Powering Growth Annual Report 2011
Total Page:16
File Type:pdf, Size:1020Kb
Powering Growth Annual Report 2011 www.jsw.in Vision, Mission and Core Values Vision, Mission, and Core Values at JSW Vision Global recognition for size, culture and quality, while nurturing nature Mission and society. Supporting the nation’s growth in power and Core Values steel with speed and innovation. • Crystal clear • Passion for excellence • Drive with leadership • Young thinking • Challenging status quo Shri O. P. Jindal August 7, 1930 - March 31, 2005 O. P. Jindal Group - Founder and Visionary Truly, for some men, destiny isn’t written, unless they write it. Shri O. P. Jindal was a father figure for millions. Where others would see walls, he saw doors of opportunities. He continuously worked towards making India self-reliant. He believed that the growth should be inclusive and made it his life’s mission to help the underprivileged sections of society. A successful industrialist, a politician, a leader and a passionate philanthropist, late Shri O. P. Jindal achieved this and more with his inspiring energy. And amongst other things, he left behind a few billion smiles and a legacy of inspiration. 1 Annual Report 2010-2011 Message from Chairman’s desk A YEAR OF GROWTH & THE AGENDA FOR TOMMORROW: CONSOLIDATION: A strategy degenerates into wishful The financial year 2010-11 was a thinking unless you back it with landmark year for Power sector commitment. Your Company is specifically from generation perspective committed to blaze new trails in the as the Country achieved the highest new fiscal despite challenges in the ever yearly addition to installed power areas like environment clearances, generation capacity of 14,228 MW. JSW land acquisitions, power sales tie up Energy, with its dynamic track record etc. of project completion and efficiency in • Balance 2 x 300 MW units of Ratnagiri operations clocked significant growth would attain Commercial operation over the previous year. Some of the key in first half of the FY 2011-12 and highlights are: balance 6 X 135 MW of Barmer would be commissioned during the • Gross energy generation of 9.85 FY 2011-12. billion units during this year registers a 62 % increase over last • Your Company could achieve year. Techno Economic Clearance and Mr. Sajjan Jindal Environment Clearance for 240 MW Chairman and Managing Director • 735 MW of increased Generation Kutehr Hydro Project and signed capacity - from the commissioning the Implementation Agreement with of 2 units of 300 MW power project at Himachal Pradesh Government. Ratnagiri, Maharashtra and one unit We are looking forward to the Dear Shareowners, of 135 MW power project at Barmer, financial closure and placement Rajasthan. of orders for major equipment FY 2011-12. JSW Energy has • Sales grew significantly by 82% once again notched while EBITDA and PBT grew by 32% • Your Company’s maiden venture in and 13% respectively over last year Transmission – Jaigad PowerTransco up an impressive Limited- a Joint venture with NEW BENCHMARKS IN OPERATIONAL Maharashtra State Electricity performance and EXCELLENCE: Transmission Company Limited, achieved commercial operation surged ahead in its Erecting Power Plants is only one half of first segment of 400 KV double journey of excellence. of the story. Operating it at peak levels circuit quad conductors Jaigad- New of efficiency on a consistent basis is Koyna Transmission line on 7th July, I am confident this what differentiates one from the crowd. 2010 and second segment Jaigad- It is a proud moment for us that CEA Karad Transmission line would be will provide us with has included three power stations of commissioned in the first half of an ideal spring board your Company i.e. 260 MW SBU I and 2011-12. 600 MW SBU II of Vijayanagar and • Toshiba- JSW Turbine Generator to scale new heights 600 MW Ratnagiri in its list of best Pvt. Limited- a Joint Venture with performing plants with highest PLF in Toshiba Corporation, Japan for and create new the Country. Your Company has also manufacturing of super critical benchmarks. been awarded NDTV Profit leadership steam turbine attained the first award for “Power” Industry Vertical. milestone of completion of Blade 2 Manufacturing Shop and is ready are not fully utilized due to corridor Customers, Business Partners, to commence Turbine blade availability or payment related issues. Vendors, both international and manufacturing activities. As Power sector is amongst the core domestic, Bankers, Financial sectors for sustained and inclusive Institutions, and all other stakeholders BACKWARD INTEGRATION IS THE economic growth, effective steps by for their consistent support and trust. NEED OF THE HOUR Government today are imminent for a I also convey my appreciation for the safe and secure tomorrow. Power