JSW - Corporate Brochure

Managing change successfully

Steel

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ENERGY

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INFRASTRUCTURE

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IT

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CEMENT

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ALUMINIUM

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F O U N D AT I O N 1

Contents 06

Board of Directors

08

Highlights

14

JSW Steel’s Journey

16

Vice Chairman’s Statement

18

JSW Spirit

50 Economic, Social and Environmental Aspects

70

CSR Initiatives

83

Directors’ Report

101

Management Discussion and Analysis

129

Report on Corporate Governance

145

Auditors’ Report

148

Standalone Accounts

185

Consolidated Accounts

Shri O. P. Jindal August 7, 1930 – March 31, 2005 O. P. Jindal Group – Founder and Visionary

Only a life lived for others is a life lived worth while

An industrialist par excellence under whose aegis the O P Jindal Group grew from strength to strength. But for the world at large Late Shri O P Jindal was much more than that. He was also a leader of masses, some one who would often champion the cause of the poor and downtrodden.

He was not just a celebrated politician, but also a great humanitarian and an avant-grade visionary. His life both as an industrialist and as social worker left an indelible mark on this nation. And for us at O P Jindal group, his life gives us inspiration to touch new heights.

3

Message from Vice Chairman’s desk

“Your investment in JSW is a proxy for futuristic technologies, investments in business processes and capabilities where every rupee works as a growth multiplier.”

Mr. Sajjan Jindal, Vice Chairman and Managing Director, explains the JSW mindset that successfully countered challenges.

Mr. Sajjan Jindal was born on December 5, 1959, in Calcutta, India.

He holds a Bachelor of Mechanical Engineering from Bangalore University.

In 1984, Mr Jindal started his career in Mumbai by independently looking after the Western region Business of Steel Manufacturing of the O.P. Jindal Group.

Since then he has followed an aggressive strategy that has led him to the one of India’s largest private integrated steelmakers. Under his leadership, JSW Group has also diversified into power and infrastructure operations. JSW Group is under the umbrella of the USD 10 billion O.P. Jindal Group.

Mr. Jindal believes that India’s real challenge lies in pursing the path of

inclusive growth and taking a leadership role in sustainable development. Growth is meaningful only when it benefits all sections of the society and does not endanger the fragile environment. He serves on several civic society bodies including: • Immediate Past President of ASSOCHAM • Member on the Board of Airports Authority of India • Member, India Council for Sustainable Development • Member, Advisory Committee – TERI School of Management • Member – CII National Council • Council Member – Indian Institute of Metals

In 2009, Mr. Jindal was awarded the prestigious 19th Willy Korf / Ken Iverson Steel Vision Award at the Steel Survival Strategies XXIV Conference for elevating JSW Steel amongst the selected few global steel producers.

Earlier in 2007, he was named the “Ernst & Young Entrepreneur of The Year “ in the “Manufacturing Category”.

He lives with his family in Mumbai and has three children and is a keen sportsman with a love for the outdoors.

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At JSW Steel, envisioning trends is not a fashionable phrase‌ but one that inspires transformation

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At JSW ENERGY, envisioning trends is not a fashionable phrase‌ but one that inspires transformation

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At JSW INFRASTRUCTURE, envisioning trends is not a fashionable phrase‌ but one that inspires transformation

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JSW Group

Multiple hues of success: The JSW group has diversified interests in Steel, Energy, Logistics, Infrastructure, Mining and Cement.

Bringing alive a billion dreams JSW Group is a part of USD 10 billion O. P. Jindal Group. Under the dynamic leadership of Mr. Sajjan Jindal, JSW Group is USD 5 billion enterprise with interests across various core economic sectors – Steel, Energy, Cement, Aluminium, Minerals, Infrastructure & logistics, IT and is flying high world over.

JSW Steel, the flagship Company of the JSW Group is the largest integrated private steel manufacturer in India. It has established a strong presence in the global valueadded steel segment with the acquisition of steel mill in US and a Service Center in UK. JSW Steel has also formed a joint venture for setting up a steel plant in Georgia. The Group has also acquired mining concessions in and Chile, Mozambique, USA and South Africa. It is the largest manufacturer and exporter of galvanized steel in India with its products exported to over 100

countries. By 2020 the company would be producing 32 million tons of steel annually with Greenfield integrated steel plants coming up in West Bengal and Jharkhand.

JSW’s midas touch is not restricted to its business empire alone. Villages, careers and millions of lives, in and around, have felt the difference. Award-winning townships, Worldclass infrastructure, Excellent revenues, JSW has surpassed a million expectations, won a million hearts.

The Group is spreading the Josh across the world to everybody… Investors, dealers, shareholders, analysts, brokers, our employees, communities…..

At JSW, we have committed ourselves to small acts that change the world around us resulting in a sequence of never ending excellence.

Vision Global recognition for size, culture and quality, while nurturing nature and society.

Mission Supporting the nation’s growth in power and steel with speed and innovation.

Core Values

• Crystal clear • Passion for excellence • Drive with leadership • Young thinking • Challenging status quo

13

JSW Journey

1994

1999-2000

2004-05

Incorporated Jindal Tractabel on March 10, 1994. Later renamed as JSW Energy

South West Port incorporated.

Beginning of maritime operations at Mormugao Port

JSW Steel took over the management of Salem Works

1995-96

2003-04

Inauguration of Jindal Praxair Oxygen Company

Inauguration of Cement Plant at Vijayanagar

JSW Group over the years, grew in leaps and bounds.

Through exercising the same foresight that has become a principal business strategy today.

