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Jindal Steel & Power Ltd

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BSE Code : 532286 | NSE Symbol : JINDALSTEL | ISIN : INE749A01030 | Industry : Steel |


Company History

Jindal Steel and Power Limited (JSP) is one of India's integrated primary steel producers with a significant presence in mining. JSPL is a part of the US $ 18 billion diversified O. P. Jindal Group. The Company operate manufacturing units located in Raigarh (Chhattisgarh), Angul (Odisha), Barbil (Odisha), and Patratu (Jharkhand). The integrated operations in India comprise capacities of 10.42 MTPA of iron-making, 9.0 MTPA of pellets, 9.6 MTPA of liquid steel, and 6.65 MTPA of finished steel.

The product portfolio includes TMT bars, plates, coils, parallel flange beams and columns, rails, angles, channels, wire rods, fabricated sections, and other steel products. Furthermore, it operate captive thermal power generation capacity of around 1,634 megawatts (MW) at its Raigarh and Angul Plants. Apart from THE steel-manufacturing capacities, their international operations comprise interests in coking coal mining assets in Australia, thermal/coking coal mining assets in Mozambique, and anthracite coal mining assets in South Africa.

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 metre rails and introducing large size parallel flange beams in India.

The company's segments include iron and steel; power, and others. The company's manufacturing plants are located at Raigarh in Chhattisgarh, Angul in Orissa and Patratu in Jharkhand. Its machinery division is located in Raipur.

Jindal Steel and Power Ltd was incorporated in September 28th, 1979. In the year 1995, the company forayed into power sector and started a company namely, Jindal Power Ltd to engage the power sector. In May 1998, the Steel Melting Shop of the company was shut down due to the explosion. In the year 1999, as per the scheme of arrangement, the Raigarh and Raipur Divisions of Jindal Strips Ltd were hived off the company. In October 2009, they reopened the Steel Melting Shop and commenced operations.

In May 2000, the company commissioned Round Caster Unit set up in Raigarh and started producing Rounds, which import substitution product. Also, the company entered into an agreement with Maharashtra Seamless Ltd for selling 50,000 MT of Rounds annually. Also, they forayed into the Infotech sector and launched Infovergix Technologies.

In the year 2001, the company introduced a new value added product namely, Alloy Steel Rounds, which is used for manufacture of seamless tubes. The company signed an MoU with the Chattisgarh government to invest Rs 6, 400 crore in various projects in the state over the seven years.

During the year 2003-04, the company started manufacturing Universal beams and structures, in addition to manufacturing of value added steel products, such as, rounds, billets, blooms and slabs. In January 7, 2005, the company signed an MoU with Government of Chhattisgarh. In July 5, 2005, they signed an MoUn with Jharkand Government. Also, they inked an agreement with S. African, German Company for coal gasification facility at their proposed six-million-tonne steel plant in Orissa.

In November 3, 2005, they signed a revised MoU was signed with the state Government of Orissa to increase production capacity of proposed steel plant from 2.00 million TPA to 6.0 million TPA. In the year 2006, the company inked a joint venture deal with Bolivia for El Mutun development.

In March 30, 2007, the company signed an MoU with the Government of Chhattisgarh for setting up 2 million TPA Cement plant and 30 MW Power Plant in Raigarh at an estimated cost of Rs720 crore. In April 2007, the company's Plate Mill of 1.0 million TPA capacity was commissioned successfully and commenced commercial production. The company signed an MoU with the Government of Orissa for setting up a 6 Million TPA Integrated Steel Plant near Kerajang Railway Station in Angul District of State of Orissa at an estimated cost of Rs 16, 560 rore.

During the year 2010-11, the company commenced production in 0.6 MTPA capacity wire rod mill and 1.0 MTPA capacity bar mill, at Patratu, Jharkhand. The company through their 100% subsidiary Jindal Steel & Power (Mauritius) Limited, Mauritius (JSPLM), has acquired Shadeed Iron & Steel Co. LLC (SISCO), a Company incorporated under the laws of the Sultanate of Oman, in June 2010. The plant has been commissioned in record time and commercial operations started in December 2010, three months ahead of its
schedule.

