Transcript Slide 1
Calcination Technology Pioneers Goa Welcomes you to a Presentation about its activities …. Promoters DEMPO GROUP Reputed business house in India Long established industrial presence since 1941 Core business – Iron ore mining, Calcined Petroleum coke Long term relationships with steel manufacturers internationally – 50 years Group turnover: Rs. 1800 crores – 2007-08 Rs. 2200 crores – 2008-09 (Projected) DEMPO GROUP Corporate Social Responsibility Educational institutes imparting university level education in Arts, Science and Commerce Instituted awards for Goa Environment Protection Premier football club in the National Football League DEMPO GROUP Core Businesses Allied Businesses Iron Ore Mining & Export Marketing of Industrial Vehicles Calcined Petroleum Coke Foods & Beverages Iron & Steel Real Estate Development Newspaper Publication Ship Building & Engineering Industrial Paints & Varnishes India’s Leading Calciner Started production in 1976 First plant at Goa, 40 kms from Mormugao Port Technical guidance from Great Lakes Corporation.(USA) Kiln designed by M/s Kennedy Van Saun Procured from M/s McNally Bharat First Indian producer exporter of Calcined Petroleum Coke First ISO 9000 certified Calciner in India Listed Company on the BSE & NSE Three locations across India 300 Employees Annual Projected Sales USD 116 Million Green Coke / RPC sourced globally Experience in calcination of more than 30 years. First calciner in India to use green coke blending to optimize customer requirements. Experience in using and blending green cokes from sources around the globe - Kuwait, Indonesia, Malaysia, China, Argentina, Brazil. Acquisitions During the year 1999 acquired Bilaspur Calcining unit. Production capacity of 40,000 tons/year. During 2001 acquired Paradeep Calcining unit . Production capacity of 125,000 tons/year. Bilaspur Plant Located in Central India Strategically located near India’s largest Aluminium smelters Goa Plant 40 kms from Mormugao port Only Calciner on west coast of India Proximity to Middle East, East Africa & South Africa All the plants are ISO 9001 and ISO 14001 certified. Paradeep Plant Located on the east coast of India 8 kms from Paradeep port Second largest calciner in India Green Coke The Paradeep & Bilaspur Plant’s have access to green Petroleum Coke producing Indian refineries Indian green cokes comparable to the best with Low Sulphur & High Real & Apparent Densities The Paradeep & Goa Plant’s use imported green cokes in their Blends Applications - CPC Anode Manufacture for Aluminium Smelting Carbon additive – sponge iron/steel making Electrodes – EAF/steel industry Titanium Dioxide Speciality applications Sales Customers list - partial Goa and Paradeep plants are export oriented The company exports 25 % of its production Satisfied customers across the world. Shipments – BHP, DUBAL, Anglessey, ALCAN, AUG, GREECE Aluminium Industry •Alcan France •Aluminium de Greece •Alucam Cameroon •Balco Korba •Hindalco Renukoot •Hindalco Belgaum •Malco Metturdam •Nalco Angul •Hindalco Hirakud . Electrode Manufacturers •ESMA, RSA •Eveready Industries, Hyderabad •Graphite India, Bangalore Titanium Dioxide •Millenium Inorganic Chemicals, Australia •Kerala Metals & Minerals, Chavara Metalurgical Chemical & others •Amsteel, Malaysia •Krakatau Steel, Indonesia •Met & Const. Chem., Egypt •Saudi Iron & Steel, KSA •Ennore Foundaries, Chennai •Ashok Leyland, Hyderabad •Bharat Heavy Electricals, Bhopal •Carborundum Universal, Koratty •Ghatge Patil, Kolhapur •Kalyani Steel, Pune, •Telco, Pune The last three years: A position statement Major increase in petroleum prices Our Raw material costs increased by more than 100% over 3 years (Petroleum, shipping) Customer prices take their time to increase, the business is on long term contracts Goa Carbon Strategy: Domestic Local players dependant on North East Raw material, proving costly. Flexibility to import limited Goa Carbon has plants closest to domestic customers – offers significant freight advantage GCL has port based plants, offers good Raw Material freight advantage Rain Calcining is on the East Coast, currently having an Export focus We foresee a shakeout among smaller domestic players Goa Carbon Business Plan Medium Term Customer feedback to GCL very positive for Volume increase 1. Export 2. Domestic Long term Contract for the supply of CPC to overseas Aluminium Smelter discontinued Supply to overseas market on spot basis which will result in passing on the increased raw material cost and exchange fluctuation. Paradeep will be a focus area for growth Middle East an area of interest, proposals being studied Power generation Financial Performance Improvement - 1 Price increase on both Domestic and Export sales. Reducing the credit period to customers to improve the Cash Flow Completion of old contracts at old prices by Dec 2007 New customers Push volumes Look domestic and also at steel Lower cost imported raw material vs domestic raw material Lower cost blends High capacity utilization Financial Performance Improvement - 2 Repayment of higher cost term loans, ICD’s Reduced interest burden by availing ECB’s instead of normal working capital borrowing from Indian Banks Focus on domestic market where margins higher Possibility of trading in CPC to augment top line Medium Term Customer Outlook Aluminium industry bullish on growth , with capacity relocation Domestic International Domestically, steel industry on a growth mode China a major competitor and consumer Domestic CPC Competition Current capacity split is : GCL Group 240,000 tpy (3 plants) Rain Calcining 600,000 tpy (1 plant) Other competitors 566,000 (9-10 of them, all in the NE East/East – Barauni, Gauhati, Haldia, Kolkata) Future Plans Demand drivers from Aluminium positive Increase customers Capacity expansion Use of waste heat – Power generation Our Strengths Goa Carbon - Established calcined coke suppliers in the global market. The strong financial support of the Dempo group of companies in world business. Accessibility to both domestic and imported sources of green petroleum coke. Expertise in blending green cokes. Highly qualified professional management at all levels Port based plants on both coasts of India Process Expertise established over 30 years High Sieving & Screening Capacity Thank you