2009 • Inauguration of JSW Jaigarh Port • Commissioning of first unit (135 MW) of JSW Energy plant at Barmer

2008

2010

Formed JV with Toshiba to produce super-critical steam turbines and generators

• Listing of JSW Energy on BSE and NSE • Foreign Collaboration Agreement between JSW Steel and JFE Steel • Commissioning of first unit (300 MW) of JSW Energy at Ratnagiri

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JSW Spirit

Speed

Passion

Innovation

Reach the zenith of our industry within the shortest possible time

Focus on multiple-nation and multi-product footprint

Commitment to raise the global benchmark

Stabilised operations of India’s largest blast furnace in only three months; highest daily production of 8,337 tonnes achieved in January 2010.

Manufactured an average 20,000 tonnes per month of high value-added steel (API X-70 grade steel) for the oil a and gas pipeline sector, for the first time in India.

Introduced seven predictive models as proactive analysis of equipment performance and product quality, and filed copyrights for six models; another first in the Indian steel sector.

Returns

Investment

Technology

Derive more from less

Enriching the community, touching lives

Knowledge repository catalysing pioneering achievements

Improved utilisation of Coke Oven gas from 84% in 2008-09 to 96% plus in 2009-10 for power generation and the steel-making processes at Vijayanagar works.

JSW foundation touched the lives of 2.5 lac individuals as part of its social responsibility initiatives.

Commissioned India’s widest hot strip mill, which can roll products up to 2,100 mm width.

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From regional to global

Helping transform JSW from a regional to a global steel manufacturer.

• Grew capacity more than three-fold • • •

between 2004 and 2009 from 2.5 MTPA to 7.8 MTPA; added 3 MTPA capacity in February 2009.

Added state-of-the-art value-addition facilities i.e. HSM for the first time in India.

Acquired facilities in the US to cater to the high value oil and gas pipeline market.

Establishing a long product facility in Europe with Geo Steel LLC (Georgia based Joint Venture).

Consequently, production volumes grew at a CAGR of 26.07% over five years while revenue grew 22.56% over the same period.

The Company is now working towards emerging as a leading domestic and global steel player through the following initiatives.

Adding 3.2 MTPA capacity at Vijayanagar Works totalling to 10MTPA (by March 2011).

Setting up a 10 MTPA greenfield facility (phased) in West Bengal; planning another 10 MTPA greenfield facility at Jharkhand.

• •

In doing so, JSW Steel will treble its steel making capacity (on an expanded base) in only a decade.

JSW Steel LIMITED ranked 2nd among top 32 “world class” steelmakers

7.53

7.30

7.25

7.23

7.23

7.16

7.24 7.10

7.09

7.05

7.01

Posco

JSW

Nucor

SAIL

CSN

NLMK

TATA/Corus

Usiminas

Severstal

Gerdau

Low cost operation with 100% captive raw material

JSW enjoys an unmistakable global recall, within one and a half decades of its existence

Potential to improve further due to: Scaling up capacities Increasing raw material security

• •

Company achieved 10 out of 10 rating on following parameters: Conversion costs Expanding capacity Location in high growth markets Labour cost

• • • •

Source: WSD – Ranking of top 35 “World Class” Steelmakers as on June 2010 19

JSW Steel

Expansion never contracts: JSW Steel plans to take up implementation of steel project at green field location in West Bengal.

JSW Steel, the flagship company of the JSW Group, is the largest integrated private steel manufacturer in India in terms of installed capacity. JSW’s history can be traced back to 1982, when the Jindal Group acquired Piramal Steel Limited, which operated a mini steel mill at Tarapur in Maharashtra and renamed it as Jindal Iron and Steel Company (JISCO).

In 1994, in order to achieve the vision of moving up the value chain and building a strong, resilient company, Jindal

Steel Melt Shop

Vijayanagar Steel (JVSL) was setup with its plant located at Toranagallu in the BellaryHospet area in the State of Karnataka, the heart of the high-grade iron ore belt and spread over 3,700 acres of land. JSW Steel, is today one of the low cost steel producers in the world. It has grown to USD 2.50 billion in little over a decade. It is been ranked 2nd among top 32 ‘World Class’ steelmakers byWorld Steel Dynamic (June 2010). It also has a plant at Salem with an annual capacity of 1 million tonne. It is on the threshold of a major expansion plan of adding 3.2 million tons per annum to its at

Vijayanagar Plant to achieve 11 MTPA by 2011. It has established a strong presence in the global value-added steel segment with the acquisition of a steel mill in US and a Service Center in UK. JSW Steel has also formed a joint venture for setting up a steel plant in Georgia.The Company has further acquired iron ore mines in Chile and coal mines in USA & Mozambique.

JSW Steel offers the entire gamut of steel products, pellets, slabs, HR coils/ sheets, HR plates, CR coils, Galvanized coils/ sheets, Colour coated coils/ sheets. It is

the leading manufacturer of cold rolled, galvanized and colour coated steel with manufacturing facilities atVasind & Tarapur in Maharashtra. JSW Steel is the largest manufacturer and exporter of galvanized steel in India with its products exported to over 100 countries. It is the first Indian Company, under a technology licensing from BIEC International Inc., USA to produce Galvalume sheets. By 2020 the company would be producing 32 million tons of steel annually with Greenfield integrated steel plants coming up in West Bengal and Jharkhand.

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JSW Steel - Vijayanagar Plant

Expansion never contracts: JSW Steel plans to take up implementation of steel project at green field location in West Bengal.

JSW Steel, the flagship company of the JSW Group, is the largest integrated private steel manufacturer in India in terms of installed capacity. JSW’s history can be traced back to 1982, when the Jindal Group acquired Piramal Steel Limited, which operated a mini steel mill at Tarapur in Maharashtra and renamed it as Jindal Iron and Steel Company (JISCO).

JSW Steel Plant at Vijayanagar

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JSW Steel - Salem Plant

Blooming mill at Salem

Expansion never contracts: JSW Steel plans to take up implementation of steel project at green field location in West Bengal.

