MIRA
INFORM REPORT
|
Report Date : |
17.01.2008 |
IDENTIFICATION
DETAILS
|
Name : |
BHUSHAN STEEL LIMITED |
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Formerly Known As : |
BHUSHAN STEEL AND STRIPS LIMITED |
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Registered Office : |
F Block 1st Floor, International Trade Tower, Nehru Place,
New Delhi-110 019 |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
07.01.1983 |
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Com. Reg. No.: |
55 - 14942 |
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CIN No.: [Company
Identification No.] |
L74899DL1983PLC014942 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
DELB07323B |
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PAN No.: [Permanent
Account No.] |
AAAB1247M |
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Legal Form : |
Public Limited Liability Company. The company’s shares are listed on
the Stock Exchanges. |
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Line of Business : |
Engaged in the business of manufacturing and marketing of cold rolled
steel strips/sheets/coils and galvanized cold rolled steel strips/sheets/coils. |
RATING &
COMMENTS
|
MIRA’s Rating : |
A |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
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56-70 |
A |
Financial & operational base are regarded healthy. General unfavourable
factors will not cause fatal effect. Satisfactory capability for payment of
interest and principal sums |
Fairly Large |
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Maximum Credit Limit : |
USD 48000000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a
well-established company having satisfactory track. Directors are reported as experienced, respectable and
resourceful industrialists. Their trade relations are reported as fair. General
financial position is good. Payments are reported as slow but correct. The company can
be considered good for normal business dealings at usual trade terms and
conditions. |
LOCATIONS
|
Registered
Office : |
F Block, 1st
Floor, Nehru Place, International Trade Tower, New Delhi – 110 019, India |
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Tel. No.: |
91-11-26462373 (5 Lines) / 42297777 // 42295555 |
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Fax No.: |
91-11-26478750 /
26415845 |
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E-Mail : |
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Website : |
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Corporate
Office : |
F-Block,
Ist Floor, International trade Tower, Nehru Place, New Delhi, Pin-110019,
India |
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Tel. No.: |
Tel:-
91-11-26462373 |
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Fax No.: |
91-11-26478750 |
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E-Mail : |
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Factory 1 : |
23, Site IV,
Sahibabad Industrial Area, Sahibabad, District Ghaziabad – 201 010, Uttar
Pradesh |
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Tel. No.: |
91-120 - 2770601-
08 |
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Fax No.: |
91-120-2770509,
2773602 |
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E-Mail : |
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Factory 2 : |
28/4, Site IV, Sahibabad
Industrial Area, Sahibabad, District Ghaziabad, Uttar Pradesh – 201 010 |
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Factory 3 : |
Village Nifran,
Savroli and Dehvali, Taluka – Khalapura, District Raigad (Near Khopoli),
Maharashtra |
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Tel. No.: |
91-2192- 274263,
274294, 274296 |
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Fax No.: |
91-2192-274292,
274293 |
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E-Mail : |
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Factory 1 : |
Meramandali, District
Dhenkanal, Orissa |
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Branches : |
Located at :- Agartala, Agra,
Ahmedabad, Aurangabad, Ahmednagar, Bangalore, Bhuvaneshwar, Bhatinda,
Chandigarh, Chennai, Guwahati (Assam), Hyderabad, Haldwani, Indore, Jaipur,
Jalandhar, Karnal, Kolkata, Kanpur, Ludhiana, Mumbai, Nagpur, Nasik, Patna,
Pune, Parwanoo, Rishikesh, Siliguri, Vadodara, Kullu (Himachal Pradesh), Dera
Bassi (Punjab), Faridabad, Kanpur, and Varanashi |
DIRECTORS
|
Name : |
Mr. Brij Bhushan
Singal |
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Designation : |
Chairman |
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Name : |
Mr. Sanjay Singal |
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Designation : |
Vice Chairman & Managing Director |
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Name : |
Mr. Neeraj Singal |
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Designation : |
Managing Director |
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Name : |
Mr. Subir Bisht |
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Designation : |
Nominee (ICICI) |
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Name : |
Mr. Mohan Lal |
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Designation : |
Director |
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Name : |
Mr. A.K. Khushu |
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Designation : |
Whole time Director |
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Name : |
Mr. Ravi Kant
Srivastava |
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Designation : |
Additional
Director |
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Name : |
Mr. Nittin Johari |
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Designation : |
Whole-time
Director |
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Name : |
Mr. Rahul Sen Gupta |
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Designation : |
Whole-time
Director |
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Name : |
Mr. M. V.
Suryanarayana |
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Designation : |
Nominee (LIC) |
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Name : |
Mr. P.K. Aggarwal |
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Designation : |
Whole time Director |
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Name : |
Mr. Sandeep
Bakshi |
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Designation : |
Nominee Director
of ICICI bank |
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Name : |
Shri V.K.
Mehrotra |
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Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Mr. O. P. Davra |
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Designation : |
Company Secretary |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
As on 30.06.2007
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
|
Shareholding of promoter and promoter Group |
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Indian |
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Individuals/HUF |
26471992 |
62.33 |
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Bodies Corporate |
787717 |
1.85 |
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Public shareholding |
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Institutions |
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Mutual Funds/UTI |
1300 |
0.00 |
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Financial Institutions/Banks |
1300 |
0.00 |
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Insurance Companies |
495242 |
1.17 |
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Foreign Institutional Investors |
1008088 |
2.37 |
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Non-institutions |
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Bodies Corporate |
10564503 |
24.87 |
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i)Individuals-Hold up to Rs.0.100 Million (NOM Value) |
949795 |
2.24 |
|
ii)Individuals-Hold above Rs.0.100 Million (NOM Value) |
2125446 |
5.00 |
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Any Other (Specify) – A) Clearing Members |
12245 |
0.03 |
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B) Non-Residents |
54034 |
0.13 |
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Total |
42471662 |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Engaged in the business
of manufacturing and marketing of cold rolled steel strips/sheets/coils and galvanised cold rolled steel strips/sheets /coils. |
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Products : |
Item Code No. (ITC Code) 721041 Product Description : Corrugated coated with Zinc Cold
Rolled Products of Iron or Non Alloy Steel of a width of 600 MM or
more Item Code No. (ITC Code) 721049 Product Description : Flat Coated with Zinc Cold Products of Iron or Non Alloy Steel of a
width of 600 MM or more Item Code No. (ITC Code) 720918 Product Description : Flat Colled Rolled Products of Iron or Non Alloy Steel of a width of
600 MM or more of a thickness of less than 0.5 MM |
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Exports : |
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Countries : |
Myanmar, Dubai,
Kenya, Ethiopia, Africa, Middle East and Far East Asia |
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Imports : |
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Products : |
Raw materials,
capital goods and spares parts & stores |
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Countries : |
Europe, U.S.A.
