COMPANY BASED RESEARCH PROJECT

ON

Prepared By

Name: Gaurav Tripathi

Program: PGDM (2016-18) Batch

Section: Omega

Roll No: 409

New Delhi Institute of Management

 INTRODUCTION

JSPL is an industrial powerhouse with a dominant presence in steel, power, mining and
infrastructure sectors. Part of the US $ 18 billion OP Jindal Group this young, and responsive
company is constantly expanding its capabilities to fuel its fairy tale journey that has seen it
growth to a US $ 3.3 billion. 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, the company produces
economical and efficient steel and power through backward and forward integration. JSPL
today sports a product portfolio that caters to markets across the steel value chain. The
company produces the world's longest (121-meter) rails and it is the first in the country to
manufacture large-size parallel flange beams.

JSPL operates the largest coal-based sponge iron plant in the world and has an installed
capacity of 3 MTPA (million tons per annum) of steel at Raigarh in Chhattisgarh. Also, it has
set up a 0.6 MTPA wire rod mill and a 1 MTPA capacity bar mill at Patratu, Jharkhand, a
medium and light structural mill at Raigarh, Chhattisgarh and a 2.5 MTPA steel melting shop
and a plate mill to produce up to 5.00-meter-wide plates at Angul, Odisha.

Alongside contributing to India's growth story the company is driving an ambitious global
expansion plan with its sights set on emerging as a leading transnational business group. The
company continues to capitalize on opportunities in high growth markets, expanding its core
areas and diversifying into new businesses. In Oman (Middle East), the company has set up a
US $ 500 million, 1.5 MTPA gas-based Hot Briquetted Iron (HBI) plant. It has now added a
2 MTPA integrated steel plant. In Africa, the company has large mining interests in South
Africa, Mozambique, Namibia, Botswana and Mauritania and is expanding into steel, energy
and cement.

The company endeavors to strengthen India's industrial base by aiding infrastructural

development, through sustainable development approaches and inclusive growth. It deploys
its resources to improve infrastructure, education, health, water, sanitation, environment and
so on in the areas it operates in. It has won several awards for its innovative business and
social practices. It has won several awards for its innovative business and social practices.
 VISION

To be a globally admired organization that enhances the quality of life of all stakeholders
through sustainable industrial and business development.

MISSION

We aspire to achieve business excellence through:

The spirit of entrepreneurship and innovation.

Optimum utilization of resources.

Sustainable environment friendly procedures and practices.

The highest ethics and standards.

Hiring, developing and retaining the best people.

Maximizing returns to stakeholders.

Positive impact on the communities we touch.

 GROUP COMPANIES & SUBSIDIARIES

Jindal Steel and Power Ltd.

Jindal Power Ltd.

Jindal Petroleum Ltd.
Jindal Bolivia Ltd.
Jindal Cement.
Jindal Power Trading Company Ltd.

JSW (Jindal Steel Works)

JSW Steel Ltd.

JSW Energy Ltd.
JSW Holdings Ltd.
JSW Infra and Logistics.
JSW Salem Works.
JPOCL (Jindal Praxair Oxygen Company Ltd).
JSOFT Solutions Ltd.
JSW Building Systems.
JSW Bengal Steel Ltd.

Jindal Stainless

JSW Stainless Ltd.

PT Jindal Stainless, Indonesia.
Jindal Stainless Steel way Ltd.
Jindal Architecture Ltd.
Jindal steel Italia Ltd.
Parivartan City Infra.
Jindal SAW Ltd.

Jindal SAW USA, LLC

Jindal ITF Ltd.
SV Trading Ltd.
Hexa Securities and Finance Ltd.
Jindal Metal and Alloys Ltd.

BOARD OF DIRECTORS
Smt. Savitri Jindal Chairperson Emeritus

Mr. Naveen Jindal Chairman

Ms. Shallu Jindal Director

Mr. Ravi Uppal Managing Director & Group CEO

Mr. R.V. Shahi Independent Director

Mr. Arun Kumar Purwar Independent Director

Mr. Arun Kumar Independent Director

Mr. S K Garg Independent Director

Mr. Rajeev Bhadauria Wholetime Director

Mr. D. K. Saraogi Wholetime Director

Mr. Hardeep Singh Wirk Independent Director

Mr. Shalil Mukund Awale Nominee Director IDBI Bank Ltd.

