16 take two mumbai | thursday, 4 may 2017 vedanta steps … · to industry officials, balada in...

KUNAL BOSE

Kolkata, 3 May

Arguably in a flight of fancy, VedantaChairman Anil Agarwal said sometime ago that India “will continue to

have everything going in its favour to mul-tiply its present primary aluminiumcapacity of 4.1 million tonnes (mt) sever-al fold in the coming years.”

What must have prompted Agarwal tomake the statement, which took many inthe industry and government by surprise,is the availability in great abundance ofbauxite and electricity grade coal in thecountry. Not only the size of the tworesources but their concentration in theeastern parts of the country, particularlyOdisha, offers considerable logisticaladvantage to the existing and future pro-ducers of alumina and aluminium here.

A combination of contemporary tech-nology from Rio Tinto Alcan and transferof bauxite from mines to refineries by wayof cable belt conveyors bringing cost oftransportation to nearly zero has madeHindalco’s newly commissioned 1.5 mtUtkal Alumina and National AluminiumCompany (Nalco) among the lowest costproducers of smelter feedstock alumina inthe world. Yet another major contribut-ing factor to their cost effectiveness is theownership of high quality bauxite depositsat Baphlimali by Hindalco and at thePanchpatmali hills by Nalco. Both thedeposits are in Odisha, which with an esti-mated 1.846 billion tonnes (bt) has a shareof about 55 per cent in the country’s baux-ite reserves.

As it would happen, the advantage ofcost-free bauxite hauling from mine torefinery was denied to Vedanta Aluminiumwhen unrelenting protests by local DongriaKondh and Kutia Kondh tribes, with thecivil society’s backing, led to the abandon-ment of opening of a 72 mt deposit atNiyamgiri hills. But ahead of that, the com-pany built a 1 mt refinery at Lanjigarh.Undaunted by the setback, Agarwal, whobelieves India will emerge as a major alu-minium production hub after China, willexpand the Lanjigarh refinery to 6 mt.

Fuelling optimismVedanta is one case of hope triumphingover the agonising reality of it procuringbauxite from many places within thecountry and also from Australia andGhana. China is buying a lot of bauxitefrom Vietnam after Indonesia put restric-tions on exports. “We are not a buyer of

Vietnamese bauxite which contains muchreactive silica. We don’t have the facilityunlike the Chinese to remove silica fromthe mineral,” says Vedanta AluminiumCEO Abhijit Pati. The lack of captive baux-ite mine puts Vedanta at a disadvantage ofabout $170 a tonne vis-à-vis its two peers,Hindalco and Nalco. “We, however, areable to make this good when we make pri-mary aluminium because of the highsmelting efficiency at our Jharsugudaplant and Vedanta’s proven acumen tobuy auction coal at best possible prices atall times,” says Pati.

Power alone contributes 35 to 40 percent of aluminium production cost. Thisthen underlines the criticality of “runningcoal-fired captive power plants efficientlywith fuel procured as cheaply as possible”for the viability of smelter operation, saysPati. In this context is to be seen the posi-tives of Hindalco winning through auc-

tions two coal blocks each in Chhattisgarhand Jharkhand, and Nalco being allocat-ed two coal blocks in Odisha with reservesof around 200 mt.

Besides the advantage of raw materials,forecast that the world’s fastest alumini-um demand growth will happen in Indiacreates the ideal conditions for futuresmelting capacity here. An industry reportsays between now and 2021, the country’saluminium consumption will grow at anannual rate of 7.3 per cent to 4.4 mt from3.3 mt. This compares with China’s likelyaluminium use growth rate of 3.1 per centduring this period to 45.7 mt from 40.5mt. Consumption of the silvery white met-al in the rest of the world too will rise 3.1per cent annually to 48 million tonnesfrom 42 million tonnes. Agarwal says:“Going ahead, everything will move toaluminium. From automobile, construc-tion, aerospace and railway, aluminium

will be the preferred metal to use.”Aluminium replacing steel in particular ina growing number of applications makesAgarwal gung-ho about the metal.

This explains why undaunted by thechallenges of obtaining bauxite from mul-tiple sources and the continuing inabilityof Odisha Mining Corporation (OMC) tofulfil its commitment to supply the mineralin required quantities to Lanjigarh refinery,Agarwal goes on making big investmentsin aluminium here. As Jharsuguda hasemerged as the country’s largest singlelocation smelting centre with capacityclose to 2 mt, Bharat Aluminium Companyunder the management of Vedanta sincehas seen its capacity doubled to 650,000tonnes. Pati says “Vedanta has got a lotmore aluminium under its sleeve.”

