KAMDHENU ISPAT LIMITED - Securities and Exchange Board of India

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Mechanical Properties of the product and Comparison with Indian Standard PROPERTIES/COMPOSITION INDIA (IS : 1786) KAMDHENU TMT Grade Fe-415 MECHANICAL PROPERTIES Proof Stress 415 N/mm2 450 N/mm2 Tensile Strength] 485 N/mm2 530 N/mm2 Elongation 14.50% 20% Bend Test Upto 22 mm-3D CHEMICAL COMPOSTION (%) Carbon 0.30 Max*. 0.30 Max. Sulphur 0.06 Max. 0.06 Max. Phosphorous 0.06 Max. 0.06 Max. S+P 0.11Degree Max. 0.11Degree Max. Grade Fe- 500 MECHANICAL PROPERTIES Proof Stress 500N/mm2 530N/mm2 Tensile Strength] 545N/mm2 600N/mm2 Elongation 12% 15% Bend Test Upto 22mm-4D Upto 22mm-3D CHEMICAL COMPOSTION (%) Carbon 0.30 Max 0.14-0.22 Max Sulphur 0.060 Max 0.05 Max Phosphorous 0.060 Max 0.05 Max S+P 0.110 Max 0.09 Max Mn - 0.4 Min Si - 0.4 Max Grade Fe- 550 MECHANICAL PROPERTIES Proof Stress 550n/mm2 575N/mm2 Tensile Strength] 585N/mm2 650N/mm2 Elongation 8% 12% Bend Test Upto 22mm-5D Upto 22mm-4D CHEMICAL COMPOSTION (%) Carbon 0.30 Max 0.14-0.22 Max Sulphur 0.060 Max 0.05 Max Phosphorous 0.060 Max 0.05 Max S+P 0.110 Max 0.09 Max Mn - 0.4 Min Si - 0.4 Max * In case of weldable bars the carbon content should be 0.25% max ORRISSA PROJECT Kamdhenu Ispat Limited had planned to put up 1,10,000 T.P.A. DRI Plant with 8 MW Captive Power Plant and 50,000 TPA Steel Melt shop in the first phase at Jharsuguda in Orissa The Total Cost of the project was estimated to be Rs. 9365 lacs The proposed project was to be set up in two phases. On completion of the Project 2,20,000 TPA of Sponge Iron & 2,50,000 TPA of Billets were to be prdouced. 46
The sponge iron is one of the raw material required for manufacture ingots used for manufacture of Steel Bars the main product of the Company. Therefore the Company thought of going into backward integration. The Company acquired Land measuring 79.85 acres for the Project at a cost of Rs 67,28,675. The acqusition of land is primary requirement for making application of mining lease to authorities. The Company also incurred Rs. 33,67,499 towards brokerage/ change of land use charges/ Ground leveling charges and Rs. 13,94,000 towards pre operative expenses. The Project could not be further undertaken since Company could not get mining rights in respect of Mines of Iron/ Manganese Ore which is a basic raw material required for manufacture of Sponge Iron. The success of Sponge Iron project is based on captive availability of iron/manganese ore. We are trying to get the licenses for Lease of mines and in case we are unable to receive the Lease of mines we will have to shelve the Project. In case we are able to get Mining rights we intend to implement the Project for which Funds will be tied up separately with Insitutional Funding, Promoters Equity and Internal accurals. No figures of funding can be provided at present since we are not sure when the mining rights will be granted to the company. The investment made in land has appreciated and therefore if ultimately we have to shelve the project the company will recover all expenses incurred by sale of land. In the meanwhile we entered into a Partnership with Smt. Sujata Rout and Sri Sukanta Chawan Rout both residents of Rowkela under the tradename M/s. SR Ferro Alloys for seeking Mining Licenee from Orissa Government for undertaking mining of Iron/Manganese Ore. We have further entered into an agreement with the aforesaid partnership firm to buy entire mining produce as and when raised from mines for capititive use in Orissa Project. M/s. S.R. Ferro Alloys is yet to get mining Licenee from authorities at Orissa. MARKETING STRATEGY The strength of our company lies in the brand value of Kamdhenu and our credibility in making high quality reinforcement bars. We will continue to focus on strengthening the existing brand. The Brand Value of Kamdhenu influence all that we do in terms of our marketing strategy. Our product have certain core values such as high strength, corrosion resistant characteristics, dimensional tolerance etc. We have strong visible brand which has awareness across India. Our Brand objective is to expand the customer base, ensure customer loyalty and increase the depth of the consumer relationship which we are achieving by expansion of distribution network. The company having its marketing office at Delhi has an extensive and well-connected network of more than 1750 dealers dispersed across the country. Company’s products are already well established in the market. The above strategy is so far creating more brand awareness and in long run this would help the company in achieving higher market share. Company’s products command a price premium in the market owing to its established brand name. Presently the brand premium is ranging between Rs.300 to 700 per metric ton depending on different geographical areas and demand supply factors of the particular area. We organize seminar and conferences of its dealers and distributors, architects and civil contractors at regular intervals to increase its brand awareness and to take feedback/ suggestions from them. Kamdhenu distributes its products literature and brochures at such conferences, which highlights the latest technology used in manufacturing the products. All these steps taken by the Company last in 3-4 years have resulted in a creation of very strong brand awareness. Further for information of franchisees, dealers and distributors, we publish a monthly news letter titled “Ispat Sandesh” in Hindi and English which offers us opportunity to interact with them. The concept of having strategic tie up with other manufacturing Units and establishment of stockyards at different locations would give a boost to the company’s existing marketing network. It should also increase the Company’s profitability considerably as margins in retailing are always better than wholesale trade. Kamdhenu has taken a conscious decision to develop and enlarge its business operations by adopting Franchise route. The concept of Franchisee in steel Industry is rather new to India but it makes eminent sense. At the vanguard of this new frontier is the Kamdhenu which is rapidly emerging as the Leading Franchisee chain build strongly on Kamdhenu brand. Over Next five years we intend to build a formidable chain of Franchisees who together will hold substantial market shares of Steel Bars and other Products which we intend to introduce at appropriate time. For us it will result in expansion of value of Products being sold under Kamdhenu brand with minimal capital expenditure. 47
