KIOCL Limited 1 DISCLAIMER Statements in this presentation - - PowerPoint PPT Presentation

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KIOCL Limited

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DISCLAIMER

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Statements in this presentation describing the Company‟s performance may be “forward looking statements” within the meaning of applicable securities laws and regulations. Actual results may differ materially from those directly or indirectly expressed, inferred

• r

implied. Important factors that could make a difference to the Company‟s

• perations include, among others, economic conditions

affecting demand/supply and price conditions in the domestic and overseas markets in which the Company

• perates,

changes in

• r

due to the environment, Government regulations, laws, statutes, judicial pronouncements and/or other incidental factors.

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INDEX

• Sl. No.

CONTENTS Slides

SECTION 1 OVERVIEW 4 SECTION 2 LISTING / DISINVESTMENT STATUS 13 SECTION 3 KIOCL‟S PERFORMANCE 19 SECTION 4 KIOCL‟S PURSUITS 28 SECTION 5 CARING ARM – CSR 39

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SECTION 1: OVERVIEW

AERIAL VIEW OF PELLET PLANT UNIT, MANGALORE

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HISTORY

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KIOCL Ltd.(formerly Kudremukh Iron Ore Co. Ltd.) was formed in 1976 by GoI under bilateral agreement with

• Govt. of Iran for supply of iron ore concentrate to National

Iranian Steel Company. Due to political instability, Govt. of Iran backed

• ut.

Project was funded by GoI & commissioned in 1980 within record timeline and cost. “Kudremukh” brand is popular worldwide. KIOCL‟s has many firsts to its credit as an iron ore industry in the country. KIOCL added to its fleet 3.5 MTPA integrated Pelletization plant with dedicated berthing facility at NMPT and also set up Pig Iron complex of 350 cu. mtrs to produce 2.16 lakh tonnes per annum of foundry grade pig iron of low phosphorous and low sulphur content.

Central Public Sector Under Ministry of Steel, GoI A Mini Ratna, Schedule ‘A’, Category –I Company, An Export Oriented Unit Iron Oxide Pellets of BF & DR Grade & Foundry grade Pig Iron Export Market: China, Japan, Iran, Turkey, Taiwan, Qatar, Korea etc Domestic Market:

SAIL, RINL, ESSAR, JINDAL. BPSL, JSW STEEL, WELSPUN, SAL, SHRADHA ISPAT etc

Products Catering to

KIOCL-OVERVIEW

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Shore based Pellet Plant with dedicated berth & automatic ship loading facility Debt free company with strong liquidity

7

CAPABILITIES

7 Expertise in

• Mining
• Beneficiation Technology
• Filtration Technology
• Pelletisation
• Mineral Exploration
• Blast Furnace Technology

Operated Asia‟s largest highly mechanized mining complex in Kudremukh (22.5 mtpa – ROM) Established 3.0 mtpa capacity Pellet Plant at Mangalore in the year 1986 & upgraded to 3.5 mtpa with In-house R & D in the year 1996

Established to develop the mine and plant facilities to produce 7.5 MTPY based on an understanding between Govt. of Iran & India. The mine and plant facilities were commissioned without cost & time

• verrun

First shipment of concentrate was made Pellet Plant of 3MTPA capacity commissioned for producing high quality BF & DR grade pellets Pig Iron plant commissioned

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KEY MILESTONE

The Hon'ble Supreme Court vide its verdict dated 30th October 2002, had allowed mining till the end of 2005 Company's pioneering in-house R&D programmes successfully migrated from magnetite iron ore to hematite iron ore for pelletisation process.. Erstwhile KISCO merged & presently operating as BFU since 01.04.2007 Commissioned three Horizontal Pressure Filters & upgraded screening systems at PPU under modernization programme, resulting in improved productivity Increased the market share for disposal of pellets through road to cater to sponge iron manufacturers and mini blast furnace Expansion & diversification:

• O&M Portals;
• MOU with APMDC
• Setting

up Pellets Plants on BOO basis Ministry of Mines notified KIOCL for Exploration Work & signed MoU with MECL

1976 1980 1981 1987 2001 2005 2011 2012 2007 2014 2015

Chemical Composition

(on dry basis)