 ORGANIZATIONAL STRUCTURE

Mr. Naveen Jindal Chairman.

Mr. Ravi Uppal Managing Director & Group CEO.

Mr. Anand Goel Chief Advisor.

Mr. N. A. Ansari CEO, Jindal Shadeed, Oman.

Mr. K Rajagopal Group Chief Financial Officer& Director.

Mr. Virendra Kumar Mehta Director, Sales & Marketing.

Mr. Rajeev Bhadauria Director Group HR.

Mr. Rajesh Bhatia CEO-Global Business

Mr. S. Bandyopadhyay Executive Director & Chief Technology.

Mr. Jona Pillay Executive Director Steel Products.

Mr. Manish Kharbanda Executive Director & CEO-Mines & Minerals.

Mr. Pankaj Gautam Executive Director-Projects & Operations JSPL (Raigarh).

Mr. Rakesh Kumar Executive Director Operational Excellence.

Mr. D.K. Saraogi Executive Director (Angul).

Mr. Bharat Rohra Project Director- Phase 1B Projects (Angul).

Hervinder Singh Business Head JSPL (Jharkhand).

Mr. TS Shanbhougue Head JSPL (Barbil)

 OVERVIEW AND GOVERNANCE

Corporate governance provides a structure that works for the benefit of everyone concerned,
by ensuring that the enterprise adheres to ethical standards, laws and accepted best practices.
It imbibes the basic business ethics and values that need to be adhered to in letter and spirit.

The Corporate Governance framework of the Company is based on the following broad
practices:
Engaging a diverse and highly experienced Board of Directors, with expertise in industry,
finance, management and the law;

Deploying well defined governance structures that establishes checks and balances and
delegates decision making to appropriate levels in the organization.

Adoption of transparent and robust systems, processes, policies and procedures;

Making high levels of disclosures for dissemination of corporate, financial and operational
information to all its stakeholders;

Having strong systems and processes to ensure full and timely compliance with all legal and
regulatory requirements.

This framework is implemented through a combination of Strategic Governance

Structure and an Operational Governance Structure, in the following manner:

Strategic Governance Structure

This incorporates the deployment of a high level Group Executive Committee (GEC), Core
Management Team (CMT) and a Senior Management Committee (SMC), all with individual
and collective roles and responsibilities.

Operational Governance Structure

This incorporates the deployment of high level Management Committees (MANCO) for each
business segment and Unit Committees (UNICO) at each location. Continuous meetings and
deliberations at these levels ensures timely and appropriate decision making and helps drive
collective change in an efficient and effective manner.
 PRODUCTS AND SERVICES

RAILS

Grades: IRS 52, UIC 54, UIC 60, CR 80 & CR 100.

Size Range: Up to 121 meters.

Applications: Railway tracks, Railway siding of power plants, refineries, crane rails for port
and harbors, factories, mines, launch pads and shipyards.

PARALLEL FLANGE BEAMS

Grades: UB, NPB, WPB and IPE series.

Size Range: 180mm to 900mm.

Applications: Refineries, airports, flyovers, metro rail projects, shopping malls, power
plants, stadium, steel plants, industrial sheds and among others.
TMT REBARS

Grades: 500, 500D, 550, 550D, 600 & CRS.

Size: 6mm to 40mm

Applications: Concrete re-enforcement structures, bridges, flyovers, dams, industries, roads

and tunnels, used in coastal areas and earthquake zones.

WIRE RODS

Grade: MS, MC& HC, EQ, Boron and other Alloy Steel.

Size: 5.5mm to 22mm.

Applications: Bolts, Rivets, screws, general purpose wires, electrode wires, industrial wires,
agriculture wire, staple pin wires, pre-stressed concrete wires, spring and rope wires, needle
wires, safety pin wires, earth wires etc.
ANGLES AND CHANNELS

Angles: 50mm to 250mm

Channels: 100mm to 400mm

Applications: Power Sector, infrastructure construction, steel and cement plant construction,
telecom line tower, bus/truck body construction, industrial sheds, commercial and individual
houses and others.

