to agglomerate Mn Ore fines into lumps

• Iron Ore Pelletisation

o Trial production started in 0.6 MTPA Pellet Plant. Commercial production commenced from April ,10.

• Wire Rod Mill

o 1.8 Lac TPA Wire Rod Mill operationalised.

• Fly-Ash Bricks & Blocks

o Started state-of-the-art fly ash brick manufacturing facility with installed capacity of 60 million bricks per annum

• Railway Siding

o Operationalized railway siding inside the plant along with wagon tippler and truck tippler, connected to Mandhar Railway Station.

Developments in 2009-10

Capacity Creation

Sponge Iron

Year Addition (TPA)

Total Capacity (TPA)

1993 30,000 30,000

1995 30,000 60,000

2004 150,000 210,000

2009 150,000 360,000

Steel

Ferro Alloys

Year Addition (TPA)


2001 33,000 33,000

2003 16,500 49,500

2005 16,500 66,000

2006 16,500* 82,500

Year Addition (TPA)


2001 40,000 40,000

2006 100,000 140,000

2008 100,000 240,000

Power

Year Addition (MW)

Total Capacity (MW)

2001 24 24

2005 24 48

2010 30 78

*Used as standby

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Project Name Capacity (MW)

Managed B y Status

Loharkheth, Uttarakhand

5Parvatiya Power Ltd.(54% stake)

Operational

Ronghni, Sikkim

96Madhya Bharat Power Corporation Ltd.(52% stake)

Civil work started

Gullu, Chhattisgarh

24Chhattisgarh Hydro Power (P) Ltd.(60% stake)

Financial Closure achieved

Rehar-I, Chhattisgarh

24Chhattisgarh Hydro Power (P) Ltd. (60% stake)

Clearances in process

Mand, Chhattisgarh



Kotaiveera, Chhattisgarh



Ganeshpur, Chhattisgarh



Total 206

Hydro Power Projects

Manufacturing Facilities

Sl. No. Facility Unit Capacity/Yr

1. Sponge Iron MT 360,000

2. Steel MT 240,000

3. Ferro Alloys MT 82,500

4. Power (Thermal) MW 61.5#

5.Iron Ore Pelletisation Plant MT 600,000

6.Wire Rod Mill MT 180,000

7. Iron Ore mining (Rajnandgaon Dist.) MT 1,500,000

8.Iron Ore Beneficiation Plant MT 600,000

9. Coal mining (Raigarh Dist.) MT 1,200,000

10. Coal Washery MT 960,000*

Existing

7SEML* Under Installation, # currently operational

Mineral Resources

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Sufficient to feed for 30 years ( Lease period)

Location

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SEML Plant at Siltara – Just 20 Km from Raipur

Coal Mines at Karwahi near Raigarh – Approx 320 Km from Raipur

Iron Ore Mines at Dongarbore – Approx 70 Km from Raipur

Infrastructure

• Factory Land at Raipur: 600 Acre (Sufficient to take care of our proposed 1 Million ton steel plant for which environmental clearance has been received)

• Power: – Directly connected with 132 KV electric line– 220 KV line is passing through adjacent plot.• Water: Dedicated 8 Km system from river to plant.• Industrial Infrastructure: Plant is in the Industrial growth Center.• Railway Siding:– Private railway siding inside the plant connected to Bombay-Howrah main

railway line– Another railway siding nearby owned under a joint venture .– Near Iron Ore Mines area. (In operation)

• Staff Colony:

– 80 Dwelling units at the plant area with all amenities

– 25 Dwelling units in Raipur City for senior Executives.

– 24 Dwelling units at Iron Ore mines

– 77 Dwelling units under construction at Coal Mines.10SEML

Subsidiaries & Group Companies

Subsidiaries

Sarda Metals & Alloys Ltd. (WOS)

Greenfield project of 66 MVA Ferro Alloys plant & 80MW Captive Power Plant near Vizag

Sarda Energy Ltd. (wos)– 1100 MW Thermal Power Project in Chhattisgarh

Sarda Energy & Minerals Hongkong Ltd., Hongkong. (WOS)

International trading & investment

Sarda Global Ventures Pte. Ltd (Singapore) (WOS)

Global mineral resource acquisitions – Coal Mine in Indonesia in JV (Reserves: 300 MMT)

Parvatiya Power Ltd.(54% stake) – Operating hydro power of 4.8MW in the state of Uttrakhand

Madhya Bharat Power Corporation Ltd. (52% stake)– Hydro power project of 96MW in the state of Sikkim

