Jai Balaji Industries Limited JBIL A Brief Profile

Jai Balaji Industries Limited

JBIL – A Brief Profile First Company in West Bengal to start operation by setting up a Sponge Iron Plant. Executed 1 MT fully integrated green field steel manufacturing facilities within a short span of 4 years. First to set up Waste Heat Recovery Power Plants in West Bengal. Presently, 111 MW Power Plants are operational. Presence in mineral rich states of the country viz. West Bengal, Chhattisgarh & Jharkhand. Entire value chain of steel manufacturing from processing iron ore to manufacturing finished products. Acquired Steel division of HEG Ltd. and Nilachal Iron & Power Ltd. in the FY 200708. Successfully raised equity from IPO, Private Placements and QIP Route. 2

Financial Indicators 25000 3500 Total Revenue (Mn. ) 19402. 82 20000 17233 2612. 22 1880. 5 2000 10753. 1 10000 3000 2500 13472. 8 15000 EBIDTA (Mn. ) 2897. 1 8902. 1 1546. 5 1500 1000 5000 978 500 0 FY 06 FY 07 FY 08 FY 09 FY 10 PAT (Mn. ) 1400 0 FY 06 FY 07 FY 08 FY 09 FY 10 Share Price Movement 1188. 7 1200 1000 800 620. 2 452. 2 318. 09 400 200 12. 8 0 FY 06 FY 07 FY 08 FY 09 FY 10 3

Financial Overview Particulars FY 07 FY 08 FY 09 FY 10 8811. 1 10733. 8 12907. 6 16948. 8 19143. 8 4143. 9 91. 0 19. 3 565. 2 284. 2 259. 0 14. 8 Total Revenue 8902. 1 10753. 1 13472. 8 17233 19402. 8 4158. 7 Less: Cost of Sales 7924. 1 9206. 6 10575. 7 15352. 5 16790. 6 3524. 9 978 1546. 5 2897. 1 1880. 5 2612. 2 633. 8 Depreciation 103. 9 234. 2 433. 5 507. 9 692. 9 178. 2 EBIT 874. 1 1312. 3 2463. 6 1372. 6 1919. 3 455. 6 Interest 189. 7 354. 1 1101. 7 1305. 6 1427. 1 299. 4 EBT 684. 4 958. 2 1361. 9 67 492. 2 156. 2 Tax provision 232. 2 338 173. 2 54. 2 174. 1 52. 2 PAT 452. 2 620. 2 1188. 7 12. 8 318. 1 104. 0 9. 6 13. 16 25. 23 0. 27 5. 66 1. 63 Sales Other Income EBIDTA EPS (Rs. ) FY 06 Rs in mn. Q 1 FY 11 4

Shareholding Pattern FDI 13. 11% Individuals 11. 63% Promoters 50. 75% Bodies Corporate 11. 23% Mutual Funds/ UTI 2. 83% FII 10. 44% Banks & FIs 0. 01% No. of shares Share Capital Market Cap Net Debt Net Worth Debt Equity Ratio 63. 7 million Rs. 637 million Rs. 16. 5 billion Rs. 15. 9 billion Rs. 9950 million 1. 59 5

The Business Model (Full Flexibility) Non coking coal Dumri 37 MT by FY 11 Coal Washery 0. 26 MT + 1. 0 MT Iron Ore / Fines Presently from Market Allocated (will take 3 Years) Sinter 0. 608 MT Coking coal Rohne 17 MT by FY 12 Coke Oven 0. 35 MT by FY 12 (Coke Presently from Market) DRI 0. 45 MT + 0. 06 MT Pig Iron / Hot metal 0. 51 MT Induction Furnace Billets 0. 473 MT Electric Arc Furnace 0. 433 MT TMT Rods 0. 300 MT CPP 111 MW Ductile Iron Pipe 0. 240 MT Legend Ferro Alloys 0. 106 MT Installed Under Installation Material Movement Sales Points Sales Free Fuel Power Captive Use 6

Project Implementation 2010 2009 25500 MTPA Ferro Alloy 433000 TPA 100000 TPA Alloy Steel MS Billets 220000 TPA 6. 2 MW Power Sponge Iron 608000 TPA Sinter Plant 12. 8 MW Repower 240000 TPA Ductile Iron Pipe 30 MW Power 2008 2007 2006 2005 2004 2003 2001 40250 TPA Pig iron Plant 80000 TPA Re. Rolling Mill 120000 TPA Sponge Iron 31118 TPA Ferro Alloy 88210 TPA MS Billets 40250 TPA Pig Iron Plant 12 MW Power Plant 88210 TPA MS Billets 216000 TPA Coal Washery 51000 TPA Ferro Alloy 117610 TPA MS Billets 180000 TPA -Rolling Mill 428750 TPA Pig Iron 50 MW Power Journey of the excellent project execution 79200 TPA MS Ingot 105000 TPA Sponge iron 7

Existing Facilities Capacity Sponge Iron 445000 MT Pig Iron 510000 MT MS Billets 473000 MT Alloy Steel Billets 433000 MT Ferro Alloy 106000 MT Sinter 608000 MT Rolling Mill 260000 MT Ductile Iron Pipes 240000 MT Coal Washery 216000 MT Captive Power Plant Railway Rakes under WIS Pvt. Railway Siding 111 MW 4 (61 wagons each) Durgapur , Muripar & Barbil 8