Specification

Physical Properties Specification Fe 64 % Size: 9 - 16 mm 85.00 % Min Feo 0.50 % About Below 5 mm 5.00 % Max SiO2 + Al2O3 6.00 % Max (Al2O3 2.00 %Max) Bulk Density 2.00 T/M3 Min S 0.01 % Max Tumble Index ( + 6.35 MM) 92 % Min P 0.045 % Max Abrasion Index (- 0.60 MM) 6.00 % Max TiO2 0.20 % Max Cold Crushing Strength Average 250 KG/P Min AS 0.01 % Max Porosity 20.00 % Min Other metals 0.20 % Max Reducibility 60.00 % Min CaO + MgO 2.00 % Max Basicity 0.30 ABOUT Moisture Content Specification Fair season (Oct - May) 4.00 % Rainy season (Jun - Sep) 6.00 %

PRODUCT - OFFER

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BF GRADE - PELLET SPECIFICATION

Chemical Composition

(on dry basis)

Specification

Physical Properties Specification Fe 67% Size: 9 - 16 mm 85.00 % Min Feo 0.50 % About Below 5 mm 5.00 % Max SiO2 + Al2O3 4.00 % Max (Al2O3 2.00 %Max) Bulk Density 2.00 T/M3 Min S 0.01 % Max Tumble Index ( + 6.35 MM) 93 % Min P 0.045 % Max Abrasion Index (- 0.60 MM) 5.00 % Max TiO2 0.20 % Max Cold Crushing Strength Average +270 KG/P Min AS 0.01 % Max Porosity 20.00 % Min Other metals 0.20 % Max Reducibility 70.00 % ±5% Min CaO + MgO 2.00 % Max Basicity 0.30 ABOUT Moisture Content DMT BASIS

PRODUCT - OFFER

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DR GRADE -PELLET SPECIFICATION

BOARD OF DIRECTORS

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BHARATHI S SIHAG

• T. SRINIVAS
• S. MANOHARAN

PK BAJAJ

• S. RAGHUNATH

MADHAV LAL BK SAHOO MALAY CHATTERJEE

CHAIRMAN-CUM- MANAGING DIRECTOR

LAXMINARAYANA DIRECTOR (FINANCE) MV SUBBA RAO DIRECTOR (COMMERCIAL)

• N. VIDYANANDA

DIRECTOR (P&P)

EXECUTIVE DIRECTORS

• GOVT. NOMINEE DIRECTORS

INDEPENDENT DIRECTORS

3 X 3 X 3 FOCUS

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INDUSTRY GEOGRAPHICAL SEGMENT SERVICE OFFERINGS

SERVICES

MANUFACTURING

• IRON OXIDE PELLETS
• - PIG IRON

MINING & BENEFICIATION

MIDDLE EAST

CHINA INDIA

MDO WORK

EXPLORATION & SAMPLING / ANALYSIS OPERATION & MAINTENANCE

1 2 3

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SECTION 2: LISTING / DISINVESTMENTSTATUS

SECTION 2: LISTING / DISINVESTMENT STATUS

 Govt. of India as a part of Policy divested 61,62,900 Equity

Shares through Institutional Mechanism and later 2,06,770 Shares were allotted under employee‟s quota.

 As on date 1.0039% of shares held by general public &

98.9961% of shares held in the name of President of India.

 The Equity Shares were Listed on Bangalore Stock Exchange

(BgSE) w.e.f. 24-07-1995 & Madras Stock Exchange (MSE) w.e.f. 22-01-1998.

 Total No. of shareholders as on 31-12-2015 is 1036  As

per SEBI Exit Policy, both BgSE & MSE exited and derecognized as Stock Exchange w.e.f. 26.12.2014 & 14.05.2015 respectively

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LISTING / DISINVESTMENT STATUS

 KIOCL made the application to Metropolitan Stock Exchange of

India Limited on 27-01-2016 for direct listing of 634,513,800 Equity shares.

 MSEI accorded the listing & trading of shares w.e.f.12.02.2016

under symbol „KIOCL‟.

 As per regulation 38 of SEBI (LODR) Reg., 2015 & Rule 19(2) and

Rule 19A of SCRR, 1957 at least 25% of equity shares should be held by Public.

