JAI BALAJI INDUSTRIES LTD.

Corporate Presentation
Disclaimer
No representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or
opinions contained in this presentation. Such information and opinions are in all events not current after the date of this presentation. Certain statements made in this presentation may
not be based on historical information or facts and may be "forward looking statements" based on the currently held beliefs and assumptions of the management of Jai Balaji Industries
Limited (“Company” or “Jai Balaji”), which are expressed in good faith and in their opinion reasonable, including those relating to the Company’s general business plans and strategy, its
future financial condition and growth prospects and future developments in its industry and its competitive and regulatory environment.

Forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results, financial condition, performance or achievements of
the Company or industry results to differ materially from the results, financial condition, performance or achievements expressed or implied by such forward-looking statements, including
future changes or developments in the Company’s business, its competitive environment and political, economic, legal and social conditions. Further, past performance is not
necessarily indicative of future results. Given these risks, uncertainties and other factors, viewers of this presentation are cautioned not to place undue reliance on these forward-looking
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2
Background
ƒ Jai Balaji Industries Ltd. (“JBIL” or “Company”) was incorporated in
1999 by the current promoters, Mr. Aditya Jajodia, Mr. Sanjiv Jajodia
and Mr. Rajeev Jajodia
ƒ Integrated steel manufacturing company
― Established its 1st Sponge Iron Plant in 2000 with an initial
capacity of 50 tons per day
― Currently amongst the largest integrated steel producers in
West Bengal*
― Metallics’ capacity of c. 1 million tons per annum (“MnTPA”)
― Products range from metallics (Sponge Iron and Pig Iron) to
steel products (TMT bars and Alloy Steels).
― Also currently developing Ductile Iron Pipes and expanding
rolling mill facilities to manufacture alloy steel bars
ƒ Listed on the National Stock Exchange and Calcutta Stock Exchange
in 2003 and on the Bombay Stock Exchange in 2008 with market
capitalization of c. Rs. 12,250 million as at 26 August 2009
ƒ High growth in last 5 years
― Gross block (as at 31 March 2009) of Rs. 14,119 million, grown
at a CAGR of 99% y-o-y**
― Annual revenue of Rs. 17,495 million for FY09 , grown at a
CAGR growth of 70%**
ƒ Strategic institutional investors
– Citigroup Venture Capital invested Rs. 2,000 million in February
2008 and currently has a c. 11% stake including Board
representation
– India Equity Partners invested Rs. 733 million in February 2008
for a c. 4% stake including Board representation
* Source: West Bengal Sponge Iron Manufacturers Association (Aug 2009)
** Annual reports of Jai Balaji Industries Limited (formerly known as Jai Balaji Sponge Limited (JBSL)): Growth with respect to JBSL. JBSL and another Jai Balaji Group Company, Shri Ramrupai Balaji Steels Ltd.
3
(“SRBSL”) merged in FY07
Jai Balaji Strengths

Cost efficiency Strong business operations

Integrated operations Demonstrated project execution skills

ƒ Single location integrated operations (at Durgapur) with ƒ Company expanded metallics’ capacity from 105,000
Blast Furnace/Kiln for metallics and Induction/Electric TPA in 2005 to c. 1 MnTPA in 4 years (CAGR of 74%)
Arc Furnace for steel making
ƒ Proven track record in implementing expansion plans
ƒ Forward integration into thermo mechanically treated on a timely basis and without incurring significant cost
bars (“TMT”) Rods, Billets as well as Ductile Iron Pipes overruns
and Alloy Steel Bars (in process)
ƒ All capacity expansions except for acquisition of
ƒ Backward integration infrastructure including Sinter Nilachal Iron and Power Limited (“NIPL”) and steel
Plant, Coal Washery, Captive Power Plants, Coke Oven division of HEG Limited (“HEG”) have been organic
(in process) and raw material sources of mines which
are expected to be operational in the next couple years