JSW Steel, the flagship company of the JSW Group, is the largest integrated private steel manufacturer in India in terms of installed capacity. JSW’s history can be traced back to 1982, when the Jindal Group acquired Piramal Steel Limited, which operated a mini steel mill at Tarapur in Maharashtra and renamed it as Jindal Iron and Steel Company (JISCO).

25

JSW Steel - Vasind Plant

Expansion never contracts: JSW Steel plans to take up implementation of steel project at green field location in West Bengal.

JSW Steel, the flagship company of the JSW Group, is the largest integrated private steel manufacturer in India in terms of installed capacity. JSW’s history can be traced back to 1982, when the Jindal Group acquired Piramal Steel Limited, which operated a mini steel mill at Tarapur in Maharashtra and renamed it as Jindal Iron and Steel Company (JISCO).

JSW Steel Plant at Vasind

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JSW Steel - Tarapur Plant

JSW Steel Plant at Tarapur

Expansion never contracts: JSW Steel plans to take up implementation of steel project at green field location in West Bengal.

JSW Steel, the flagship company of the JSW Group, is the largest integrated private steel manufacturer in India in terms of installed capacity. JSW’s history can be traced back to 1982, when the Jindal Group acquired Piramal Steel Limited, which operated a mini steel mill at Tarapur in Maharashtra and renamed it as Jindal Iron and Steel Company (JISCO).

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From standalone to integrated

Driving JSW to acquire assets and properties that evolve it from a standalone to integrated steel manufacturer.

Iron Ore Mines

• Acquired iron ore mines in Chile

• •

(initial drilling completed on part of Bellavista region), are expected to yield an annual output of about 3 million tonnes saleable products from 2012-13 onwards.

Iron ore mines in Jharkhand, Karnataka and Tamil Nadu in various stages of regulatory clearance.

Coal blocks under development - Rhone coking coal block in Jharkhand (69% share economic interest) Gopal Prasad West (W) thermal coal block in Orissa (11% share) and Gourangadih

thermal coal block in West Bengal (50% share).

Acquired coking coal mines in US to get 1 MTPA in 1st year to be ramped up to 3 MTPA in 3rd year.

Scouting for more coal mines in Africa, Australia, Canada and USA. These initiatives will facilitate the achievement of a cherished JSW vision of raw material integration.

• •

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JSW Energy

Driving JSW to acquire assets and properties that evolve it from a standalone to integrated steel manufacturer.

The Company is building an integrated energy business. In less than a decade of its operations, the Company has crossed several milestones working on power solutions in the states of Karanataka, Maharashtra, Rajasthan and Himachal Pradesh. It has power generation projects at an early stage under development with a proposed combined installed capacity of 11,390 MW by 2015. As part of the plans to enhance the capacity, the Company has initiated work on power projects.

JSW Energy has achieved commissioning of 735 MW of Power Generation Capacity in a single year to reach total operating capacity of 995 MW. The Company is on the firm course to become a 3140 MW Company by addition of 1200 MW capacity of Ratnagiri Power Project in Maharashtra and 945 MW of capacity of Barmer Power Project in Rajasthan by end of the fiscal 2011.

Today, JSWEL is one of the fastest growing Power Company achieving

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remarkable and significant milestones which will put JSW Energy amongst the significant players in power industry.

The Company has planned its power plant to be diverse in geographical locations, fuel source and off-take arrangements.

Each project is planned to be strategically located either near an available fuel source , load centre or infrastructure facilities.

Towards ensuring fuel security JSW Energy acquired majority stake in South African

Coal Mining Holding Limited. (SACMH) - a listed South African Company having 50 Million MT of coal assets through acquisition of shares in Royal Bafokeng Capital (RBC) and Mainsail.

The Company is also taking steps toward integrating power business. It has established entry into Transmission Business by commissioning of Double circuit 400 KV Jaigad New Koyna transmission line in joint venture with MSETCL.

Also established entry into Equipment Manufacturing by Commencement of construction facility for Supercritical Steam Turbine Generator Sets near Ennore, Chennai in joint venture with Toshiba Corporation, Japan.

The Company’s quality and environmental management systems are certified to be in compliance under ISO 9001:2000 and ISO 14001: 2004.

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What is JSW Energy?

Powering to become an Integrated Energy business Driving JSW to acquire assets and properties that evolve it.

Power Generation

Power Trading

Power Transmission

Mining

Equipment Manufacturing

JSW Energy, headed by Mr Sajjan Jindal is the dynamic vertical of the JSW Group.

The Company plans to foray in all areas of power: Generation, Transmission, Distribution, Trading, Equipment manufacturing and Mining. It aims to become an integrated energy business.

The Company has the operational capacity of 995 MW, apart from 2,655 MW of generating capacity in the construction and implementation phase.

By 2015, the Company aims to generate 11,390 MW. The Company is an early entrant in the Power Generation, Power Trading & Transmission Business and is exploring options in the power generation through non-conventional energy sources, nuclear power business and tie-ups with well known equipment manufacturers for other than Steam Turbines & Generators.

• Headquartered in Mumbai, Maharashtra.

• Facilities in Toranagallu (Karnataka); Ratnagiri (Maharashtra), Barmer (Rajasthan), Kutehr (Himachal Pradesh); Transmission Business (Maharashtra) and Coal mines in South Africa.

• Equity listed on the Bombay and National Stock Exchanges.

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JSW Energy - Projects Under Construction

Barmer Phase I – 1,080 MW Lignite-Fired Power Plant Raj WestPower Limited (RWPL) is constructing an 8 x 135 MW lignitefired power plant in Barmer, Rajasthan in the first phase. Company has acquired the required land of 1,186 acres for the project. The first unit of 135 MW is already synchronized with the national grid and commercial operations commenced.

JSWEL expects to commission the entire 1080 MWs of first phase by fiscal 2011.