FABRICATED STRUCTURE

Grades: H-type beams, I-type beams, Box sections and Star columns.

Dimensions: Depth- 350mm to 3000mm, Flange Width- 250mm to 1000mm, Length- 3 to

18m, Flange thickness- 6mm to 80mm.

Applications: Large support columns and beams for manufacturing and process plants,
airports, high rise buildings, power plants, stadium and flyovers.
 COMPETITIORS

SAIL (Steel Authority of India)

Tata Steel
ESSAR
JSW
Jindal Steel and Power
RINL (Rashtriya Ispat Nigam Ltd.)
Bhushan Steel

S. NO. Company Name Annual production

in MTPA

1. Steel Authority of India 26

2. Tata Steel 23.3

3. ESSAR 14

4. JSW 10

5. Jindal Steel and Power 3

6. RINL 2.820

7. Bhushan Steel 2.3

 GEOGRAPHICAL SPREAD

INDIA

Raigarh.
Tamnar.
Raipur.
Jindal Industrial Park.
Angul.
Tensa.
Patratu.

INTERNATIONAL

Africa.
Melmoth.
Mozambique.
Botswana.
Tanzania.
Madagascar.
Namibia.
Mauritania.
Senegal.
Australia.
Indonesia.
Oman (Middle East).
KEY AREAS

Supply

With trade barriers having been lowered over the years, imports play an important
role in the domestic markets.

Demand

The demand is derived from the sectors that include infrastructure, consumer durables
and automobiles.

Barriers to entry

High capital costs, technology, economies of scale, government policy.

Bargaining power of suppliers

Low for fully integrated players who have their own mines for raw materials. High,
for non-integrated players who have to depend on outside suppliers for sourcing raw
materials.

Bargaining power of customers

High, presence of a large number of suppliers and access to global markets.

Competition

High, presence of a large number of players in the unorganized sector, Imports from
China, Russia and FTA Countries such as Japan, South Korea.
Financial Year 15

Indian steel industry faced several challenges during the year. On the other hand the finished
steel imports surge by 70% especially from the surplus economies of China, Korea, Japan and
Russia. Korea & Japan enjoys reduced the import tariffs under the Free Trade Agreement
(FTA) with India. At the same time finished steel exports from India also decreased by 8.1%
YOY to 5.5 MT. Resultant steel trade dynamics, subdued demand and declining raw material
prices have driven global steel prices lower and impacted profitability of steel companies.

During the FY 15, the performance of the Indian companies operations was adversely
impacted by the regulatory uncertainties in the mining sector. For the first time, several of its
critical mines remained closed for varying periods, causing immense stress on operations.
This led to supply and production disruptions and impacted the cost structure.

World crude steel production grew at 1% reaching 1,665 MT in 2014, as per World Steel
Association (WSA). The global steel industry continues to face problems of large surplus
capacity. This meagre demand growth was also recorded only due to some pickup in the
demand from the advanced economies. The growth in production is coming mainly from
Korea which grew by 7.5%. Chinas crude steel production increased merely by 0.1% YoY to
822.7 MT in 2013. The EU and US recorded a growth of 1.7% compared to 2013.

Prospects

Global economic growth indicators are moderately positive, but the volatility in energy
prices, currency adjustments, swings in capital flows can potentially impact emerging
economies. The IMF forecasts world economy to expand at 3.5% this year and 3.8% in 2016,
terming global growth prospects as moderate and uneven in its latest April 2015 World
Economic Outlook. The growth in advanced economies, aided by fall in oil prices, is
projected to strengthen, for the third year in a row, to 2.4% in CY 2015 compared to 1.8% in
CY 2014.
The global steel demand in CY 2015 is expected to increase by 0.5% to 1,544 MnT, while in
CY 2016 it is projected to grow by 1.4% to 1,566 MnT. Steel demand in the developed
economies is projected to grow by 0.2% in CY 2015 and by 1.8% in CY 2016. Chinese steel
demand is projected to record a negative growth of 0.5% in CY 2015 as well as in CY 2016.