Logistics infrastructure Experienced management team and skilled employee base

ƒ Company has built 3 private sidings and procured 4 ƒ The Promoters have been in the steel and ferro alloy
rakes of 61 wagons each under the Wagon Investment industry since 1991
Scheme (“WIS”) of Ministry of Railways, GoI
ƒ Senior project and technical team members have
ƒ Assured supply of 32 rakes per month from the Indian extensive industry experience
Railways and 10% discount on freight for the first 24
rakes (75% of rake availability) ƒ Total employee strength of 7,101 employees (4,500
contract employees and 2,601 direct employees) as on
ƒ Majority of raw materials and finished products are 30 June 2009
transferred via rail network thereby reducing freight
costs

Geographic proximity to raw material sources Subsidies under the West Bengal Investment Scheme, 2000
and West Bengal Power and Intensive Industries Scheme,
ƒ All manufacturing facilities are located in the middle of 2004 for the Durgapur Plant
India’s mineral belt in the eastern region
ƒ Industrial promotion assistance including the state
ƒ Proximity to iron-ore and coal mines capital investment subsidy
ƒ Well connected by ports and other logistics network ƒ Power subsidy
ƒ Capital investment subsidy
ƒ Interest subsidy

4
 On Its Way to Become Fully Integrated…

Non-coking Coal (Dumri)*

Coking Coal (Rohne) **
38.14 Million Tons (“MnT”) Iron Ore Lumps Iron Ore Fines
17.23 MnT
expected in FY10

Raw Materials
Coal Washery
Sinter Plant Coke Oven
216,000 TPA
608,256 TPA 300,000 TPA
800,000 TPA (in process)

DRI Kiln (Sponge iron) Captive Power Plant

Metallics Sponge Blast Furnace (Pig Iron Plant)
Sponge Iron
Iron 445,000 TPA 71.1 MW Pig
Pig Iron
Iron
954,250 TPA 60,000 TPA (in process) 40 MW (in process)
509,250 TPA

Ferro Alloy
106,618 TPA

Ferro Alloy

Billets and
finished MS Induction Furnace Billets Electric Arc Furnace Ductile Iron Pipe
MS Billets
Billets
products 473,230 TPA 433,000 TPA 240,000 TPA

Alloy
Alloy Billets
Billets Ductile Iron Pipes

TMT Rolling Mill Alloy Bars Rolling Mill Alloy

Alloy Steel
Steel
TMT
TMT Rods
Rods 260,000 TPA 300,000 TPA (in process) Bars
Bars

Backward and forward integration in process External

External Sales
Sales

* Estimated proven/indicated reserves of 55.99 MnT Non-coking coal block, obtained through acquisition of Nilachal Iron and Power Limited of which the Company has a 68.12% share and rest with Bajrang Ispat Pvt ltd
** Allocated coking coal block in consortium with JSW Steel and Bhushan Steel with tentative extractable reserve of 250.00 MnT of which Company’s share is c.17.23 MnT 5
Established Project Execution Skills

Sales mix over last 5 year (Rs million)

g u p t h e v alue chain
Movin Ferro Alloy
Ferro
290 Pig Iron, Alloy, Pig Iron
Silico 61 689 Pig Iron 3,664 Sponge
Manganese 30 Sponge
1,943 Iron,1,859
Iron Ferro Alloy
TMT Sponge
Sponge 1,027 1,597
Bars, Iron,
Sponge
Billets / MS 2,255 1,080
1,080
Iron
Billets / MS Ingot Billets
380 TMT TMT Bars Billets
Ingots Sponge 1,656 2,374
Bars 5,416 4,502
832 Iron Billets, 4,901
514 Billets 2,588
2,588m

Capacity Expansions Jai Balaji Sponge Ltd. Merger with SRBSL* Acquisition of HEG & NIPL*
BY FY 2005 FY 2006 FY 2007 FY 2008 FY2009**
Finishing Lines TPA 30,118 (Ferro Alloy) 80,000 (Re-rolling) 51,000 (Ferro Alloy) 25,500 (Ferro Alloy)***
180,000 (Re-rolling)
Metal Capacity TPA 79,200 (MS Billets) 235,224 (MS Billets) 158,806 (MS Billets) 433,000 (Alloy Billets)