Chhattisgarh Hydro Power Pvt. Ltd.(60% stake) – Hydro power projects totaling to 110 MW in the state of Chhattisgarh

Joint Ventures

Raipur Infrastructure Company Ltd. – Railway siding at Mandhar

Madanpur South Coal Company Ltd. – Coal block with our share of 36 Million Tones

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BUSINESS MODEL

Value Addition Chain

STEEL

POWER

MINERALS

(COAL, IRON ORE &

MANGANESE ORE)

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FLY ASH BRICKS

SPONGE IRON

Lu

mps

Waste Heat

IRON ORE MINES

Fin

es

PELLET PLANT

STEEL BILLETS

FERRO ALLOYS

POWER

Operational Synergy

Re

jects

Washed Coal

COAL MINES

COAL WASHERY

Waste Gas

Proposed

SINTERINGPLANT

BLAST FURNACE

MANGANESE ORE MINES

Sarda Energy and Minerals Ltd. 6

ROLLING MILL

ROLLED PRODUCTS

Power

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MARKET

Major Ferro Alloys Customers

Tata Steel

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Domestic Export

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Export Details

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Export Countries

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Country-wise exports of Ferro Alloys

22,227 MT 12,586 MT

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FINANCIALS

Financial Data (Million INR)

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TURNOVER

MILLION INR MILLION INR

2,412

4,118

7,029

10,321

CASH PROFIT

5,559

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NETWORTH

MILLION INR

PROFIT

Financial Data (Million INR)

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Earning Per Share

RUPEES IN INR

Dividend Per Share

Financial Data

Financial Data Q1FY11

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PE RATIO TOL/TNW

CURRENT RATIO DEBT EQUITY RATIO

Financial Ratios

Performance

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Particulars 2006-07 2007-08 2008-09 2009-10

Installed Capacity Per Annum (Quantity)

Sponge Iron (MT) 210,000 210,000 360,000 360,000

Steel Billets (MT) 100,000 200,000 200,000 200,000

Steel Ingots (MT ) 40,000 40,000 40,000 40,000

Ferro Alloys (MT) 66,000 66,000 66,000 82500

Power (Kwh in Millions) 480 480 615 615

Pellet ( MT ) -- -- -- 600,000

Production ( In MT)

Sponge Iron (MT) 139,283 154,796 176,292 202,788

Steel Billets (MT) 30,979 58,667 53,190 7,322

Steel Ingots (MT) 29,800 24,327 20,909 4,948

Ferro Alloys (MT) 52,263 56,910 47,432 35,819

Power (Kwh in Millions) 329 340 358 331

Pellet ( MT) -- -- -- 27,121

Facility CARE Rating*

Non Convertible Debenture CARE AA-

Long Term Facilities

Secured Rupee Term Loan CARE AA-

Fund based Working Capital Limit CARE AA-

External Commercial Borrowing CARE AA-

Short Term Facilities PR1+

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Credit Rating

Rating Symbol Rating Meaning

CARE AA –Considered to offer high safety for timely servicing of debt obligations– Carry very low credit risk

PR-1 –Strong capacity for timely payment of short term debt obligations– Carry lowest credit risk– Facilities with relatively better credit characteristic are assigned PR1+ rating

* CARE letter dated March 24, 2010

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PROJECTS

Ferro Alloy Plant, Vizag

• Sarda Metals & Alloys Limited (SMAL) (WOS) is putting up a ferro alloy plant along with CPP in Visakhapatnam.

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Place Kantakapalli Village, Kothavalassa Mandal

District Vijaynagaram

State Andhra Pradesh

Nearest Railway Station Kantakapalli (Chennai-Kolkata main line), 2 Kms

Nearest Airport Visakhapatnam, 25 Kms

Nearest PortVisakhapatnam Port, 38 Kms

Gangavaram Port, 45 Kms

Road Access- Vijaynagaram State Highway, adjacent to site

- Chennai-Kolkata NH-5, 25 Kms from site

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Location Details – 36 Km From Vizag


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Location Details – 2 Km from Kantakapalli Railway Station


Ferro Alloy

• Production Facility

2x33 MVA Submerged Arc Furnace (Phase 1)

• Production Capacity

125,000 MTPA

• Major Products

Silico Manganese & Ferro Manganese

Captive Power Plant

• Production Capacity

1x80 MW Turbine

1x240 TPH CFBC Boiler

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Ferro Alloy Plant, VizagProduct Details

Land280.96 Acres from Andhra Pradesh Industrial Infrastructure Corp.