and Far East |
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Terms : |
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Purchasing : |
L/C, D/A or D/P
terms |
PRODUCTION STATUS
|
Particulars |
Unit |
Installed
Capacity |
|
Cold Rolled Steel Strips/Sheets/Coils |
MT |
9,00,000 |
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Cold Rolled Galvanised Steel
Strips/Sheets/Coils |
MT |
4,65,000 |
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Colour Coated Galvanised Steel Strips/Sheets/Coils |
MT |
80,000 |
|
Precision Tubes |
MT |
60,000 |
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Hardened & Tempered Cold Rolled Steel Strips |
MT |
6,000 |
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High Tensile Steel Strapings |
MT |
20,000 |
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Billets |
MT |
40,000 |
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Wire Rods |
MT |
20,000 |
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Formed Sections |
MT |
3,000 |
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Under the liberalised industrial policy of Government of India, the
company products do not require any industrial license. |
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GENERAL
INFORMATION
|
Customers : |
>
The Tata
Engineering & Locomotive Company Limited >
Bajaj Tempo
Limited >
LML Limited >
Whirlpool of
India Limited >
Mahindra
& Mahindra Limited >
Hyundai
Motors India Limited >
Hindustan
Motors Limited >
JBM Tools >
Escorts
Limited >
Scooter
India Limited >
LG
Electronics India Limited >
BPL Limited >
Voltas
Limited >
Fedder
Lloyds >
Godrej GE
Appliances Limited >
Ashok
Leyland Limited >
Rail Coach
Factory |
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No. of Employees : |
2750 |
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Bankers : |
>
Punjab
National Bank >
Canara Bank >
State Bank
of India >
Allahabad
Bank >
Federal Bank
Limited >
Bank of
India >
Bank of
Baroda >
ING Bank NV Financial Institutions
>
ICICI Bank >
IFCI Bank >
IDBI Bank >
LIC >
GIC &
Subsidiaries >
Exim Bank >
SICOM >
AKA
Ausfaushrkredit – GmbH, Germany >
West LB,
Germany >
Unit Trust
of India >
UTI Bank
Limited |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Mehra Goel & Company Chartered
Accountants |
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Memberships : |
Confederation of
Indian Industry |
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Associates : |
>
Bhushan
Industries Limited >
Bhushan
Metallics Limited >
Decor Steel
Limited >
Trail Track
India Limited >
Flawless
Holdings & Industries Limited >
Evergrowing
Iron & Finvest Limited >
Guinda Mal
Chiranji Lal Limited >
Kalinga
Pipes Limited |
|
|
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Subsidiaries : |
>
Bhushan
Capital & Credit Services Limited >
Jawahar
Credit & Holdings Limited |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
95,000,000 |
Equity Shares |
Rs.10/- each |
Rs.950.000 Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
42,470,000 |
Equity Shares |
Rs.10/- each |
Rs.424.700
Millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF
FUNDS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
SHAREHOLDERS FUNDS |
|
|
|
|
1] Share Capital |
424.700 |
412.717 |
404.717 |
|
2] Reserves & Surplus |
11720.300 |
8483.955 |
6901.188 |
NETWORTH
|
12145.000 |
8896.672 |
7305.905 |
|
|
|
|
|
|
Advance for share warrant Money received |
0.000 |
36.000 |
0.000 |
|
LOAN FUNDS |
|
|
|
|
1] Secured Loans |
24128.400 |
16509.122 |
10897.908 |
|
2] Unsecured Loans |
8291.400 |
3852.659 |
2276.807 |
|
TOTAL BORROWING |
32419.800 |
20361.781 |
13174.715 |
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|
|
|
|
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DEFERRED TAX
LIABILITIES |
0.000 |
663.124 |
748.752 |
GRAND TOTAL
|
44564.800 |
29957.577 |
21229.372 |
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APPLICATION OF FUNDS |
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|
|
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|
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FIXED ASSETS [Net Block] |
17234.600 |
10200.759 |
10470.061 |
|
Capital work-in-progress |
18921.100 |
12952.249 |
3857.020 |
|
|
|
|
|
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INVESTMENTS |
208.500 |
191.657 |
189.901 |
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CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
Inventories |
7563.400 |
4747.846 |
5816.725 |
|
Sundry Debtors |
5389.000 |
4044.772 |
3394.353 |
|
Cash & Bank Balances |
1001.400 |
815.164 |
173.894 |
|
Loans & Advances |
3685.000 |
2411.420 |
1297.633 |
|
Total Current
Assets |
17638.800 |
12019.202 |
10682.605 |
|
Less : |
|
|
|
|
Current Liabilities |
9260.300 |
5265.874 |
3889.116 |
Provisions
|
177.900 |
140.416 |
81.099 |
|
|
9438.200 |
5406.290 |
3970.215 |
|
Net Current
Assets |
8200.600 |
6612.912 |
6712.390 |
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
GRAND TOTAL
|
44564.800 |
29957.577 |
21229.372 |
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
|
Sales Turnover |
41792.6
00 |
29925.900
|
28292.200
|
|
|
Other Income |
618.000
|
927.400
|
455.000
|
|
|
Stock Adjustments |
951.700
|
[755.700]
|
1645.600
|
|
|
Total Income |
43362.300 |
30097.600 |
30392.800 |
|
|
|
|
|
|
|
|
Profit/(Loss) Before Tax |
3723.600
|
1596.600
|
1656.500
|
|
|
Provision for Taxation |
591.000
|
52.100
|
123.000
|
|
|
Profit/(Loss) After Tax |
3132.600
|
1544.500
|
1533.500
|
|
|
|
|
|
|
|
|
Imports : |
|
|
|
|
|
|
Raw Materials |
NA |
11948.236 |
NA |
|
|
Stores & Spares |
NA |
73.988 |
NA |
|
|
Capital Goods |
NA |
1001.036 |
NA |
|
Total Imports |
NA |
13023.260 |
NA |
|
|
|
|
|
|
|
|
Expenditures : |
|
|
|
|
|
|
Raw Materials |
29379.200
|
20681.000
|
22089.200
|
|
|
Excise Duty |
3724.500
|
2763.900
|
1929.100
|
|
|
Power & Fuel Cost |
1477.000
|
1266.000
|
1083.100
|
|
|
Other Manufacturing Expenses |
736.400
|
481.400
|
434.800
|
|
|
Employee Cost |
498.600
|
359.600
|
233.300
|
|
|
Selling and Administration
Expenses |
1397.400
|
838.300
|
660.200
|
|
|
Miscellaneous Expenses |
12.800
|
109.700
|
23.900
|
|
|
Interest & Financial Charges
|
858.200
|
753.800
|
793.900
|
|
|
Depreciation |
2089.200
|
1657.600
|
1647.200
|
|
Total Expenditure |
40173.300 |
28911.300 |
