Jindal Steel & Power Ltd: strengthening leadership position as a steel manufacturer

On Nov 10, 2020

Jindal Steel and Power Limited (JSPL) is one of India’s major steel producers with a significant presence in sectors like Mining, Power Generation, Petroleum and Infrastructure. With an annual turnover of over US$ 3.5 billion, JSPL is a part of the about US$ 18 billion diversified O. P. Jindal Group and is consistently tapping new opportunities by increasing production capacity, diversifying investments, and leveraging its core capabilities to venture into new businesses. The company has committed investments exceeding US$ 30 billion in the future and has several business initiatives running simultaneously across continents.

Mr. Naveen Jindal, the youngest son of the legendary Shri. O. P. Jindal spearheads JSPL and its group companies. The company produces economical and efficient steel and power through backward integration from its captive coal and iron-ore mines.

From the widest flat products to a whole range of long products, JSPL today sports a product portfolio that caters to varied needs in the steel market. The company also has the distinction of producing the world’s longest 121 meter rails and large size parallel flange beams, high strength angle irons for transmission towers and high strength earthquake resistant construction rebars.

JSPL operates the largest rotary kiln-based sponge iron plant in the world and has an installed capacity of 3 MTPA of steel at Raigarh in Chhattisgarh. With a 0.6 MTPA wire rod mill and a 1.2 MTPA bar mill at Patratu. JSPL has already commissioned a plate mill producing upto 5.00 metre wide plates at Angul, Odisha. The company aims for a fast-paced growth so as to contribute substantially to India’s long term prosperity.

The recognition the company and its Chairman and Managing Director, Naveen Jindal, has received stands testimony to this turnaround. Recently, Mr. Jindal has been ranked amongst the Asia’s 25 Hottest People in Business by the Fortune Asia magazine for turning a struggling steel company into one of Asia’s blue-chip giants.

Mr. Jindal has been ranked as India’s Best CEO by the BT-INSEAD-HBR Study of the top value creators for the period 1995 to 2011 by the Business Today. He has also been ranked among the top ten India Inc’s Most Powerful CEO’S 2011 list by Economic Times-Corporate Dossier. He has also featured in the Most Influential People’s List for the state of Haryana by India Today and has been conferred with the Ernst and Young Entrepreneur of the Year Award 2010 in the field of Energy and Infrastructure.

Also, JSPL has been rated as the second highest value creator in the world by Boston Consulting Group; 11th fastest growing company in India by BusinessWorld; included as one of the Fab 50 Companies by Forbes Asia, 2009, 2010 and 2011; one of the Best Blue Chip companies as well as the Highest Wealth Creator by the Dalal Street Journal. It has also been ranked fourth as per Total Income in the Iron and Steel sector by Dun & Bradstreet.

Jindal Power Limited

Jindal Power Limited (JPL) is India’s leading power generation company. JPL has set up the country’s first mega power project of 1,000 MW (4 x 250 MW) in the private sector at Tamnar, Raigarh, Chhattisgarh. The plant has been ranked second in India for highest PLF by Central Electricity Authority (CEA) in 2011-12. JPL has a project portfolio of over 15,000 MW in the next 10-15 years, with a vision to establish environment-friendly renewable energy sources like hydroelectric, solar and wind energy projects. JPL is adding a 2,400 MW (4 x 600 MW) thermal power plant to the existing 1,000 MW thermal power plant at Tamnar at an estimated cost of Rs. 13,410 crore. The Company has already placed an order with Bharat Heavy Electricals Limited (BHEL) for supply, erection and commissioning of 4 X 600 MW Boiler Turbine Generator (BTG) package. The existing 1,000 MW power plant was set up with four Turbine Generators of 250 MW each, also supplied by BHEL. The first two units of the project are expected to be commissioned in 2013-14.

Against the backdrop of coal shortages, focus on hydro electricity would help strengthen India’s energy security. Hence, JPL has signed agreements for 6,100 MW projects in Arunachal Pradesh in a joint venture with the Hydro Power Development Corporation of Arunachal Pradesh Limited (HPDCAPL) on a build, own, operate and transfer basis. These projects are environment-friendly and have minimal carbon footprints.