The 1080 MW Power Plant will use lignite to be mined from Jalipa and Kapurdi mines, as fuel. For this purpose, the Company has formed an SPV named Barmer Lignite Mining Company Limited, in which 51% shares are held by Rajasthan State Mining & Minerals Limited and 49%

by RWPL.

Ratnagiri 1,200 MW Imported Coal-Fired Power Plant JSW Energy (Ratnagiri) Limited (JSWERL), a 100% subsidiary of JSWEL, is constructing a 4 x 300 MW coal-fired power plant in Ratnagiri, Maharashtra.

This project was awarded to JSWEL pursuant to a MoU with the Government of Maharashtra. Company is expecting to commission the first unit of 300 MW by August 2010 and subsequent units will be commissioned in every quarter. The Company is planning to commission the complete project by fiscal 2011.

The project site is located in close proximity to the sea. A significant volume of the water required for the project will be satisfied by sea water. The raw water will be supplied to the JSWERL power plant facility by Maharashtra Industrial Development Corporation. The plant will run on imported coal. JSW Jaigarh Port Limited has built a Greenfield port at Jaigarh.

Powering to become an Integrated Energy business Driving JSW to acquire assets and properties that evolve it.

Barmer Plant

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JSW Energy - Projects Under Implementation

Kutehr 240 MW Hydroelectric Power Plant JSWEL is implementing a 240 MW (3 x 80 MW), run-of-the-river, hydroelectric power project on the upper reaches of river Ravi in the district of Chamba, Himachal Pradesh. Company has won the project through a competitive bidding process in July, 2007.

The project involves the construction of a low-sill barrage across Ravi River to divert water through a 15 km long head race tunnel ending in a surge shaft to

generate an aggregate 240 MW of power in an underground power house. As per the pre-implementation agreement, Company will provide Government of Himachal Pradesh an annual royalty in the form of free power equal to 12.0% of the deliverable energy for the first 12 years from the commercial operations date, 18.0% for the next 18 years and 30.0% for the remaining ten years. The Project is scheduled to be commissioned

by December 2015.

Barmer Phase II – 270 MW Lignite-Fired Power Plant RWPL is also implementing an additional 2 X 135 MW power plant at Barmer, Rajasthan. This power plant is intended to be on the same parcel of land as the 1,080 MW project (Phase I) which is currently under construction and Company expects

to achieve commercial operation of the plant by January 2013.

Company is planning to sell the entire power generated from this project under short-term power arrangements through JSWPTC on merchant basis.

JSW Energy - Projects Under Development

Powering to become an Integrated Energy business Driving JSW to acquire assets and properties that evolve it.

The Company has planned for projects at Chattisgarh, West Bengal, Jharkhand and Ratnagiri which are at an early stage of development, poised to take the aggregate capacity to 11,390 by 2015.

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JSW Infrastructure

Powering to become an Integrated Energy business Driving JSW to acquire assets and properties that evolve it.

JSW Infrastructure is committed to the development of Infrastructure for ports, air port, ship repair, shipyard, township, roads, & rail connectivity inland waterways, water treatment plans and pipelines.

Presently JSW Infrastructure has following operational units • JSW Jaigarh Port, Maharashtra • South West Port, Goa JSW Jaigarh Port JSW Jaigarh Port Ltd. is part of JSW Group. JSW Jaigarh Port has inaugurated a Greenfield Port at Jaigarh on 22nd August 2009. This deep water port will meet the coal requirement of JSW Energy (Ratnagiri) Ltd. for its 4x300 MW thermal coal based power project and serve to all multi users in handling multi-cargo commodities like edible oil, molasses, cement, iron ore, fertilizers, completely/ semi knocked down kits for the domestic market. The port is being dredged to handle vessels of 105,000DWT capacity with a draft of 14 m in the first phase. In Phase-II it would be capable for direct berthing of capsize vessels of 1,80,000 DWT capacity. The Jaigarh Port has the capacity to handle 10 Million tons per

annum in phase-I which will be increased to 20 Million tons per annum in the phase-II. The bulk cargo includes import of coal for the power plant and export of bauxite and ash from the power plant.

JSW is planning to connect the Road and Railway Network to the national grid for all logistics reasons to support the Jaigarh Port.

South West Port South West Port Ltd (SWPL) is a maritime infrastructure set up of JSW that facilitates import & export through two dedicated bulk cargo berths at Mormugoa Port.

With mechanized cargo handling facilities, SWPL is well equipped to handle 7.5 million tones of cargo-traffic & comes with assurance of environment protection. The Port is equipped with fully mechanized PLC controlled operational system.

SWPL has also installed an Air Monitoring station as per the Guidelines of Goa State Pollution Control Board. A green belt consisting of more than 2000 nos. of fast growing Acasia variety trees will be planted all along the boundary of the port area in order to increase the oxygen content and restrict any emission escaping from the port area.

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At JSW INFRASTRUCTURE, envisioning trends is not a fashionable phrase‌ but one that inspires transformation

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JSW Cement

Powering to become an Integrated Energy business Driving JSW to acquire assets and properties that evolve it.

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JSW Cement, the new diversification foray of JSW Group, plans to set-up multi-locational cement manufacturing/ grinding/bulk distribution facilities upto 5.3 mtpa. The fast track projects include a Greenfield Cement Plant having 2 mtpa clinker with 1.1 mtpa Portland Slag Cement (PSC) and 1.5 MTPA clinker grinding facility in Nadyal, Kurnool

district of Andhra Pradesh, 2.8 mtpa Slag grinding with 1.1 mtpa PSC at split located unit at Toranagallu, in Bellary district of Karnataka, adjacent to the JSW Steel Plant, 2.2 mtpa bulk distribution PSC terminal near Bangalore and 0.3 mtpa slag grinding unit at Mecheri in Salem district of Tamil Nadu.