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KAMDHENU ISPAT LIMITED DRAFT PROSPE
Page 3 and 4:
DEFINITIONS AND ABBREVIATIONS Gener
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Abbreviations Abbreviation Full For
Page 7 and 8:
RISK FACTORS An investment in equit
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mentioned under Class 1 to 42 cover
Page 11 and 12: (b) Any disruption/ discontinuance
Page 13 and 14: affect our operating results. We ar
Page 15 and 16: The central and state tax scheme in
Page 17 and 18: SUMMARY The following summary is qu
Page 19 and 20: THE ISSUE Equity Shares offered by
Page 21 and 22: of the Stabilisation Period allot,
Page 23 and 24: For the year ended August March Mar
Page 25 and 26: LEGAL ADVISOR TO THE ISSUE Luthra &
Page 27 and 28: 2. Capital Buildup: The existing sh
Page 29 and 30: B. Promoter Group 1. Saurabh Agarwa
Page 31 and 32: Sl. Name of Date of Consid- No. of
Page 33 and 34: Sl. Name of Date of Consid- No. of
Page 35 and 36: 7. The Pre-issue and Post-issue sha
Page 37 and 38: (b) Our top ten shareholders and sh
Page 39 and 40: OBJECTS OF THE ISSUE The proceeds f
Page 41 and 42: BASIS FOR ISSUE PRICE QUALITATIVE F
Page 43 and 44: STATEMENT OF TAX BENEFITS The Compa
Page 45 and 46: loss, such long -term capital loss
Page 47 and 48: Benefit available to Mutual Funds I
Page 49 and 50: Restrictions in external trade, bot
Page 51 and 52: to compete with the likes of China,
Page 53 and 54: III. Flat Products Flat products in
Page 55 and 56: · In China and other Asian countri
Page 57 and 58: BUSINESS OVERVIEW Kamdhenu Ispat Li
Page 59 and 60: PROCESS PROCESS FLOW CHART FOR PROD
Page 61: POWER The Company sources Power fro
Page 65 and 66: We help them to get right people to
Page 67 and 68: 23. A.S. CEMENT INDUSTRIES, Patiala
Page 69 and 70: PROPERTY A. Properties owned by the
Page 71 and 72: S No. 6. 7. 8. Date & Tenure Name &
Page 73 and 74: OUR INDEBTEDNESS Sr. No 1 Lender &
Page 75 and 76: Main Objects The main objects of th
Page 77 and 78: OUR MANAGEMENT As per the Articles
Page 79 and 80: C. MR. SUNIL KUMAR AGARWAL Designat
Page 81 and 82: Company Secretary Secretarial & Leg
Page 83 and 84: PROMOTERS OUR PROMOTERS MR. SATISH
Page 85 and 86: 2. and accessories, automobile part
Page 87 and 88: The Board of Directors Kamdhenu Isp
Page 89 and 90: Annexure - II Statement of Assets a
Page 91 and 92: 7 The company is manufacturing CTD/
Page 93 and 94: Annexure - VII Performance Ratios:
Page 95 and 96: Principal Terms of Sanctioned Loans
Page 97 and 98: Financial Statements of Group Compa
Page 99 and 100: The Board of Directors of the Compa
Page 101 and 102: List of Shareholders as on 30.9.200
Page 103 and 104: MANAGEMENT’S DISCUSSION AND ANALY
Page 105 and 106: DEPRECIATION Depreciation on fixed
Page 107 and 108: of excise duty was 8% thereafter up
Page 109 and 110: Administrative and Other Expenses W
Page 111 and 112: Cost Of Goods Traded In The company
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Information required as per clause
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SL. NO. 5 6 7 8 9 10 11 12 ASSESSME
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3.2 CENTRAL EXCISE Commissioner of
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4.2 M/s. Kamdhenu Ispat Limited vs.
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II Outstanding litigations involvin
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Sales Tax ASSESSMENT YEAR PARTICULA
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11. The Company has obtained consen
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BEHALF AND TOWARDS THIS PURPOSE, TH
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Public Issue expenses are estimated
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ISSUE INFORMATION Terms of the Issu
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Applications by Hindu Undivided Fam
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Payment Instructions 1. Payments sh
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5. Investors can contact the Compli
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for public subscription and the bal
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POWER TO MODIFY RIGHT 11. (i) If at
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without any deduction or allowance
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there be no such Chairman or if at
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69. The Director shall not be requi
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fit and any such appointment may (i
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present and entitled to vote there
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MATERIAL CONTRACTS AND DOCUMENTS FO
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DECLARATION All the relevant provis
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KAMDHENU ISPAT LIMITED - Securities and Exchange Board of India

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