Jindal Petroleum Limited

Jindal Petroleum Limited engages in the domestic and overseas oil and natural gas operations. Currently, the Company is conducting extensive exploration activities at five blocks in Georgia. Major exploration activities like acquisition, processing and interpretation of 310 GLKM of 2D seismic data completed in Block IX and acquisition & processing work completed in Block X. In 2011-12, the Company achieved the production of more than 100,000 Bbl of crude oil from one of the producing fields in Georgia. The drilling of exploratory wells is expected to commence in FY 2012-13. The Company is planning to complete at least four exploratory wells in 2012-13 and a minimum of eight new wells in 2013-14. The Company has so far made an investment of over US$ 100 million and is working on several other projects in the sector. Jindal Petroleum is working hard to optimise its portfolio in the upstream sector by acquiring few more producing fields or exploration blocks, nearing completion of exploration and appraisal.

Jindal Cement

JSPL has diversified its business operations and set up a slag and fl y ash cement plant at Raigarh, Chhattisgarh in order to utilise the waste from the manufacture of steel. Phase I consisted of constructing a grinding unit of 0.5 MTPA, whereas Phase II consisted of setting up a 2 MTPA integrated cement plant. The cement plant was envisaged to manage solid waste generated from the power and steel sector. The utilisation of waste from the blast furnace (slag) is being value added by converting it into cement, commonly known as Portland Slag Cement (PSC). The commercial production started from a 0.5 MTPA grinding unit in 2010. The Company is marketing cement under the ‘Jindal Cement’ brand.

Key highlights

Stabilised the cement grinding unit While JSPL group companies procured cement from the market before, now their total requirement is fulfilled through Jindal Cement Making a mark in the competitive cement market Producing Portland Slag Cement (PSC), and plan to add Portland Pozzolana Cement (PPC) and Ordinary Portland Cement (OPC) in its portfolio Constructing a 35,000 MT clinker storage capacity, which will be commissioned during 2012-13 Plans to add a 1.2 MTPA clinker unit and increase grinding capacity to 2 MTPA. The organisation is also making a special product Jindal Global Road Stabiliser (JGRS) the only manufacturer in India. A product of innovation, JGRS was developed to stabilise multiple soil types in an efficient and cost-effective manner.

Jindal Infosolutions Limited

Jindal Infosolutions Ltd. (JIL) a company formed with the objective of providing high-quality IT services to JSPL, its group companies and the external client in India and abroad provides support to multiple locations in India and across global locations. JIL specialises in sectors like steel, energy, oil & gas, realty and education; and has competencies in SAP, project management, business intelligence, supply chain management, document and knowledge management, voice-over IP and full-scope soft ware development on Java and PHP.

JIL’s global service delivery centre provides remote infrastructure and applications development support globally. One of the earliest adaptors of cloud technology in India, it is deploying a large number of enterprise class applications on private cloud. Its clients include leading consultancy companies like Accenture & E&Y, besides companies of JSPL Group.

Domestic Facilities, Raigarh, Chhattisgarh
JSPL’S state of the art steel making plant has a capacity of up to 3 mtpa. This plant is also the world’s largest coal based sponge iron manufacturing facility.

Key highlights

Recorded the highest ever steel production of 2.75 million ton
Commissioned the casting of 320 and 350 Dia rounds in SMS III, the biggest diameter in round cast in India
For the first time, JSPL manufactured ultra-low sulphur grade steel for API applications
Development of boiler quality grade with impact guarantee
Power Grid Corporation of India Limited has approved JSPL for producing different sizes of Angle Irons for Transmission
Towers
Prime yield for MLSM product increased by 1.5%, resulting in significant cost savings
Developed a new variety of section angles Commissioned India’s first automatic Fly Ash based brick plant (3,00,000 bricks per day)
Commissioned a rail over-bridge and rail under pass for smooth logistics
MLSM reheating furnace oil replaced by PGP Gas to save conversion cost
Developed 23 new varieties of value-added steel products

Projects under implementation

Widest Slab Caster (3,000 mm width) revamping at SMS II
New Fume Extraction System at SMS II
Up-gradation of Plate Mill
Installation and commissioning of leveller at Plate Mill to minimise rejection of plates and improve customer satisfaction
Technical aspects have been frozen for 600 TPD new Lime Kiln project at JSPL, Raigarh
Installation and commissioning of CaCl2 spray system at the sinter plant to improve strength and reduce fines generation
Pollution control system (Dust Sett ling System) at RMH area controls fugitive emission during the loading and unloading of vehicles