Indian steel demand is expected to reflect improving macro-economic environment. Steel end
use sectors are expected to perform better compared to previous financial year. Infrastructure
projects like dedicated freight corridor etc., are gaining momentum and the steady decline in
stalled projects coupled with hike in import duty in both flat and long products should
stimulate steel demand. Recent weakness in Indian rupee has also helped competitiveness of
domestic steel players. However, steel prices are expected to remain under pressure from
Chinese exports and increased domestic competitiveness.

Indian economy is among a few economies globally for which economic growth forecast has
been raised by the IMF. The IMF has raised its India GDP growth estimates for FY 2015-16
to 7.5%. In 2015-16, steel demand is expected to grow by 6% to 7%. However, a much
sharper than expected increase in inflation and higher than budgeted fiscal consolidation are
the key downside risks to the outlook.
 MARKET SHARE

Net Sales

9%
4%0%
Jindal Steel
4%
Gallantt Ispat
Tata Sponge
Orissa Songe
Sarda Energy
83%
 SHAREHOLDING PATTERN

70

61.89
60

50

40

Percentage of Shares
30

20 21.08
17.02

10

0
PROMOTERS INSTITUTIONS NON-INSTITUTIONS

Interpretation

Promoters has a major stake in Jindal Steel & Power which includes Individuals, Banks,
Corporate Bodies, and Central & State Governments.
 OPERATING PROFIT RATIO

3105.69
2016
2177.24

5459.82
2015
3705.68

5456.83
2014
3758.86

5994.41
2013
3938.45

6793.17
2012
4062.49

0 1000 2000 3000 4000 5000 6000 7000 8000

Consolidated Op Profit Standalone Op Profit

Interpretation

Operating margin or operating profit margin measures what proportion of a companys

revenue left over, after deducting direct costs and overhead and before taxes and other
indirect costs such as interest. Operating margin is used to measure companys pricing
strategy and operating efficiency. It gives an idea of how much a company makes (before
interest and taxes) on each rupee of sales.

Operating profit margin is highest in the year 2012 for Standalone and Consolidated
Operating Profit and lowest in the year 2016.
 NET PROFIT RATIO

5000

4000
4002.27
3000
2911.62
2000
2110.65
1893.8
1592.55
1000 1291.95

0
March'12 March'13 March'14 -310.68
March'15 March'16
-1018.88
-1000 -1454.59
-1998.62
-2000

-3000

Standalone Consolidated

Interpretation

The net profit percentage is the ratio of after-tax profits to net sales. It is a measure of the
profitability of the company after deducting all of its costs, administration expenses and
financial from the sales and income taxes.

The Net-Profit Margin of Jindal Steel and Power Ltd is continuously decreasing in the last 5
years as shown in the above chart.
 EARNING PER SHARE

50
42.4

40
31.1
30
20.9
20

10

0
March'12 March'13 March'14 March'15 March'16
-10 -14
-20.8
-20

-30

Series 1

Interpretation

The earnings per share ratio (EPS ratio) measure the amount of a company's net income that
is theoretically available for payment to the equity holders. A company with high earnings
per share ratio is capable of generating a significant dividend for investors, or it may plow the
funds back into its business for more growth; in either case, a high ratio indicates a
potentially worthwhile investment, depending on the market price of the stock.

The above figure clearly shows the earning per share of Jindal Steel & Power Ltd. There is
continuous falling down in EPS in the last 5 years. The highest EPS is 42.4 million in the
year 2012.
 DIVIDEND PAYOUT RATIO

7 7.2

5 5.1

4
3.8

0 0 0
March'12 March'13 March'14 March'15 March'16

Dividend Payout Ratio

Interpretation

Dividend payout ratio is the amount made by a company to its stakeholders usually as a
distribution of profits. When a company makes profit it can either re-invest it in the business
or distribute to its shareholders by a way of dividends. It is the amount of dividend paid to
shareholders relative to the amount of total net profit of a company.

A reduction in dividend paid is not appreciated by the investors and usually the stock price
moves down as this could point towards difficult times ahead for the company. On the other
hand a stable dividend payout ratio indicates a solid dividends policy by the companys
management.