28894.700 |
|
QUARTERLY RESULTS
|
PARTICULARS |
|
30.06.2007 |
30.09.2007 |
|
Type |
|
1st Quarter |
2nd
Quarter |
|
Sales Turnover |
|
9380.300 |
10681.200 |
|
Other Income |
|
292.200 |
134.700 |
|
Total Income |
|
9672.500 |
10815.900 |
|
Total Expenditure |
|
7837.100 |
8704.900 |
|
Operating Profit |
|
1835.400 |
2111.000 |
|
Interest |
|
144.800 |
311.800 |
|
Gross Profit |
|
1690.600 |
1799.200 |
|
Depreciation |
|
451.800 |
453.500 |
|
Tax |
|
142.900 |
156.100 |
|
Reported PAT |
|
981.400 |
1034.100 |
KEY RATIOS
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
Debt-Equity Ratio |
2.51 |
2.07 |
1.70 |
|
Long Term Debt-Equity Ratio |
2.18 |
1.46 |
1.08 |
|
Current Ratio |
1.32 |
1.10 |
1.12 |
|
|
|
|
|
TURNOVER RATIOS
|
|
|
|
|
Fixed Assets |
1.86 |
1.73 |
1.89 |
|
Inventory |
6.79 |
5.67 |
5.80 |
|
Debtors |
8.86 |
8.05 |
8.20 |
|
Interest Cover Ratio |
5.34 |
3.12 |
3.09 |
|
Operating Profit Margin (%) |
15.96 |
13.39 |
14.48 |
|
Profit Before Interest & Tax Margin (%) |
10.96 |
7.85 |
8.66 |
|
Cash Profit Margin (%) |
12.49 |
10.70 |
11.24 |
|
Adjusted Net Profit Margin (%) |
7.50 |
5.16 |
5.42 |
|
Return on Capital Employed (%) |
12.41 |
9.45 |
13.74 |
|
Return on Net Worth (%) |
29.78 |
19.06 |
1.89 |
STOCK PRICES
|
Face Value |
Rs.10.00/- |
|
High |
Rs.630.75/- |
|
Low |
Rs.620.05/- |
LOCAL AGENCY
FURTHER INFORMATION
Fixed Assets:
Tangible Assets
- Freehold Land
- Leasehold land\building
- Plant & Machinery
- Assets not Owned by company
- Furniture and Fixtures
- Vehicles
Intangible Assets
- Computer Software
The company is in
trade terms with:-
v Acon Measurement (Private) Limtied
v Adcon Instrumetn (Private) Limited
v Air Trax Polymers (Private) Limited
v Alliance Engineering Company
v Bamrah Engineers
v D B Engineeirng Company
v Electroplast
v Friends Cable Industries
v Friend Fibre Glass Engineering
v Hindustan Friction
v Hindustan Rubber Industries
v Indus Castings Private Limited
v Madras Cupprum Metals Private Limited
v Mechemco Industries
v Paraksh Rubber House
v Polymet Engineering Plastics
v Pragati Engineering Works
v Premi Bright Electroplaters
v Rawal Rubber Mill
v Reyhal Industries
v Roto Seals Industries
v Rotodel Pumps & Gears Private Limited
v S. K. Beri Sales (Private) Limited
v SagguEngineers
v Saggu Gears India
v Satguru International
v Supreme Rolls and Shears (Private) Limited
v Swarajya Industries
v Telelec Corporation India
v Unitech Material Handlings
v Uttra Khand Rubber Works
v Vuican Industrial Engineering
v Warner Industries
v Guru Nanak Mineral Industries
v Indian Metal and Alloys Industries
v Industrial Engineers
v Jamshedji Construction Machinery
v Khalsa Engineers
v Lokpal Industries
v Perfect Engineering Works
v Rahul Cable Private Limited
v Rajesh Wire Netting Works
v Real Marble (Private) Limited
v Sai Baba Stone Crusing
v Shah Engineering
v Shiv Shakti Industries
v Swastik Rubber Industries
v Tushaco Pumps Limited
v Vinod Ceramic
v Anand Mechanical
v Apollo Engineering Works
v Aurtech Construction Equipments Limited
v Aurtech Hydracons
v Baba Clutch Facing Workshop
v Comet Engineering Works
v Corotech Bitumastic
v MNK Wire Products (MANCO & Company)
HISTORY
Bhushan Steel & Strips Limited, an ISO 9002,QS 9000 certified
and the flagship company of Bhushan group, is India's largest (in the secondary
sector) and the only CR Steel Plant with a line to manufacture Cold Rolled
Coils & Sheets up to a width of 1700mm, as well as Galvanised Steel Coils
& Sheets up to width of 1350mm.
The Company currently has a capacity to produce 0.6 Million MT/Annum of Cold
Rolled Steel at Sahibabad Works and 0.4 Million MT/Annum of Cold Rolled Steel
at Khopoli Works & out of that 0.25 Million MT/Annum of Galvanized
Steel.
The plants of the company are at Sahibabad, Uttar Pradesh and Khopali,
Maharashtra. The company entered into an agreement with Preussang Handel,
Germany, a leading metal trading house, to buy a major part of BSS
production.
The company's has strong presence in U.S.A., CHINA, ETHIOPIA, U.A.E., MYANMAR,
SENEGAL, IRAN, AUSTRALIA, NEWZELAND, SAUDIA AND AFRICAN COUNTRIES.
Bhushan Steel & Strips Limited was incorporated on 7th January 1983, under
the name of Jawahar Metal Industries Private Limited for the manufacture of
cold rolled steel strips and steel ingots at Sahibabad Industrial Area,
District Ghaziabad. The company was taken over by Brij Bhushan Singhal and his
sons Sanjay Singhal and Neeraj Singhal by acquiring the entire share capital of
the company. The company was renamed as Bhushan Steel and Strips (BSS) after
diversifying into wide-width cold-rolled (CR) steel strips in 1992 and the cold
rolling plant was also completed in the same year.
BSS came out with its first public issue in 1993 to finance its forward
integration project for the manufacture of 1,00,000 tpa of continuous
annealed/galvanised steel strips. It tapped the capital market for the second
time in Apr.'95, to part-finance the setting up of facilities to manfacture an
additional 1,50,000 tpa of CRCA and 40,000 tpa of GP/GC sheets.
The company commissioned galvanising plant in January 1994 with a capacity to
manufacture 120000 tonnes per annum of wide wideth cold rolled steel strips and
100000 tonnes per annum of galvanised sheets. In the same year 1994, the
company also proposed to set up an integrated steel plant for manufacture of
1.2 Million Tonnes per year of H R Coils at Daitari in the State of Orissa. The
company also engaged Metallurgical & Engineering Consultants Limited as engineering
consultants for setting up of the integrated plant.
In 1995, the company came out with a rights issue of 82,50,000 Unsecured Zero
Interest Convertible Debentures and also made a public issue of 68,94,800 - 14%
Unsecured Fully Convertible Debentures.
In 1998, the company proposed to setup two steel cold rolling and galvanising
units - one near Haldia and the other at Patalganga, near Mumbai. The company
also commissioned a cold rolled steel plant at Ghaziabad, in collaboration with
Sumitomo of Japan, to cater to the needs of the automotive sector
During 1999, the company also set up a dedicated service centre for large OEM
customers at Sahibabad.
The company approved amalgamation of Bhushan Limited with the company in 2000.
But later the proposal for amalgamation was withdrawn in 2003-2004.