Hope in sightSome relief hopefully will come Vedanta’s

way when OMC starts selling bauxite byOctober from a newly-opened mine atKodingamali in the Koraput district withan estimated reserve of 80 mt. Even whilethe mine is developed principally to meetthe requirements of Lanjigarh refinery,OMC will be required under the law to sellbauxite through open tendering only. SoVedanta will have to compete with othersto get Kodingamali bauxite. Thankfully,both Hindalco, which has got two smeltersin Odisha with a combined capacity of573,000 tonnes, and Nalco with smeltingcapacity of 462,000 tonnes have richbauxite deposits of their own in the stateand are, therefore, unlikely to stake a claimto the Kodingamali material. But expecttraders to participate in tenders for anybauxite sale.

What is likely to stand in the way ofthe industry growing capacity further isthe tardy progress in exploration and

readying deposits for auction. Accordingto industry officials, Balada in Koraputsouth is the only bauxite deposit inOdisha that can now be auctioned.Hopefully, the new mineral explorationpolicy aimed at attracting participationof local and foreign groups will speed upthe process of bringing onto the tableauctionable deposits. Nalco withexportable surplus of about 1.2 mt of alu-mina, and also benefiting from recentallocation of 80 mt Pottangi bauxitedeposit, is well placed to start planningfor smelter capacity expansion to 1.062mt at the same site at Angul.

After fully ramping up two newsmelters and an alumina refinery,Hindalco Managing Director Satish Paihas rightly turned the focus on buildingnew capacity in downstream products,requiring low capital investment. Thetarget, according to Pai, is to double theproduction of value added products(VAPs) from the present about 350,000tonnes in the next five years. As VAPsgive better returns than primary metal inall situations, Vedanta and Nalco willalso be introducing new alloys and prod-ucts. This will also be one sure way tocut imports.

Vedanta steps up India plans despite setbacksUndaunted by the challenges of obtaining bauxite from multiple sources, Anil Agarwal continues to make big investments in aluminium in India

BRIGHT PROSPECTSAluminium production in metric tonnes

NALCO BALCO HINDALCO VEDANTA

FY ’13 430,000 359,597 607,497 665,529

FY ‘14 405,000 426,996 415,196 543,390

FY ‘15 313,380 456,778 405,000 547,281

FY ‘16 374,000 517,971 405,007 545,979

FY ‘17 366,000 511,786 407,592 529,589

Source:Minstry of Mines; Compiled by BS Research Bureau

Vedanta is set toexpand the capacity ofits Lanjigarh refinery(left) to 6 mt despitethe high cost ofhauling bauxite frommine to the plant

“GOING AHEAD,EVERYTHING WILLMOVE TO ALUMINIUM.FROM AUTOMOBILE,CONSTRUCTION,AEROSPACE ANDRAILWAY, ALUMINIUMWILL BE THEPREFERRED METALTO USE”ANIL AGARWALChairman, Vedanta Resources

Extract of Audited financial results for the quarter ended 31st March 2017

PRICE "LESS" FASHION

Registered Office: 610-611, Guru Ram Dass Nagar, Main Market, Opp. SBI Bank,Laxmi Nagar, New Delhi – 110092

Corporate Office- Plot No. 862, Udyog Vihar, Phase-V, Industrial Area,Gurugram-122016, Haryana

Tel. : 0124-4640030; Fax : 0124-4640046; Email : compliance@vmart.co.in;Website : www.vmart.co.in; CIN - L51909DL2002PLC163727

V-MART RETAIL LIMITED

Note:The above is an extract of the detailed format of quarterly financial results filed with Stock Exchanges under Regulation 33 of

the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The full format of quarterly financial results

is available on the Stock Exchanges websites - www.nseindia.com/www.bseindia.com and on the Company's Website -

www.vmart.co.in

Place: Gurugram

Date: 3rd May, 2017

For and on behalf of the Board of Directors of

V-Mart Retail Limited

Sd/-

Lalit Agarwal

Chairman & Managing Director

` in lacs (except per share data)

Particulars

Total income from operations (net)1.

Net profit/(loss) from ordinary activities before tax2.

Net profit after extraordinary activities before tax3.

Net profit for the period4.

