#### **Company Overview** Jayaswal Neco Industries Limited (JNIL) is one of India’s largest **integrated manufacturers of alloy steel long products and ferrous castings**. A flagship entity of the **Neco Group**—founded in 1972 by Shri Basant Lall Shaw—the company has evolved from a small iron foundry into a diversified industrial conglomerate with over **50 years of operational experience**. JNIL operates two core business divisions: 1. **Steel Plant Division (SPD)** – Produces high-quality alloy steel long products. 2. **Castings Division** – A leading producer of iron and steel castings across multiple sub-divisions. The company is headquartered in Nagpur, with manufacturing units strategically located in **Chhattisgarh and Maharashtra**, near key raw material sources and consumption centers. --- #### **Core Operational Strengths** ##### **1. Fully Integrated and Backward-Integrated Model** JNIL follows a **fully integrated operational model** that spans from **captive mining to finished steel and precision castings**, ensuring end-to-end control over quality, cost, and delivery. - **Backward Integration**: - **Captive Iron Ore Mines**: Two major mines—**Metabodeli (Chhattisgarh, 1.0 MnTPA)** and **Chhotedongar (Chhattisgarh, 2.95 MnTPA)**—supply **100% of the company’s iron ore** requirements. - Mining leases valid until **2052 and 2055**, respectively, ensuring long-term raw material security. - Mines are **among the lowest-cost producers** in India due to allocation-based sourcing (no market premiums) and **zero-waste mining technology**. - Also owns captive mines for **limestone and titaniferous ore** in Maharashtra and Chhattisgarh. - In-house **beneficiation plant** ensures consistent ore quality and resource optimization. - **In-Process Facilities**: - Sinter plant, pellet plant, coke ovens, sponge iron (DRI) units, and a **0.75 MnTPA blast furnace**. - Recently completed **Category One Capital Repair & Upgradation of the blast furnace**, improving efficiency and reducing coal consumption. - **Captive Power Generation**: - Total installed capacity of **62 MW** (up from 54.5 MW), meeting **~70% of energy needs**. - Powered by **waste heat recovery, AFBC boilers, blast furnace gas**, and thermal energy—enhancing energy efficiency and cost control. - **Logistics & Infrastructure**: - A **13 km dedicated railway siding** at the Raipur plant reduces inbound logistics costs. - Proximity to **Visakhapatnam Port (~550 km)** facilitates import of coal and raw materials. - Multi-modal connectivity (road, rail, and air) ensures supply chain responsiveness. - Located in developed industrial zones with stable power, water, and internal infrastructure, supporting scalability. --- #### **Manufacturing & Production Capabilities** ##### **Steel Plant Division (Siltara, Raipur, Chhattisgarh)** - **Capacity**: 1 million tonnes per annum (MnTPA) integrated steel plant. - **Key Facilities**: - 2 Coke Ovens, 2 Sinter Plants, 1.5 MnTPA Pellet Plant, 2 Steel Melt Shops, 3 Rolling Mills (bar and wire rod). - Oxygen plants (including a 340 TPD unit commissioned recently). - **Products**: - **Alloy steel bars, wire rods, bright bars, billets, pig iron, sponge iron (DRI), pellets.** - Over **200 grades** of alloy steel tailored for automotive and engineering applications. - **Production Flexibility**: Ability to shift production across mills allows rapid response to market demand. - **Customer Base**: Approved supplier to **all major Indian automotive OEMs** (e.g., Tata Motors, Mahindra, Maruti Suzuki), serving **Tier-2 component manufacturers and forgers**. - **Revenue (FY2023–24)**: ₹5,375 Crores from operations. - **FY2023–24 Key Output**: - **675,202 MT billets** (+17% YoY), **634,998 MT rolled products** (+17% YoY). - Record **DRI production** in FY2022–23. ##### **Castings Division** Operates across **three sites**: Anjora (Chhattisgarh), Nagpur, and Butibori (Maharashtra). Organized into **four sub-divisions**: 1. **Centricast Division** – India’s **leading producer of centrifugally cast ductile/cast iron products**: - **Products**: Pipes, fittings, manhole covers, frames, gratings. - **FY2024**: 14,976 MT produced, 15,358 MT sold (incl. **3,128 MT export** across six countries). - Exported to ~7 countries; holds **UPC and ASTM certifications** for international access. - Grew at **13.4% (production) and 10.7% (sales)** in FY2024–25 due to infrastructure push. 2. **Construction Castings Division (CCD)** – India’s **market leader in heavy castings**: - Capable of producing **single castings up to 30 MT (cast iron) and 7 MT (ductile iron)**. - **Products**: Slag pots, ingot moulds, pump & valve bodies, counterweights. - Applications in iron & steel, mining, construction, and EPC projects. - **FY2024**: 8,914 MT sold (9,042 MT produced). 