Jindal Steel & Power Ltd. Is not paying any dividend to its stakeholders in 2015-2016.
 DEBT EQUITY RATIO

8000
6935.11
7000
6130.83
6000 5522.46

5000
4246.97 4097.73
3905.71 3773.78
4000
3397.2
3194.35
3000 2481.31

2000

1000

0
March'12 March'13 March'14 March'15 March'16

Standalone Consolidated

Interpretation

Debt' is the book or market value of interest-bearing financial liabilities such as debentures,
loans, redeemable preference shares, bank overdrafts and finance lease obligations.

'Equity' is the book value of share capital and reserves (i.e. equity section of the balance
sheet) or the market value of equity shares (i.e. market capitalization)

Debt Equity Ratio of Jindal Steel & Power Ltd is decreasing continuously decreasing as
shown in the above chart.
 STPs

STP

Segment Mining, Power Generation and Infrastructure, Ferro Chrome, Sponge Iron,
Petroleum, Cement

Target Construction, Oil & Gas, Transportation, Refining, Telecom, Ship Building,
Group Power, Automobiles, Capital Goods, Consumer Durables and Infrastructure
Sector.

Positioning One of the most prestigious and dynamic business group in the World

MAJOR COMPETITORS

Name Last Price Market Cap. (Rs Sales Turnover Net Profit Total Assets
in Cr)

Jindal Steel 85.30 7,804.13 12,734.80 -1,018.88 35,356.50

Gallant Ispat 582.40 2,241.17 534.96 28.59 458.87

Tata Sponge 611.25 941.33 573.53 30.83 807.46

Sarda Energy 164.10 590.40 1,035.21 37.55 1,422.04

Monnet Ispat 23.45 470.80 1,853.81 -1,683.23 8,662.56

Gallantt Metal 42.75 347.65 673.50 41.58 372.58

Godawari Power 52.20 170.99 1,538.89 -63.39 1,875.10

Gyscoal Alloys 70.30 111.27 159.33 -13.25 173.27

MSP Steel 11.25 99.11 904.52 -178.44 1,728.24

Adhunik Metalik 7.80 96.33 467.17 -289.05 2,722.87

Jai Balaji Ind 10.20 85.10 1,212.57 -666.12 2,495.47

Vaswani Ind 8.95 26.85 237.51 1.16 126.79

Ankit Metal 1.65 23.28 962.09 -357.20 1,510.13

SWOT ANALYSIS

Strength:-
Highly equipped and modern technological manufacturing plant.
Using highly competitive Raw material
Customer Satisfaction through supplying product in time
Providing good services to customer
Skilled and highly Experienced Department Heads.
Weakness: -.
Less scope for diversification of product.
Weak performance on the back of the higher raw material cost and the power & fuel
cost.

Opportunity: -
Growing Steel and Power Industry
Availability of skilled labours and policy Support.
Huge export opportunity
Availability of well connected road network.

Threats: -
Fluctuating policies of the government and ecological imbalances.
Competitors.

PESTEL ANALYSIS

Indian steel is doing well from many years. Steel industry is contributing near about 1.2% in
the total GDP. Because of the industrial growth and other important developments happening
all over the world the so rapid rise in demand of the steel is observed in this sector. The major
players in the steel industry are SAIL (Steel Authority of India.), TATA STEEL, ESSAR
STEEL and JINDAL STEEL & POWER.
Indian steel mainly contributes in the finished steels, semi-finished steel, pig iron and
stainless steel. Private sector plays very important role in the Indian steel industry. The
private sector in the steel industry contributes approximately 2/3rd of the total market of the
steel.

Asian countries are in the lead with the production of the steel, China is the top producer
among the Asian countries which are contributing high a supply of the steel in the
international market.419million ton of the steel is produced only in the China. In past 6 years
there are many acquisitions and mergers are happening in the steel industry. May be this
could be the one of the reasons behind this tremendous growth globally.

After the china country, Japan, India, and South Korea. India is contributing total of the
53million ton steel in global market. The japan is producing only 9% of the steel which is
contributed to the global steel market. India is also one of the major counties in the
production of the steel. The east, south, and west regions are important for the steel industry
in India. In India because the vast availability of resources and major industry players India is
enjoying the boom in this sector which are responsible of the growth in the GDP. The
opening up the economies in the global market is responsible for the high investment in the
industry sector where lots of acquisitions and mergers are happening in the industry.