Paid up equity share capital (Face value of `10 per share)5.

Reserves excluding revaluation reserves as per balance sheet ofprevious accounting year

6.

S.No.

Quarter Ended on Year Ended

Earnings per share (before extraordinary items) (of ̀ 10 each)(not annualised)(a) Basic(b) Diluted

7.i

7.ii Earnings per share (after extraordinary items) (of ̀ 10 each)(not annualised)(a) Basic(b) Diluted

GP25%

SALES24%

EBITDA33%

PAT43%

31.03.2017(Audited)

25,258.45

31.03.2016(Audited)

31.03.2017(Audited)

31.12.2016(Unaudited)

31.03.2016(Audited)

750.12

750.12

1,806.82

_

32,711.90

4,172.26

4,172.26

1,806.82

_

(41.45)

102.20

1,806.67

_

17,805.36

6,012.74

6,012.74

1,806.82

100,481.54

4,087.55

4,231.20

1,806.67

81,042.54

499.51 2,720.60 48.32 3,952.70 2,763.25

25,227.06 21,265.30

2.76 15.06 (0.25) 21.88 14.792.76 15.06 (0.25) 21.82 14.79

2.76 15.06 0.27 21.88 15.312.76 15.06 0.27 21.82 15.31

Sales crossed 1000 Cr. with CAGR of 29% in last 10 Yrs

(YoY Growth)

Ref. No. Mktg./FRef. No. Mktg./FRef. No. Mktg./FRef. No. Mktg./FRef. No. Mktg./FAAAAA/20/20/20/20/20111117-17-17-17-17-18/02 Dated: 26/08/02 Dated: 26/08/02 Dated: 26/08/02 Dated: 26/08/02 Dated: 26/04/204/204/204/204/201111177777Sub: SSub: SSub: SSub: SSub: Sale of materials through On-Line Fale of materials through On-Line Fale of materials through On-Line Fale of materials through On-Line Fale of materials through On-Line Forororororward Auction during MAward Auction during MAward Auction during MAward Auction during MAward Auction during MAY’ 20Y’ 20Y’ 20Y’ 20Y’ 201111177777.....