During 2000-01, the company implemented the expansion project of 2,50,000 tpa
of Cold Rolling Cum Galvanising & Tube Complex in Khopoli, Maharashtra at
cost of Rs. 4860 Million. During 2004-05, the status of the project is that
this has been fully commissioned and the company has also commissioned the Cold
Rolled (Narrow) and Pipe plant at Sahibabad. In 2003, the company entered into
a strategic alliance with Sumitomo Metal Industries of Japan under which, the
latter has further extended process know-how for the manufacture of automotive
steel sheets for a period of six years
During 2004-05, The company planned to commence additional manufacturing
facilities at its plant situated at Khopoli (Maharashtra) in respect of the
production of prepainted galvanized material(PPGI).The capacity of the line
would be approximately 120000 MT per annum making it the largest line in India.
During 2004-05, the company is in the process of implementing an integrated
steel project in the State of Orissa and the part of the project includes
capacities for production of Sponge Iron and Billets is envisaged to start from
April, 2006.
During 2005-2006, the company successfully commissioned the largest Color
Coated line at its Khapoli plant in Maharashtra. The company also commissioned
the Galume line, an aluminium and zinc coated patented product of the company
for the first time in the country at its Khapoli plant. The company is also
moving into process/value chain of steel products through back integration to
set up a unit for manufacture of HR Coil, Billets and Power Plant.
The company’s new HR plant is at fast phase of progress and the company expects
the plant to commission as per schedule. The total project comprises
installation of Hot Rolled Coil and Billets along with power plant. In the
first quarter of 2006-07 the company shall start 2 Klins and 33 MW power plants
while in the third quarter the company shall start 2 klins and 77 MW power
plants which will complete phase I of the project. The company has already
spent Rs.13210 Millions on the phase I of the project and has place substantial
orders for the equipments mainly with SMS Demag, Siemens, Danieli Corus,
Techint, KCI Cranes, Paul Wurth, etc to be imported for phase II.
The Company has raised Rs 105 million through issue of Equity shares on
Preferential basis for Company's integrated Steel & Power Plant being set
up in the State of Orissa. The same has been utilized in full for the purpose
of implementation of project.
HIGHLIGHTS
During the year under review the company has successfully commissioned the part
facilities at the Orissa Project. The company has commissioned three sponge
iron kiln, three induction furnances and 33 MW power plant at its integrated
steel plant at Orissa. Balance one sponge iron kiln and 77MW power plant shall
be commissioned in the first quarter of 2007-08, with this, Phase I of the
Orissa project shall be completed.
Now, the company has become a Billion Dollar company. The total income of the
Company increased to Rs. 42020 Millions, registering the growth of 37% over
previous years level of Rs.30700 Millions.
During the financial year 2006-07 the company achieved exports of Rs.15270
Millions as against previous year exports of Rs. 10060 Millions thus showing a
remarkable growth of 52%.
EXPANSION PROJECT
The company's Project of integrated steel plant at Orissa started in January,
2005 and they proudly announce the start of three sponge iron kiln and 33 MW power
plant at Orissa. The Orissa project is running as per schedule and we expect to
complete the full project by March, 2009.
The rehabilitation colony is completed and the displaced families have been
shifted to houses. The water pipe line from the Brahmni river is completed and
work on the housing colony is also on full swing. To complete the Phase II on
schedule, the company has given the civil contract of Phase II to Larsen and
Toubro Limited.
The company has already spent Rs.28600 Millions on the Phase I & Phase II
of the project and has placed the substantial orders for HR Mill, Slab Caster
and Conarc furnaces for the supply of equipments with SMS Demag, Blast furnace
from Danieli Corus - Netherlands, Sinter plant and Coke Oven from China Shougang
China, Electrical automation of HR plant from Siemens, Germany.
FINANCE
During the year the company has raised ECB for USD 50 Million dollars
syndicated by HSBC bank for its Project of integrated steel plant at
Orissa.
The Company has raised a Rupee term loan of Rs.10300 Millions from SBI
syndicated loan out of sanctioned Rupee Term Loan of Rs.21000 Millions for the
integrated steel plant at Orissa.
The company has received the approval of approx. Euro 14 Million from SACE, Italy
for import of capital equipments from Techint, Italy. The approval of approx
Euro 10 Million has also been received from Finnvera, Finland for import of
capital goods from KCI, Finland.
The Working Capital Facilities for the Sahibabad, Khapoli and Orissa plants
have been appraised by PNB, the lead Bank, for Rs.17730 Millions (Fund based
Rs.5300 Millions excluding export credit and non fund based limit of Rs.12430
Millions).
The company continues to enjoy the long term rating of A + ( ind single A plus
) by Fitch Rating India Private Limited
The Fitch Rating India Private Limited (FITCH) has re-assigned the short term
rating of F1+ for Rs.1000 Millions commercial paper programme of the
company.
Credit Analysis and Research Limited (CARE) has assigned short term rating PR1+
for Rs.500 Millions.
EXPORTS
Efforts of the company on the Export front, to respond to the National
priority, continue to be increasingly rewarding with the achievement of Export
Turn over of Rs.15270 Millions, up by 52% over the previous year's exports of
Rs.10060 Millions.
With a firm commitment and through sustained efforts, the Company continues to
maintain good rapport with Global Customers. Their quality products and timely
delivery have found wide acceptance in the highly competitive international
market.
Their products are being exported across the Globe. During the year the Company
has successfully penetrated into South African, Latin American, Romanian,
Russian and Ukranian Markets in addition to their traditional strong hold of
Ethiopian & Middle East markets.
During the Financial Year 2006- 07, the company has sold 0.369 Millions MT
steel out of which 95000 MT is it's newly introduced product Galume and
Pre-painted Galume to European and Latin American Markets which is very well
accepted there. Due to which there is an increase of 50% in export Turnover. In
financial year 2007-08 they are targeting export turn over of over US$ 490
million (approx Rs.20000 Millions).
QUALITY
In today's global competition and open economy, quality plays a vital role in
marketing the products and stay ahead of others. Therefore, great emphasis is
given to manufacturing products that meet high standards of quality in the
global market and customer satisfaction.
Proactive efforts are directed towards determining customers' requirements and
achieving all-round customer satisfaction. This is primarily achieved through
automated systems (reducing manual handling to a minimum), high attention to
complaint resolution, online communication and information exchange, quality
circles etc.
CHANGE
OF NAME
The name of the Company has been changed from Bhushan Steel & Strips
Limited to Bhushan Steel Limited w.e.f. April 12, 2007.
Future plan of action :
The efforts are continued to achieve 100% indigenisation of the Auto
Industry.
Efforts are being made to roll 1725 mm wide sheets for Automobile Industry.
Material to be tried for optimising different Annealing Cycle for getting
optimum properties.
To reduce process cost and reduce failures and improve performance of the
existing and newly developed products.
TECHNOLOGY
ABSORPTION, ADAPTATION & INNOVATION
(1) Efforts in brief made towards technology absorption, Adaptation and
innovation. :
COMPANY'S PLANT AT SAHIBABAD, DISTT.
GHAZIABAD, U.P.
(a) The Project for installation of latest 6 HI UCM Cold Rolling Mill from
Hitachi, Japan with allied facilities like electrolytic cleaning line, 100%
Hydrogen furnace, 4 HI Skin Pass Mill from Clecim-France with electrostation
Oiler from Ravrini-Italy, Sophisticated Roll Grinding Machine and Electro
Discharge Texturing machine from Waldrich Siegen Germany, Fully automatic CR
Slitting Lines from FIMI-Italy, CTL and multi blanking line with Electro
Magnetic Stacker from Henrich George Germany and full fledged laboratory and
R&D Centre to meet the stringent requirements of car body manufacturers is
already in operation.
