INTRODUCTION TO THE PROJECT REPORT

JSL LIMITED, KNIC, DANAGADI, JAJPUR, ORISSA

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Company Background
SL is setting up worlds largest single location fully integrated stainless steel

plant at Orissa. The 1.6 MT per annum Greenfield Project envisages complete integration from mining to cold rolling, along with 500 MW captive power plant. The project is being commissioned in phases. Phase I of the project which included Ferro Alloy shops and thermal power plant has already become operational in 2007-08. With complete commissioning, the Orissa plant would reach a capacity of 1.6 Million Tonnes, and this along with expansion at Hisar, JSL is poised to turn a new leaf joining the top league of leading global stainless steel producers in the world. Jindal Stainless is an ISO: 9001 & ISO: 14001 company is the flagship company of the Jindal Organization. The company today, has come a long way from a single factory establishment, started in 1970. As the numero uno it has taken on the task of making stainless steel a part of everybody's life by taking a 360 degrees approach from production of raw materials to supply of architecture and lifestyle related products.

1.1..1 -ISO 9001:2000 certification of JSL - Jajpur Plant

ISO 9001:2000 certification of JSL Jajpur Plant, Orissa by TUV NORD on 8th November 2008 . The Ferro Chrome Unit, Ferro Manganese Unit and 1 X 125 MW Captive Power Plant is under this certification along with other supporting divisions.

Company Address : JSL Limited, Kalinganagar Industrial Complex, Duburi, Dist. Jajpur 755026 Tel: +91 06726 266001 Fax: +91 06726 266002 E-mail: info.jajpur@jindalsteel.com
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Business of JSL Limited.

1.2..1 - Greenfield Project at Orissa Jindal Stainless is setting up a Greenfield integrated Stainless Steel project in the state of Orissa which would involve mining of Iron, Manganese & chrome ore for production of ferroalloys and Stainless Steel in the melt shop and rolling mills. To meet the full requirement of power, Jindal Stainless will also be setting up a 500 MW captive power plant. This stainless steel plant will ultimately have a capacity of 1.6 million tonnes per annum. The operations of XX 60 MVA ferro-chrome furnace have already started and the production has stabilised. JSL expects to start the xx125 MW power plants soon followed up by setting up of other ferro alloys units of ferromanganese and silico- manganese. 1.2...2 - RAZOR AND SURGICAL BLADE STEEL Jindal Stainless is an exclusive producer of stainless razor blade steel in India. . The microstructure of our strips is designed to optimize / facilitate hardening, sharpening and honing operations at customers end and to develop ideal characteristic for intended end application. These are achieved with stringent quality checks utilizing modern and sophisticated testing equipments such as Metallurgical microscope with advanced image analyzer, digital micro-hardness tester, and microprocessor controlled Tensile testing machine and scanning electron microscope. Persistent R & D activity had led to the improvement in quality of product enabling us, not only to cater to the Indian razor blade steel requirement but also to export a substantial quantity on a regular basis. The current capacity for precision strip production is 12,000 TPA. 1.23 -COIN BLANKS Jindal Stainless has been supplying AISI 430 grade ferritic stainless steel coils & blanks to India Govt. Mint & Foreign mint for making coins on regular basis. To diversify its product range, coin blanking and associated processing facilities of world-class quality has been installed and commissioned. . At present Jindal Stainless is supplying Ferritic Stainless Steel coin blanks of denomination of 25 Paise, 50 Paise and 1 Rupee to Govt. of India, Mint. In addition to these we have developed Cupro-Nickel coin blanks of 2 and 5 rupees denomination. The present installed capacity for coin blanking is 10,000 MTPY. ORISSA PROJECT - INDIA Jindal Stainless is setting up a Greenfield integrated Stainless Steel project in the state of Orissa with capacity of 1.6 million tones per annum.