The following materials will be auctioned through website https://The following materials will be auctioned through website https://The following materials will be auctioned through website https://The following materials will be auctioned through website https://The following materials will be auctioned through website https://auction.metaljunction.com by our service provider M/s. mjunction services limited onauction.metaljunction.com by our service provider M/s. mjunction services limited onauction.metaljunction.com by our service provider M/s. mjunction services limited onauction.metaljunction.com by our service provider M/s. mjunction services limited onauction.metaljunction.com by our service provider M/s. mjunction services limited on“as is where is basis” and “no complaint basis”.“as is where is basis” and “no complaint basis”.“as is where is basis” and “no complaint basis”.“as is where is basis” and “no complaint basis”.“as is where is basis” and “no complaint basis”.Brief item descriptionBrief item descriptionBrief item descriptionBrief item descriptionBrief item description : Iron & Steel items consisting Def. CR Coils, Def. HR Coils,: Iron & Steel items consisting Def. CR Coils, Def. HR Coils,: Iron & Steel items consisting Def. CR Coils, Def. HR Coils,: Iron & Steel items consisting Def. CR Coils, Def. HR Coils,: Iron & Steel items consisting Def. CR Coils, Def. HR Coils,Saleable GP / GC Scrap, Def. Plates, CR Coil Ends, CR/HR Sheet, Cuttings,Def.CRNO, PipeSaleable GP / GC Scrap, Def. Plates, CR Coil Ends, CR/HR Sheet, Cuttings,Def.CRNO, PipeSaleable GP / GC Scrap, Def. Plates, CR Coil Ends, CR/HR Sheet, Cuttings,Def.CRNO, PipeSaleable GP / GC Scrap, Def. Plates, CR Coil Ends, CR/HR Sheet, Cuttings,Def.CRNO, PipeSaleable GP / GC Scrap, Def. Plates, CR Coil Ends, CR/HR Sheet, Cuttings,Def.CRNO, PipeEnd Cuttings & Scrap Pipes etc.End Cuttings & Scrap Pipes etc.End Cuttings & Scrap Pipes etc.End Cuttings & Scrap Pipes etc.End Cuttings & Scrap Pipes etc.Date of FADate of FADate of FADate of FADate of FA : 3rd, 5th, 9th, 1: 3rd, 5th, 9th, 1: 3rd, 5th, 9th, 1: 3rd, 5th, 9th, 1: 3rd, 5th, 9th, 12th 12th 12th 12th 12th 16th, 16th, 16th, 16th, 16th, 19th, 23rd, 26th & 30th May 209th, 23rd, 26th & 30th May 209th, 23rd, 26th & 30th May 209th, 23rd, 26th & 30th May 209th, 23rd, 26th & 30th May 201111177777.....Brief item descriptionBrief item descriptionBrief item descriptionBrief item descriptionBrief item description : Coal Chemical items .: Coal Chemical items .: Coal Chemical items .: Coal Chemical items .: Coal Chemical items .Date of FADate of FADate of FADate of FADate of FA : 1: 1: 1: 1: 10th, 10th, 10th, 10th, 10th, 19th & 39th & 39th & 39th & 39th & 31st May 201st May 201st May 201st May 201st May 201111177777.....Brief item descriptionBrief item descriptionBrief item descriptionBrief item descriptionBrief item description : Pig Iron.: Pig Iron.: Pig Iron.: Pig Iron.: Pig Iron.Date of FADate of FADate of FADate of FADate of FA : 4th, 1: 4th, 1: 4th, 1: 4th, 1: 4th, 11th, 11th, 11th, 11th, 11th, 18th & 25th May 208th & 25th May 208th & 25th May 208th & 25th May 208th & 25th May 201111177777.....Brief item descriptionBrief item descriptionBrief item descriptionBrief item descriptionBrief item description : Coke Dust .: Coke Dust .: Coke Dust .: Coke Dust .: Coke Dust .Date of FADate of FADate of FADate of FADate of FA : 1: 1: 1: 1: 10th & 24th May 200th & 24th May 200th & 24th May 200th & 24th May 200th & 24th May 201111177777.....Brief item descriptionBrief item descriptionBrief item descriptionBrief item descriptionBrief item description : Zinc Dross items i.e. Zinc A: Zinc Dross items i.e. Zinc A: Zinc Dross items i.e. Zinc A: Zinc Dross items i.e. Zinc A: Zinc Dross items i.e. Zinc Ash, Zinc Bottom, Zinc Tsh, Zinc Bottom, Zinc Tsh, Zinc Bottom, Zinc Tsh, Zinc Bottom, Zinc Tsh, Zinc Bottom, Zinc Top etc.op etc.op etc.op etc.op etc.Date of FADate of FADate of FADate of FADate of FA : 1: 1: 1: 1: 12th & 26th May 202th & 26th May 202th & 26th May 202th & 26th May 202th & 26th May 201111177777.....Brief item descriptionBrief item descriptionBrief item descriptionBrief item descriptionBrief item description : Scrap / Waste Steel Rolls / Adamite Rolls of vaious weights: Scrap / Waste Steel Rolls / Adamite Rolls of vaious weights: Scrap / Waste Steel Rolls / Adamite Rolls of vaious weights: Scrap / Waste Steel Rolls / Adamite Rolls of vaious weights: Scrap / Waste Steel Rolls / Adamite Rolls of vaious weights & sizes. & sizes. & sizes. & sizes. & sizes.Date of FADate of FADate of FADate of FADate of FA : 1: 1: 1: 1: 17th & 30th May 207th & 30th May 207th & 30th May 207th & 30th May 207th & 30th May 201111177777.....Brief item descriptionBrief item descriptionBrief item descriptionBrief item descriptionBrief item description : Scrap / Waste Cast Iron Rolls of various sizes and weights.: Scrap / Waste Cast Iron Rolls of various sizes and weights.: Scrap / Waste Cast Iron Rolls of various sizes and weights.: Scrap / Waste Cast Iron Rolls of various sizes and weights.: Scrap / Waste Cast Iron Rolls of various sizes and weights.Date of FADate of FADate of FADate of FADate of FA : 1: 1: 1: 1: 17th & 30th May 207th & 30th May 207th & 30th May 207th & 30th May 207th & 30th May 201111177777.....Brief item descriptionBrief item descriptionBrief item descriptionBrief item descriptionBrief item description : Iron & Steel & non-ferrous scrap, used / rejected drums of: Iron & Steel & non-ferrous scrap, used / rejected drums of: Iron & Steel & non-ferrous scrap, used / rejected drums of: Iron & Steel & non-ferrous scrap, used / rejected drums of: Iron & Steel & non-ferrous scrap, used / rejected drums ofdifferent sizes, plastic jars, motors, batteries of assorted sizes, S.S. Scraps, Rubber Scraps,different sizes, plastic jars, motors, batteries of assorted sizes, S.S. Scraps, Rubber Scraps,different sizes, plastic jars, motors, batteries of assorted sizes, S.S. Scraps, Rubber Scraps,different sizes, plastic jars, motors, batteries of assorted sizes, S.S. Scraps, Rubber Scraps,different sizes, plastic jars, motors, batteries of assorted sizes, S.S. Scraps, Rubber Scraps,Conveyor belts and other miscellaneous scrap items.Various unserviceable small assetConveyor belts and other miscellaneous scrap items.Various unserviceable small assetConveyor belts and other miscellaneous scrap items.Various unserviceable small assetConveyor belts and other miscellaneous scrap items.Various unserviceable small assetConveyor belts and other miscellaneous scrap items.Various unserviceable small assetitems such as vehicles / material handing equipments, Lab equipments, motors of variousitems such as vehicles / material handing equipments, Lab equipments, motors of variousitems such as vehicles / material handing equipments, Lab equipments, motors of variousitems such as vehicles / material handing equipments, Lab equipments, motors of variousitems such as vehicles / material handing equipments, Lab equipments, motors of varioussizes etc. Other misc.unserviceable items and obsolete / surplus itemssizes etc. Other misc.unserviceable items and obsolete / surplus itemssizes etc. Other misc.unserviceable items and obsolete / surplus itemssizes etc. Other misc.unserviceable items and obsolete / surplus itemssizes etc. Other misc.unserviceable items and obsolete / surplus items like asbestoslike asbestoslike asbestoslike asbestoslike asbestosrings etc.rings etc.rings etc.rings etc.rings etc.Date of FADate of FADate of FADate of FADate of FA : 1: 1: 1: 1: 12th & 12th & 12th & 12th & 12th & 19th May 209th May 209th May 209th May 209th May 201111177777.....Brief item descriptionBrief item descriptionBrief item descriptionBrief item descriptionBrief item description : Idle Assets.: Idle Assets.: Idle Assets.: Idle Assets.: Idle Assets.Date of FADate of FADate of FADate of FADate of FA : 30th May 20: 30th May 20: 30th May 20: 30th May 20: 30th May 201111177777.....