Metallic’s TPA 105,000 (Sponge Iron) 120,000 (Sponge Iron) 220,000 (Sponge Iron)
509,250 (Pig Iron)
Backward Integration 216,000 TPA Coal Washery 608,256 TPA Sinter Plant
12 MW Power Plant 40 MW Power Plant 12.8 MW Power Plant 6.3 MW Power Plant
Logistics 2 Rakes under WIS 2 Railway Sidings 1 Railway Siding
1 Rake under WIS 1 Rake under WIS

Established in FY06
* Source: Annual reports of Jai Balaji Industries Limited (formerly Jai Balaji Sponge Ltd.)
** Ferro Alloy of 25,500 TPA came up in Q1FY10
***June 2009 6
Cost Effective Logistics Infrastructure

ƒ Company estimates rail transport to be over 50% cheaper than road transport; however
transport is limited by siding congestion and non-availability of rakes and locomotives
ƒ Approximately 3 tons of raw material required for every 1 ton of steel
ƒ Company has already invested in 3 railway sidings at the plant facility and at raw material
sourcing locations in Orissa and Chhattisgarh at a cost of Rs. 412m
ƒ Procured and delivered 4 railway rakes of 61 Box Wagons each to Indian Railways under
the Wagon Investment Scheme at a total cost of Rs. 546m
Private railway sidings
ƒ Most raw materials transported via rail network

Benefits
Benefits

Railway rakes ƒ Assured allotment of 32 rakes per month from Indian Railways
ƒ 10% discount on the freight charges for first 24 rakes under the scheme (75% of rake
availability)
ƒ Increased flexibility in delivering finished goods
ƒ Reduced freight costs
ƒ Reduced pilferage, theft and ground loss in transporting raw materials
ƒ Reduced turnaround time
7
Proximity to Raw Material

Rohne, Jharkhand Dumri, Jharkhand (Non-

(Coking Coal Mine) Coking Coal Mine)

Durgapur, WB
Raniganj, WB
Purulia
Andal, WB
ge^ohe^ka tbpq=_bkd^i Non-coking Coal

HEG, Chhattisgarh
NIPL, Jharkhand
Kolkata, WB

Eastern region coal-belt Coal Mines allocated to Company

Haldia, WB (Port)
Eastern region iron-ore belt Existing Facilities
Greenfield expansion
8
Experienced Promoters

Mr. A. Jajodia ƒ Bachelor of Commerce (Honors) from St. Xavier’s College, Kolkata
Chairman and ƒ Over 15 years of experience in the steel and power industry
Managing Director
ƒ Responsible for all major financial and strategic decisions
Age: 38 years
ƒ Under his guidance, both the Jai Balaji Group Companies - Jai Balaji Sponge Limited and Shri Ramrupai Balaji Steels Limited – went public on the
Indian stock exchanges

Mr. S. Jajodia ƒ Bachelor of Commerce (Honors) from St. Xavier’s College, Kolkata
Whole-time Director ƒ Over 2 decades experience in the steel industry
Age: 45 years ƒ Supervises and controls overall administration, legal aspects, human resource as well as financial planning of the Jai Balaji Group
ƒ Joined the Group in 1991 with Chandi Steel Industries Ltd.

Mr. R. Jajodia ƒ Bachelor of Commerce (Honors) from St. Xavier’s College, Kolkata
Non-executive Director ƒ Over 2 decades experience in the steel industry
Age 44 years ƒ Manages the operations of the Company and supervises the iron ore and coal linkages, and procurement of other raw materials
ƒ Also supervises the sales and marketing function of the Jai Balaji Group
ƒ Instrumental in getting coal allocation and implementing railway sidings and purchasing rakes from Indian Railways
ƒ Joined the Group in 1991 with Chandi Steel Industries Ltd.
Gourav Jajodia ƒ Bachelor of Commerce (Honors) from St. Xavier’s College, Kolkata
Non-executive Director ƒ Over 5 years of experience in the steel industry
Age 29 years ƒ Supervises the operations and the production process of the Company
ƒ Joined the Company in 2008