In May 2010, the company completed the modification in mini blast Furnace and commissioned the steel melting shop (SMS - III). The company synchronized the two units of 135 MW each under Phase - I in May and September 2010 respectively. In May 2010, the company completed the A 0.5 MTPA capacity slag grinding unit at Raigarh, Chhattisgarh. This plant is utilising the slag produced by blast furnace I and II and clinker, purchased from outside, is mixed with slag to produce cement.

In January 2011, the company completed the 0.6 MTPA medium and light section mill at Raigarh, Chhattisgarh and commenced production. In March 2011, the company commissioned the first unit of 135 MW captive power plant in steel plant proposed to be set up at Angul, Orissa.

As of March 31, 2011, the company's installed capacity at its Raigarh Unit include: 13,70,000 metric tons of sponge Iron; 30,00,000 metric tons of mild steel; 36, 000 metric tons of ferro alloys; 623 megawatts of power; 16,70,000 metric tons of hot metal/pig iron; 7,50,000 metric tons of rail and universal beam mill; 10,00,000 metric tons of plate mill, 60,000 metric tons of fabricated structures; 5,00,000 metric tons of cement plant and 6,00,000 metric tons of medium & light section mill.

In January 2012, the company commissioned the fourth unit of 135MW plant at Dongamahua, Raigarh, Chhattisgarh and second unit of 135 MW power plant at Angul, Orissa, with this total 6 units are commissioned in series of 10 units of 135 MW.

On 16 July 2012, Jindal Steel Bolivia (JSB), a subsidiary of Jindal Steel & Power Ltd., terminated the contract signed with the Bolivian Government for investment of USD 2.1 billion for the El Mutun mines. The termination comes in the wake of the issuance of a letter to the Govt. of Bolivia on 8 June 2012 conveying its intention to terminate the contract due to the non-fulfillment of contract conditions on the part of the Bolivian government. As per terms of the Joint Venture Contract, the Govt. of Bolivia had 30 days time to resolve the issues failing which JSPL could terminate the contract within 7 working days thereafter. The company took the decision, after all its efforts to resolve the issues and take the project forward did not meet with success. Due to the non-fulfillment of the contractual obligations and unwillingness to fulfill the contract on the part of the Govt.of Bolivia, JSPL has been forced to terminate the contract. JSPL had signed a Contract with the Government of Bolivia in the year 2007 for investing USD 2.1 Billion in Iron Ore Mining, Pelletization (10 million ton per annum), DRI (6 million ton per annum) and Steel making (1.7 million ton per annum). This was the single largest foreign investment in Bolivia.

On 28 August 2012, Jindal Steel & Power Ltd (JSPL) announced the commercial production of India's widest 5.0 Meter Wide Plate mill in Angul, Odisha which is a part of the planned first phase 6.0 million MT per annum integrated steel plant at Angul, Odisha. This Plate Mill has an annual capacity of 2 MTPA. This 5 Meter Wide Plate Mill at Angul is a part of the company's forward integration process of completing the process chain to produce value-added finished discrete plates.

On 5 September 2012, Jindal Steel and Power Limited (JSPL) announced that its subsidiary Jindal BVI Limited (JBVI), has acquired Canadian listed coal Company CIC Energy Corp. (CIC) for about US$115 million (over Rs 600 crore) by way of a merger of JBVI and CIC. The Minister of Minerals, Energy and Water Resources of Botswana where CIC has its coal mines, has already approved the change of control from CIC to JBVI and all other approvals for the merger have already been granted and the merger certificate will be issued in the next few days marking the completion of the acquisition. The deal will provide JSPL access to CIC's high quality thermal coal in Greater Mmamabula coalfield in SE Botswana which is estimated to be in excess of 6 billion tonnes (approx) (including Measured and Indicated resource of 2.4 billion tonnes). The deal will provide JSPL the opportunity to tap the highly lucrative and power deficient South African Development Community (SADC) countries and given the huge resource, will also provide an opportunity to set up a Coal to Hydrocarbons project.

On 8 August 2013, Jindal Steel & Power Ltd announced the commissioning of the largest Steel Melting Shop (SMS) and its Allied unit of the 6.0 MTPA integrated steel plant at Angul, Odisha, on the Birth Anniversary of its Founder Shri OP Jindal. With commissioning of the Steel Melting Shop in its Angul project, JSPL has completed the 2.5 MTPA capacity out of the 6 MTPA in the first phase of its greenfield project at Angul.