 Required to comply with the provisions latest by 21.08.2017.  Requested Ministry of Steel in consultation with Department of

Disinvestment to explore the possibilities for disinvestment of

• Govt. holding to the extent of 25% before due date.

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LISTING / DISINVESTMENT STATUS

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SHAREHOLDING PATTERN

Category Number of shares Shares in Demat mode Shares in Physical mode %age of sharehol ding Central Govt./State Govt.(s) 628144130 628144130

• 99.00

Mutual Funds/UTI 2270100 1936667 333433 0.36 Financial Institutions/Banks 800000 800000

• 0.13

Insurance Companies 2778300 2778300

• 0.44

Bodies Corporate 205782 205482 300 0.03 Resident Indians &

• thers

315488 206712 108776 0.05 Total 634513800 634071291 109076 100.00

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TOP 25 SHAREHOLDERS

S. NO. NAME OF THE SHAREHOLDERS

• NO. OF

SHARES % 1 PRESIDENT OF INDIA 628144130 99.00 2 GENERAL INSURANCE CORPORATION OF 1648000 0.26 3 THE NEW INDIA ASSURANCE COMPANY LIMITED 730300 0.12 4 CANARA ROBECO MUTUAL FUND A/C CANARA ROBECO EQUITY DIVERSIFIED 595000 0.09 5 PUNJAB NATIONAL BANK, PRINCIPAL TRUSTEE - PNBMUTUAL FUND - EQUITY LINK 500000 0.08 6 ICICI BANK LTD 500000 0.08 7 PUNJAB NATIONAL BANK, PRINCIPAL TRUSTEE - PNBMUTUAL FUND - RISING INCO 333334 0.05 8 PUNJAB NATIONAL BANK, PRINCIPAL TRUSTEE - PNBMUTUAL FUND - REGULAR INC 333333 0.05 9 NATIONAL BANK PRINCIPAL 333333 0.05 10 PUNJAB NATIONAL BANK 300000 0.05 11 UNITED INDIA INSURANCE COMPANY LIMITED 240000 0.04 12 GFC SECURITIES AND FINANCE LIMITED 184900 0.03 13 MAGNUM BOND FUND 1994 175000 0.03

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TOP 25 SHAREHOLDERS

S. NO. NAME OF THE SHAREHOLDERS

• NO. OF

SHARES % 14 THE ORIENTAL INSURANCE COMPANY LIMITED 160000 0.03 15 SAJU RAMCHAND KIMATRAI 14800 0.00 16 ALKABEN VASANTBHAI VORA 13200 0.00 17 MARUTI BUSINESS SERVICES LTD 12600 0.00 18 PURSHOTTAM PANNALAL RATHI HUF 10000 0.00 19 NILESH BALKRISHNA KABARE HUF 10000 0.00 20 AJAY SURESHCHANDRA AGRAWAL HUF 10000 0.00 21 VASANT AMRATLAL VORA 8900 0.00 22 NIRAJ KAJARIA 6495 0.00 23 INDRA KUMAR BAGRI 5980 0.00 24 MODY INVESTMENT AND MANUFACTURING COMPANY PRIVATE LIMITED 5300 0.00 25 VIMLA KANTILAL CHAUDHARI 5000 0.00

SECTION 3:PERFORMANCE

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2124 1710 1265 1710 785 100 500 1000 1500 2000 2500 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 (upto Dec'15) 20

PRODUCTION OF PELLETS (IN ‘000 DMT)

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SALE OF PELLETS (IN ‘000 DMT)

920 537 100

1170 1179 1236 1615 580 206

500 1000 1500 2000 2500

2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 (upto Dec'15)

DTA Export

2090 1716 1236 1615 680 206

1803 1521 1159 1532 629 90 200 400 600 800 1000 1200 1400 1600 1800 2000

2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 (upto Dec'15)

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TURNOVER (`

` IN CRORES)

162.61 162.92 75.56 113.08 60.36

• 113.58
• 150
• 100
• 50

50 100 150 200

2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 (upto Dec'15)

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EBDITA (`

` IN CRORES)