9
Qualified Management Team

Mr.Chandramukh ƒ B.Tech. and M.Tech. in Chemical Engineering from IIT Kharagpur

Patnaik
ƒ Spearheading the 5 MnTPA greenfield integrated steel project at Raghunathpur, Purulia Dist of West Bengal
Executive Director
(Projects) ƒ Over 30 years of experience in operation and projects in major steel companies like Tata Steel, Essar Steel, Ispat, Saudi Iron and Steel, Jindal Stainless
and Uttam Galva
Age: 57 years
ƒ Prior to joining JBIL worked as ED (Technology) with Jindal Steel & Power Limited
Mr. Raj Kumar Sharma ƒ B.Com. and ICWA
Chief Financial Officer ƒ Over 18 years of experience in finance and accounts with various companies
Age: 42 years ƒ Responsible for Company’s finance and accounts operations and other financial strategies
ƒ Prior to joining JBIL worked with Adhunik Group

Mr.S.K. Sachan ƒ B.Tech. in Mechanical Engineering from Regional Engineering College, University of Raipur
Vice President (Projects) ƒ Leading the company’s expansion and brown field projects at Durgapur, West Bengal
Age: 39 years ƒ Over 17 years of experience in project implementation in major steel companies like Malvika Steel and Jindal Steel & Power
ƒ Prior to joining JBIL worked with Visa Steel Limited in project implementation

Mr. Partho Kumar Roy ƒ B.Tech. in Metallurgical Engineering from Banaras Hindu University
Vice President ƒ Responsible for the development of markets and sale of alloy steel
(Marketing)
ƒ Over 30 years of experience in marketing of alloy steel products in companies like Gonterman Pipes and Bihar Alloys & Steel Limited
Age: 54 years
ƒ Prior to joining JBIL worked with Usha Martin Industries Limited as Vice President (Marketing)

Mr. John Joseph ƒ M.A.(SW) from the University of Madras

Vice President (HR) ƒ Responsible for formulation and implementation of human resource strategies for the Company
Age: 48 years ƒ Over 24 years of experience in all aspects of HR with leading companies like Bharat Heavy Electricals Limited, Shalimar Paints and the OP Jindal
Group
ƒ Prior to joining JBIL, headed corporate HR for Jindal Steel & Power limited
Mr. Bivas Chakraborty ƒ B.Sc. from Calcutta University
Deputy General ƒ Responsible for the development of markets and sale of ductile iron pipes (DI Pipes)
Manager
ƒ Over 20 years of experience in marketing and sale of DI Pipes and other pipe solutions in companies like Bengal Tools Limited and Electro Steel
Age: 43 years Casting Limited.
ƒ Prior to joining JBIL worked with Doshion-Veolia Water Solution Company as Manager (M&S) for its EPC division 10
Company Strategy

Sustained reduction in raw material procurement costs

ƒ Establishing coking coal production at Rohne and
non-coking coal production at Dumri and Andal
East
ƒ Establishing iron-ore and manganese mining
operations in Jharkhand

Coal Captive Power Plant

Implement planned expansion Sustained reduction in power costs

ƒ MoA with Government of West Bengal to set-up ƒ Expanding waste heat based Captive Power Plant
an integrated 5 MnT capacity plant at Purulia capacity by 40 MW expected to be operational in
FY10
ƒ Entered into two MoUs with the Government of
Chhattisgarh for the development of an integrated ƒ Use waste heat and solid waste such as dolochar,
steel plant and a power plant coal fines etc. generated from operations to
expand captive power

Increased focus on downstream value added

products portfolio

ƒ Recently developed Alloy Steel Electric Furnace

with 433,000 TPA
ƒ Expanding of Rolling Mill facilities by 300,000 TPA
to produce Alloy Steel Bars
ƒ Addition of Ductile Iron Pipe capacity by 240,000
TMT Bars TPA Ductile Iron Pipe Facility (Under
Construction)