On 18 October 2013, Jindal Steel and Power Ltd (JSPL) announced the shareholders of Gujarat NRE Coking Coal - the Australian subsidiary of Kolkata-based Gujarat NRE Coke - in a general body meeting held in New South Wales have cleared the acquisition of a majority stake in Gujarat NRE Coking Coal by JSPL. The acquisition will enable JSPL acquire a majority stake of 53.63 per cent in Gujarat NRE Coke's Australian subsidiary through a deal that involves issue of convertible notes, placement of shares and option to acquire shares at a later stage. Prior to the transaction, JSPL was the second largest shareholder in Gujarat NRE Coking Coal, after its promoters, with 31.49 per cent stake. Gujarat NRE Coking Coal has mines in Australia with over 650 million tons of coking coal resources.

On 28 April 2014, Jindal Shadeed Iron & Steel, a wholly owned subsidiary of Jindal Steel & Power Ltd.(JSPL), successfully commissioned its 2 MTPA Integrated Steel Plant (ISP) in Sohar, Oman. The facility, using state-of-art technology from M/s Danielli Italy, is Oman's first & largest Steel Melting Shop (SMS), and also the third largest unit of Middle East & Gulf Region. Jindal Shadeed has invested over US$ 800 million in this integrated facility. JSPL had acquired Shadeed Iron and Steel's 1.5 MTPA Gas-based HBI plant in 2010 at a cost of US$ 500 million.

On 23 August 2014, Jindal Steel and Power (JSPL) announced that Jindal Steel Bolivia has been vindicated in connection with its investment in the 'El Mutn' project in Bolivia by an international tribunal ordering payment to Jindal of more than $22.5 million by Bolivian state-owned entity Empresa Siderrgica del Mutun (ESM).

With the completion of Jindal Steel and Power's landmark 2400 MW expansion project at Tamnar (Chhattisgarh) in April 2015, JSPL group's installed generation capacity in Raigarh belt reached 4294 MW, thereby achieving UMPP scale.

On 28 October 2014, Shadeed Iron & Steel LLC (Jindal Shadeed), a wholly owned subsidiary of Jindal Steel & Power Ltd. (JSPL), and Bank Muscat signed the successful financial closure of USD 725 million (around Rs 4440 crore) syndicated term loan facility. The facility was oversubscribed with commitments in excess of USD 855 million received as against the required commitments of USD 725 million.

On 15 June 2015, Jindal Steel and Power Ltd created history with its Steel Melting Shop at Raigarh facility producing a record 10,000 tonnes of crude steel in a single day. This highest production based on DRI (Direct Reduced Iron) and hot metal is a testimony of the company's operational excellence in steel making.

On 2 October 2015, Jindal Steel and Power Limited (JSPL) flagged off India's Longest ever Rails measuring 260 metre to the Dedicated Freight Corridor Corporation of India Limited (DFCCIL). The 260 meter long rails will be used for construction of the eastern corridor of the landmark 350 Kilometre dedicated freight railway network in India.

On 27 October 2015, Jindal Steel and Power Limited (JSPL) announced that it has partnered with Bhasin Group for construction of Festival City, India's tallest composite steel structure. The world-class commercial complex spread over 9 lakh square feet in NOIDA, the 33 storied Festival City will be built in 99 days, Fastest ever in India. The construction of the office tower Mist' commenced on 21 October 2015 and is scheduled for completion on 29 January 2016. The floors of the India's tallest composite steel structure will be laid through international cutting-edge technology without scaffolding using Made in India' steel manufactured by JSPL. Under the strategic partnership, JSPL will provide infrastructure solutions to Festival City such as E550 grade structural steel columns and beams, suspended concrete flooring system- Speedfloor for slabs and TMT Welded-mesh for slab reinforcements.

On 22 March 2016, Jindal Steel and Power Limited (JSPL) announced that it has commissioned a 1.4 MTPA Rebar Mill at Sohar, Oman. The 1.4 MTPA Rebar Mill, the largest in Gulf and African region, along with the existing 2 MTPA SMS makes JSPL's Jindal Shadeed the largest integrated steelmaker in Oman.