Research and development focus

Successful commission of coal silo at coke oven; it can be used by different coal blends for coke production, reducing production cost
Developed ultra-low sulphur steel in 200 mm dia cast
Study on root cause and remedial measures for occurrences of fish cracks in plates in collaboration with IIT Kanpur
Study on the effect of tundish argon gas diff user on steel cleanliness
Study on root cause and remedial measures on the formation of Rolled Burr Pits (RBP) in parallel flange beams
Developed newer structural grades Developed sheet pile (Larson IV)
Developed medium light structurals (Channel: 125-200 mm, Angle: 100-250 mm, Beam: 180 and 200 mm)
Trial development of lead steel for wire rod application
Use of non-coking coal in the blend of coking coal for coke production without deteriorating the coke quality in mini blast furnace

Upcoming projects

Pulverised coal injection (PCI) mill: PCI coal will be used in the blast furnace to reduce the consumption of coking coal, thus reducing the cost of conversion of hot metal
Installation of third turbo-blower: Existing two turbo blowers are continuously running without any maintenance. If any of the two turbo blowers is shut down then the continuity of hot blast air in the blast furnace can be run by the stand-by turbo-blower
Coal blending: Low-cost coal is blended into high-grade coking coal to reduce the cost of coke
Plate mill shed extension: Plate mill shed is being extended to stock the finished goods inventory (as per thickness of a plate) to serve the customer better; also, the extended space will help increase the production from cut-to-length machine as the space availability for equipment will be more
Service centre for MLSM: Standard length angles can be serviced as per customer requirements
Ladle Refining Furnaces (LRF) II: Second LRF in SMS III will increase the secondary steel-making capacity at SMS III
Slab caster up-gradation: Slab caster up gradation is being done to increase the width of the slabs to 3,000 mm and thus increased width of plates which can be rolled from the plate mill

Raipur, Chhattisgarh
JSPL’S heavy machinery division at raipur is a unique enterprise to cater to all the requirements of equipment and spares for steel, cement, mining and power plants of the group and other similar industries in india and abroad.

Key highlights

Commissioned 100 MT EOT crane for material handling facilities
Commissioned 1,500 ton capacity
Hydraulic Press Machine for making dish end for pressure vessels
Manufactured 450 ton capacity ladle crane first time in India
Commissioned a solar power plant 15 KW for street lights

Future plans

Increase covered area (around 9,000 sq. mtr.) by the construction of new sheds
Up gradation of steel yard with material handling crane facility
Installation of Alfa sand system at foundry for sand reclamation and better product quality

Patratu, Jharkhand
This plant is a greenfield project of 6 mtpa steel plant and 1320 mw power plant. Under the first phase of 3 mtpa, a wire rod mill and a bar mill has already started production.

Angul, Odisha
JSPL plans to set up a steel plant 12.5 MTPA capacity and generate 2600 mw of energy in phases.

Key highlights

Commissioned two units of 6×135 MW captive power plant
Developed a housing colony (287 houses completed), 418 houses and hostel building under progress

Plans for 2012-13

Commission the 1.5 MTPA steel plant
Commission next 4×135 MW phases of the plant
DRI plant based on Syn Gas. This will be for the first time in the world and the plant will be based on Midrex – Technology with a capacity of 1.80 MTPA

Barbil, Odisha
JSPL Pellet plant has a capacity of 4.5 MTPA production for different grades of pellets. The plant is of dry grinding, with recuperation type of straight grade hearth layer. In addition to the existing 4.5 MTPA Pellet Plant, JSPL is setting up a 4.5 MTPA Iron Ore pelletisation plant, with wet grinding process for better environmental protection and superior quality of pellets for steel making. The pelletisation will be a value-added process of iron ore fines and better utilisation of powdery ore available in the mines. The plant will meet our captive requirements. As JSPL is actively engaged in the promotion of alternative fuels, at Barbil, the pellet production will be through coal gasification, replacing fuel. This is an innovative initiative, first-of-its-kind in the world, using circulating fluidised bed technology for coal gasification.

Tensa, Odisha (Iron Ore mine)
JSPL’s iron ore mine at Tensa caters to the Company’s requirement of iron ore for producing sponge iron. As part of JSPL’s backward integration plans to make the Company self-reliant, iron ore from Tensa mine ensures consistency in raw material quality. A 350 TPH crushing plant, a mobile screening unit is being operated to ensure the availability of high-grade iron ore and fines for sinter plant at Raigarh (Chhattisgarh).