Additional Roll Grinding facility with on line crack detection from Waldrich
Siegen-Germany, has been implemented.
(b) Integrated power generation has been planned with Two DG Set of 12 MW each
from MAN B&W, Germany already in full operation.
(c) Technical Assistance Contract with Sumitomo Metal Industries Japan for
development, sample test and evaluation and simulation of various grades
required by the Indian Industry has been renewed for further period of six
years.
(d) ISO/TS-16949, ISO-14001, OHSAS-18001 Certifications have been awarded by
DET NORSKE VERITAS.
(e) Installation of Kathabar coil cooling system imported from LOI
Thermo process Germany has resulted in increased productivity and also
eliminating rejection due to pin rust. Five Nos. H2 basis added from Ebner,
Austria.
(f) Narrow CRCA facility added.
COMPANY'S PLANT AT KHOPOLI,
MAHARASHTRA.
A state of art facility has been installed at Khopoli, Maharashtra
incorporating the following features :-
(1) 2 Nos. Narrow Cold Rolling Mills with capability to roll high carbon steel
have been installed.
(2) 8 Nos. annealing bases from Ebner have been installed.
(3) An ultra modern facility for hardened and tempered steel
have been installed with :-
(a) Very sophisticated Lead quench type hardening and tempering furnace from
Ebner. To add on more capcity for H&T products company has started one more
H&T line (already started).
(b) Grinding and polishing facilities from Bruer Germany.
(c) Terminal equipment from Deuyhun Tech Korea.
(d) Edge profiling from Julius Germany.
(4) An High Tensile strapping steel complex has been set up with equipments
from ANSI Robicon, USA and Denyhun Tech, Korea to produce both Apex and Magnus
grade of steel strapping products.
(5) An Ultra Modern Tube Complex for production of Boiler tubes, Precision
Tubes, Drawn Tubes and various square and rectangular tubular sections have
been installed with equipments as follows:
(a) Three Nos. precision Tube Mills.
(b) State of Art multiple tube draw benches.
(c) Roller Hearth furnace for Bright Annealing of Tubes from LOI Germany.
(d) One more Roller Hearth furnace for bright Annealing of tubes, being
commissioned.
(e) State of Art surface treatment facility from Grauer and Weil.
(f) Tube cutting and finishing machines from Soco Taiwan.
(g) An Ultra Modern tool room to complement the facility.
(6) 24 MW Captive Power Plant has been installed for captive power generation
with all equipments imported from MAN B&W and Siemens, Germany.
(7) A wider Cold Rolling Complex with the latest generation equipment for
producing galvanised sheets with additional facilities for Galvaneal /
Galvalume and colour coated sheets is being implemented.
(8) Roll Grinding facility from Waldrich Siegen, Germany has been installed to
produce high quality grinding in rolls with on line crack detection
system.
(9) For the first time in India production of AL-ZN coating on Steel has been
successfully produced and exported. The product is being branded as
Galume.
(10) An ultra Modern 100% H2 based wider CRCA facility is already added with
the following equipments :
(a) Skin Pass Mill.
(b) H2 Annealing consisting of 6 basis and Hydrogen Plant.
(c) EOT Machine.
(d) CTL Line.
(e) Tile Profile Machine for roofing material.
COMPANY'S PLANT AT MERAMANDALI, DISTT.
DHENKANAL, ORISSA
(a) Company's Plant at Orissa is a backward seamless integration to manufacture
HR Coil, Billets and Power Plant.
(b) Process route for the same will be DRI-BF-EAF route and will be BF, CONARC,
Slab Caster, Billet Caster and Hot Strip Mill along with captive power plant.
All machines and technology used in this project is being purchased from world
known suppliers like SMS Demag, Techint-Italy, Lurgi, Danieli, Concast, Siemens
Germany etc.
(c) In this project, facilities completed DRI KILN I, II & III Power Plant
33 MV, 77 MV, 220KV switch yard, 3 nos. Induction Furnaces / Electric
Protection, 2 stand Billet Caster Stacker Reclaimer, Iron ore crushing and
screening complex, Truck Tippler, Cooling Tower Utility / Water Pipe Line/
Weighing systems, Raw Material Handling System.
(2) Benefit derived as a result of the above efforts e.g. Product improvement,
cost reduction, product development Import substitution etc. :
COMPANY'S PLANT AT SAHIBABAD, DISTT.
GHAZIABAD, U.P.
(a) All the automobile grades have been well established and being supplied to
almost all the major car manufacturers. This has resulted 95% indigenisation of
the vehicles resulting in import substitution and substantial cost saving for
the car manufacturers.
(b) Due to Integrated power generation facilities,
continuous uninterrupted supplies of material to the customer to meet their
tight schedule and production targets.
COMPANY'S PLANT AT KHOPOLI,
MAHARASHTRA.
The Company has targeted further value addition by implementation of:-
(1) Precision Tubes for automobiles and other OEMs.
(2) Hardening and Tempering.
(3) High Tensile Steel Strapping.
(4) Colour Coated Sheet.
(5) Galume (Zinc & Aluminum Coated Sheet
INDUSTRY
STRUCTURE & DEVELOPMENTS
The steel industry is dividend into primary and secondary sectors. The primary
sector produces billets, plates, rounds and Hot Rolled Coils/Plates. These form
raw materials for the secondary sector, which produces value added items such
as angles, channels, wire rod, cold rolled coils/sheets and galvanised
Coils/Sheets. CR Sheet is a thinner sheet used for consumer durables
(refrigerators, washing machines etc.), Automobiles, bicycles etc. CR sheets
are used by the automobile and domestic appliances industry whereas CR strips
are used in manufacturing of bicycles, drums, barrel, fabrication, furniture
etc. CR coils are mainly used for manufacturing GP/GC sheets. Bhushan Steel
Limited which so far falls under Secondary Sector, also entered in Primary
Sector with the setting up plant at Orissa.
All steel products are made from semi-finished steel that comes in the form of
slabs, billets and blooms. Steel products can be broadly classified into two
basic types according to their shape.
Flat Products
Derived from slabs, this category includes plates and Hot Rolled (HR) steel
such as coils/sheets. While plates are used for applications such as
shipbuilding, etc., HR steel is the most widely used variety of steel, and
other downstream flat products such as Cold Rolled (CR) steel and Galvanized
steel are made from it.
Long Products
These products derive their name from their shape. They are made by using
billets and blooms and include rods, bars, pipes, ropes and wires, which are
used largely by the housing/construction sector.
THE GLOBAL STEEL INDUSTRY
World crude steel production stood at 1.23 billion tons in 2006; an increase of
9.7% over 2005 production of 1.12 billion tons, and surpassing the historic 1
billion mark for the third consecutive year. Over the past ten years the most
remarkable growth has been in China and in the Asia region. Asia (Ex-Japan)
accounted for 53% of the World steel production in 2006. International Iron
& Steel Institute expects steel demand to grow at 7.3% in CY07 and then
continue to grow by 5.8% in CY 08.