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Main Facilities of the Company

Steel Making :

The two Steel Melt Shop, SMS I & SMS II, comprises of Ultra High Power- Electric Arc Furnace, Argon Secondary Metallurgy Converter, LRF (Ladle Refining Furnace). SMS I is equipped with a continuous slab caster while SMS II is equipped with twin strand bloom caster. In addition to above SMS I is also equipped with VOD (Vacuum Oxygen Decarburization) unit to produce steel with low inclusion and gas content. The present installed capacity of both SMS put together is 550,000 MT per year. The Slabs are subjected to surface conditioning in a slab grinding section. The Slabs are then Hot Rolled into HR Coils in Steckel Mill, which are then used to produce HRAP No1 Coils and Plates. HR coils are transferred to Cold Rolling Unit, to produce CR Coils and Sheets. The Blooms are hot rolled in Tandem Strip Mill to narrow coils and flat bars. . In addition, special steels like razor blade steel is cast into ingots which are subsequently forged to slabs & rolled in tandem strip mill. The production of stainless steel begins with melting of ferrous scrap and ferroalloys in UHP Electric Arc Furnace, followed by secondary refining in AOD/VOD units. The liquid steel thus obtained, is cast into slabs in a continuous slab caster with Auto Mould Level Control (AMLC) System. JSL produces stainless steel in 200, 300 & 400 series. Further the on-going efforts of a dedicated R&D Team along with Operations and Quality Assurance department are constantly innovating in fields of cost reduction, product development and addition of niche products such as Duplex Stainless Steel, Controlled expansion alloys as like INVAR-36 and Special Finish Cold Rolled Stainless Steel and Stainless Steels for critical applications. 1.3...2 Hot

Rolling :

Hot rolling comprises of Hot Steckel Mill and Tandem Strip mill. The hot steckel mill comprises of slab reheating walking beam furnace, 4 Hi reversing roughing mill, 4 Hi reversing Steckel Mill equipped with Hot Coilers on both sides and a down coiler. Slabs are rolled to hot rolled coils and plates. The mill is equipped with level2 automaton system consisting of automatic hydraulic gap setting, roll bending system, automatic pass scheduling and mill setup, automatic sequencing, mill supervisory system and automatic gauge control. The mill is capable of rolling plates and coils up to 1250 mm width weighing up to 18MT. The Tandem Strip mill comprises of reheating furnace, 2-Hi roughing stand, five finishing stands and down coiler to hot roll stainless steel blooms into flat bars and narrow coils. The present rolling capacity of both the mills put together is 700,000 TPA.
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Finishing (HR Products) :

HR coils are cut to length, annealed and pickled to produce plates in HRAP No. 1 finish. For thickness 10.0mm and above plates are directly produced from steckel mill, which are annealed and pickled to produce HRAP No. 1 finish plates. 1.3...4

Cold Rolling :

The cold rolling mill complex comprises of the four units CRD I, CRD II & CRD III & CRD IV . CRD I , CRD III & CRD IV comprises a combination of 20 Hi Sendzimer mills, annealing and pickling lines and various sophisticated associated equipments and processing lines to produce Cold Rolled Coils and Sheets with quality surface finishes, precise dimensional control and good flatness control in wider coils (>600mm width). The facilities at Jajpur are equipped to produce and sup-ply material in 2D, 2B, No.3, No.4 and BA surface finishes. CRD II is engaged in production of precision strips in thinner sizes (0.05mm to 0.50mm thick) e.g. Razor Blade, other ferritic and Martensitic stainless steel. The present installed capacity of cold rolled products is 1, 50,000 TPA. 1.3...5

Coil Build up Line:

Coil buildup line is used to attach leader ends in hot rolled coils for increasing the overall yield of coils. It is also equipped with edge trimming to improve production for further operations. 1.3...6

Skin Pass Mill :

The skin pass mill is designed and installed in dust proof housing. It is used to give cold rolled pass by polished ground work roll on 2D finish dull material to convert to 2B bright surface finish. The mill is designed to meet requirements in 600 to 1600mm width coils in 0.40 to 3.00mm thickness.

1.3...7 Slitting Line: Slitting lines are used to side trim the coils and cater the market requirements in smaller width coils with a thickness from 0.45mm to 6MM.

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Strip Grinding Line:

The strip grinding line is used to produce No.3, No.4 and some special finishes requiring grinding which is used for decorative purposes in architectural applications, restaurant equipments, dairy equipments, lifts, elevators etc.

1.3...9 Shearing Line: The flying shearing line with Voss Leveler is used to produce sheets with good flatness which is the first and foremost requirement of customers.