sector has been facing a major untiring enthusiasm and commitment challenge in terms of fuel availability of all JSW’ites without which it would and high fuel prices. Your Company RESPONSIBLE CORPORATE CITIZEN: have been impossible to successfully is totally focused to enhance the Your Company is committed to improving ride through different challenges fuel security for imported as well the quality of life of all stakeholders and I am sure that they will keep on as domestic coal based projects. through continuous and purposeful challenging the high standards of We have tied up for a part of our fuel engagement in economic progress, operational excellence that they have requirement by acquisition of majority social responsibility and environmental set for themselves. share holding in coal mining Company concerns. Your Company takes it as an We will continue to follow our dreams SACMH in South Africa. The commercial opportunity to make a difference and to become one of the most respected production from Kapurdi Lignite mines remain committed to the issues of social global power sector Company through at Barmer being developed in joint upliftment, sustainability, resource continuous improvement in our venture with Rajasthan State Mineral conservation, energy efficiency and efficiency, by innovative practices and Mines Corporation to feed our pit head environment protection. The Company further expanding our businesses to power project – RajWest Power Limited has planned to implement cutting edge emerging power markets. is also expected to start shortly. eco - friendly “Supercritical technology” I look forward to your continued support We continue to put our efforts to secure for all our future thermal power and I am sure that together we shall complete fuel security by exploring projects. realize our dreams. opportunities to acquire mines across Your Company strongly believes that the globe which will enable us to build further investment in Hydro power and a sustainable fuel sourcing model, other non-conventional energy sources Yours sincerely, besides providing power at reasonable will be a comprehensive response tariff. towards our commitment on climate change issues. BROAD BASED REFORMS In pursuit for growth, your Company Sajjan Jindal In order to create and sustain a healthy believes in ensuring highest concern environment for promoting investments for health and safety of the employees, in the power sector as also ensuring contractors and the eco-system around lowest tariff for power, there needs the power plant locations. Besides, to be holistic approach to reforms JSW has been focused on building in the sector – rather than focusing organizational capacity by investing in only on generation. These need to be human resource which is the stepping implemented effectively to ensure that stone to success. the gains made by the sector are fully realized which is essential to maintain OUR GRATITUDE: the present levels of economic growth. However, in the absence of clear policy I would like to convey my sincere directions, situations may emerge gratitude and appreciation to our when power generation capacities Shareholders, Debenture holders, 3 Annual Report 2010-2011 Message from Vice Chairman’s desk Dear Shareholders, Fiscal 2011 has been yet another transformational year for your Company as it continues to enhance its capacity with resultant higher turnover and improved profitability. The private sector participation pursuant to the reforms in power generation has enabled in accelerated capacity enhancement, to which we all are a witness. However, to truly bear the fruits of the enhanced capacity by the various stakeholders, it is essential to tackle some of the key challenges plaguing the sector viz. insufficient domestic coal availability, reforms in transmission and distribution sectors aimed at cutting losses and improving efficiencies. An expeditious redressal of these issues is essential to fully realise benefits besides optimal utilisation of capacities and efficient utilisation of scarce resources. Mr. N. K. Jain While your Company continues on the path of pursuing growth, it is Vice Chairman essential to build an organisation to withstand the challenges from various fronts. We, therefore, continue to focus on strengthening the At JSW, we have human resource aimed at creating a strong and committed team which reconciled growth is the backbone of a successful organisation. with sustainability As your Company moves into a consolidation phase, our aim is to integrate the business effectively to manage the risks efficiently. as we strive forward In our pursuit for growth, our effort is to build a lasting organization, to be a full service which can provide value to all stakeholders. I wish to have your whole integrated Power hearted support in this