The PESTEL ANALYSIS of the industry is divided into five parts which can be discussed as
follows:

P- Political analysis

E- Economic analysis

S- Socio-culture analysis

T- Technological analysis

E- Environmental analysis

L- Legal analysis.
POLITICAL ANALYSIS:

Political analysis includes the factors which can influence the business. It is included the
political factor which includes the policy offered by the government to the specific sector.
Here for this sector government introduces the National Steel Policy. The main aim for the
introduction of this policy is to fill the gap between the demand and supply of the steel. To
increase the production up to million ton is also the main objective of the policy.

Under this policy the special incentives are designed for the steel sector. Incentives like the
cut in the duty, zero duty on imports, provision of the land and other infrastructural facilities
are the facilities provided for the steel sector. Under this policy the government is encourage
to the use the full opportunities available in the PUBLIC AND PRIVATE PATNERSHIP
(PPP). With the growing industry the government is increased the sales tax from the 15% to
20% where as 75% FDI (foreign direct investment) is allowed in the industry this scheme
also provides the various concessions in the custom duties. Though there is a rise in the
infrastructure facilities in the country but considering the steel industry the present condition
of the infrastructure is not sufficient in the nature .because of the lack in infrastructure steel
industry is facing many problems.

ECONOMICAL ANALYSIS:

STEEL industry is concern to be a very booming industry from past decades. Opening up
with the various economies the foreign direct investment is the happened in this sector the
various foreign players are interested to invest in the country. Under the various economies
schemes there is permission in advance licensing scheme which allows the duty free imports
of raw material for exports. But, with the boom in the industry GDP is rising at very slow
rate. The steel industry is also facing the problem of the subprime crisis occurs in the united
states before 15 months. Because of the subprime crisis there is ill effect occurs in the
automobile industry, infrastructure and other business which are related with the steel
industry. There is huge gap between the demand and the supply of the steel in the society.
SOCIO- CULTURE ANALYSIS:

The socio culture is one of the important aspect in the analysis of the industry it describes the
impact of the particular industry on the society. Likewise the steel industry also give the
encouragement to the permanent employment to the people but on the other hand it divides
the area in to the rural and urban sector because the industry is only in the particular area only
which leads to the particular development of that area only and not overall the development
because of the working conditions the people which are employed in the steel industry faced
many health problems which are incurable in the nature and many industries are not paying
the attention on the health of the employees. Any kind of the allowances are not given to the
employees. Steel industry is also responsible for the development in the rural sector which
leads to the rise in the standard of the living of the people.

TECHNICAL ANALYSIS:

The traditional technologies are being used from many years in the industry. There is no
innovation in the use of the technique in the production process. The Tata steel is developing
the same technique is by which the encouragement is given to the trading of the steel. Tata
and sail introduces the online trading of the steel. Only the electric furnace is being used now
days in the production process but because of the fluctuations in the energy there is wastage
in the raw material. The basic technologies are used in the production process are basic arc,
induction furnace and electric furnace which are outdated in the nature. Sail the one of the
leading steel industry India is planning to set up a plan with PASCO for using the latest
technology.

ENVIRONMENTAL ANALYSIS:

Though the steel industry is encouraging the many sectors and the encouraging the
development it is creating the unfavorable environment in the nature. The all leading
industries are following the environmental acts which are declared by the governments,
though it is creating very bad impact on the environment. Many industries are using the
pollution control equipment and energy saving equipment but that is not sufficient in the
nature. The least importance is given to the environmental aspect. But the Tata steel is
encouraging the ecofriendly system, to reduce the emission the carbon dioxide during the
production process.

LEGAL ANALYSIS:

Government is introducing the various rules and regulations of this particular industry. The
government is about to paying the more attention in the health policies of the employees
which are working with the steel industry. Special health incentives and rules are introduced
in the steel industry.

