STEEL EXCHANGE INDIA LIMITED has informed the Exchange about Investor Presentation
Steel Exchange India Limited
Regd. Office : 303, My Home Laxminivas Apartments, Greenlands, Ameerpet, Hyderabad - 500 016.T.S
Phone: +91-40-23403725, Fax : +91-40-23413267
oN
me Corp. Office : Block-A, Green City Towers, Green City, Near Apparel Export Park,
PORILES
Vadlapudi (Post), Visakhapatnam-530049, Andhra Pradesh Phone: +91-891-2587175, 2587573, Fax : +91-891-2749215, 2749218
www.seil.co.in
GST NO: 37AABCP9362L1ZV
CIN No. : L74100AP1999PLC031191
E-mail : info@seil.co.in
SEIL/Investor Presentation/ UFR Q3/2020-21
10" February, 2021
To The Manager, Departmentof CorporateServices, BSE Limited P.J. Towers,Dalal Street, Port, Mumabi — 400001
Scrip Code: 534748
Dear Sir/Madam,
To The Manager, Listing Department, National Stock ExchangeofIndia Limited, Exchange Plaza, Bandra Kurla Complex, Bandra(East), Mumbai — 400051
Scrip ID: STEELXIND
Sub:Intimation under Regulation 30 of the Securities and Exchange BoardofIndia (Listing Obligations and Disclosure Requirements), Regulations, 2015 [Listing Regulations] — Investor Presentation
Pleasefind attached herewith Investor Presentation for the information of the Stakeholders.
Submitted for your kind information and record please.
Kindly host the same on your Website.
Thanking You,
YoursFaithfully,
For Steel Exchange India Limited QemtrLre Le. + Raveendra Babu M CompanySecretary M.No: A34409
CC to: The Calcutta Stock Exchange Limited, 7, Lyons, Range, Kolkata — 700001
Integrated Steel Plant
: Sreerampuram, L.Kota Mandal, Vizianagaram District-535161.
:
Phone: 08966-267172, Fax : 08966-267218
PowerPlant & SMS
: Opp. Mandapalli New Bridge, Kothapeta, East Godavari District-533223.
Phone: 08855-244400, Fax : 08855-244406
WORKS
Re-Rolling Unit
: Plot No : 1, |.D.A. Edulapaka Bonangi, Paravada Mandal, Visakhapatnam-531201.
Phone: 08924-247055, Fax: 08924-247685
e FY ‘21 Investor Presentation
); STEEL EXCHANGEINDIA LID Strengthening our Planet
Safe Harbor Statement
THIS PRESENTATION IS BEING PRESENTED TO YOU SOLELY FOR YOUR INFORMATION AND MAY NOT BE REPRODUCED, REDISTRIBUTED OR PASSED ON, DIRECTLY OR INDIRECTLY, TO ANY OTHER PERSON OR PUBLISHED, IN WHOLE OR IN PART, FOR ANY PURPOSE. This Presentation has been prepared by Steel ExchangeIndia Limited and has not been independently verified. None of the Companyor any oftheir affiliates, advisers or representatives accepts any liability whatsoever for any actual or consequential loss or damages howsoever arising from the provision or use of any information contained in this Presentation. This Presentation has been prepared by the Company based on information and data which the Company consider reliable, but the Company makes no representation or warranty, express or implied, as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information contained herein or any statement made in this Presentation. This Presentation does not purport to present a comprehensive overview of the Group or contain all the information necessary to evaluate an investment. The statements contained in this Presentation speak only as at the date as of which they are made, and the Company expressly disclaims any obligation or undertaking to supplement, amend or disseminate any updatesor revisions to any statements contained herein to reflect any change in events, conditions or circumstances on which any such statements are based. None of the Company, its management, or their respective advisers undertakes any obligation to provide the recipient with access to any additional information or to update this Presentation or to correct any inaccuracies in any such information which may become apparent. Past performance information in this Presentation should not be relied upon as an indication of (and is not an indicator of) future performance. This Presentation contains statements that constitute forward-looking statements. These statements include descriptions regarding the intent, belief or current expectations of the Company and/or its management, directors and officers with respect to the consolidated results of operations, financial condition, cash flows and prospects of the Group. These statements can be recognized by the use “projects,” “intends,” or any other words with similar meaning or intent. Such of words such as “expects,” “plans,” forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and actual results may differ from those in the forward-looking statements as a result of various factors and assumptions including but not limited to price fluctuations, legal, financial and regulatory pandemics, actual demand, exchange rate fluctuations, competition, environmental risks, change in frameworks, political risks and factors beyond the Company’s control. This Presentation is being presented by the Company solely for your information and for your use and may not be copied, disclosed, reproduced or redistributed to any other person in any manner without the Company’s prior consentin each instance.