11
Near Term Expansion Plans Leading to …

Existing Facility Additions Planned Total Expanded Expected Costs Expected

Facility (TPA) (TPA) Facility (TPA) (Rs. million)* Commission

Rolling Mill (TMT Rods) 260,000 - 260,000 FY11

Rolling Mill (Alloy Steel Bars) - 300,000 300,000 400

Finishing Lines
Ductile Iron - 240,000 240,000 1,400** FY10

Ferro Alloy 106,618 106,618 - -

MS Billets 473,230 473,230 - -

Metal Capacity
Alloy Steel Billets 433,000 433,000 - -

Pig Iron 509,250 509,250 - -

Metallic’s
Sponge Iron 445,000 60,000 505,000 400

38.14 MnT Dumri Dumri in FY10

Coal Mines - and 17.23 MnT 850
Rohne mines Rohne in FY12

Coal Washery 216,000 800,000 1,016,000 250 FY11

Backward
Integration Coke Oven - 300,000 300,000 2,400 FY12

Sinter 608,256 - 608,256 - -

Waste Heat Captive Power

71.1 MW 40 MW 111.1 MW -*** FY10
Plant

Railway Rakes under WIS 4 (61 wagons each) - 4 (61 wagons each) - -
Logistics
Private Railway Siding 3 Sidings - 3 Sidings - -

* Expected costs over FY10, FY11 and FY12

** Balance amount to be spent in 2009-10: Total cost of Rs. 2,680 million
*** Total costs of Rs. 1,100 million of which c. 95% have been incurred until FY09 (shown in Capital WIP) and will capitalized in the current year 12
… Reduced Raw Material and Power Costs
Product Highest cost Medium cost Low cost
Iron-ore Spot market Sinter plant Owned mines

ƒ Acquire Iron Ore Lumps from spot ƒ Purchases lower cost Iron Ore Fines from ƒ NIPL has been granted mining lease over 450
market local vendors and converts to lumps in a hectares for Iron Ore and Manganese ore
sinter plant mining in Jharkhand
ƒ Commissioned a 608,256 TPA plant in ƒ Geological survey for these mines is expected
September 2008 to start in 3rd quarter of FY10

Coking coal Spot market Captive coke oven Captive coke oven and owned mines
ƒ Initially Company purchased low ash ƒ Establishing a 300,000 TPA coke-oven ƒ NIPL allocated Coking Coal block at Rohne in
Met coke at spot rates for its Durgapur plant consortium with JSW Steel Limited and
Bhushan Steel Limited,
ƒ Given rising prices, Company has ƒ Total costs expected to be Rs. 2,400m
commenced buying in bulk through ƒ Tentative extractable reserve of 250.00 MnT
merchant importers on high sea in which Company’s share of coal is
approximately 17.23 MnT
basis
ƒ Expected to be commissioned in FY12 and
will contribute to most of the requirement
Non-coking Spot market Linkage from Coal India Limited Owned mines
coal
ƒ A 216,000 TPA Coal Washery set up to ƒ Allocated Non-coking Coal block at Dumri
wash coal from the mines in order to which has estimated proved reserves of
lower the ash content 55.99 MnT of coal, and the Company has a
68.12% share (38.14 MnT)
ƒ Another 800,000 TPA Coal Washery
being set up in Jharkhand for the Dumri ƒ Mining plans at Dumri have been prepared
coal mines and commercial production is expected by
FY10, resulting in significant savings
ƒ Also allocated another mine with estimated
geological reserve of 700 MnT with Company
share being 229.50 MnT
Power Market access Grid supply from the State Government Captive Power Plant
ƒ Estimated around 40% of power ƒ Generate power from waste heat and solid
requirements is met via waste heat based waste such as dolochar, coal midlings etc.,
captive generation while the balance 60% generated from operations
accessed via state grid
ƒ Another 40 MW to be commissioned by 3rd
quarter of FY10

Current Status Future Plans 13

Organic Growth in Purulia

Purulia Plant ƒ Signed a development agreement with the Government of

West Bengal (“GWB”), the West Bengal Industrial
Development Corporation Ltd. and the West Bengal
Mineral Development and Trading Corporation Limited
(“WBMDTC”), for setting up
― 5 MnTPA Integrated steel plant
― 3 MnTPA Cement plant
― 1,215 MW Captive power plant
ƒ c. Rs. 562 million has been incurred including purchase of
land