The World steel industry has undergone some dramatic changes over the recent
past. After experiencing a sharp downturn in demand starting in 1998 and
resulting in historically low prices in the 3rd quarter of 2001, the 'Hot
Rolled Band' spot export prices indicative of the level of world steel prices -
peaked at US$625 per ton in late fall 2004 compared with an all-time low of
US$175 per ton in late 2001. Thereafter it has come down and has been ruling
around a level of US$ 535. Domestic prices of flat steel are around INR 25,000
- 27,000 per tonne and are expected to be in the range of INR 28,000-30,000
during 2007-08. Domestic prices have shown strong correlation with the
international flat steel prices.
INDIAN STEEL INDUSTRY
India derives its competitive advantage in steel making from the availability
of abundant quality reserves of iron ore with estimated reserves of 17.33
billion MT, a fast growing domestic market driven by infrastructure, construction,
automotive and consumer goods sectors as well as a highly skilled and low cost
workforce. Coal is also available but reserves, while abundant, have high ash
content tempering the iron ore advantage somewhat.
Indian steel industry is at an inflexion point and promises to become a key
player on the World stage, both as a producer and a consumer. Usually, for
emerging economies like India, demand for steel consumption grows at about 1.3
times of GDP growth rate. This means, that if the economy is to grow by an
average of 9% p.a., demand for steel would grow at over 11% p.a. The Government
has approved the National Steel Policy (NSP) 2005 whose long-term goal is to
ensure that India has a modern and efficient steel industry, capable of
standing up to international competition and catering to the growing domestic
demand for steel. This in turn has led to sustained growth in the steel
sector.
Orissa Advantage
Dominating investments in steel and iron-ore mining is in the state of Orissa.
The state is endowed with large reserves of iron ore (estimated 4.18 billion
MT) and convenient access to the sea through the port of Paradeep. Orissa has
signed around 45 memorandums of understanding (MoUs) for setting up steel
capacities aggregating 60 million tonnes within the next few years.
Recovery Of Domestic Sector
India's steel industry has seen a recovery over the last three years on the
back of an upturn in the global and domestic steel cycle. Higher prices helped
to improve realizations while restructuring of their original high-cost debt
reduced interest costs. Most of the big steel producers are currently tapping
export markets helped in a large measure by process improvements and quality
upgrades. All things considered, the sector is now on a much firmer footing
than it has ever been.
Capacity Expansion
Realizing the advantages stated above, a large number of
steel makers have started modernizing and/or expanding their plants while others
have announced new capital spending in Greenfield projects. In the long product
segment, along with aggressive plans announced by integrated players like RINL,
a number of small and medium-sized companies are setting up new capacities.
Capacities to the tune of 7-8 Million Tonnes are expected to come up by
FY09-10, including additional steel making capacity of around 2.5-3 Million
Tonnes by the end of 2006-07.
With respect to flats, an additional steel making capacity of 5.5-7 Million
Tonnes may come on stream over the next 4-5 years subject to favourable market
conditions and availability of finance. This projected growth does not take
into account big Greenfield projects announced for implementation in Orissa
most of which are unlikely to come on stream before 2010. Bhushan Steel expects
to have a first mover advantage in this regard, as its plant is scheduled for
completion by FY 09 itself.
Iron Ore
India has large recoverable reserves of iron ore - estimated by the Indian
Bureau of Mines at about 17.33 billion tons and enough for over 125 years at
current rates of consumption - available at a cost that is among the lowest in
the World. The total recoverable reserves comprise almost 14 billion tons of
hematite-50% of which is medium-to-high-grade with iron content over 62% - and
3.33 billion tons of magnetite respectively. The hematite reserves are located
largely in Eastern/Central India - Jharkhand, Orissa and Chhattisgarh.
KEY
SUCCESS FACTORS
Ensuring access to raw materials at low
costs
The steel industry in India is a fragmented one, resulting in players having
very little say in end prices. Hence the key to success is keeping costs as low
as possible. The cost in a steel company is determined by factors such as
technology, manufacturing route, operational integration and operating
efficiency as measured by operating parameters.
Extent of forward integration
The extent of forward integration is also critical in deciding the
competitiveness of steel companies. The realizations of value-added products
are higher and more stable than base grades. The cost of adding value is
generally lower than that of base grades, resulting in better margins for
integrated players.
Economies of scale
With pressured operating profitability, players with economies of scale are
likely to benefit by lower cost burdens from lowered fixed cost per
tonne.
The following paragraphs provide a brief review of some of the key drivers for
increased steel demand as well as the main steel applications in the
construction, pipe and tube, automotive and consumer durables sectors.
Automobiles
The sector is benefiting from rising income levels and cheaper consumer
finance. Moreover, it would benefit from more spending on road development
projects. Hot rolled flats are used in automobiles, as chassis, bumpers and
clutch covers. In general, steel constitutes 60% of the weight of a car body.
Cold rolled coils and sheets are used to manufacture auto bodies (for commercial
vehicles, cars, tractors, two and three wheelers), and auto components (such as
clutch assembly, bearings and horns). Coated sheets are also used in the
manufacturing of auto bodies.
Over the next five years, sales (domestic as well as exports) of passenger
vehicles, main user segment of auto market for flats - are expected to grow at
a compound rate of 14% to just under 2.5 million vehicles while the commercial
vehicle market is projected to grow at a lower 4-5% rate to just under 0.7
million. The two-wheeler market is expected to have unit sales of around 10
million by 2010. As a result, this sector alone is expected to generate
substantial demand for flat steel products over the next 5 years.
Consumer Durables
Consumption of consumer durables has increased due to higher consumer spending,
following the liberalization of the economy in 1991 and the arrival of many
foreign players in the domestic market. Prices of most consumer durables have
become competitive due to more competition among players. Competitive pricing,
easy availability of consumer finance and increased demand from the rural
sector have resulted in a significant increase in the penetration level of
white goods and other consumer durables. This has also led to robust demand
conditions, with five-year demand projections for various segments of the
consumer durables marketplace ranging between 5%-20%. As this consumer durables
sector is a major end-use sector for cold rolled flats-with white goods (the
outer panel of most white goods is made of cold rolled or galvanized sheets)
and furniture accounting for around 11% of total consumption, demand in the
flat steel segment is also likely to be driven by the underlying growth in this
sector.
Construction
Long products are used extensively in the construction sector, which consumes
over 10 million tons of steel annually, and is projected to grow at around 20%
for the next five-year period. This sector is benefiting from rising incomes
and increased availability of housing finance. There is also a surge in
infrastructure and housing due to population growth and urbanization - and
retail development, such as shopping malls and multiplexes.
Flat products are also used in the construction sector. Hot rolled steel coils
and sheets are used in structural materials and welded pipes. Cold rolled
sheets and coils are used in press formed components, which in turn are used in
construction, for making tanks and containers. Galvanized sheets are largely
used in roofing, slide cladding, making water tanks and as fencing
material.