Water Pumped from Raiwada Reservoir

Manganese OreBHP Biliton, Australia; Assamang, South Africa; MOIL, AML and UMK

Coal Indonesian & Indian Coal

FinanceProject cost: Rs. 550 CroreDebt: 70% (Rs. 385 Crore)Equity: 30% (Rs. 165 Crore)

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Resources


Land280.96 Acres. Acquisition completed from Andhra Pradesh Industrial Infrastructure Corp.

Detailed Engineering & Design

Completed

Major EquipmentsOrders placed for long delivery items including BTG Ferro Alloys furnaces order in finalization stage

Government Clearance

Environmental clearances for MOES received. Consent for Establishment (CFE) from APPCB expected by March’10 end

Commissioning Date March 2012

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Current Status


• Madhya Bharat Power Corporation Limited is setting up a 2x48 MW Rongni Chu Hydro Electric Project in the state of Sikkim

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PlaceBarrage Site: Near Namli Village

Powerhouse: Near Rangpo Town

District East Sikkim

State Sikkim

Nearest Railway Station New Jalpaiguri, 102 Km

Nearest Airport Bagdogra, 117 Km

Road Access Near National Highway 31A

Rongni Chu Hydro Electric Project, Sikkim

Catchment Area 190 Sq Km

Catchment Type Rain Fed

Project Capacity 96 MW

Total Project Cost Rs. 544.43 Crores

Financial ClosureSanction received from PFC for 58% of the amountIn-principle sanction received for balance

Construction Work for approach road started

Equipment Tenders floated for major equipment

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Project Details and Current Status

Rongni Chu Hydro Electric Project, Sikkim

• Chhattisgarh Hydro Power Private Limited is setting up a 2x12 MW Gullu Hydro Electric Project in the state of Chhattisgarh

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Gullu Hydro Electric Project, Chhattisgarh

Catchment Area 415 Sq Km

Catchment Type Rain Fed

Project Capacity 24 MW

Total Project Cost Rs. 165 Crores

Financial Closure Achieved at D/E of 3:1

Land Acquisition Under Progress

Government Clearances

Obtained draft PPA from CSEBAll statutory clearance obtained except Forest Clearance

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Project Details and Current Status

Gullu Hydro Electric Project, Chhattisgarh

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GENERAL & CSR

• SEML has attained Quality Management System (ISO 9001:2008) certification to ensure quality products & services to all its stake holders. Moving towards ISO 14000

• Zero tolerance policy for exports• To incorporate global best practices in the industry,

SEML has implemented SAP• Strong Corporate Governance – out of nine, five are

Independent Director from diverse fields and two professional Directors

• Implementation of 5S and 3M

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Best Practices

Awards & Appreciation

Appreciation/Awards by Government Departments• Achieved the coveted Star Export House status from Government of India.

(Two Star)

• Certificate of Appreciation by The Commissioner of Central Excise and Customs, Raipur, for outstanding contribution made by the company in collection of Central Excise Revenue in Raipur Central Excise Commissionerate among the large sector units during 2008-09

• Won the Highest Export Award among the large sector units conferred by Govt. of Chhattisgarh.

• Most preferred supplies award for ferro alloys by Rashtriya Ispat Nigam Ltd, Govt of India

Prizes• The Dongarbore mines received first prize for maintenance of good road on

hilly terrain for transportation of material as per the specification and norms of DGMS

• The Dongarbore mines received second prize for maintenance of lighting system as per the specification and norms of DGMS

• Started state-of-art school, R.K. Sarda Vidya Mandir, in association with Bharatiya Vidya Bhavan near Raipur

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Corporate Social Responsibility

• Adopted 270 Single teacher schools (Ekal Vidyalya) in tribal area near Iron ore Mines for students from class 1 to 3.

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• Providing Ambulance & free medical facilities, nursing staff covering 30 villages nearby mines area.

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• Founder member of Siksha Deep Trust, to extend financial assistance for higher education to the underprivileged

• Built drinking water facility for villages near factory area.

• Providing Infrastructure & aid to Schools.

• Adopted & Developed Motibag, City Garden of Raipur.

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Sarda Energy & Minerals Limited

125, B Wing, Mittal Court

Nariman Point, Mumbai

Maharashtra

url: www.seml.co.inemail: [email protected]

Mumbai Office


73/A, Central Avenue,

Nagpur

Maharashtra

Registered Office


Industrial Growth Center

Siltara, Raipur

Chhattisgarh

Works Office

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SEML Presentation

Documents

Transcript of SEML Presentation