Plant Site ƒ Current Status

― c. 1,130 acres of land have been acquired from the
GWB
― GWB has identified and applied for the allocation of
three coal blocks in the vicinity of the project site in
the name of WBMDTC, which will enter into a coal
mining agreement with the Company
― Intend to develop in a modular fashion in phases
through 2017
― Teams have started relocating to begin initial process
― Water clearance , railways traffic clearance , in
principle approval from state electricity board for
construction power have been received and
application for environmental clearance have been
submitted

14
Production and Sales over last few Quarter

TMT Bars Billets

60,000 160,000
138,770 138,784
47,077 140,000
45,725
39,682 43,109 42,751
39,937
43,584 41,851 120,000
40,000 100,709
100,000
78,835 78,539
MnT

MnT
27,014 74,843
23,730 80,000
59,934
20,000 60,000
39,133 38,365
40,000 31,156
20,000
0 0
Q1 '09 Q2 '09 Q3 '09 Q4 '09 Q1 '10 Q1 '09 Q2 '09 Q3 '09 Q4 '09 Q1 '10
Production Sales Production Sales

Pig Iron Sponge Iron

120,000 120,000
95,334 94,343 98,493
100,000 88,110 100,000 88,079
79,686 80,548
80,000 80,000
60,430
MnT
57,922
MnT

60,000 46,112 45,345

60,000
42,554
36,581
40,000 32,433 40,000 25,326
23,560 19,476 22,385
20,000 20,000 9,690 12,696

0 0
Q1 '09 Q2 '09 Q3 '09 Q4 '09 Q1 '10 Q1 '09 Q2 '09 Q3 '09 Q4 '09 Q1 '10
Production Sales Production Sales
15
Financial Performance

Net Sales EBITDA and EBITDA Margins

20,000
18,000 17,179 2,500 2,379 20%
16,000
14,000 13,275 2,000
13.2% 17.9% 1,659 15%
Rs. million

12,000 10,188

Rs. million
1,500 1,349
10,000
10%
8,000 1,000 9.7%
6,000
4,000 5%
500
2,000
0 0 0%
FY07 FY08 FY09 FY07 FY08 FY09

Gross Block Total Loan Funds (excluding CCDs)

16,000 18,000
14,119 15,454
14,000 16,000
12,000 14,000
9,870 11,737
12,000
Rs. million

Rs. million
10,000
10,000
8,000
6,046 8,000 6,673
6,000
6,000
4,000 4,000
2,000 2,000
0 0
FY07 FY08 FY09 FY07 FY08 FY09
16
Consolidated Balance Sheet

Consolidated Balance Sheet (Rs. Million) March 07 March 08 March 09

Sources of Funds
Shareholder's Funds
Share Capital 251 471 471
Share Capital Suspense 220 - -
Application Money towards Equity warrants - 618 618
Preference Share Application Money - - 0
Reserves and Surplus 1,988 3,386 3,406
Total Shareholder's Funds 2,459 4,475 4,495
Loan Funds
Secured Loans 5,795 11,090 15,386
Unsecured Loans 878 3,379* 2,801*
Total Loan Funds 6,673 14,470 18,187
Deferred Tax Liability 630 697 772
Total Sources of Funds 9,762 19,641 23,454
Application of Funds
Gross Block 6,046 9,870 14,119
Less: Depreciation 430 967 1,512
Net Block 5,616 8,903 12,606
Capital Work in Progress 477 3,003 3,207
Net Fixed Assets 6,092 11,905 15,814
Investments 2 38 37
Cash 256 213 225
Other Current Assets 4,904 10,465 10,681
Less: Current Liabilities 1,513 2,980 3,303
Net Current Assets 3,648 7,697 7,603
Miscellaneous 20 - -
Total Application of Funds 9,762 19,641 23,454