JSW Cement has 0.6 Mt of Portland slag cement making capacity at Vijayanagar. By year 2010, JSW Steel plants will produce 3.5 mtpa of slag, which is sufficient to produce 7 mtpa cement. JSW Cement will set up cement plants adjacent to all upcoming steel plants of the group, thus making it a leading cement producer of the country.

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JSW Aluminium

Powering to become an Integrated Energy business Driving JSW to acquire assets and properties that evolve it.

An important milestone was achieved in July 2005 when Jindal South West Holding Ltd. entered into a Memorandum of Understanding (MoU) with the Government of Andhra Pradesh for setting up 1.4 mtpa Alumina Refinery and 4.2 mtpa Aluminium Smelter in Andhra Pradesh.

Government of Andhra Pradesh would provide all support including supply of Bauxite and the required land.

JSW Aluminium Ltd. was incorporated on July 08, 2005 as a special purpose vehicle to implement this project. The Alumina Refinery and the Aluminium Smelter will come up in phases.

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JSoft Solutions

Powering to become an Integrated Energy business Driving JSW to acquire assets and properties that evolve it.

JSoft is an IT & ITES arm of JSW Group.

Its core competency is to act as an enabler for enterprises to gain a competitive edge through effective use of information & communication solutions.

Headquartered in Bangalore, JSoft Solutions operates from major metros and provide IT solutions to all JSW group companies and other corporates in various domains.

JSoft operates across a broad spectrum of IT& ITES services, which include: • Infrastructure Management • Business Applications • Software Development • Shop Floor Automation • Shared Services

Supporting all these verticals is Managed Services, PMO (Project Management Office) & Quality units, whose focus is to deliver world-class support, maintain high standards of quality and maintenance services across various layers.

Along with extending support to clients across the geographic spread of India, JSoft also support JSW Steel’s IT operations in US & UK facilities.

It has recently entered into a strategic alliance with Descon Ltd. to undertake work in the areas of AutoCAD and other design engineering service.

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JSW Foundation

“When my husband was building his factories, I genuinely felt that the prosperity should not be limited to employees and shareholders. I strongly felt that creating an island of prosperity amidst a sea of poverty would be an anachronism. True growth can only come about if it is inclusive and embraces the community around.�

Mrs. Sangita Jindal, Chairperson, JSW Foundation

At JSW Steel, stakeholder value enhancement is not incidental to the Company’s objective, but integral. The Company’s focus is pan-stakeholder prosperity as it believes that all-inclusive growth is the visible manifestation of sustainable prosperity. Any development derived at the cost of a specific stakeholder group can only have limited or short-term impact with corresponding implications for our sustainability.

The Company’s identified stakeholders comprise customers, employees, shareholders, environment and society.

JSW conducts its business in a manner that provides ‘inclusive growth’ for all stakeholders in the following manner: … it grows customer trust by delivering quality products and impeccable services … it grows team knowledge through best-in-class technologies

… it grows shareholder value by increasing profitability … it protects and enriches the world by adhering to global environment management standards … it endeavours to create a stronger nation through more opportunities for those at the bottom of the social pyramid In doing so, JSW Steel spreads more smiles per tonne of steel.

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The Inititatives

The Foundation drives community uplift in the areas of its presence, an important step towards inclusive growth.

CSR Activities

Better India, better world The Belief At JSW, we believe that inclusive growth is not a destination but a journey made possible by the progressive engagement of all stakeholders in the developmental process. The Company strives to achieve sustainable development through an involvement in education, health and livelihood, promotion of arts and culture, environment protection and sports.

The Commitment JSW Steel is committed to allocate 1.5% of its profit after tax to create a stronger India.

The Team The Company’s CSR initiative is spearheaded by a trust (JSW Foundation) which works within a radius of 10-km from every plant location. The team

comprising 20 executives is led by Mrs. Sangita Jindal.

The Summary The Foundation touched the lives of 2.5 lakh Indians, providing them with opportunities for a brighter future.

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For the earth’s sake: ‘Transforming waste to wealth is what companies of tommorow aspire to achieve.’ - Sajjan Jindal

Panaromic View of the Vijayanagar Plant

“What Mr. Jindal has achieved at his Vijaynagar Plant is remarkable and can be a worldwide model.

There is no waste produced here, and resources are used efficiently.”

Dr. Rajendra Pachauri, Chairman of the United Nations’ Intergovernmental Panel on Climate Change

Philosophy and impact JSW Steel practices ‘giving back more than what is taken from the Earth’, reflected in the following realities: An area which received less than 50 cm of rainfall about two decades ago now receives average 75 cm annually.

Established 230-MW power generation infrastructure at Vijayanagar Works without a single kg of coal, specific water consumption .

Achieved one of the lowest in the steel industry.

Maintained zero-effluent discharge through extensive water recirculation, reuse of blowdown water and the highest waste utilization in the Indian steel industry at 90 %.

Created a colony of 4400 households adjacent to the Vijayanagar plant, vindicating the highly efficient environment management systems.

Relevance Steel manufacture impacts the earth significantly. For instance, a tonne of steel requires

• • • •

• •

• 1.0 tonnes of coal (natural resource) • 1.6 tonnes of iron ore (natural resource) • 5 cum of water (natural resource) • 500 units of energy, which further

requires 15 kg of coal (natural resource) 2500 nm3 of gas is generated with chemical contaminants that imbalance the ecosystem 2.0 tonnes of process waste generated (solid and liquid) pose an environmental hazard JSW Steel endeavours to raise the efficiency of its environment management system through the following initiatives: Minimise the release of hazardous wastes to far below the stipulated norms of the Pollution Control Board Reduce resource consumption.

Maximise the re-use of process waste generated in its facilities.

Green the earth.

JSW’s environment commitment has resulted in pride-enhancing benchmarks for the Indian steel industry.