F F F F Furururururther details are available at Wther details are available at Wther details are available at Wther details are available at Wther details are available at Website. Yebsite. Yebsite. Yebsite. Yebsite. You can also contact Phone Nos. of M/s.ou can also contact Phone Nos. of M/s.ou can also contact Phone Nos. of M/s.ou can also contact Phone Nos. of M/s.ou can also contact Phone Nos. of M/s.mjunction sermjunction sermjunction sermjunction sermjunction services limited Rvices limited Rvices limited Rvices limited Rvices limited ROOOOOUUUUURRRRRKKKKKEEEEELLLLLA: 0A: 0A: 0A: 0A: 066666666661-651-651-651-651-6511111444441111142 / 042 / 042 / 042 / 042 / 07777788888999994444400000777778888805050505056. Please visit our6. Please visit our6. Please visit our6. Please visit our6. Please visit ourwebsite: https://www.sailtenders.co.in.website: https://www.sailtenders.co.in.website: https://www.sailtenders.co.in.website: https://www.sailtenders.co.in.website: https://www.sailtenders.co.in.

DGM, I/c. (MARKETING) DGM, I/c. (MARKETING) DGM, I/c. (MARKETING) DGM, I/c. (MARKETING) DGM, I/c. (MARKETING)

STEEL AUTHORITY OF INDIA LIMITED

Rourkela Steel PlantRourkela Steel PlantRourkela Steel PlantRourkela Steel PlantRourkela Steel Plant

Rourkela - 769 011, Odisha, IndiaRourkela - 769 011, Odisha, IndiaRourkela - 769 011, Odisha, IndiaRourkela - 769 011, Odisha, IndiaRourkela - 769 011, Odisha, India

There's a little bit of SAIL in everybody's life

Registered Office: Ispat Bhawan, Lodi Road, New Delhi 110 003Corporate Identity Number: L27109DL1973GOI006454,Website: www.sail.co.in

16 TAKE TWO MUMBAI | THURSDAY, 4 MAY 2017 1>