Thursday, November 16, 2017

Jai Balaji Industries Ltd: Buy
CMP: Rs.13
Market Cap: Rs.126.27 crore
Jai Balaji Industries Ltd, the flagship company of Jai Balaji Group is one of the largest steel producers in the private sector in Eastern India. The company is an integrated steel manufacturer. Their products includes sponge iron, pig iron, reinforcement steel TMT bars, alloy and mild steel ingots & wire rod and carbon, alloy & mild steel heavy rounds. They are having five manufacturing facilities located at Durgapur and Raniganj in West Bengal and Durg in Chhattisgarh.

The company also manufactures Thermex TMT Bars, under the brand name Balaji Shakti, which is a respected name among civil contractors and real estate developers for quality steel. In addition, they have supplied steel to various projects of National importance undertaken by National Hydro-Electric Power Corporation Ltd., National Highway Authorities of India, etc.

Jai Balaji Industries Ltd was incorporated in the year 1999 as Jai Balaji Sponge Ltd. The company set up their first Mini DRI Plant in West Bengal. In the year 2000, they established their first sponge iron plant with the initial capacity of 50 tonnes per day. 

In September 2005, the company commissioned a power plant with installed capacity of 12 MW per annum and a ferro alloy plant with installed capacity of 30,000 MT per annum at Ranigunj in West Bengal.

During the year 2006-07, the company increased the capacity of steel bars/rods by 180,000 tonne per annum and billet/MS ingots by 58,806 tonne per annum. 

In addition, they commissioned a 40 MW captive power plant during the year. Shri Ramrupai Balaji Steels Ltd amalgamated with the company with effect from April 1, 2006, which had a sponge iron plant with the capacity 120,000 tonne per annum, blast furnace with the capacity 80,500 tonne per annum, steel bars/rods with the capacity 80,000 tonne per annum and billet/MS ingots with the capacity 176,418 tonne per annum.

In March 2007, the company commissioned the blast furnace with the installed capacity of 28,750 MT per annum to produce pig iron. They changed the name of the company from Jai Balaji Sponge Ltd to Jai Balaji Industries Ltd with effect from June 22, 2007.

During the year 2007-08, the company acquired the steel division of HEG Ltd in Chhattisgarh having a sponge iron plant with the capacity of 120,000 MT per annum, steel-melting shop with the capacity of 100,000 MT per annum and a 12.8 MW captive power plant.

In October 2007, the company acquired 100% shareholding of Nilachal Iron & Power Ltd in Jharkhand having a sponge iron plant with the capacity of 100,000 MT per annum.

In September 15, 2008, the sinter plant at Durgapur with the installed capacity of 6.08 lakh MTPA commenced its production and in March 18, 2008, the electric arc furnace plant at Durgapur with the installed capacity of 4.33 lakh MTPA commenced its production. 

The company commissioned ferro alloy plant with a capacity of 0.25 lakh MTPA and started trial production with effect June 02, 2009.

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