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• • • •

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‘Educating a girl is equivalent to imparting knowledge to two families.’

- O. P. Jindal

Jindal Vidya Mandir

Education The Foundation’s endeavour is to strengthen the learning curve of the Indian youth in rural locales.

Activities 1) Early childhood education project Provided playful and interactive teaching material at the pre-school level.

Trained government employees working in the integrated child development scheme initiated by the Government of India and facilitated selected women (in a difficult domestic environment) to start child

• •

development centres.

• Provided specialized training to •

Anganwadi workers to initiate childcentered educational activities like inculcating the habit of reading and developing writing skills.

Imparted education to rural children by establishing 16 balwadis; during the year, two vishal balwadis were established in Vijaynagar and Toranagullu for the children of

contract labourers.

2) Village learning centres Identified and trained volunteers from villages to attract school-dropouts.

Motivated dropouts to rejoin mainstream education.

Counselled parents in collaboration with district educational authorities to minimise the dropout rate.

Mainstreamed 345 students (50 in 2009-10).

• • • •

4) Adolescent health education Enhanced health awareness by sending health experts to rural schools; behavioural issues were discussed.

Collected feedback from adolescents, parents and schools, which revealed a significant reduction in eve teasing and obscene language.

5) Children mobile libraries Established mobile libraries in 25 villages to encourage reading among children; the educational volunteers and Balwadi teachers enrolled their students in these libraries Enlisted volunteers to evaluate children’s learning curve Created a library --- comprising 100 children’s books and other knowledge-enhancing material --- to provide variety and range Encouraged 2,040 children to read, generating income for 18 local girls who manage these centres.

6) Computer-aided learning centres Entered into a collaborative project with the JSW Foundation, Azim Premji Foundation and the Village School Management Committees to increase computer literacy.

Trained teachers were persuaded to build rural computer education centres.

Established 27 computer-aided learning centres (118 computers to 27 government schools benefiting 9,500 children) .

Finalised plans for setting up 12 such centres in Bagalkot.

7) Career guidance programmes Made it possible for JSW Steel executives and other career experts to visit rural schools and provide career guidance to students.

Participated in career fairs to enhance student awareness.

19000 students benefited by this programme.

8) RGIST

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3) Mid-day meal Participated in the mid-day meal scheme with two civil society institutions; the scheme provides meals to over 200,000 children covering 1053 schools.

Donated land to establish a kitchen while a recurring grant sustained operations.

Improved student performance, reducing the drop-out rate.

• • •

• • • •

• Rajiv Gandhi Institute for Steel

Technology (initiated by JSW and the Government of Karnataka) offers a year-long post-graduate Diploma course in industrial safety.

9) Special schools for the differentlyabled Started a school ‘Tamanna’ for mentally-challenged children.

Enabled differently-abled children to assume responsibility for themselves .

Provided free transport and lunch to students.

10) Participation in Public-Private Partnership Adopted 12 ITIs (under the PPP model opportunity initiated by the Central Government) to develop each into centres of excellence in particular trades.

It initiated the training of faculty and students and provided them with an exposure to modern technology.

Schools JSW’s educational infrastructure benefits 3859 students and comprises the following: Jindal Vidya Mandir, Vijaynagar: Commenced in 1996 with 53 students and seven staff members; educates over 1759 students with a 50-member faculty support Jindal Adarsh Vidyalaya: Established to educate children of associate employees from various parts of the country, along with 50% subsidy; recognized by the Government of Karnataka, this school started with a modest strength of 130 students in 2003-04 and now educates over 900 students with the help of 27 teachers.

Jindal Vidya Mandir-Vasind: Founded in 1989, this English-medium school is controlled by the Jindal Education Trust with around 1,298 students and 70 teachers are on the rolls.

The school was accredited with ISO 9001:2008 and IMC Ramakrishna Bajaj National Quality Award

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‘ The greatest wealth is health.’

Health The Foundation facilitates the detection and diagnosis of health ailments.

Activities 1) Medical camps Organised health camps and provided adequate medical support to the local community.

Organised 49 general health camps in nearby villages of Vijaynagar, treating 7,187 patients.

Treated 1165 patients through nine eye camps; of these 652 patients were operated for cataract at Jindal Sanjeevani Hospital.

• •

2) HIV-AIDS awareness

• Enhanced HIV-AIDS awareness •

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through interactive media tools and rural street plays.

Identified and trained certain employees as peer educators in the subject; established voluntary testing and counselling facility through mobile units in Vijayanagar; in 2009-10, the mobile unit visited 26 villages and treated 541 people.

Held camps for detecting Sexually

Transmitted Infection and Reproductive Track Infection in 11 surrounding and mining area villages; tested 732 women patients and provided with necessary medical facilities.

3) Sanitation Upgraded the basic infrastructural amenities (water and sewerage systems) in the Government-run primary health centres at Vasind Provided equipment and installed

• •

Extending a hand

A multi-storeyed building collapsed at Bellary and JSW was the first to respond by sending its team to the site.

The team rescued three individuals from the debris; the operation lasted a week. An appreciation letter was received from the Government of Karnataka for this initiative.

•

a new water supply and storage system Implemented a comprehensive sanitation package comprising tree plantation, village cleaning and construction of waste management pits; the local self governments in two project villages were recently felicitated by the President of India with the Nirmal Gram Puraskar.

Under these programmes 4000 people were covered and 800 toilets

were constructed.

4) Disability assessment and intervention Conducted household surveys in selected villages around plant locations to gauge the prevalence of physical and mental disabilities Collaborated with vocational training providers for this segment.

5) Jindal Sanjeevani Hospital Created the Jindal Sanjeevani Hospital, covering 27,000 sq. ft area; comprises 75 beds and is

• •

•

associated with Apollo hospital, Hyderabad for super speciality surgery.