1.3...10 Annealing and Pickling line : The annealing and pickling line is used to anneal and pickle Hot Rolled stainless and cold rolled stainless steel coils. The continuous annealing and pickling line is equipped with a neutral electrolyte tank for pickling by Ruthner process using sodium sulphate for the neutral electrolyte, scanacon system for acid recovery and removal of metal content.

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The Stainless Steel industry Introduction

1.4...1 Global Scenario and Indian Prospects :

Introduction: Stainless steel is a value-added product that does not deteriorate during its life time. It is highly corrosion resistant and has robust tensile strength with excellent fatigue properties. It is economical in the long run though the initial cost is high. It has ease of fabrication property. Stainless steel is cent percent recyclable and environment friendly. It is material of choice for hygienic conditions. Global Scenario In the first year of its invention in 1913 stainless steel found its initial application in cutlery. Gradually, it was used for the food processing sector and subsequently in textile, chemical and other engineering industries. Its application in the Architecture, Building and Construction (ABC) and Automobile, Railways and Transportation (ART) sectors have worked wonders. World Production In 1913, production of stainless steel in the world was only a few tons. It reached 0.6 Mt in 1938 and increased to about 2.5Mt in 1963. It crossed the 10Mt mark in 1986. The global stainless steel production figures between 1995 and 2001 are presented in table: 1 Table: 1 World Production Stainless Steel (000 tones) Trends in Global Prices of Various Items of Stainless Steel Global prices of Stainless Steel products in January 01, January 02, and January 03 are furnished in Table: 2 Table: 2 Prices of Stainless Steel Products In Global Market (US $ per tone) Salient Features of Selected Countries (a) China China is presently the worlds largest consumer of stainless steel. It consumed 2.25 Mt in 2001. Chinas production declined to 220,0000 tones in 1998 from 33,80000 tones in 1995 and 343,0000 tones in 1996. However, due to special thrust by the Chinese government, the production rose to 750,000 tones in 2001. According to Wang Keqiam, DGM, Taiyum Stainless Steel Co., Chinas steel production capacity will jump by 238 percent in 2010 to 2.1 Mtpy from the 2002 level. The Chinese government has adopted safeguard measures to restrict imports. The annual tariff free Quota for stainless cold rolled coils up to May 2003 would be about 600,000 tones. This will be expanded to 650,000 tonnes over the following 12 months and increased by an additional 65,000 tonnes up to 2005. (b) Japan Japans production of Stainless Steel in 2001 was 3.82 Mt and an estimated 3.78 Mt in 2002. In 2003, it is expected to be 3.75 Mt. The Japanese producers have gone for restructuring the industry. Nippon Steel is in the forefront of the restructuring programe. They have entered into Strategic alliances with two other companies Sumitomo Metal Industries and Nissin Steel. The arrangements will lead to a decline in Japans Stainless capacity to 3.6 Mtpy fr om 4.0 Mtpy - a reduction of 10 percent. From July 2001, the Japanese producers have curtailed the domestic shipment of Stainless Steel by 20 percent or more to prevent the domestic prices falling. (c) The USA Production of Stainless Steel in the US declined to 1.8 MT in 2001 and then grew by 23.9 percent to 2.23 Mt in 2002. The forecast for 2003 is 2.45 Mt despite dismal prospects of domestic consumption. Imports to the US will be lower and its exports to China will decline substantially. (d) South Korea The country produced 1.55 Mt of Stainless Steel in 2001 and about 1.58 Mt in 2002. In 2003, the production is expected to reach 1.6 Mt. Koreas demand for hot rolled Stainless Steel in 1999 was 1.31 Mt. It reached 1.68 Mt in 2002 and is expected to reach 1.76 Mt in 2005. POSCO is meeting about 86 percent of Koreas hot rolled stainless steel demand. Its production capacity is expected to reach 1.66 Mtpy after the completion of its expansion project now being implement at a cost of US $518 million. POSCO will also expand its No. 1 H S Mill at Pohang to handle more stainless steel coils. The project is scheduled for completion by September, 2003. (e) Taiwan (ROC) Taiwans stainless steel production in 2001 was about 1.23 Mt. In 2002, it increased by 15 percent to reach 1.41 Mt. The expected production in 2003 is about 1.40 Mt. The countrys exports to China will decline sharply due to the safeguards measures adopted by that country.