3. **Automotive Castings Division (ACD)** – One of India’s **largest producers of cylinder heads and axle housings**: - Supplies OEMs of **cars, trucks, tractors, agricultural machinery, and construction equipment**. - Key products: Differential housings, clutch housings, axle housings, carrier housing, backhoe loader axles. - **FY2024**: 15,720 MT produced. 4. **Engineering Castings Division (ECD)** – Focuses on **customized ductile iron castings**: - Serves **automotive, railways, and engineering sectors**. - **FY2024**: 7,808 MT produced, 7,314 MT sold. - **Total Castings Revenue (FY2022–23)**: ₹596.52 Crores (+16.97% YoY). - **FY2024–25 Performance**: - **Production up 1.48%**, **sales up 0.2%** YoY. - **Certifications**: ISO 9001:2015, IATF 16949, Indian and U.S. (UPC, ASTM) standards. --- #### **Product Portfolio & Market Reach** ##### **Key Products** - **Steel**: - Alloy steel bars, wire rods, bright bars, billets, pig iron, DRI, pellets. - Used in **springs, gears, crankshafts, bearings, fasteners, stabilizer bars, axle components**. - **Castings**: - Manhole covers, gratings, pipes, slag pots, cylinder heads, gearboxes, pump valves, backhoe axles, kingpost assemblies. - **Hubless Pipes & Fittings**: A niche innovation—claimed to be India’s **only lifelong cast iron drainage system**. ##### **End-Use Sectors** - **Automotive** (Commercial & Passenger Vehicles, Tractors, EVs) - **Infrastructure & Construction** (Roads, Airports, Ports, Urban Utilities) - **Defence & Railways** - **Oil & Gas, Marine Engineering, Power, Agriculture, Petrochemicals** --- #### **Strategic Developments (2024–2025)** - **Expansion & Modernization**: - **Brownfield Pellet Plant (1.5 MnTPA)** proposed at Raipur: - Aims to utilize **low-grade fines and underused ore**, reducing waste and enhancing internal pellet supply. - No new land required, leverages existing clearances and infrastructure. - Expected to **improve margins**, strengthen backward integration, and serve external demand. - **Capital repair of blast furnace and other units** completed, boosting efficiency and longevity. - **Market Expansion**: - Expanding footprint in **domestic automotive** and **infrastructure sectors**. - Exploring entry into **defence ammunition** (recently obtained manufacturing licence), **ball bearing steel, marine engineering, and transmission towers**. - Actively participating in platforms like **Bharat Mobility Global Expo** and **Advantage Vidarbha** to showcase innovation. - **Sustainability Initiatives**: - Zero liquid discharge plants, wastewater recycling, afforestation, and fume extraction systems reflect ESG commitment. - Waste heat recovery and gas-based power contribute to **energy efficiency and carbon footprint reduction**. --- #### **Financial & Operational Highlights (FY2023–24)** - **Revenue from Operations**: ₹5,375 Crores (Steel Plant), ₹596.52 Crores (Castings). - **Steel Output Growth**: 17% YoY in billet and rolled product production. - **Mining Output Growth**: 22% higher production, 19% higher dispatches. - **Debt Management**: Successfully **exited debt restructuring**, with systematic repayment and refinancing. - **R&D Focus**: Continuous innovation in grades and customization supports high-value, low-MOQ offerings. --- #### **Competitive Advantages** ✔ **Vertical Integration**: Complete control from mining to finished goods. ✔ **Cost Leadership**: Captive low-cost iron ore + self-generated power = industry-leading cost efficiency. ✔ **Customer Trust**: Long-term relationships with **major OEMs and infrastructure developers**. ✔ **Production Agility**: Multi-mill flexibility ensures responsiveness to demand shifts. ✔ **Geographic Advantage**: Central India location reduces logistics costs and enhances market access. ✔ **Skilled Workforce**: Access to talent from nearby urban centers ensures smooth operations.