Manned casualty and emergency wards with resident medical officers and qualified nurses.

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Livelihood JSW Foundation provides revolving funds, skill training and other linkage services to empower rural women and reduce genderbased discrimination.

Activities 1) Vocational centres Vasind: The Shramsadhana Vocational Training Centre (SVTC) started in March 2003 with 30 students and expanded to 1393 students. It has grown into a wellknown training institute providing short-term courses to create self employment and make trainees employable in nearby small-scale industries.

Vijayanagar: The JSW Foun dation collaborates with Nettur Technical

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Data Halli at Vijayanagar

Training Foundation (NTTF), Vijayanagar, to impart vocational training in mechanical maintenance, electrical maintenance and computer application. During the year, 30 people were trained in mechanical maintenance and 24 in electrical maintenance. Vocational training was conducted at the O P Jindal Centre for Vocational Training initiated in 2008. OPJC was recently recognised as a Vocational Training provider by the state government and covers a total of 584 people.

2) Creating employment opportunities for women Unorthodox skills: Encouraged rural girls and women to master unorthodox skills, such as operating heavy earth-moving machines; these women were provided employment in the Group’s associate companies Rural BPO: Established a non-voice BPO for rural women to enhance their employability and strengthen their socio-economic condition; this initiative imparted the necessary IT knowledge and skills, transforming

•

•

‘Do not go where the path may lead; go instead where there is no path and leave a trail.’

Ralph Waldo Emerson the lives of nearly 300 high-school girls.

3) Self-help groups Formed the Mahila Dairy Development Group (MDDG) to help poor women in villages around Vijayanagar Works through collateral free credit programmes.

This enhanced income generation and livelihood opportunities for women.

Organised Self Help Groups (SHGs) to identify priorities and allocate resources.

•

•

• Total 35 groups and 454 rural

women are involved since 2006-07.

4) Tailoring training Imparted tailoring training to neighbouring women Supported them to sit for an examination conducted by the Department of Technical Education, Government of Karnataka; aided them to undergo an advanced tailoring training in coordination with the Department of Small Scale Industries, Bellary.

5) Strengthening agricultural

• •

productivity Initiated crop and cattle breeding projects to enhance crop yields; farmers were taught crop economics, use of bio-fertilisers and bio-pesticides; they also received training in the use of quality seeds to improve productivity Collaborated with BAIF Research and Development Foundation to establish cattle development centres for livestock management; in 200910, cattle camps in villages treated 3,256 animals

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Vocational Training Center

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Environment At JSW, we engaged in proactive climate change management and emission reduction through the following activities:

• Conducted Earth Care Awards • •

to motivate stronger industry participation towards a cleaner environment.

Created multiple award categories for big brands and small and medium enterprises for their environment initiatives Established ‘The Climate Project India’ to support climate leadership

project where Al Gore (former US Vice President) and Dr R K Pachauri (Chairman, Intergovernmental Panel on Climate Change) discussed issues and strategies with a select group representing academia, business and civil society with a focus on developing a green curriculum to support existing training and education to reduce emissions

Vaddu – the model village

The programme was divided in two phases: • Phase I focused on developing roads, pathways, drainage systems up-gradation, creating public toilets, street lights and tree plantation • Phase II comprised the construction of schools, drinking water facilities, public health centres and roof water harvesting Vaddu (1,700 households) was developed as the Model Village; the Foundation plans to extend the success of this initiative to other villages

• Supported TERI to publish a set • •

of six books on climate change for children, a first time in their history Partnered with the Centre for Environment Research and Education for a relevant animated slide show for children Initiated a project for cleanliness and hygiene in rural areas, along with community involvement in

‘Sports do not build character, they reveal it’ John Wooden collection, disposal and management of village waste to create a garbagefree village; this initiative was commenced in Kurekuppa village and later extended to cover several villages.

Sports development To provide all round development of an individual, JSW Foundation facilitates an access to various sports facilities and encourages sports for the rural population, thanks to the following initiatives:

• Formed academies for squash, •

badminton, table tennis and swimming to identify talent and foster competitive spirit at a young age.

Organized summer camps for village children and imparted training under specialized coaches.

Nurturing rural talent

The JSW volleyball team was ranked winners at all India Steel Plant Sports Board Championship, Karnataka State Senior InterDistrict Championship and Karnataka State Association Cup. The Jindal Squash Academy is India’s second largest squash academy, having produced seven international, 22 national and 46 state squash players.

Jindal Squash Academy at Vasind

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‘Art is the queen of all sciences, communicating knowledge to all generations of the world.’

Leonardo da Vinci

Conservation of arts and cultural heritage Heritage reflects the community identity and preservation of heritage contributes to strengthen a common sense of identity within the community. JSW Foundation restores pride in our cultural heritage and promotes a dialogue in contemporary and performing arts Activities 1) Temple restoration at the UNESCO World Heritage Site at Hampi The Krishna temple is among the most impressive monuments at the UNESCO world heritage site of Hampi, built through the royal patronage of the Vijayanagar Empire.

The Archaeological Survey of India permitted JSW Foundation (a private foundation) to collaborate in its restoration work for the first time.

2) Restoration work at the Sir JJ School of Art The JSW Foundation is working with renowned conservation architects and the State Government for the restoration of the premier art institution established in 1858.

The exercise involves the

•

•

• •

documentation, conservation and display of invaluable paintings and sculptures.

3) Art India Art India, a quarterly publication of the Foundation, won several national awards for printing and content.

With 54 issues published, the magazine is internationally recognised as an key independent voice of India’s contemporary art.

It promotes a serious discussion of diverse art forms and disciplines.

4) Collaboration with Prince’s Charities JSW Foundation and The Prince’s Drawing School, UK, will offer full sponsorships to postgraduate fine arts students from India.