These mines are accredited with ISO 9001:2008 (Quality Management System), ISO 14001:2004 (Environment Management System) and OHSAS 18001:2007 (Occupational Health and Safety Management System). Operated in an eco-friendly manner, the mine effectively controls pollution levels. For the adoption of best environment management practices, the mines have been conferred with the ‘Pollution Control Appreciation Award under the Category mines’ given by the State Pollution Control Board, Odisha. Through total productive maintenance it aims to achieve Zero Accident, Zero Breakdown and Zero Defects.

Transnational progress
Jindal Shadeed, Oman
In July 2010, JSPL acquired Shadeed Iron & Steel Co. LLC (Shadeed), a company incorporated under the laws of the Sultanate of Oman. Shadeed has installed a 1.5 MTPA Gas-based HBI plant at Sohar Industrial Port with an investment of US$ 525 million and commenced production in record time (January 2011), about four months ahead of schedule. Currently, the Company is adding a steelmaking facility of 2 MTPA in Oman. It will set up the first integrated steel plant in the Sultanate of Oman.

Key highlights

Modified raw material and product handling systems, resulting in improved quality and yield
Enhanced pollution control measures; pollution levels are below permissible limits
Increased safety initiatives to achieve zero accidents
Received approval from Majan Electricity company for increased power supply from 191 MVA to 266 MVA to operate additional
2 MTPA Steel Melting Shop (SMS) Commissioned 4th Hot Briquette Iron (HBI) machine
Commissioned raw material stacker, reclaimer and HBI stacker
Commissioned HDRI dispatches to Sharq Sohar Steel

Jindal Africa
JSPL has presence in South Africa, Mozambique, Madagascar, Tanzania and Zambia. While its commercial interests are predominantly in mining, it is also expanding projects in the fields of steel, energy and cement. The Company is exploring opportunities for mining coking coal, iron ore and high-value minerals, such as copper, platinum and chrome.

Key highlights

Head office is based in Johannesburg, South Africa and operations include Kiepersol Colliery outside the town of Piet Retief in Mpumalanga province. The mine produces high-quality anthracite coal that is sold locally and internationally
Jindal Africa is developing a coal mine (10 million ton annual capacity) in Mozambique’s coal-rich Moatize region. The first coal export is expected to commence in 2012-13
Plans to establish a cement plant in Madagascar, which will be supplied by its own limestone mines
Involved in extensive coal, copper and iron ore exploration activities in Tanzania and have been granted a license to mine copper
Evaluating several projects for copper exploration and mining in Zambia
Plans to expand its footprint in Botswana and Namibia

Jindal Indonesia
JSPL has invested for the development of two greenfield exploration assets in Indonesia. Both the mines are located within Central Kalimantan Province of Indonesia.

Thermal Coal Asset
Large size deposit of low ash – low sulphur thermal coal for open cast operation Coal mining license obtained in 2009 for 10 years till March 2018 for over 35.9 SqM Permit received from the Ministry of Forest for the entire concession area MoU signed with Bupati Barito to develop road for coal hauling 139 Ha of land acquired for the first phase of mining Acquired 17.7 Ha land for the development of captive coal terminal for coal handling and barge loading at Barito River Land clearing commenced. Production to commence in 2012-13

Coking Coal Asset
Exploration License over 100 Sq Km in Central Kalimantan, Medium to large size deposits of prime hard coking and thermal coal for open-cast operation

Jindal Australia
JSPL has undertaken Coal Exploration Projects in Queensland, Australia These exploration tenements are spread over a very large area of more than 1,300 sq kms with potential for coking/PCI and thermal coal and are strategically located in three major coal bearing areas of Queensland i.e. Bowen Basin, Surat Basin and Maryborough Basin close to rail and port infrastructure.

The exploration activities in the Dingo South and Dingo North project are at an advanced stage. A contractor has been engaged to conduct the seismic survey, which is likely to commence soon. Concurrently, discussions are also being held with Queensland Coal and Gas Company for a data sharing agreement for Dingo South Project. These coal exploration projects have the potential for PCI Coal
Process initiated for native tile agreements for Maryborough South and Tuan West projects located in Maryborough region of Queensland; discussions for co-operation agreement with overlapping petroleum lease holders initiated for Coxon Creek project. The project has the potential for large thermal coal resources
An option agreement signed with Fitzroy Port terminal for 5 MT of port capacity
Discussions were initiated with Queensland Rail for rail capacity on Blackwater rail system and Maura Rail system Australia

We meet people’s critical needs and shape our industry. We are one of the most profitable steel companies globally.