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SEIL Investor Presentation
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Industry Outlook
Steel, along with its alloys, is one of the most common metals used across the world in the
construction sector, accounting for more than 40% of world steel demand.
Global spending on construction is expected to reach $14 trillion by 2025 whichis further going to
enhance the demandof crude steel. Construction in India is expected to grow at a strong CAGR of
over 5% due to FDI, thereby stimulating the demandfor crudesteel.
Global crude steel production reached 1869.9 million tonnes (Mt) for the year 2019, up by 3.4%
compared to 2018. India’s crude steel production for 2019 was 111.2 Mt, up by 1.8% on 2018. India
produced 9.1 Mt of crude steel in October 2020, up 0.9% on October 2019.
In thelast 20 years,this is the 1‘ time China is importing steel which is driving the current cycle.
The Indian government has always supported the steel industry and hasset a target of reaching an
annual steel making capacity of 300 million tonnes by 2030.
India’s crude steel production is expected to reach 255 million tonnes by 2030, at 85% capacity
utilization.
SEIL Investor Presentation
AN@, STEEL EXCHANGE INDIA LID StrengtheningourPlanet 5
Industry Outlook
Steel production anduse: geographical distribution 2009
Steel production anduse: geographical distribution 2019
Crude steel production World total: 1 239 million tonnes
OtherAsia
Crude steel production World total: 1 869 million tonnes
Se 8%
6.8%
Other Asia 7.3%
Other Europe 2.1%
Others comprise: Africa Middle East
1.2% 14%
Central and South America 3.1% Australia and New Zealand 0.5%
Others comprise: Africa Middle East
0.9% 2.4%
Central and South America 2.2% Australia and New Zealand 0.3%
Source; WSA
SEIL Investor Presentation AN@; STEEL EXCHANGE INDIA LTD i!ening our Planet =
Industry Outlook
Global Crude Steel Production (MTPA)trend
China steel exports (MTPA)
Significant room for improvementin per-capita consumptionin India
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v Lowerper capita consumption compared to
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step with weaker demandoutlook
¥ Higher domestic demandin China on the back of
proactive fiscal and monetary policies
~ Govt driven Infrastructure, construction spend to drive the growth in the domestic steel demand
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Source: WSA
‘Source: WSA, GACC
‘Source: WSA (World Steel in Figures 2020)
Reducing Chinese steel exports supplemented with gradual domestic recovery bodes well for the domestic steel sector
SEIL Investor Presentation
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Industry Outlook
Per Capita Consumption (Kgs)
Sector Wise Steel Consumption
15
74.1
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= Construction & Infra
= Capital Goods
= Automobile
= Intermediate Products
FY16
FY17
FY18
FY19
Source: "Annual Report 2019-20", Ministry of Steel
= Consumer Durables
g Railways
Key drivers for the continuous rise in the production and consumption of Steel has been a strong domestic demand till FY19, from major consuming sectors, combined with a rise in export of Steel grades, like structural Steel, HR and CR Coils/ Sheets etc. National Steel Policy 2017, lays significant emphasis on increasing steel consumption across major segments of infrastructure, automobiles, and housing, resulting in a potential rise in per capita Steel consumption to 160 kg by 2030.