The students will get an opportunity to participate in a six-term international course on drawing and painting to enhance observational skills and drawing experiences.

5) Publications Four of the Company’s major publications were widely acclaimed by the media and critics The company’s publications include O.P.Jindal, Mario, Miranda, Hampi Book and Architecture.

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Hampi Temple

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JSW Awards

Prime Minister’s Trophy 200708: Runner-Up of the best performing Integrated Steel Plant in the country, known as Steel Minister’s Trophy (declared on 13 November 2009).

Karnataka Chapter Safety Award 2009: Unnatha Suraksha Puraskara, a trophy and certificate was presented for outstanding safety performance and management systems in Metals category of industries during 2006-08, by National Safety Council, Karnataka Chapter, on 09 September 2009 at Bengaluru.

Greentech Environment Excellence Award 2009: Gold award in metal and mining sector for outstanding achievement in Environment Management (10 October 2009, Kovalam).

ISO-14001:2004 Certification cation: Vidyanagar Township was recommended for certification of ISO-14001:2004 for environmental management practices, on 23 September 2009, by TUV Rheinland Group.

National Award for Excellence in Energy Management 2009: Excellent Energy Efficient Unit Award 2009 for Best Energy Management Practices (19, 20 November 2009, Chennai), by CIIGodrej Green Business Centre.

CII-EXIM Award 2009: “Commendation Certificate for Significant Achievement” for Business Excellence by Confederation of Indian Industries, on 17 December 2009 at Delhi.

IMC Ramkrishna Bajaj National Quality Award: “Performance Excellence Trophy in the Manufacturing Category” by Indian Merchant Chambers Quality Cell, on 19 March 2010 at Mumbai.

Golden Peacock Award for Corporate Social Responsibility – 2008 : JSW Steel Ltd. bagged the prestigious ‘Golden Peacock Award for Corporate Social Responsibility for the year 2008’ in February 2009 TERI Corporate Environmental Award 2008: Certificate of appreciation for efforts towards environmental management and innovative initiatives amongst corporations with a turnover above Rs. 500 crore (31 May 2008).

CII National Energy Management Award 2008: Excellent Energy Efficient Unit by CII (August 2008).

Greentech Environment Excellence Award 2008: Gold award in metal and mining sector for Outstanding Achievement in Environment

Management (6 September 2008, Goa).

CII-EXIM Award 2008: Commendation Certificate for Significant Achievement towards business excellence (on 6 November 2008, at Bangalore).

National Sustainability Award 2008: First prize for excellent performance in integrated steel plant operations (14 November 2008, New Delhi).

CII-ITC Sustainability Awards 2008: Commendation Certificate for Significant Achievement on the journey towards sustainable development (on 12 December 2008 at New Delhi).

National Award for Excellence in Water Management 2008: JSW Steel was adjudged as “Water Efficient Unit”

by CII during National Competition for Excellence in Water Management held on 16 and 17 December 2008 at Hyderabad.

National Energy Management Award 2008: JSW Steel, Vijayanagar Works bagged National Energy Management Award 2008 instituted by CII during Aug’08.

IMC Ramkrishna Bajaj National Quality Award 2008: Performance Excellence Trophy in the manufacturing category (on 24 March, 2009, Mumbai).

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JSW Network Global player with an expanding footprint

Vasind Works Village: Vasind, Taluka – Shahapur Dist: Thane - 421604 (Maharashtra) Tel: 02527-220022 to 025 Fax: 02527-220020/84/92 Vijayanagar Works R O Vidyanagar, Toranagallu Dist: Bellary - 583275 (Karnataka) Tel: 08395-250120 to 30 Fax: 08395-250138/250665 Vijayanagar Minerals Pvt. Ltd. P.O. Vidyanagar, Toranagallu, Dist: Bellary – 583275 (Karnataka) Tel: 08395 – 250120 Fax: 08395 – 240365 Jindal Praxair Oxygen Co Pvt Ltd. Post Box No .16 Vidyanagar, Dist: Bellary – 583275 (Karnataka) Tel:08395 – 250856 to 858 Fax: 08395 – 250781

South West Port Ltd. 1st floor, Port Users Complex, Mormugao Harbour , Goa – 403803 Tel:0832 – 2523000 Fax: 0832 – 2523006 Raj West Power 308 - 311, Gitanjali Towers, Bomba Walo ka Baug, Ajmer Road Jaipur - 302006 Tarapur Works B/6, Tarapur MIDC Boisar – 401506 Dist: Thane Maharashtra Tel: 02525 – 270147 / 270149 Fax: 02525 – 270148 Salem Works Pottaneri M Kalipatti Village, Mecheri, Mettur Taluk, Salem – 636453 Tamil Nadu

Tel: 04298 – 278400 to 404 Fax: 04298 – 278618 JSW Bengal Steel Ltd. Tower A 3rd Floor DLF IT Park 8 major Arterial Road New Town Kolkata 700156 Tel: (33)-4000 2020 Fax:(33)-4000 2021 JSW Aluminium Ltd. Opp. NSTL, 58-17-1/1, Sanjevaya Nagar, Near NAD Kotha Road Junction, Visakhapatnam - 530009 JSW Energy - Ratnagiri Ltd. Ambassador Plaza, 1st floor, Malnaka, Ratnagiri - 415 612 JSW Cement Ltd. R O Vidyanagar, Toranagallu Dist: Bellary - 583275 (Karnataka) Tel: 08395-250120 to 30 Fax: 08395-250138/250665

JSW Steel

JSW Energy

JSW IT

JSW Infrastructure

Map for graphical representation purposes only. Not to scale.

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Jindal Mansion, 5A, Dr. G. Deshmukh Marg, Mumbai - 400 026.

Tel: (022) 23513000 | Fax: (022) 23526400 | Website: www.jsw.in