Jindal Saw : Annual Report 2023-24

Timeless wisdom drives intelligent evolution

Annual Report 2023-24

Evolution is wisdom

Evolution showcases wisdom through its adaptive, efficient, and spirited approach to life's challenges.

By embracing change and diversity, it ensures continuity and progression.

Jindal SAW embraces change as a catalyst for growth, unlocking new opportunities, fostering rejuvenation, sparking dynamism, fuelling transformation, and empowering stakeholders. This commitment strategically positions the company at the forefront of its industry, navigating shifts proactively and drawing valuable lessons from the past to drive continuous evolution in the dynamic business environment.

A vision towards adaptation

The world is a canvas for ground-breaking solutions. It integrates practices that create stronger, more agile systems that can seamlessly adjust to evolving landscapes.

Shri Om Prakash Jindal, the Founder Chairman of the O.P. Jindal Group, epitomized entrepreneurial evolution. Starting with a small bucket-manufacturing unit in Hisar in 1952, he embarked on a transformative journey that led to the establishment of an international conglomerate today.

Shri Jindal consistently sought opportunities to expand and diversify, founding Jindal India Limited in 1964 and Jindal Strips Limited in 1969, showcasing strategic evolution. Embracing global expertise, he ensured his enterprises thrived amid changing times and technologies, earning him the prestigious 'Life Time Achievement Award' from the Bengal Chamber of Commerce and Industry in November 2004 for his role in shaping India's steel industry.

Beyond business, Jindal championed social responsibility, uplifting marginalized communities and fostering inclusive growth. His evolution from entrepreneur to philanthropic leader highlights the transformative power of vision and perseverance, leaving a legacy inspiring future generations to navigate with resilience and foresight.

Shri O.P. Jindal

(August 7, 1930 - March 31, 2005)

Founder & Visionary, O.P. Jindal Group

Evolving with a new perspective

Embracing a new perspective allows us to stay open to change, innovate, and navigate hardships with resilience and creativity.

Jindal SAW

Since its establishment in 1984, Jindal SAW has undergone a remarkable evolution, transforming from a singular product venture into a multifaceted powerhouse over four decades. As a key member of the esteemed O.P. Jindal Group and India's primary indigenous steel producer and exporter, Jindal SAW has earned global recognition as a 'Total Pipe Solutions' provider, driven by innovation and adaptability.

Pioneering the use of U.O.E. technology, Jindal SAW led the manufacturing of welded pipes above 16" diameter, a significant milestone in India's industrial progress. Specializing in welded pipes above 16" diameter, spiral pipes for energy transportation, rust-free iron pipes for water and wastewater transportation, and various steel non-welded pipes and tubes, the company evolved to meet diverse market demands.

Jindal SAW's evolution includes integrating facilities across locations and operating a pellet plant to extract and leverage low-grade iron ore post-beneficiation, showcasing its commitment to sustainability. Renowned for value-added products and customer-centric services, Jindal SAW remains a trailblazer in the steel industry, poised for further innovation and growth in the global marketplace.

Over the span of four decades, the company has achieved notable milestones.

• Global presence with manufacturing sites in India, USA, and UAE, plus EU coverage through an associated entity.
• Diverse customer base includes major players in oil and gas, water/sewerage, engineering, transportation, power generation, and industrial sectors.
• Strong knowledge base and diversified model supported by competent human resources.
• Strict adherence to high corporate governance standards, with top-tier auditors overseeing operations.
• Solid financial standing enabling pursuit of significant opportunities across sectors.
• CARE Ratings has reaffirmed "CARE A1+ (A One Plus)" for Short-term debt facilities including commercial papers and revised the Long-term debt facilities rating from "CARE AA- (Outlook "Stable") to "CARE AA (Outlook "Stable").

The smallest ripple can lead to monumental transformations

Never underestimate the power of the smallest ripple, it holds the potential to shape the world.

Welded Pipes above 16" Diameter

In 1985, India saw the rise of technocracy and a focus on efficiency. Jindal SAW emerged as India's first producer of welded pipes above 16" diameter, becoming a key player in Southeast Asia, second only to Japan.

The company began its longitudinal pipe manufacturing in 1985 and obtained its first API License by 1986. By 1994, they started exporting globally while meeting all domestic demands. It has since exported pipes covering 18,545 kilometres and boast the largest customer network in the industry, maintaining strong customer relationships and receiving repeat orders from top Oil & Gas companies.

Today, Jindal SAW operates seven advanced pipe manufacturing plants with comprehensive anti-corrosion coating capabilities, including a concrete weight coating facility for offshore applications. With a focus on innovation and competitiveness, the company has a robust order book and is known as the 'Total Pipe Solutions Company,' embodying excellence in global pipe manufacturing.

