Presentation on theme: "Calcination Technology Pioneers Goa"— Presentation transcript:
1Calcination Technology Pioneers Goa Welcomes you to aPresentation aboutits activities ….
2Promoters DEMPO GROUP Reputed business house in India Long established industrial presence since 1941Core business – Iron ore mining,Calcined Petroleum cokeLong term relationships with steelmanufacturers internationally – 50 yearsGroup turnover:Rs crores –Rs crores – (Projected)
3DEMPO GROUP Corporate Social Responsibility Educational institutes imparting universitylevel education in Arts, Science and CommerceInstituted awards for Goa EnvironmentProtectionPremier football club in the NationalFootball League
4DEMPO GROUP Core Businesses Allied Businesses Iron Ore Mining & Export Calcined Petroleum CokeIron & SteelNewspaper PublicationShip Building & EngineeringIndustrial Paints & VarnishesMarketing of Industrial VehiclesFoods & BeveragesReal Estate Development
5India’s Leading Calciner Started production in 1976First plant at Goa,40 kms from Mormugao PortTechnical guidance from Great LakesCorporation.(USA)Kiln designed by M/s Kennedy Van SaunProcured from M/s McNally Bharat
6First Indian producer exporter of Calcined Petroleum Coke First ISO 9000 certified Calciner in IndiaListed Company on the BSE & NSEThree locations across India300 EmployeesAnnual Projected Sales USD 116 MillionGreen Coke / RPC sourced globally
7Experience in calcination of more than 30 years. First calciner in India to use green cokeblending to optimize customer requirements.Experience in using and blending green cokesfrom sources around the globe - Kuwait,Indonesia, Malaysia, China, Argentina, Brazil.
8Acquisitions 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.
9Bilaspur Plant Goa Plant Paradeep Plant Located in Central India Strategically located near India’slargest Aluminium smeltersGoa Plant40 kms from Mormugao portOnly Calciner on west coast of IndiaProximity to Middle East,East Africa & South AfricaParadeep PlantLocated on the east coastof India8 kms from Paradeep portSecond largest calciner in IndiaAll the plants are ISO 9001and ISO certified.
10Green Coke The Paradeep & Bilaspur Plant’s have access to green Petroleum Coke producing Indian refineriesIndian green cokes comparable to the bestwith Low Sulphur & High Real & ApparentDensitiesThe Paradeep & Goa Plant’s use imported greencokes in their Blends
12Customers list - partial SalesCustomers list - partialGoa and Paradeep plants are export orientedThe company exports 25 % of its productionSatisfied customers across the world.Shipments – BHP, DUBAL, Anglessey,ALCAN, AUG, GREECE.Aluminium IndustryAlcan FranceAluminium de GreeceAlucam CameroonBalco KorbaHindalco RenukootHindalco BelgaumMalco MetturdamNalco AngulHindalco HirakudElectrode ManufacturersESMA, RSAEveready Industries, HyderabadGraphite India, BangaloreTitanium DioxideMillenium InorganicChemicals, AustraliaKerala Metals & Minerals,ChavaraMetalurgical Chemical & othersAmsteel, MalaysiaKrakatau Steel, IndonesiaMet & Const. Chem., EgyptSaudi Iron & Steel, KSAEnnore Foundaries, ChennaiAshok Leyland, HyderabadBharat Heavy Electricals, BhopalCarborundum Universal, KorattyGhatge Patil, KolhapurKalyani Steel, Pune,Telco, Pune
13The last three years: A position statement Major increase in petroleum pricesOur 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
14Goa Carbon Strategy: Domestic Local players dependant on North East Raw material, proving costly. Flexibility to import limitedGoa Carbon has plants closest to domestic customers – offers significant freight advantageGCL has port based plants, offers good Raw Material freight advantageRain Calcining is on the East Coast, currently having an Export focusWe foresee a shakeout among smaller domestic players
15Goa Carbon Business Plan Medium Term Customer feedback to GCL very positive for Volume increase1. Export2. DomesticLong term Contract for the supply of CPC to overseasAluminium Smelter discontinuedSupply 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 growthMiddle East an area of interest, proposals being studiedPower generation
16Financial Performance Improvement - 1 Price increase on both Domestic and Export sales.Reducing the credit period to customers to improve the Cash FlowCompletion of old contracts at old prices by Dec 2007New customersPush volumesLook domestic and also at steelLower cost imported raw material vs domestic raw materialLower cost blendsHigh capacity utilization
17Financial Performance Improvement - 2 Repayment of higher cost term loans, ICD’sReduced interest burden by availing ECB’s instead of normal working capital borrowing from Indian BanksFocus on domestic market where margins higherPossibility of trading in CPC to augment top line
18Medium Term Customer Outlook Aluminium industry bullish on growth , with capacity relocationDomesticInternationalDomestically, steel industry on a growth modeChina a major competitor and consumer
19Domestic 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)
20Future Plans Demand drivers from Aluminium positive Increase customers Capacity expansionUse of waste heat – Power generation
21Our Strengths Goa Carbon - Established calcined coke suppliers in the global market.The strong financial support of the Dempogroup of companies in world business.Accessibility to both domestic and importedsources of green petroleum coke.Expertise in blending green cokes.Highly qualified professional managementat all levelsPort based plants on both coasts of IndiaProcess Expertise established over 30 yearsHigh Sieving & Screening Capacity