However, as compared with international norms, the construction industry in
India is not steel-intensive. The steel to cement consumption ratio is 1.1 in
developed countries, as compared with 0.31 in India. There is substantial
potential for an increase in the consumption of steel in the construction
industry, due to the low steel consumption ratio and benefits of steel (long
products), such as superior quality and durability. Further impetus has been
provided by the Government due to its thrust on building road networks.
Pipes and Tubes
Flat steel demand is likely to get a significant pull from the piping sector
due to an increased emphasis on gas, irrigation and water supply projects.
Currently, the country has around 6,300 km of pipeline in place. It is
estimated that the pipeline network will more than double in the next 5-7
years, and around 4,000 - 7,000 km of pipeline network will be completed by
2010.
The India Advantage
The robust performance of the Indian economy continued during the second
quarter (July-September) of 2006-07. According to the Central Statistical
Organisation (CSO), real gross domestic product (GDP) growth accelerated to 9.2
per cent in the second quarter from 8.9 per cent in the preceding quarter and
8.4 per cent an year ago. Strong growth in industrial activity and services
sector contributed to higher overall growth in 2006-07. With both the first and
second quarters of 2006-07 recording higher growth over the corresponding
quarters of 2005-06, real GDP growth accelerated to 9.1 percent in the first
half of 2006-07 from 8.5 per cent an year ago.
In line with the Five-Year Plan's goals, as mentioned in the World Bank Group
Country Assistance Strategy, the Government has reiterated its commitment, as
the highest priority, to the development and expansion of infrastructure. The
Government has also committed itself to a massive expansion of social housing
in towns and cities, in particular, to meet the needs of slum dwellers. Between
2001-02 and 2011-12, spanning the 10th and 11th five-year plan periods, the
Government's forecast outlays on infrastructure (power, roads and bridges,
railways, ports, telecommunications, airports, water and gas supply and urban
development) are expected to be around US$300 billion. In addition, affordable
housing and consumer finance is readily available from local financial
institutions and this is expected to increase the demand for housing.
Disbursements for housing finance from banking and housing finance institutions
are in the region of about US$1 billion annually and growing at a CAGR of 30%.
These enormous housing/construction and infrastructure investments suggest that
the demand for steel products in the domestic market is expected to grow
further.
PERFORMANCE
The Company is engaged in the Steel business, which in context of Accounting
Standard 17 issued by the Institute of Chartered Accountants of India is
considered the only business segment. The overall operational performance of
the Company has been much satisfactory during the year.
EARNING
OUTLOOK
The Company is primarily a converter of HR coil to value added products where
the final application is in auto and whitegoods industry. The company is now
enhancing its business profile from a converter to an integrated steel producer
by setting up an integrated steel plant in Orissa. The plant, once fully
commissioned, will produce 1.9mtpa of auto grade HR coil, which will be
internally consumed for further value added products at its existing
facilities. This will further strengthen the bottom line of the Company.
RISKS AND CONCERNS
Availability of Raw Material (HRC)
The availability and the cost of the raw material (HRC) is a key concern and
the company at present is exposed to the vulnerability of the market. As the
turnover of the company is growing year to year the availability of raw
materials may become a constraint. Thus it may be difficult for the company to
access raw materials ( HRC ) regularly as well as the cost of raw material is
also a key concern. In such a scenario, the integrated producers with HRC
manufacturing facility would be the clear gainers.
This risk however will be reduced with upcoming HRC plant at Orissa. The company
has already started production of part facilities at Orissa. Phase I of the
Orissa project which comprises of Billets and Sponge Iron have already been
started and Phase II which comprises of HR mill will start in FY09.
Orissa Project Execution
Orissa Project will be the company's first HRC project thereby exposing it to
implementation and execution risks. The project is critical as it will assure
easy availability of key raw material and lower input costs.
These risks are however mitigated with the appointment of well established
consultants and suppliers for providing technical assistance and equipments for
the project. The company has a past record in completing the projects on time.
The phase-I of the project which comprises of production of Billets and Sponge
Iron have already started and the phase II is also running as per
schedule.
AS PER WEBSITE
Benefit
to the Customers
Excellent
Surface Finish
Auto shape
control on both side of the mill.
Mill clean
system with a synthetic coolant to avoid any coolant mark on the strip
Electrolytic
cleaning line to remove 'IRON FINES' from strips, which helps in improvingthe
life of salt - spray test after painting and avoids carbon soots completely. It
also increases the tool's life in Press shop.Latest and sophisticated EDT
machine from Waldrich Siegen, Germany, to provide controlled texture for better
paint adhesion and to achieve surface roughness in close tolerances. On line
Tension-Leveling equipment for better flatness and controlled elongation.
Computerized Inventory Control Management and independent skin - pass mill to
avoid any unwanted storage in between annealing and skin-pass process.
KATHABAR
STORAGE SYSTEM is commissioned to avoid oxidation through dehumidifier to
prevent rusting during storage.Electro-static rust preventive oil spray system
for controlled oil coating on CRCA surface. Oil coating can be maintained in
between 0.50Gms/m to 4.00 Gms/m.
Excellent
Mechanical Properties
Practically,
no variation in mechanical properties due to HICON 100% Hydrogen annealing
furnace from EBNER, Austria.
The raw
material selection is done by computerized program for different application.
Close
Tolerances on Thickness, Width and Length
X-Ray
thickness gauge to measure thickness in fraction of a micron from DMC, U.S.A.
X-Ray
thickness scanner across the width from DMC, U.S.A.
Automatic
computerized thickness control from DMC, U.S.A. and Hitachi, Japan.
Shim less
tooling on slitting lines with computerized setting ensures correct width in
close tolerances, from Germany.
Precision
Cut-to-length lines to ensure length tolerances better than +/-0.75mm.
Automatic
Electromagnetic Stacker on shearing lines to produce scratch free and finger
print free steel.
Other
Advantages
Better
width combination facility to customers.
Higher
yield in standard width material i.e. up to 92.45%.
Thickness,
length and width tolerances as per customer requirements. The equipment is
capable enough to maintain all these tolerances in the lower side of
International Standards like JIS, BIS, ASTM and EN. The largest service centre
in the Country available with Bhushan steel enables it to accept the orders in
different sizes and service the same in shortest possible time. Well located on
the map of the Country form smooth supply of Finished Goods.
Technology
Cold Rolled Steel
Cold Rolling Mill Complex is a
towering citadel the first of its kind in the Steel sector of the country
having equipments supplied by Global leaders.
The state-of-the-art 6 Hi 1700 mm Universal
Crown Cold Rolling Mill from Hitachi, Japan ranks as the widest CR mill in
India along with additional features of both side auto shape control with
automatic spot cooling system for better shape & flatness with themost
advanced Level-II adaptive control computerization. It is the first mill of its
kind in the whole of Asia.
The mill is capable of maintaining
extremely close thickness tolerances and can produce ultra-thin CR Steel for
inner shield of Picture Tube and Battery application i.e. up to a thickness of
0.10mm in close tolerances.
The company has also installed
Electrolytic Cleaning Line (ECL) with technologyfrom Nippon Denro, Japan to
remove surface contaminants.
The 100% Hydrogen based (Hicon)
high convection annealing furnaces from world leader Ebner, Austria areyet
another exclusive feature of their identity.