4 Ps Analysis

JINDAL STEELS PRODUCTS

1. PRODUCT: -

Hot Rolled products:

HR Coil, HR plate and sheet.
Applications: Automobile, Boiler and Pressure Vessels, Ship Building, Railways,
Transmission Towers, Oil and Petro Chemicals, Marine Containers, Coal and Mining
General and Heavy Engineering

Cold Rolled Products:

CR coil and Sheet
Applications: Automobile, White good, Cold rolled formed section, General engineering
& fabrication, Packing, Drums/ barrels, Furniture
Galvanized Product:
Galvanized Corrugated Sheet, GP Sheet and Coil
Applications: Automobile, Boiler and Pressure Vessels, Ship Building, Railways,
Transmission Towers, Oil and Petrochemicals, Marine Containers, Coal and Mining,
General and Heavy Engineering.

Pre-Painted Galvanized Product:

PPGI coil, PPGI sheet, PPGI profile
Application: Roof, Wall cladding and other building products, Household appliances,
Furniture, Automotive.

2. PRICE

Pricing is one of the most crucial elements behind a successful product. It is more pragmatic
and fact oriented in industrial marketing as compared to pricing for consumer products.
Pricing in industrial marketing is closely related to the firms product, distribution and
communication strategies.

Factors Influencing Pricing Strategy in Steel Industry

The most important factors which affect pricing strategies in steel industry are:

1. Production Costs
2. Market demand (derived in nature)
3. Competition
4. Government regulations
 3. PLACE

Place represents the location where a product can be purchased. But in industrial marketing
place is often referred to as the distribution channel.

Distribution Channels at Jindal Steel:

Jindal Steel has launched Jindal Shoppe to markets its steel products as compared to products
launched by TATA Steel. The exclusive Jindal showrooms retail all types of Jindal steel,
ranging from HR coil to color-coated steel.

JINDAL aims to provide a unique experience of buying steel products through branded
distribution channels. It started off with an idea to give a different feel and ambience to steel
retail. Jindal Steel wanted to give a feel of a mini-departmental store or a mall, which would
have the same format, same look and feel wherever the buyer goes in the country. So, it will
give a branding to the distribution channel. It will also display all the products in one place so
that the customer gets a touch and feel of what the steel looks like. The smaller towns will be
focus areas. The bigger towns and metros will also have shops, but their focus is on tier 2 and
3 cities.

4. PROMOTION

In B2B marketing advertising, promotions and publicity plays an important role in the
communication strategies. Hence, to contribute to the overall effectiveness of the promotional
strategies utmost care must be taken by the companies.
B2B promotion is used to create awareness of the company, to increase the sales of the
product and to increase the overall effectiveness of the selling efforts. The promotional
programme begins with carefully developed advertising objectives that must be formulated
from corporate and marketing objectives in such a manner as to set the direction for creating,
co-coordinating, and evaluating entire promotional programme.
 BACKGROUND OF THE INDUSTRY

JSPL is an industrial powerhouse with a dominant presence in steel, power, mining and
infrastructure sectors. Part of the US $ 18 billion OP Jindal Group this young, and responsive
company is constantly expanding its capabilities to fuel its fairy tale journey that has seen it
growth to a US $ 3.3 billion. 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, the company produces
economical and efficient steel and power through backward and forward integration. JSPL
today sports a product portfolio that caters to markets across the steel value chain. The
company produces the world's longest (121-meter) rails and it is the first in the country to
manufacture large-size parallel flange beams.

JSPL operates the largest coal-based sponge iron plant in the world and has an installed
capacity of 3 MTPA (million tons per annum) of steel at Raigarh in Chhattisgarh. Also, it has
set up a 0.6 MTPA wire rod mill and a 1 MTPA capacity bar mill at Patratu, Jharkhand, a
medium and light structural mill at Raigarh, Chhattisgarh and a 2.5 MTPA steel melting shop
and a plate mill to produce up to 5.00-meter-wide plates at Angul, Odisha.

Alongside contributing to India's growth story the company is driving an ambitious global
expansion plan with its sights set on emerging as a leading transnational business group. The
company continues to capitalize on opportunities in high growth markets, expanding its core
areas and diversifying into new businesses. In Oman (Middle East), the company has set up a
US $ 500 million, 1.5 MTPA gas-based Hot Briquetted Iron (HBI) plant. It has now added a
2 MTPA integrated steel plant. In Africa, the company has large mining interests in South
Africa, Mozambique, Namibia, Botswana and Mauritania and is expanding into steel, energy
and cement. The company endeavors to strengthen India's industrial base by aiding
infrastructural development, through sustainable development approaches and inclusive
growth.
 GROUP OF COMPANIES

Jindal Steel and Power Ltd.