SEIL Investor Presentation
QN@, STEEL EXCHANGEINDIA LTD Strengtheningour Planet . one
Industry Outlook
NewNational Stee! Policy (NSP) aims to achieve 300 MnTof steel making capacity and 160 kgs of percapita steel consumption 2030-31 at an investment of USD 156.08 bn Policy emphasis on Governmenttenders for domestically manufacturedsteel & iron products Indian steel makers importing intermediate products of raw materials can claim benefits of domestic procurement provision by adding minimum of 15 percent value of the product
Schemefor the promotion of R&Din iron andsteel sector has been continued under the 14th Finance Commission (FY20) Underscheme,26projects have been approvedwith financial assistance of USD 24.98 bnfrom Ministry of Steel Ministry of Steelis setting up industry driven institutional mechanism - Steel Research & TechnologyMission of India (SRTMI) to facilitate joint collaborative research projects
The Governmenthas reduced basic customsduty on the plants and equipment required for initial set up or expansionofiron orepellet plants andiron ore beneficiation plants from 7.5 percentto 2.5 percent Customsduty on importedflat-rolled of stainless-steel products has been increased to 15 percent from 7.5 percent Basic customs dutyon steelgrade dolomite and steel grade limestone reduced to 2.5 percentfrom 5.0 percentand from 10.0 percentto 5.0 percentfor forged steel rings used for manufacturingof bearings of wind-operated generators
Exceptpellets, export duty was increased to 50 percent ad valorem onall varieties ofiron ore
100 percent FDI through automatic routeis allowed in Indian steel sector
Policy focuses on shifting from experts while attracting shifts on supply chains to providing fiscal incentives and putting import restri Golwill review existing FTAs and strengthenthecertificate of origin rule to stop circumvention, introduction of an Offset Clausein all Trade agreements to promote “Makein India”in return for market accessis also being considered Besides imposing stringent standard normsfor imports of steel and value addition norms the Gol is considering policy support for the domestic industry by giving it infra status which shall enable the sector to access finance at competitive rates
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SEIL Investor Presentation
); STEEL EXCHANGEINDIA LTD StrengtheningourPlanet
Industry Outlook
Planned industrial corridors in India
Planned Smart Cities
public domain
Source: Department of industrial Policy & Promotion,
Source: Ministry of Urban Development and Housing, Press information Bureau
SEIL Investor Presentation
we STEEL EXCHANGEINDIA LTD StrengtheningourPlanet =
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Manufacturing Facilities
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Com pany Information
Integrated Steel a
STEEL EXCHANGEINDIA LTD Strengtheningour Planet
SEIL Investor Presentation
Shareholding
Manufacturing Facilities
S. No.
1.
2.
3.
4.
Facility
Location
Capacity
Integrated Steel Plant
Sponge Iron Unit (Acquiredfrom GSAL)
Billet /Steel Melting Shop (SMS) -
7
Rolling Mill
Captive Thermal Power Plant
Sreerampuram, L. Kota Mandal, Vizianagaram District, Andhra Pradesh
Rolling Mill
E. Bonangi, Parwada Mandal, Visakhapatnam District, Andhra Pradesh
220000 TPA
250000 TPA
225000 TPA
60 MW
45000 TPA
Ingot Division
Kothapeta, East Godavari
90000 TPA
Captive Natural Gas PowerPlant
District, Andhra Pradesh
11.64 MW
SEIL Investor Presentation
QN@, STEEL EXCHANGEINDIA LTD Strengtheningour Planet
Integrated Steel Plant — Salient Features
Captive Railway Siding with 2 Platforms for receipt of Iron Ore / Iron Ore Fines and Coal Rakes.
Situated on the Bailadila — Kirandul railwayline.
Hugecapacity for coal crushing and extensive raw-material handling system for Iron Ore and Coal.
Wateravailability in the area as per the requirement. Permissionto lift 8000 m3/day of water.
Captive Power Plant with power generation of 60 MW of which 12 MW comesfrom recovered waste
heat of sponge iron kilns. In addition to fresh coal, coal fines and char generated in the spongeiron unit is
also used for power generation which helps in reducing the cost of power.
Double circuit line from 132 kV substation and present switchyard reduces cost of the project.
The plant is located on 400 acres of land. The existing plant is built only on 30% ofthis land and has
adequate land and infrastructure available for future expansion up to a capacity of 1.5 million tons.
The companyalso has a detailed project report prepared by M/s M.N. Dastur for phased expansion to
achieve the 1.5 million tons capacity.