In every adaptation lies the seed of progress

It emphasizes how life's ability to adapt isn't just about survival - it's about driving advancement. Whether it's through genetic shifts or innovative solutions, adaptation fuels progress.

Rust-free Iron Pipes

Jindal SAW's innovation lies in the versatility of rust-free iron pipes, which transport various fluids, from drinking water to wastewater. These pipes utilize socket and spigot joints with rubber gaskets, alongside advanced restrained double chamber joints that reduce the need for heavy thrust blocks. They are available with internal cement linings and specialized external coatings tailored to different soil conditions.

Situated at Samaghogha, near Mundra and Kandla ports in Gujarat, the Integrated Greenfield Project for rust-free iron pipes and the pig iron unit, with a 550,000 MT capacity, features key facilities like -

• Coke Oven Battery Plant
• Sinter Plants
• Blast Furnaces
• Rust-freeIron Pipes Manufacturing Plants

In the current financial year, Jindal SAW acquired the refurbished rust-free iron pipes plant of Sathavahana Ispat Limited in Andhra Pradesh with a capacity of 190,000 MTPA, through NCLT proceedings. The Italian operations focus on supplying European markets and Iraq. The rust-free iron pipes fitting and manufacturing facility in Maharashtra operates at an annual capacity of 18,000 MT, complementing pipe supplies from all four Jindal SAW facilities.

Jindal SAW has risen to become the world's third-largest producer of rust-free iron pipes, delivering pipes and fittings to over 40 countries.

Progress blossoms where diversity takes root

When diverse perspectives and ideas come together, progress flourishes. This growth is nurtured by the richness and variety of voices contributing to innovation and understanding.

Non-welded pipes for industrial purposes

Non-welded pipes for industrial purposes are renowned for their versatility and widespread utility across diverse industries. This comprehensive product range includes line pipes, process pipes, OCTG (Oil Country Tubular Goods), and pipes and tubes specifically engineered for general mechanical engineering applications.

The company has earned a solid reputation as a trusted supplier to major Original Equipment Manufacturers (OEMs) both domestically and internationally. With an assurance of excellence, they provide high-quality products that meet stringent standards, supporting the operational requirements of clients worldwide.

The distinguished list of clients include:

• ONGC

• Oil India

• GE

• Thermax

• Godrej

• SKF

• Petrofac

• L&T

• Proclad

• ADNOC

• IDMC Ltd.

• Tata

• Biocon

The inner spark gleams brighter with each challenge

With each challenge faced, the inner spark ignites, casting its glow upon the path of growth. Like a flame fed by adversity, it burns brighter.

Welded and Non-welded Pipes of different Stainless Steel grades

Jindal SAW stands out in the industry with its extensive range of stainless steel products, which includes welded and non-welded pipes of different stainless steel grades, and special nickel alloys. With a commitment to providing total pipe solutions, they serve multiple sectors globally. What sets them apart is the dedication to quality, manufacturing each tube under stringent global standards and industry norms in the facilities at Nagothane, Kosi Kalan and Samaghogha. The products meet the unique specifications of the customers, offering a wide variety of grades and dimensions to suit diverse requirements across industries. This comprehensive approach ensures that Jindal SAW remains a trusted provider of high-quality pipe solutions worldwide.

These versatile pipes and tubes find application across various industries, including:

• Oil & Gas
• Hydraulic & Instrumentation
• Automobile
• Food & Pharmaceutical
• Nuclear, Thermal & Hydro Power
• Chemical
• Paper & Pulp
• Power
• Aerospace

Transformation is the architect of possibilities

Transformation shapes the landscape of potential, inviting us to embrace change as the gateway to greatness.

Mining & Pellets

At the forefront of transformational possibilities, Jindal SAW established a significant mechanized iron ore mine and pellet plant in Bhilwara, Rajasthan, in 2012, with a production capacity of 1.65 MTPA, expanding the company's diverse product and service portfolio.

This state-of-the-art facility harnesses cutting-edge technology to upgrade low-grade magnetite iron ore deposits from 25%Fe to over 67%Fe at the beneficiation plant, subsequently pelletizing the iron ore concentrate.

Key features of this pioneering plant include:

• Being India's only pellet plant that leverages low-grade iron ore post-beneficiation.
• Operating with a lean deposit and high stripping ratio, requiring approximately 19 tons of mining to produce 1 ton of concentrate.
• Serving as North India's first pellet plant, strategically located alongside a dedicated iron ore mine.
• Utilizing treated sewage water for mining, beneficiation, pelletization, and other processes, drawn from Bhilwara and processed at the Sewage Treatment Plant established by Jindal SAW. This treated water is transported via a 23 km pipeline and stored in a 2.5 lac m3 capacity main water reservoir at the plant.
• Achieving the remarkable feat of consuming less than 140,000 kcals of energy per ton of pellet, significantly lower (by 60%) than the national average.
• Implementing a comprehensive Integrated Management System (IMS) aligned with the latest global standards. As a testament to these efforts, the company was certified for IMS [ISO 9001:2015, ISO 14001:2015, and ISO 45001:2018] standards by Bureau Veritas on October 23, 2019, and subsequently recertified on September 14, 2022.