Jindal Power Ltd.

Jindal Petroleum Ltd.
Jindal Bolivia Ltd.
Jindal Cement.
Jindal Power Trading Company Ltd.

JSW (Jindal Steel Works)

JSW Steel Ltd.

JSW Energy Ltd.
JSW Holdings Ltd.
JSW Infra and Logistics.
JSW Salem Works.
JPOCL (Jindal Praxair Oxygen Company Ltd).
JSOFT Solutions Ltd.
JSW Building Systems.
JSW Bengal Steel Ltd.

Jindal Stainless

JSW Stainless Ltd.

PT Jindal Stainless, Indonesia.
Jindal Stainless Steel way Ltd.
Jindal Architecture Ltd.
Jindal steel Italia Ltd.
Parivartan City Infra.
Jindal SAW Ltd.

Jindal SAW USA, LLC

Jindal ITF Ltd.
SV Trading Ltd.
Hexa Securities and Finance Ltd.
Jindal Metal and Alloys Ltd.

Key Focus Areas

Reduce dependence on thermal coal by going through BoF route.

Operational Efficiency with an aim to Reduce overall cost in Steel Production

Commissioning of Head Hardening Rail Project in Raigarh.

Optimize capacity utilization of Angul and Patratu plants.

Increase Retail Steel products sales in contiguous states.

 Factors that Lead to Growth of the Company

Production and on time delivering quality products that conform to our customers
requirements.
Continually improving our systems and processes by value addition and product
development through innovation.
Up gradation of relevant technology for continuing suitability to the changing needs
of the organization and ensure training and development of the employees.
Involving all employees for implementing and continually improving the
effectiveness of the quality management system.
Periodically reviewing the policy and quality objectives and communicating across
the organization to align with the business requirements.
Training and motivating all employees to ensure that the entire corporation is
equipped and capable of achieving quality objectives.

The Human Resource Management

Human Resource Development (HRD) is the frameworks for helping employees develop
their personal and organizational skills, knowledge, and abilities. Human Resource
Development includes such opportunities as employee training, employee career
development, performance management and development, coaching, mentoring, succession
planning, key employee identification, tuition assistance, and organization development.

The focus of all aspects of Human Resource Development is on developing the most superior
workforce so that the organization and individual employees can accomplish their work goals
in service to customers.

Organizations have many opportunities for human resources or employee development, both
within and outside of the workplace.
This shift in the way human resources are treated has come about due to the prevailing notion
that human resources are sources of competitive advantage and not merely employees
fulfilling their job responsibilities. The point here is that the current paradigm in HRD treats
employees as value creators and assets based on the RBV or the Resource Based View of the
firm that has emerged in the SHRM (Strategic Human Resource Management) field. One
reason for the emergence of the RBV or the SHRM paradigm is that with the advent of the
service sector and the greater proportion of companies in the service sector, employees are
not merely a factor of production like land, labor and capital but in fact, they are sources of
competitive advantage. As a matter of fact, many IT and Financial Services companies
routinely refer to employees as the value creators and value enhancers rather than just
resources doing their job.

The field of HRD now has taken on a role that goes beyond employee satisfaction and
instead, the focus now is on ensuring that employees are delighted with the working
conditions and perform their jobs according to their latent potential which is brought to the
fore. This has resulted in the HRD manager and the employees of the HRD department
becoming partners in the organizations progress.

Challenges Faced By the Company

With increasing competition, the company faces too many risks.

Having large number of substitutes, the company cannot charge more from the
prospective customer, so the profit margin is reduced
By using the new and advanced technology the cost of providing the service has
increased and that is why the company is restricted on generating limited revenue
Rising input costs for cement and other materials
Longer working capital cycle
Shortage of skilled manpower
Big and powerful competitors with large revenue
Rivalry among the existing competitors in the industry is high.
 Solutions

Better understand our risk profile.

Understand and better manage the uncertainties which our performance.
Contribute to safeguarding company value and interest of various stakeholders.