Easily accessible by State / National Highways from Chennai and Hyderabad andis about 35 kms from
Vishakhapatnam city. Proximity to ports allows for access to imported raw material inputs with low
transport costs, usually a major cost sink forsteel units.
SEIL Investor Presentation
QN@, STEEL EXCHANGEINDIA LTD
‘Strengthening our Planet
3 Lane RailwaySiding
SEIL Investor Presentation
we STEEL EXCHANGEINDIA LTD StrengtheningourPlanet =
Coal Handling Plant
SEIL Investor Presentation
4.
STEEL EXCHANGI
CFBCBoiler
SEIL Investor Presentation
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STEEL EXCHANGEINDIA LID
Strengtheningour Planet
132 kV Substation
SEIL Investor Presentation
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Plant Location
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SEIL Investor Presentation
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‘Strengthening our Planet
Board Of Directors
S. No.
Name
Designation
Mr. Bandi Satish Kumar |Mr. Bandi Ramesh Kumar
Mr. Bandi Suresh Kumar
Chairman & Managing Director Chief Financial Officer & Joint Managing Director Joint Managing Director
Mr. V.V. Krishna Rao
Director
|
2.
3.
4.
5. 6.
7.
8.
9.
Mr. Bavineni Suresh |Mr. Ramineni Rama Chandra Rao
|Mr. Chivukula Siva Prasad
Mr. Kodali Krishna Rao
|Mr. G. Venkata Narayana Reddy
10.
Mrs. Sujata Chattopadhyay
Independent Director
Director IndependentDirector
Independent Director
Independent Director IndependentDirector
SEIL Investor Presentation
QN@, STEEL EXCHANGEI
INDIA LTD Strengtheningour Planet
Key Financial Indicators
S. No.
Particulars
2017
2018
2019
2020
ondepee30
1
2.
3.
4.
5.
6.
7.
8.
9.
"0.
i.
12.
NetSales
1278.52
930.45
1029.28
791.42
PBT (before exceptional)
[105.54]
[167.10]
[10.48]
PBT(after exceptional )
[158.84]
[214.69]
[17.17]
PAT
[157.16]
[170.14]
[36.79]
Paid Up Capital
Reserves
Total Secured Loans
Total Unsecured Loans
Gross Profit/EBITDA
75.98
222.27
961.60
456.32
81.65
75.98
5215
1038.39
366.89
3482
75.98
15.35
990.83
345.34
64.52
(Manafuctarinaales)
1917
2876
3494
NetProfit
Depreciation
[157.16]
[170.14]
[36.79]
29.76
29.00
29.62
50.65
39.17
64.29
75.98
79.52
984.28
247.37
81.36
3908
64.29
27.24
582.00
56.98
110.86
110.86
75.98
190.38
411.57
62.00
82.81
6094
110.86
18.52
SEIL Investor Presentation
AN@, STEEL EXCHANGE INDIA LID Strengtheningour Planet
Debt Resolution By way of OTS (One Time Settlement)
¢
SEIL’s OTS proposal for 7510.17 crores has been accepted byall the Lenders in Dec ‘20.
¢ The companyhassuccessfully paid the duesofall the Lenders on 29.01.2021 as follows
> Raising listed NCDs under private placement amounting to %382.80 crores which was
subscribed by M/s Edelweiss
> 217.20 crores by way of equity share subscription for 44,04,059 equity shares on 01.02.2021 at a price of 239 per share which includes share premium of 29 per share by M/s Edelweiss
> The balance amount of =110.17 crores has been paid by the company through internal
accruals/unsecuredloans.
¢ The total debt as of 29.01.2021 is $442.80 crores (includes %60 crores of Unsecured Loans
of promoters).
SEIL Investor Presentation
QN@, STEEL EXCHANGEINDIA LTD StrengtheningourPlanet
Thank You Very Much
For Further Information on Investor Presentation You may Contact Mr. Bandi Bansidhar, Asst. Vice President-Operations at 9951177277
www.simhadritmt.com
@SimhadriTMT(GI) @&) Simhadri TMT STEEL EXCHANGE INDIALTD “~~ i
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SEIL Investor Presentation
Strengthening Our Pianet
Strengthening our
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