* Includes Rs. 2733m of CCDs which have been converted in July 09 17

Consolidated Income Statement

Consolidated Income Statement (Rs. million) FY07 FY08 FY09

Sales and Services (Gross) 11,054 15,069 18,953
Less: Excise Duty 866 1,795 1,774
Sales and Services (Net) 10,188 13,275 17,179
Expenses
(Increase) / Decrease in Stocks (93) (921) 649
Excise Duty and Cess on Stocks 18 133 (137)
Raw Materials Consumed 4,037 6,955 11,142
Purchase of Trading Goods 3,413 2,566 720
Manufacturing Expenses 1,279 1,498 2,196
Personnel Cost 64 189 331
Selling, Distribution and Administrative Expenses 123 465 611
Prior Period Expenditure (Net) (3) 10 7
Total Expenses 8,839 10,895 15,520
EBITDA 1,349 2,379 1,659
Less: Depreciation 234 448 541
EBIT 1,115 1,932 1,118
Other Income 200 566 316
Less: Interest and Finance Charges 354 1,109 1,324
PBT 961 1,388 110
Share of Profit from Associate Company - 11 -
Taxes 339 182 92
PAT 622 1,217 18
Diluted EPS (Rs.) 13.16 24.94 0.32

Key Ratios FY07 FY08 FY09

EBITDA Margin 13.2% 17.9% 9.7%
EBIT Margin 10.9% 14.6% 6.5%
PBT Margin 9.43% 10.30% 0.60%
PAT Margin 6.1% 9.1% 0.1%
Debt / Equity* 2.71 1.63 2.14
* Post CCD conversion 18
Market Information

Shareholding Pattern (Aug 09) Share price performance over last 2 years

Others
11% Jul 09 - Allotted 84m
shares to CVC and
Bodies India Equity Partners
pursuant to
Corporate conversion of CCDs
Aug 08 - Company
13% Feb 08 - Company signs MoA with
issues 84m zero Government of Jul 09 - Receives
Mutual coupon CCDs to CVC Chhattisgarh for shareholder approval
Funds and India Equity setting up an for raising US$ 100m
2% partners at Rs. 326.9 integrated steel plant from QIB
Promoters 700 450,000
India EP 59% Sep-08 – Crash of
Oct 07 - Lehman Brothers
Fund Company leading to global 400,000
4% 600 acquires NIPL collapse
CVC
11% 350,000
500
300,000

400
Share Price

250,000

Volume
300 200,000

Market Data (as at 26 Aug 09) 150,000

200
Share Price Rs. 220.80 100,000
Market Capitalization* Rs. 12,250m 100
50,000
Enterprise Value Rs. 27,411m
0 0
EV/ FY09 Sales 1.60
Aug-07
Sep-07
Oct-07

Feb-08
Mar-08
Apr-08
May-08
Nov-07
Dec-07
Jan-08

Jun-08
Jul-08
Aug-08
Sep-08
Oct-08
Nov-08
Dec-08
Jan-09
Feb-09
Mar-09
Apr-09
May-09
Jun-09
Jul-09
Aug-09
EV / FY09 EBITDA 16.6

Post conversion of CCDs 19

APPENDIX
Sales and Distribution

ƒ Marketing team of 15 people

ƒ Products are primarily sold in the domestic market through short term contracts
ƒ Large volume purchasers buy directly from the Company whereas low volume purchasers buy through stockholders and 3 consignment agents
ƒ Markets for the metallic, semi-finished and ferro alloy products are usually located within a 50 kilometre radius of our manufacturing facilities, which enables
significant savings in transportation cost
Distribution Strategy Target Customers
ƒ Sold under the “Balaji Shakti” Thermex TMT Bars ƒ Government Agencies
ƒ Sold through 3 consignment agents ƒ Power Projects and Industry Houses
ƒ Major civil contractors
ƒ Major real estate developers
TMT Bars
ƒ Retail rural market
ƒ Sold through dealer network in local market and northern region (Punjab, ƒ Secondary steel players at present
Haryana and UP)
ƒ In future, it will be completely for captive use

Pig Iron

ƒ Primarily Captive Usage ƒ Surplus to small non-integrated steel manufacturers

ƒ Sold directly to local customers within a 50 KM radius
ƒ Command a Rs. 200-300 premium for superior quality and reliability

Sponge Iron
ƒ Primarily captive usage ƒ Surplus to Rolling Mills
ƒ Some exported through Trade Houses, when realizations are better

Billets
ƒ Exported through big house traders and merchant exporters ƒ Major steel companies
ƒ Conversion agents for some of the large steel companies ƒ Some captive usage

Ferro Alloy
21