76.27 94.3 31.05 39.94 30.82

• 139.48
• 200
• 150
• 100
• 50

50 100 150

2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 (upto Dec'15)

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PROFIT AFTER TAX (`

` IN CRORES)

15.86 19.03 6.34 8.24 6.34 2 4 6 8 10 12 14 16 18 20 2010-11 2011-12 2012-13 2013-14 2014-15 25

DIVIDEND (`

` IN CRORES)

1998 2071 2094 2125 2138 1900 1950 2000 2050 2100 2150 2010-11 2011-12 2012-13 2013-14 2014-15 26

NETWORTH (`

` IN CRORES)

KEY INITIATIVES FOR FY’16

• Securing Raw Material : -
• Pursuing with State Government(s) for reservation of Iron Ore Block

under 17A (2A) of MMDR Amendment Act, 2015.

• Participating in the auction process for Iron Ore Blocks.
• Seizing various business opportunities in O & M, MDO etc. to offset

wage & means programme.

• Negotiating with various overseas Business Associates for Maximizing

Capacity Utilization of Plant under “Make in India” programme.

• Skill Enhancement to enable multi skilling & productivity improvement.
• Talks
• ngoing

with Sister PSU‟s for setting up Beneficiation & Pelletization plant at their mine head on BOO/BOOT basis.

• Establishing state of art R&D and Training centre for the benefit of steel

industry in Karnataka State as well other states of India in the filed of mining, beneficiation & Pelletization.

• Requesting State Govt.(s) & various agencies for taking up promotional

/ regional exploration works upon notification from MoM as exploration entity.

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SECTION 4:PURSUITS

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PROJECT DETAILS

MAJOR NEW PROJECTS

DEVADARI IRON ORE BLOCK

250 CRS

ACQUISITION OF IDCOL NEMKAL IRON ORE BLOCK –JV PROJECT (51:49) CHIKKANAYAKANHALLI MINING PROJECT AUCTION OF CATEGORY ‘C’ IRON ORE MINES SETTING UP OF 1.5 MTPA PELLET PLANT ON BOO BASIS

700 CRS 100 CRS 200 CRS 100 CRS 700 CRS

SLURRY PIPE LINE PROJECT- JV WITH RINL & NMDC

900 CRS

BACKWARD & FORWARD INTEGRATION PROJECT FOR BFU RAILWAY SIDING AT MANGALORE- UNDER JV

300 CRS 300 CRS

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DEVELOPMENT OF DEVADARI IRON ORE BLOCK

( BELLARY DIST., KARNATAKA)

Project Under Approval

 Project cost: - `250 Cr (towards mine Development cost)  Time line : - 2 years  Project Objective: - Production of iron ore from mine and supply of Concentrate and lumps at Mangalore Plants  Future plan: - Feasibility study for sponge iron & Pellet Plant at mine head  Present Status: - Govt. of Karnataka is in the process of reserving iron ore block over an extent of 470 ha at Devadari Range for KIOCL under Section 17A 2(A) of MMDR Amendment Act 2015

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DEVELOPMENT OF NEMKAL IRON ORE DEPOSIT JOINTLY WITH APMDC

Project under approval  Project cost: - `700 Cr  Time line: - 2 years  Project Details : JV Route with equity stake of 51% : 49% by APMDC & KIOCL.  Project Objective: - Mine Development jointly & setting up value addition plant by KIOCL  Project Status :- PL granted by GoAP. Exploratory drilling will commence on receiving forest clearance Tripartite MOU signed with APMDC & RINL for development and mining of Nemkal Iron Ore Deposit, Ananthapur, AP & Setting up Beneficiation and Pellet Plant.