(f) Europe In 2002, there was a consolidation of stainless steel industry in Europe Acerinox of Spain made a major acquisition of 64 percent stake in Columbus Stainless of South Africa. The deal made Acerinox the worlds third largest producer with a melt shop capacity of 2.5 Mtpy. It has planned to increase the slab capacity at Columbus by 200,000 tonnes to 750,000 tpy. Acerinox has also opened a new melt shop at its North American Stainless plant. The major expansion of 2002 was evident in Avesta Polarit of Finland commissioning its new melting, casting and rolling capacity at its Tarnio plant that took potential output from 1 Mtpy to 1.70 Mtpy. Avesta also brought on stream a new Euro 22 million billet caster at its Sheffield Plant in the UK. Arcelors ALZ subsidiary brought on stream an expanded meltshop at its Ghent Plant in Belgium. Finlands Outokumpu acquired Corys Stake in Avesta Polarit and then moved to take full control of the Swedish producer. The stainless steel production in the E U countries in 2001 was 7.69 Mt. It increased to 7.92 Mt in 2002 but is expected to go down to 7.85 Mt in 2003. Some Major Application of Stainless Steel In ABC Sector In the World Some of the major applications of stainless steel are briefly mentioned below : 1) Stainless steel was first used in 1930 for cladding the top portion of the crysler Building in New York. Even after 72 years stainless steel cladded portion remains in good condition. 2) The entrance canopies to Bilbao Metro Railway station in Spain are made from 316L grade curved hollow section stainless steel frames. Its escalators are suspended by stainless steel hangers and braced against the sides of the tunnel with stainless steel struts. 3) Facades at the School of Occupational and Physiotherapy in South Hamton, UK used engineering bricks on exposed stainless steel channels. About 40 tonnes of 316L grade stainless steel was used in cladding support. 4) The road slab across a section of Cradle well by pass project in New castle, UK was strengthened by 240 tonnes of 316L stainless steel. 5) Type 304 stainless steel was used in Sanfransicos main public library. Pan formed panels, decorative columns and pilasters etc. were all made from stainless steel. 6) Stainless steel supplied by Indias Salem Steel Plant was used for the retractable roof of the Melbourne Tennis Stadium in Australia. 7) About 400 tonnes of Salem Stainless steel was used in the worlds tallest twin towers, the PETRONAS TOWERS in Kaula Lumpur , Malaysia. 8) The roof the Washington National Airport in the USA is covered with about 0.5m sq. ft. of grade 316 stainless steel. Special care was taken to give it a non-reflective, anti-glare finish. Considerable use of stainless steel was also used for components including phone enclosures, the floor base and ticket counters inside the building .

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The Indian Scenario :

Production of Stainless steel in India started in the late sixties. Production gradually increased to 24,000 tonnes in the mid seventies. Towards the end of the eighties, the government changed its policies allowing production of all types of steel in the Secondary Sector. New capacities were created and in 1980-81, Indias production of stainless steel reached 66,000 tonnes. The growth of production of stainless steel in India for some selected years since 1980-81 are furnished below : During the eighties, AOD/VOD processes were introduced by some EAF units which started the use of High Carbon Ferro Chrome for the first time in India that brought down the cost of production of stainless steel. Small Induction Furnace (IF) units also started melting stainless steel scrap for recycling into usable steel. At present there are about 19 producers of stainless steel in India with EAF/IF melting and AOD/VOD facilities having an annual capacity ranging from 10,000 to 400,000 tpy each. These units contribute about 80 percent of the countrys production. Besides, these about 17 IF units which melt stainless steel scrap and produce pencil ingots without any refining facilities. Their average per unit production ranges from 5,000 to 8,000 tonnes and they contribute about 20 percent of Indias Stainless Steel production. Towards the end of eighties two major developments took place in the Indian Stainless Steel Scenario. These were: (a) The price of Nickel increased to high levels in 1988. India is importing almost its total nickel requirement. To counter this situation, the Indian steel technologists developed low nickel high manganese austenitic stainless steel in the 200 series. India is now the highest producer of this grade in the world for individual application areas to get higher yield and low cost downstream processing. In the last decade there has been a standardization of this grade. (b) the Indian Stainless Steel Development Association (ISSDA) was founded in 1989 by seven major Stainless steel producers in the country with the object of diversifying and increasing the use of stainless steel in India. In 1990-91, the share of catering equipment in Indias total consumption of stainless steel was as high as 90 percent and that of industrial usage was only 10 percent. But due to the concerted efforts of ISSDA in collaboration with the Nickel Development Institute, the consumption by the catering sector came down to 75 percent in 2000-01. Exports India exported about 170,000 tonnes of stainless steel production in 2000-01. Of these, low nickel high manganese grade HR and CR products were 20,000 tonnes. In the 300 series, HR and CR products were about 20,000 tonnes, CF Bars 33,600 tonnes, wire and cables about 12,000 tonnes. The export of 400 series was 9,800 tonnes of which CF Bars were 7,200 tonnes and wire and coils about 2,400 tonnes. The export of utensils and kitchenware during 2000-01 was about 50,000 tonnes. The value of utensile export by India in 2000-01 was about US $ 17 million to Middle-East. The USA, Africa, Latin America, Far East and Japan.