The Skin Pass mill from Clecim,
France with tension leveler and Electrostatic Oiling for uniform spray of rust
preventive oil, provides world standard quality of material suitable to
manufacture Automotive Skin panels.
The Roll Grinding machine and the
Electrical Discharge Texturizing machine (EDT) for the rolls from the world
leaders Waldrich Siegen, Germany ensures uniform Mirror finish material for
Automobile Head lamp reflectors and other Electroplated items & Matte
surface finish, which in turn improves the paintability, suitable for
automobile skin panels, respectively.
The CR Slitters from Fimi, Italy
and Daehyun, Korea with most advanced features like 3 M tension roll and
computerized shim-less tooling ensure absolute scratch-free material with a
very close tolerance and width as low as 10mm. These machines are the first of
their kind in the country.
The Cut-to-length lines from
Heinrich Georg, Germany; Fimi, Italy and Daehyun, Korea are milestones of
precision engineering. These machines provide a very close tolerance on length
as low as +2/-0mm (even less can be achieved).The on-line washing, oiling,
electromagnetic sheet stacker and on-line packing system attached to these
lines ensure International Quality Standards. These are the first lines of
their kind in the country where handling of sheets are completely automated
during shearing and packing.
To ensure the right quality input
of HR Coils to the mill, the company has the most modern Push-Pull Pickling
line with technology back up from Proeco, Canada.
In addition to the above the
company also has one latest 6 Hi 1020mm & one 20 Hi 1250mm wide Sendziemer
mill with automatic gauge control and 8 CR Slitters and 14 Cut-to-length
lines.The company enjoys uninterrupted power supply from the UPSEB on 220KV,
which is the first of its kind in the State of Uttar Pradesh. Further to have
captive and better quality of power for the smooth operation of the complex,
company has installed 24MW Captive Power Plant imported from MAN B&W,
Germany. This ensures consistent supplies of material to their customers even
in times of acute power shortage.
Galvanized Steel
The Galvanized sheets & coils
manufactured by the company have excellent Zinc adhesion and corrosion
resistance achieved by applying a special coating of Zinc & Zinc alloys.
This is further enhanced by giving a special chemical treatment on the
zinc-coated surface to prevent the formation of white rust
The Company has three Galvanizing
lines consisting of most modern continuous annealing furnaces based on the
design of Stein Heurty, France.
One of the Galvanizing line has on
line 4 Hi skin passing cum tension leveling facility to produce Galvanized skin
passed Material with zero spangles for White Goods, Domestic appliances &
Automotive applications.
The on line coating thickness
control equipment from Valmet, Canada and Radiometrie, Germany attached to the
galvanizing lines ensure uniform zinc coating mass.
The Galvanized skin passed sheets
& coild have an excellent surface finish suitable for manufacturing
products of aesthetic importance. This product is widely accepted and
extensively used for the manufacture of Air Conditioners, Washing Machines,
Refrigerators, Dish Washers, Visi Coolers, Microwave Ovens, Computers, Bus
body, Automobile Components, Colour coated sheets & coils.The company is
the largest supplier to these industries-in fact single source supplier to many
of the customers. Recently, the company has also introduced Galvanneal
material, which is most suitable for Appliances and Automobiles industry.
The Galvanized sheets, coils and
corrugated sheets manufactured by the company are globally accepted especially
in important international markets of Europe, USA, Canada, South Africa, Kenya,
Ethiopia, UAE, Qatar, Oman, Nepal, Myanmar, Taiwan, Vietnam, China, Uganda,
Singapore, Tanzania, Bangladesh.
Strategic
Alliance
In order to acquire the latest
know-how to establish the quality requirements of all customers in Automobile,
White Goods Appliances & General Engineering industry, the company has
entered in to a technical collaboration with the world's one of the largest
steel producer Sumitomo Metal Industries, Japan.
Other
Products from Group Companies
|
Group |
Products |
Section / |
Grades |
Standard Used |
Applications |
|
Bhushan
Industries Limited, Chandigarh |
Narrow Width CR |
Width: 12-535 mm
Thickness: 0.30-4.00 mm |
EDD,DD,D High
Carbon Steel |
IS / JIS |
Automobile, white
goods and General Engg. Industry |
|
Bhushan Metallics
Limited, Derabassi (Punjabi) |
Cable Tape |
Width: 20-70 mm
Thickness:0.50-0.80 mm 'Zn' coating: 210 gm/m* & above on each Side |
D |
IS |
XLPE Cables |
|
M.S ERW Pipes |
Outside Diameter:
1/2"-4" (15 mm to 100 mm N.B.) |
Black & GI |
IS/BS/ ASTM |
Water, air and
gas Application |
|
|
Bhushan Metallics
Limited, Chandigarh |
Precision Tubes |
Outside Diameter:
8.80 - 50.80 mm Thickness : 0.35 - 3.25 mm Length : 3.0 - 9.0 mtr in long
length. 150 - 2500 mm in cut length. |
Bright &
Oiled |
IS/BS/ JIS/DIN/
ASTM |
Automobile,
Bycycle, Process , Electrical & General Engg. Industry. |
|
Bhushan
Industries Limited, Calcutta. |
CR/GP/ GC |
Width:1250 mm (max.)
Thickness : 0.12 - 1.60 mm |
EDD, DD, D |
IS/ JIS |
Roofing,
Construction &General Engg. Application. |
News
& Updates
Subject will setup a two million tonnes per annum(mtpa) capacity
integrated steel plant with a captive power plant in Burdwan district of West
Bengal. A 0.5 mtpa capacity cold rolled and galavanizing plant for automobile
grade steel will also be set up. An agreement to this effect was jointly signed
here in Friday by Bhushan Steel, the government of West Bengal and the West
Bengal Industrial Development Corporation Ltd. The total investment in the
projects on the anvil has been pegged at Rs. 88000 Millions. The projects will
provide gainful engagement - direct and indirect - to around 3,000 people.
While the proposed steel and power plant will come up in Burdwan Distt., the
cold rolled and galvanizing plant will be set up in North 24 Parganas Distt.
The setting up of the steel plant will require 2,500 acres of land which will
be identified jointly by the state government and Bhushan Steel. An additional
90 Acres of land will be required for cold rolled and galvanizing plant. After
the signing ceremony , Mr. Buddhadeb Bhattacharjee, Chief Minister of West
Bengal, and senior company officials, briefed news persons at Writers Buildings
on the project details.
CMT REPORT
(Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts, India Prisons Service,
Interpol, etc.
1] INFORMATION ON
DESIGNATED PARTY
No records exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE
GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms and
conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE
RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.39.27 |
|
UK Pound |
1 |
Rs.77.33 |
|
Euro |
1 |
Rs.57.51 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
9 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
8 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
|
|
MERIT POINTS |
|
NO |
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
68 |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a
composite of weighted scores obtained from each of the major sections of this
report. The assessed factors and their relative weights (as indicated through
%) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
RATING
EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit transaction.
It has above average (strong) capability for payment of interest and
principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit consideration.
Capability to overcome financial difficulties seems comparatively below
average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
|