6. Iron Making Process
Iron Ore
(extracted to get)
Iron (Base Metal)
Hot Metal (Liquid Iron)
It is the hot, liquid, metallic iron
product obtained upon reduction of
iron ore
Primary input for production of
steel in the Integrated Steel Plant
Pig Iron
product in solid (lumpy) form
obtained upon solidification of Hot
Metal in Pig Casting Machine
Foundry Grade Pig Iron
Pig iron used in the Foundries for
production of Cast Iron (CI)
Castings . This is the major use of
pig iron.
Basic/Steel Making Grade Pig Iron
Pig iron (including hot metal) used
for production of Steel.
SI – Sponge Iron
DRI – Direct Reduced Iron
HBI – Hot Briquetted Iron
SI/ DRI/HBI
DRI / SI: Solid metallic iron product obtained upon
Direct Reduction of high grade iron ore in solid
state itself without being converted into liquid form
like that in Blast Furnace.
HBI: At times the DRI/SI coming out from the
furnace is converted into a bigger compact mass
i.e. Briquettes for ease in transportation/charging in
steel making furnace, which are known as Hot
Briquetted Iron (HBI)
9. Terms used
►
►
►
Integrated Producers / Primary Steel Producers – those
that convert Iron Ore to Steel
Secondary Producers - These are the mini steel plants
(MSPs), which make steel by melting scrap or sponge iron
or a mixture of the two
Ferro Alloys – refers to various alloys of iron with a high
proportion of one or more other elements, manganese or
silicon for example. It is used in the production of steels
and alloys as a raw material
13. Key Deals in 2011
Date
Target/Issuer
Total Transaction
Value ($USDmm,
Historical rate)
11/12/2011 ACE Steelfab Pvt. Ltd.
Buyers/Investors
Sellers
Action Construction Equipment Ltd (BSE:532762) 9.21
11/11/2011 Mahindra Ugine Steel Company
Limited, Steel Business
10/05/2011 National Laminations Group
Navyug Special Steel Private Limited
Mahindra Ugine Steel Company
Limited (BSE:504823)
-
26.75
OJSC Novolipetsk Steel (LSE:NLMK)
8.0
09/28/2011 Usha Ispat Limited
36.85
06/29/2011 Welspun Maxsteel Limited
210.58
04/27/2011 Two Mines in Goa and
Karnataka
03/24/2011 Uttam Galva Ferrous
Date
200.0
-
Target/Issuer
Fomento (Karnataka) Mining Company Private
Limited
Apollo Global Management, LLC (NYSE:APO);
Welspun Corp Limited (BSE:532144)
Halcyon Finance and Capital Advisors Private
Limited
ArcelorMittal India Limited
Total Transaction Value
($USDmm, Historical rate)
07/18/2011
Maharashtra Elektrosmelt Limited
08/12/2011
Ankit Metal & Power Ltd. (BSE:532870)
50.97
12/20/2011
Rohit Ferro-Tech Limited (BSE:532731)
28.36
06/10/2011
Topack Fittings Ltd.
02/14/2011
Innoventive Industries Limited
(BSE:533402)
Gallantt Ispat Limited (BSE:533265)
09/26/2011
337.46
15.0
10.11
7.79
Tata Metaliks Ltd. (BSE:513434)
Welspun Steel Ltd.
Obulapuram Mining Company
Private Limited
Buyers/Investors
Steel Authority of India Limited (BSE:500113)
Concast Ispat Limited; Mayank Securities Private
Limited; VNG Mercantiles Private Limited; Cube
Fintex Private Limited; Invesco Finance Pvt Ltd.;
Nucore Exports Private Limited; Arthodock
Vinimay Pvt.Ltd; Shreyansh Leafin Pvt. Ltd.
Vasupujya Enterprises Pvt. Ltd.; Poddar MechTech Services Pvt. Ltd.; VNG Mercantiles Private
Limited; Shreyansh Leafin Pvt. Ltd.
Wayzata Investment Partners LLC
Standard Chartered Private Equity Limited
Gallantt Udyog Limited
14. Companies
No.
1
2
3
4
5
Company
Name
Rohit FerroTech Limited
Tata Steel
Limited
Mahindra Ugine
Steel Company
Limited
Sarda Energy &
Minerals Limited
Facor Alloys Ltd.
Total Revenue
LTM (INR mm)
11,667
1,290,851
14,560
8,880
3,963
Product Description
Carbon Ferro Chrome, Ferro Manganese,
Ferro Silicon, Manganese Alloys, Silico
Manganese
Bearings, Galvano, Agrico Products, Alloy
Steel Ball Bearing Rings, Annular Forgings
and Flanges
Proposition
Prospective buyer for
UFACL
Met with M&A Team:
Currently not looking at
acquisitions in steel;
Merger is Ok, no cash
acquisition.