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Major Producers of Stainless Steel In India :

(a) Jindal Strips Ltd. (JSL) JSL is a ISO 9002 and ISO 14001 certified company. It is the flaghip company of the US $ 1.5 billion Jindal organization. JSL is the largest integrated manufacturer of stainless steel in India having a market share of over 40 percent. At Hisar, JSL has Indias only composite stainless steel plant for manufacture of flat products, with a stainless steel melting capacity of 400,000 tpy and a matching hot rolling production capacity of 400,000 tpy. The plant can roll CR Coils of thickness as low as 0.10 mm. The plant has a cold rolling capacity of 100,000 tonnes per year, inclusive of 10,000 tpy of blade steel. Its products are discussed below : * Precision Tubes Stainless Steel precision strips in various grades are produces in JSLs narrow 20 Hi mills (max width : 500 mm) in the precision cold rolling unit. * Blade Steel JSL is the exclusive producer of stainless steel strips for making razor and surgical blades with a capacity of 10,000 tpy. * Coin Blanks- The coin blank line recently established at Hisar has capacity of 3,000 tpy. During 2001-02, JSL exported about 83,330 tonnes of stainless steel products valued at US $ 86 million. The company is hopeful of crossing the export value of US $ 120 million in 2002-03. (b) Salem Steel Plant (SSP) under SAIL is a premier producer of stainless steel in India. Commissioned in 1981, the plant has a capacity to roll 186,000 tpy of HR Carbon and stainless steel flat products and 70,000 tpy of cold rolled stainless sheets and coils. As a part of product diversification, a state of the art blanking line was installed which has indigenized the stainless blanking process in India. A most modern HR Mill was installed in 1995 of 186,000 tpy capacity. This reverse integration helped in meeting the requirement of its cold rolling mill. S. S. P. is a ISO 9002 and ISO 14001 certified plant. It can cold roll value added 0.13 mm thick CR stainless steel. Its products Salem Stainless is a household name in the domestic market and widely exported. It services the requirements of 100 per cent EOUs and free trade zones in India. Its blanking line can produce 3,000 tonnes of ferritic grade coin blanks or 3,600 tonnes of utility blank per year. S. S. P. has developed new applications of its products like stainless steel ceiling fans, exhaust fans, corrugated sheets, water tanks, architectural items, furniture etc. Use of Salem Stainless in Australias tennis Stadium and the twin Petronas Tower in Malaysia has already been mentioned. In India about 65 tonnes of Salem Steel has been used in the Parliament Library in New Delhi of 304/304L grades. Salem Steel has also been used in Ramoji Film City in Hyderabad, at Priyadarshini park in Mumbai and at Garuda TCP & Head Quarters in Gurgaon. About 70 tonnes of Salem Stainless will be used for the 10,000 sq. metre dome-shaped roof of the Kopar Khairane railway station at Navi Mumbai.