Lineage
JSPL is part of the three-decade old O.P. Jindal Group, a US$ 18 billion (gross turnover) multinational and multi -product conglomerate with business interests spanning mining, energy, industrial gases and port facilities, among others. Today, the O.P. Jindal Group comprises JSW Steel, Jindal Steel & Power, Jindal Saw and Jindal Stainless, some of India’s largest steel manufacturers with an annual cumulative capacity of over 19 million tons.

Objective
JSPL aims to possess the world’s largest steel plants, with a production capacity of 18 MTPA and energy generation capacity of over 10,000 MW by 2020.

Diversity
JSPL has a significant presence in steelmaking, energy generation, mining, petroleum and infrastructure.

Integration
JSPL manufactures economical and high-quality steel and energy through backward and forward integrations.

Largest
JSPL operates the world’s largest coal-based sponge iron plant, with an installed steel manufacturing capacity of 3 MTPA at Raigarh in Chhattisgarh.

Widest
JSPL manufactures an extensive products bandwidth: from the widest flat products to a whole range of long products. It is the first company to produce 3.5 metre wide plates in coil form.

Longest
JSPL produces the world’s longest 121 metre rails and large size parallel flange beams for the first time in India.

First
It is the first company to produce energy from the waste heat recovery boiler of sponge iron.

People
JSPL possesses a talent pool of over 15,000 strong, committed and motivated workforce.

Value
Strong market capitalistion of over Rs. 51,000 crore (US$ 10 billion) as on 31st March, 2012

Presence
It has presence across India and 11 other countries across Asia, Africa, Australia and Europe.

Sustainability
JSPL works proactively towards improving the standard of infrastructure, education, health, water, sanitation and environment in the areas of its operations. Education Initiatives at O.P. Jindal School

Attaining global recognition

Corporate

Ranked No.1 as Wealth Creator in India over a 10- year period (Business World, November 2011)
Rated the World’s 2nd Largest Value Creator by Boston Consulting Group (BCG), based on Total Shareholder Return from 2005-2009, and the largest Value Creator in Mining and Materials category, 2010
Awarded the Dun & Bradstreet- Rolta Corporate Awards 2011
Ranked 3rd in the Metals Category of Business World’s India’s Most Respected Companies Survey, 2011
Received the Forbes Asia’s ‘Fabulous 50′ International Award 2011 and 2010
Golden Peacock Innovation Management Awards
Greentech Award for 1st Position in Metal & Mining Industries, 2011
Felicitated for being the Organisation with Innovative HR Practices and Institution Building at 18th Global HR Excellence Awards at World HRD Congress 2011
Asia Pacific HRM Congress 2011 Awards for being the ‘Organisation with Innovative HR Practices’
National Energy Conservation Awards for the last five years (ranked either 1st or 2nd)
Golden Peacock National CSR Award 2012 at Dubai Convention
Think Odisha leadership Awards 2011 for fourth year consecutively for its excellence in the field of Corporate Social Responsibility (CSR)
Odisha Living Legend Award on CSR-2011
Greentech Platinum CSR Award – 2011 recognised by the Ministry of Heavy Industry GOI and Greentech Foundation
World HRD Congress CSR Award -2011 on women empowerment
CSR Excellence Award 2010 by ASSOCHAM for promoting and propagating Corporate Social Responsibility initiatives
Ranked 1131 by Forbes in 2009-10 (as against 1793 in FY09) in Global 2000 (World’s biggest listed companies)
Received the CNBC’s Most Promising Entrant into the Big League at IBLA (Indian Business Leaders Award) – 2009

Accolades for Naveen Jindal, Chairman JSPL

Naveen Jindal was ranked as India’s Best CEO by the BT-INSEAD-HBR Study of the top value creators for the period 1995 to 2011 by the Business Today
Ranked among ‘Asia’s 25 hottest people in business’ by the Fortune Asia Magazine
Received Justice P.N. Bhagwati Award from Dr. A.P.J. Abdul Kalam, former President of India in 2011, for outstanding contribution to legal education and corporate philanthropy
Honoured among the Top ten India Inc’s Most Powerful CEOs 2011 by The Economic Times- Corporate Dossier in its annual survey
Won the Ernst and Young Entrepreneur of the Year award for 2010 for his significant contribution to the field of Energy and Infrastructure
Became the first alumnus from India of an American University to have an educational institution named after him. The University of Texas named its School of Management after Mr. Naveen Jindal Living Legend Award from Odisha Diary 2011

For more information
Web: www.jindalsteelpower.com