Can look at Coking coal
mines( 50mn +
reserves) with linkage to
infrastructure, Iron Ore
mine – preferably
producing stage (drilling
stage – low priority)
Bearing Races, Panels, Bearing Steels, Case Met them Carburising Steel, Castings
Blocks & Tiles,Coal, Coal Washery Services, Secured mandate –
Electricity, Ferro Alloys
looking at a Coal Mine
Ferro Chrome, Ferro Alloys
Any Co in Ferro alloys,
any sick Ferro alloy co
looking at turnaround,
any steel co. Size: 1525cr.
15. Company
No.
Name
6 Shri Bajrang
Power And
Ispat Limited
7 Innoventive
Industries
Limited
8
VISA Steel Ltd.
9
Ankit Metal &
Power Ltd.
No.
Company Name
10 Lloyds Metals
& Energy Ltd
11
Vandana
Group
12
Hira Ferro
Alloys
13
Maithan Alloys
14
Abhijeet Group
Total Revenue
LTM (INR mm)
2,947
7,662
Product Description
-
Proposition
RS has contact with
Anand Goel
Precision Steel Tube, Auto Components, Portfolio company of
CRCA Coils, Membrane Panel Strips
Light House. Looking
for opportunities in
steel Tubes
13,242
Coke. Bar and Wire Rods, Chrome
Concentrates, Chrome Ore Powder, Coal
TMT Bars, Electricity, Ferro Alloys: Ferro Group Co of Rohit
Total Revenue
7,058
Manganese, Ferro Silicon:
Ferro
LTM (INR mm)
Product Description
Proposition
Cold Rolled Steel Coils and Sheets,
Pradip Sir’s Contact
6,900
Electricity, ERW Precision Tubes: Sponge
Iron Products, Steel Pipes:
2679
C.A. O.P. Singhania
(Dhiren Sir’s Contact
knows them)
1,586
Briquet, Electricity, Ferro Alloys, Ferro
C.A. O.P. Singhania
Manganese, Fly Ash Bricks
(Dhiren Sir’s Contact
knows them)
6,075
Ferro Alloys, Electricity
Shreyas Kampani’s
contact
Power, mining, roads construction, steel, To Pitch
and ferroalloys businesses
16. No.
15
Company
Name
Century Ply
Total Revenue
LTM (INR mm)
17,021
16
JSW Ispat Ltd
82,267
17
Bhushan
Steel Ltd
Product Description
Manufacture, sale, and export of plywood,
laminates, cement, Ferro alloys, and
paper products in India and internationally
Cold Rolled Steel Coils, Colour Coated
Sheets, Galvanised Sheets,
Hot Metal, Polysteel
Proposition
Shreyas Kampani”s
contact
Met Mr. Balan from
Ispat Industries in past.
Reinitiate a dialogue to
check if they looking at
any acquisitions now.
70,035
Steel Coils, Steel Sheets, Steel Strips,
Tubular Sections, Zinc and Aluminum
Coated Sheet
To pitch
To Pitch
18
Uttam Galva
Steels Ltd
50,348
Cold Rolled Annealed Sheets and Coils,
Galvanised Plain and Corrugated
Sheets, Long Steel Products, Cold
Rolled Unannealed Sheets and Coils,
Color Coated Sheets and Coils
19
Adhunik
Metaliks, Ltd
18,006
Auto Steel, Billets, Carbon Steel, Cold
Heading Steel, Ferro Manganese
To Pitch
20
Impex Ferro
Tech Ltd
6,528
Ferro Chrome, Ferro Manganese, Silico
Manganese, Trading of Iron and Steel
Products
To Pitch
17. Techno-Economic Parameters
►
►
►
►
►
BF Productivity – measured in terms of tonnes of hot metal produced,
per cubic meter of blast furnace volume, per day (T/cubic met/day)
Coke Rate : This is measured in Kgs. of BF Coke consumed per
tonne of Hot Metal produced in the Blast Furnace(Kg/THM). By
convention, this excludes coke (nut/pearl coke) mixed with sinter etc.
Energy Consumption : This is measured in Giga Calorie (i.e. 1000
million calorie) per tonne of Crude Steel produced(Gcal/TCS).
Power Consumption : This is measured in terms of Number of units of
electrical power consumed in KWH per tonne of crude steel produced
(KWH/TCS).
Refractory Consumption : This is measured in terms of total refractory
consumed per tonne of crude steel(Kg/TC).