Brownfield expansions Low Incremental Capex as compared to substantial margin expansion Capex Description Capacity Capex (mn. ) Timeline Benefits Sponge Iron 0. 06 MT 400. 0 FY 11 JBIL will be short in captive metallics in the FY 11. Proposed Unit planned at Jharkahnd where land other infrastructure is already available and coal mine starting in the FY 2011. Non Coking Coal Mine and Washery Peak Capacity 1. 40 MT 950. 0 FY 11 Will reduce cost of DRI by around Rs. 1400 per ton. JBIL has 0. 45 MT existing DRI capacity. Reserves sufficient for more than 30 years. Coking Coal Mine Peak Capacity 0. 56 MT 250. 0 FY 12 Coke Ovens 0. 35 MT 3620. 0 FY 12 Will reduce cost of hot metal by around Rs. 5000 per ton. JBIL has 0. 51 MT Blast Furnace capacity. Reserves sufficient for more than 30 years. Additional waste heat sufficient for 20 MW power. 290. 0 FY 12 Roads & infrastructure for existing Durgapur plants Total Since all the capex of the Durgapur plant is complete, Roads, Drainage and other infrastructure at the plant shall also be complete. 5510. 0 9

Manufacturing Facilities post completion Backward Integration Metallic's [1055000] Non Coking Coal Mine 37 Million tons Coking Coal Mine 17 Million Tons Sinter Plant [608000] Coke Oven [350000] Captive Power Plant [111 MW] Coal Washery [1016000] Metal Capacity [906000] Finishing Lines Sponge Iron [545000] M. S Billets [473000] TMT Rolling Mills [560000] Pig iron [510000] Alloy Steel Billets [433000] Ductile Iron Pipes [240000] Ferro Alloys [106000] 3 Private Railways siding 4 Railways rakes 10

Proximity to Raw Material and captive mines 11

Cost Effective Logistics Infrastructure 12

Existing Power Generation Capacities The company is operating 111 MW of captive power at its integrated Power Plants. Power is generated by utilizing waste gases of Sponge Iron, Blast Furnaces & solid wastes such as dolochar & coal fines generated from the integrated operations. Total cost of power generation including depreciation & interest is around Rs. 1. 25 wherein cost of fuel is around Re. 0. 65 per unit. The Power plant has strong grid support wherein total power requirement for the integrated steel operation is approximately 145 MW. The company has tie-ups with DVC & DPL for the balance requirement of power @ Rs. 2. 75 per unit. Power Plants eligible for CDM benefits under Kyoto Protocol. 13

Project Purulia – Green field expansion Project Site 5 MT Steel + 1215 MW Power + 3 MT Cement Update 1130 Acres Land & Coal Blocks of Appx 700 Mn ton of Superior Grade Ranigunj Coal 14

Project Purulia- Updates & Plans Signed Mo. A with the Govt. of WB to set up an 5 MT integrated steel plant, 3 MT Cement Plant and 1215 MW Power Plant at Raghunathpur, Purulia. JBIL has already been handed over approx 1130 acres of land for the project. Captive Coal Mines for steel making and power plants already available and under development. Water Drawl Permission, Railway Traffic Clearance & in-principle approval from State Electricity Board for construction power already in place. Application for environment clearance submitted, Public Hearing complete and TOR received. Project to be completed in modular fashions in phases. Phase I planned to be of 2 MT metallic and 400 MW of Power, work starting in the FY 2011. 15

Captive Resources – Coal Coking & Non coking JBIL has been one of the largest allottee of coal blocks for captive consumption in steel making for its existing facilities and Greenfield Purulia project in West Bengal due to the excellent track record of project execution. Coking coal block of Rohne: Rohne JBIL's share in the reserves is 17 m tons in Joint Venture with two other companies. The block is expected to commence in FY 12. Non-coking coal at Dumri: Dumri This coal block was allotted to its subsidiary, Nilanchal Ispat (NIPL), in Jharkhand. NIPL's share is 38 m tons in this block. Forest clearance is expected soon because there are only few trees in the mine area. Mining is likely to commence in FY 11. Non-coking coal at Ardhgram, West Bengal: JBIL's share in reserves is 15 -16%, equivalent to 4 m tons. Ardhgram This is a small block where mining should start in 2 -3 years. Non-coking coal at Andal, West Bengal: JBIL's share is 33%, equivalent to 229. 50 m tons. Coal mining will Andal start in 48 months. Non-coking coal at Jagannathpur A & B, West Bengal: These blocks have been allotted to West Bengal Mineral Trading Development Corporation (WBMTDC). On 4 October 2007, Government of West Bengal (Go. WB), West Bengal Industrial Development Corporation (WBIDC), WBMTDC signed an agreement with JBIL to provide these blocks to JBIL for setting up an integrated Greenfield steel plant. Already started exploration and drilling activities for development. Theses mines will be a source of low cost coal in three years 16

Thank You ! Safe Harbor Statement : Some forward looking statements on projections, estimates, expectations & outlook are included to enable a better comprehension of the Company prospects. Actual results may, however, differ materially from those stated on account of factors such as changes in government regulations, tax regimes, economic developments within India and the countries within which the Company conducts its business, exchange rate and interest rate movements, impact of competing products and their pricing, product demand supply constraints. Nothing in this article is, or should be construed as, investment advice. 17