Mission JSPL aspires to establish itself as a Learning, Cost Competitive and Eco-Friendly Organization through adoption of world-class work ethics and practices.

Strategic project on JSPL

Going Beyond Boundaries

Prepared by:affinity business schools student

Deepak Kumar BalBandana MishraAnannya ShroffNamrata PandaSrinibas Routray

An exciting story to tell..JSPL

Jindal Steel and Power Limited (JSPL) is one of the leading power in steel industryJSPL is designing there own strategies to grow at rapid rate.Rs. 11,091 crore (USD 2.5 billion) is JSPLs consolidated turnover in 2009-10Listed on the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) in India

Company Profile

Jindal Steel and Power Limited is the most valuable private steel producer in India, with an annual turnover of over US $2.1 billion (Rs. 10,000 crore), Jindal Steel & Power Limited (JSPL) forms a part of the US $12 billion (over Rs. 60,000 crore) Jindal Group. JSPL is a leading player in Steel, Power, Mining, Oil & Gas and Infrastructure. Mr. Naveen Jindal, the youngest son of the legendary late Shri. O P Jindal drives JSPL and its group companies Jindal Power Ltd, Jindal Petroleum Ltd., Jindal Cement Ltd. and Jindal Steel Bolivia with a belief in the concept of self-sufficiency. Jindal Steel and Power is a part of the Jindal Group, founded by O. P. Jindal (19302005) in 1969.

Vision

To strengthen Indias industrial base and improve Quality of Life through Sustainable Development approachesMissionJSPL aspires to establish itself as a Learning, Cost Competitive and Eco-Friendly Organization through adoption of world-class work ethics and practices

Respect for IndividualIntegrityMeritocracyDynamic ThinkingCreativity & InnovationSocial Responsibility

Values & Objectives

Market Served.

IndiaChinaGeorgiaBoliviaSouth AfricaAustraliaZimbabweIndonesiaOmanCongoMadagascarMozambique

SWOT ANALYSIS

STRENGTHS

Abundant resources of iron ore.Low cost and efficient labour force.Strong managerial capability.Strongly globalised industry and emerging global competitiveness.Modern new plants & modernized old plants.

WEAKNESSES

High cost of energyHigher duties and taxesInfrastructureQuality of coking coalLabour lawsDependence on imports for steel manufacturing equipments & technologySlow statutory clearances for development of mines

OPPORTUNITIES

Huge Infrastructure demandRapid urbanizationIncreasing demand for consumer durablesUntapped rural demand Increasing interest of foreign steel producers in India

THREATS

Slow growth in infrastructure developmentMarket fluctuations Global economic slow downHuge competition

Monnet Ispat,Jai Balaji Ind,Adhunik Metalik,Sarda Energy,Godawari Power,Tata Sponge iro,msp Steel,Gallantt Metal,Vikash Metal

A Conglomerate one

SteelsCementCoal mining Iron ore miningPowerPetroleum {Future project}Diamond Exploration

Mergers & Acquisitions

Jindal Steel and Power Ltdis acquiring Oman basedShadeed Iron & Steelfor $500 Million. The deal will be funded through a mixture of debt and

Ansoff Matrix: Diversification

Backward Integration- Coal to Liquid Petroleum Project {Jindal Steel & Power has been allotted the Ramchandi Promotional Coal Block in Orissa for the proposed Coal to Liquid (CTL) project by the Union Coal Ministry}

Coal to Gas project of JSPL { Barbil for heating of iron pellet}

Key performance indicators

Performance snapshot 2009-10 2008-09Gross Sales & Other Income 11679.81 11694.99Net Sales & Other Income 11151.82 10913.37

Competitive Advantages

Complete backward integration of three key raw -materials- coal, iron-ore and power makes JSPL THE LOWEST-COST producer of sponge iron in India giving it a high competitive edge.

Applying--- Abells 3-D Model

Customer functions: Utility {infrastructure & Construction}Alternative technologies: Sophisticated Foreign Technology.Customer groups: Govt. & Industrial Firms

CSR

Infrastructure {hospital, ITI Building, Pond}Sports, art & cultureAsha the hope - O.P. Jindal vocational & Rehabilitation Centre{a school and rehabilitation centre, 2,782 special children}Livelihood programs {165 SHG, UTTHAAN}

Porters 5 forces---- Applied

The threat of new entrants: highThe threat of substitute products or services: lowBargaining power of suppliers: mediumBargaining power of buyers: mediumRivalry among the existing competitors in the industry : high