Expansion is the unfolding of potential

As we explore new horizons, and embrace challenges, our potential unfolds revealing layers of talent, and creativity.

Key Subsidiaries

The Company describes its core business as pipes and pellets. As part of corporate restructuring, it has exited several noncore companies, allowing the Company to solidify its position as a market leader in the core business and improve its financial performance. The Company currently runs a small number of subsidiaries, mostly tied to the core business, in India and abroad. The Company's principal operating subsidiaries are listed below:

JINDAL SAW GULF LLC, ABU DHABI, UAE

Jindal SAW Gulf LLC is an Abu Dhabi subsidiary of Jindal SAW. It has West Asia's first major state-of-the-art integrated facility, producing large-sizerust-free iron pipes of various sizes. It

concentrates on supplying high-qualitytechno-economic goods and solutions for water transportation and sewage systems throughout the GCC and MENA region. The factory, which has an installed capacity of 300,000 tonnes per year, manufactures rust-free iron pipes in sizes ranging from DN 100 to DN 2200. The UAE facility has received approvals from customers and successfully supplied to nearly all countries within the GCC and MENA regions, and outside, namely Australia, Panama, Singapore, etc. Jindal SAW Gulf has also developed value added products, including double chamber pipes, foam coated pipes, etc. to capture premium markets that will drive better profit margins in the long run.

JINDAL SAW USA LLC

Jindal SAW has a double jointing and coating facility in Baytown, Texas under Jindal SAW USA, LLC, a 100% step-down subsidiary, to serve the North American market. Jindal SAW USA LLC, an ISO 9001: 2015 firm, was founded in 2007. This facility includes rail, road, and barge shipping capabilities within the North American market. The plant has a manufacturing capacity of 5 million square metres per year.

JINDAL METALS & ALLOYS LTD.

Jindal Metals & Alloys Ltd is a market leader in producing High-Quality Precision Stainless Steel Strips and Soft Magnetic Nickel Alloys. It has a large selection of thin and super thin cold rolled strips. Precession Stainless Steel and Nickel Alloys are used in production of textile machinery, clocks, watches, and electrical equipment. The Jindal Group's technical, production, and logistical resources are accessible to Jindal Metals & Alloys Ltd, which is located at Bahadurgarh in Haryana.

JINDAL ITF LTD.

Jindal ITF Ltd, a 51% subsidiary of Jindal SAW, is in the business of transhipment and waterborne transportation. Jindal ITF has entered contracts for providing its services to clients such as NTPC. Due to disputes on contractual terms, Jindal ITF has entered arbitration with NTPC. On January 27, 2019, the Arbitral Tribunal pronounced the final award in favour of Jindal ITF, allowing various claims to the tune of `1,891 crores plus interest and applicable taxes. At present, NTPC and Jindal ITF have filed petitions which are being heard by the High Court of Delhi. The proceedings had been delayed earlier on account of COVID-19. Jindal ITF is confident that the matter will be settled with favourable outcome in its favour.

JINDAL HUNTING ENERGY SERVICES LTD. (JHESL)

The Company has entered a Joint Venture with Hunting Energy Services Pte Ltd, Singapore ("Hunting") wherein it holds 51% shareholding & balance by Hunting. This state-of-the-art facility is a Centre of Excellence for cutting all kinds of Premium Threads on OCTG & Accessories and is a first-of-its-kindfull-fledged manufacturing set up in India which is co-located with the Pipe manufacturing facility of Jindal SAW at Nashik, Maharashtra. This manufacturing facility boasts cutting-edge machinery, benchmarked against global standards. It also features a high degree of automation and sophisticated testing capabilities, ensuring the production of top-quality products to meet the stringent standards of the oil and gas industry especially Deep Drilling Operations.

The facility is poised to attain an annual threading capacity of 70000+ Joints of Casings, Tubings, Accessories & Weld-On-Connectors covering the full spectrum of range from 2-7/8'' to 36''.

JHESL is also licenced by Oil State Industries (OSI) to threaded Patented OSI threads on Connectors thereby making Jindal SAW the only Indian company to provide Weld-On-Connector Casings to Indian market with 100% Indian manufactured product. It has also become the first company to have such a manufacturing facility in India which will offer premium connections for Oil Country Tubular Goods (OCTG) from India to different regions of the world. It would also serve as a substitute for imports thereby enabling India to become self-reliant in this market. The joint venture is in line with the goal of the nation to become 'Atmanirbhar Bharat'.