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DEVELOPMENT OF CHIKKANAYAKANHALLI IRON ORE BLOCK

(TUMKUR DIST., KARNATAKA)

PROJECT UNDER APPROVAL  Project cost: - `100 Cr  Time line: - 3 years  Project Objective: - Production of iron

• re from mine and setting up of

beneficiation and pelletization plant followed by ISP.  Project Status : - GOK granted ML of 116.55 Hectares. Mine Plan & EC for the project from statutory authorities in place. FC pending due to overlapping issue. GOK requested to resolve the boundary dispute issue

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PARTICIPATION IN AUCTION OF CATEGORY “C’ MINES, KARNATAKA

Project under Approval

 Project cost: - `200 Cr (per mine)  Time line: - 2 years  Project Objective: - Production of iron ore from mine and supply of iron

• re to Mangalore plants

 Project Status: - KIOCL is exploring

to participate in auction of potential 08 category “C” iron ore mines out of 14 as per NIT issued by GoK

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ACQUISITION OF STAKE & MANAGEMENT CONTROL IN IDCOL

Project under Consideration

 Initial Project Investment : - `100 Cr  Time line: - 03 Months  Project Objective: - Inorganic growth of company and setting up of value added plants in Odisha .  Project Status:

• KIOCL

appointed consultant for due diligence on IDCOL and valuation of the equity of IDCOL for the acquisition of controlling stake. The same is under progress.  Future Plan: -Geographical presence in state of Odisha which is rich in mineral. Plans for new project & infrastructure growth through Subsidiary Company.

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SETTING UP 1.5 MTPA PELLET PLANT ON BOO AT BOKARO STEEL PLANT, SAIL

Project under Approval  Project cost: - `700 Cr  Time line: - 18 Months  Project objective : - To set up green field Pellet plant at BSL, SAIL. Assured Raw Materials supply and

• ff take of Pellets by SAIL steel plant

 Project status:- KIOCL submitted the technical & financial bids. The same is under consideration for approval

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EQUITY PARTICIPATION IN SLURRY PIPELINE PROJECT PROMOTED BY RINL & NMDC

Project under Construction/Approval  Project cost: - `900 Cr  Time line: - 3 Years  Project Objective:

• Expansion
• f

business through SPV mode. KIOCL has been offered 16% stake in the project.  Project Status:

• JVA

is under

• finalization. On finalization the same

JVC will be formed to proceed further to commence the project activities.

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FORWARD & BACKWARD INTEGRATION PROJECT AT BLAST FURNACE UNIT

Project under Approval  Project cost: - `300 Cr  Time line: - 2 Years  Project Objective: -:to implement forward and backward integration projects like Sinter Plant, Billet caster & pulverized coal injector. Through this BFU will give positive contribution to the Balance Sheet.

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SETTING UP PRIVATE RAILWAY SIDING & BULK MATERIAL HANDLING PROJECT

Project under construction/approval  Project cost : - `300Cr  Time line: - 18 Months  Project objective : - To receive iron

• re from Devadari Block, Bellary &

utilizing the same in pellet plant and pig iron plant.  Project status: -Land Acquisition is

• completed. Necessary statutory

clearance obtained. Pending for mine allocation.

59 119 79 227 101 96.5 50 100 150 200 250 39

CARING ARM THROUGH CSR (`

` IN LAKHS) FOCUS AREA Health Care Education Sanitation Clean Drinking Water Environmental Sustainability

OBJECTIVE: -

• To identify & lend a helping hand to the underprivileged & economically weaker

sections of the society & contribute to their growth & development.

• Meet social obligation by playing an active role to improve the quality of life of the

communities & stakeholders on a sustainable basis for inclusive growth in the society.

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AWARD & ACCOLADES

• CAPEXIL‟S Special Export Award for outstanding Export performance in

respect of iron ore group.

• Top ten PSU‟s conferred with MOU Award for achieving Excellence in MOU

Targets.

• “State Export Excellence Award” in Mineral & Mineral Based Products Non-

SSI-Gold by Visvesvaraya Industrial Trade Center.

• Raj Vikas Rathan Award by International Friendship Society.
• Conferred with “Environment Excellence Gold Award” by Greentech

Foundation.

• Golden Peacock Eco Innovation Award” for innovation work in the field of

Environment Management & Conservation efforts by World Environment Foundation.

• Conferred with “Rajbhasa Kirti Puraskar” by Ministry of Home Affairs, Govt.
• f India for the year 2014 & 2015.
• “Governance Now – PSU Award 2015” for CSR initiatives.

CORPORATE FILM

VISIT US : - http://www.kioclltd.in E-MAIL : - cs@kioclltd.in CALL : - 080-25531525