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The Future :

Indias consumption of Stainless Steel is increasing gradually but the per capita consumption is still as low as 700 grams as compared to 14/15 kgs in the western world. ISSDA found a lack of awareness about its use and benefits, non-availibility of skilled fabricators, under developed production technology etc. as reasons for such low consumption. The notion that Stainless Steel is a high cost material at the initial stage is changing gradually giving way to the life cycle cost analysis approach. ISSDAs efforts to help increase the consumption of stainless steel in the country are already showing some positive results. The future of the Indian Stainless Steel industry is bright and favourable government policies will help its further growth.

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Company Profile:

Jindal Organization, set up in 1970 by the steel visionary Mr. O.P. Jindal, has grown from an indigenous single-unit steel plant in Hisar, Haryana to the present multibillion, multi-national and multi-product steel conglomerate. The organization is still expanding, integrating, amalgamating and growing. The group places its commitment to sustainable development, of its people and the communities in which it operates, at the heart of its strategy and aspires to be a benchmark for players in the industry the world over. The Jindal Organization today is a global player. Its relentless quest for excellence has reaped rich benefits and it is today one of the worlds most admired and respected groups within the steel fraternity. Shri Om Prakash Jindal more popularly known as O.P. Jindal was born on August 7, 1930 to a farmer Late Netram Jindal of village Nalwa of district Hisar in Haryana. Since his childhood the young Jindal had interested in technical work. He started his industrial career with a small bucket-manufacturing unit in Hisar. In 1964, he commissioned a Pipe Unit Jindal India Limited, followed by a large factory in 1969 under the name Jindal Strips Limited. Sh. O.P. Jindal was the Chairman of the Jindal Organization. In November 2004, Sh. Jindal was conferred the prestigious "Life Time Achievement Award" for his outstanding contribution to the Indian Steel Industry by the Bengal Chamber of Commerce & Industry. According to the latest Forbes' List, Sh. O.P. Jindal has been ranked 13th amongst the richest Indians of the country and placed 548th amongst the richest persons of the world.

When others look into the walls.. he saw the doors

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1.7...1 COMPANY

PROFILE

iJINDAL STAINLESS LIMITED :

Jindal Stainless is in many ways very much like the material it produces. Like stainless steel the company is versatile in its thought process, strong and unrelenting in its operations, environment friendly in its manufacturing process, bright, shining and beautiful in its community support activities. The list of the properties of stainless steel is endless, just as our values are all encompassing. Jindal Stainless has always been committed to innovation and progression, research and development. Our innovations are admired beyond the geographical boundaries of our country. No wonder we are the strategic partners of global leaders by choice. Our achievements narrate a story of our determination to succeed and our passion to win. We will continue to leverage our opportunities in creating excellence that the world cannot even think about. Today we are the largest integrated stainless steel producer in India, tomorrow we will rule the world. Jindal Stainless is a ISO: 9001 & ISO: 14001 company is the flagship company of the Jindal Organization. The company today, has come a long way from a single factory establishment, started in 1970. As the numero uno it has taken on the task of making stainless steel a part of everybody's life by taking a 360 degrees approach from production of raw materials to supply of architecture and lifestyle related products. 1.72

Vision 2010:
To be amongst the top 10 stainless steel producers in the world. To gain international recognition for cost leadership, Product innovation and Customer satisfaction. To be admired as a socially responsible Corporate and a sustained value creator for all its stakeholders.

Summary :
Shri Om Prakash Jindal more popularly known as O.P. Jindal was born on August 7, 1930 to a farmer Late Netram Jindal of village Nalwa of district Hisar in Haryana. Since his childhood the young Jindal had interested in technical work. He started his industrial career with a small bucket-manufacturing unit in Hisar. In 1964, he commissioned a Pipe Unit Jindal India Limited, followed by a large factory in 1969 under the name Jindal Strips Limited. At present, there are twenty factories under the flagship of the Jindal Organization, which are worth over US $ 10 Billion, under whose umbrella thousands of families directly or indirectly benefit themselves. Sh. Jindal's mantra was where others saw walls he saw doors. Then whether it was opening doors or breaking down walls he always led the way. The life journey of Sh. Jindal from a farmer's son to a successful industrialist, a philanthropist, a politician and a leader would

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serve as a great source of inspiration for generations to come.

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