The Board of Directors of Jindal Steel and Power Limited (JSPL) at its meeting held on 3 May 2016 approved the divestment of 1000 MW power unit of Jindal Power Limited, located at Chhattisgarh, into a special purpose vehicle (SPV), for the purposes of transferring the same to JSW Energy Limited through sale of the entire share capital and other securities of the aforesaid entity in terms of the share purchase agreement for an enterprise value of Rs 6500 crore plus the value of net current assets as on the closing date. The valuation may vary based upon the achievement of PPAs as prescribed in the agreement subject to minimum of Rs 4000 crore plus the value of net current assets as on the closing date.

In order to streamline cash flow of the group and create SPV amenable for monetization by way of divestments, the Board of Director of the company and Jindal Power Limited (JPL) (a subsidiary of the company) have in principle approved the restructuring involving JSPL and JPL and formed a committee of directors (Restructuring Committee), to explore and evaluate various restructuring options available including a scheme of arrangement. The restructuring will entail that 1000 MW power plant owed by JPL is hived off into an SPV, being subsidiary of JSPL and creation of other SPVs amenable for monetization by way of divestments as well as achieve better synergy across the group. This would further ensure that the businesses of these entities are operated in the most efficient and cost effective manner, including by pooling of technical, distribution and marketing skills, creating optimal utilization of resources, better administration and cost reduction.

On 22 August 2016, Jindal Steel and Power Ltd. (JSPL) announced that it has secured long-term linkage of 1.18 Million Tonne Per Annum for its state-of-the-art captive power generation plants in Dongamahua and Raigarh in Chhattisgarh. The long-term coal linkage for a period of 5 years has been secured during the recent coal linkage auctions. The long-term linkage will ensure steady and assured supply of coal for the captive power plants, thereby enhancing the Fuel Security for the power plants.

On 6 September 2016, Jindal Steel and Power Limited (JSPL) announced that it has achieved a landmark by becoming India's first and only manufacturer of Head Hardened Rails' for modern hi-speed trains and metros. The landmark achievement also propels JSPL into the elite club of 7 global steel majors, who have the capability to manufacture head hardened rails in the world. The plant with an investment of Rs 200 crore is capable of delivering 30,000 MT of rails per month and has been set up in technical collaboration with M/S SMS MEER, Germany. Head Hardening technology entails a special heat treatment process which requires very precise temperature control to achieve nearly 50% higher hardness as compared to a normal rail.

On 28 May 2017, Jindal Steel and Power Limited (JSPL) announced that it has completed its 6 MTPA Integrated Steel Plant at Angul in Odisha at an investment of Rs 33000 crore.

On 19 June 2017, Jindal Steel and Power Limited (JSPL) announced that it has secured coal linkages of over 0.51 tonne per annum in the recently concluded coal linkage auctions under captive power sub-sector. The coal linkages secured for 5-year duration, will provide steady supply of fuel to captive power plants run by the company for its steel making operations. The three captive power plants of the company are located at Raigarh and Dongamahua (Raigarh district) - both in Chhattisgarh; and for powering its 810 MW CPP in the 6 MTPA integrated steel complex at Angul, Odisha.

On 9 October 2017, Jindal Steel and Power Limited (JSPL) announced that it has consummated sale of oxygen plant assets at Rs 1121 crore with SREI Equipment Finance Limited. Under the transaction, JSPL has divested its oxygen plant assets at its integrated steel plants at Raigarh (Chhattisgarh) and Angul (Odisha), and received a total consideration (inclusive of taxes) of Rs 1121 crore. JSPL and SREI Equipment Finance have also entered into a Lease Back agreement of the oxygen plant assets for continued operations by JSPL for manufacturing of steel at the respective plants.

On 26 December 2017, Jindal Steel and Power Limited (JSPL) announced that it acquired 250 Ton Basic Oxygen Furnace (BOF) marking the completion of its 6 MTPA integrated steel project at Angul, Odisha.

During 2022-23, the Company divested its entire 96.42% stake in equity capital and preference investment in Jindal Power Limited effective on May 30, 2022. It acquired a 1,050 MW thermal power plant under construction near to Angul Steel Plant costing Rs 410 crore.