| Type | Public Limited |
|---|---|
| Traded as | BSE: 500295 NSE: SESAGOA |
| Industry | Mining |
| Founded | 1954 |
| Headquarters | Goa, Karnataka, Orissa - India |
| Key people | Mr.P K Mukherjee, Managing Director |
| Products | Iron ore Pig Iron Metallurgical Coke |
| Revenue | Rs. 6,284 Crores (2010)[1] |
| Net income | Rs. 2,629 Crores (2010)[2] |
| Employees | Approx. 4,100 (2010) |
| Website | sesagoa.com |
Sesa Goa is India's largest producer and exporter of iron ore in the private sector. For over five decades it has been engaged in the business of exploration, mining and processing of iron ore. In fiscal 2010, it produced 21.4 million tonnes and sold 20.5 million tonnes of iron ore. It is one of the low cost producers of iron ore in the world and is well placed to serve the growing demand of Asian countries.
The mining operations are carried out in the States of Goa, Karnataka and Orissa in India. Iron ore from mines at Karnataka is exported through ports of Goa, Mangalore and Krishnapatnam while iron ore from mines in Orissa is mainly exported through ports of Haldia and Paradeep. Iron ore from mines in Goa is exported through port of Goa.
As of 31 March 2010, Sesa owns or has the rights to reserves and resources consisting of 353 million tonnes of iron ore at an average grade of 58.0%. The reserves and resources position has been independently reviewed and certified as per Joint Ore Reserve Committee (JORC) standard.
It acquired VS Dempo & Co. Private Limited (VSD) (now Sesa Resources Limited) in June 2009, which in turn, also holds 100% equity shares of Dempo Mining Corporation Private Limited (now Sesa Mining Corporation Limited) and 50% equity shares of Goa Maritime Private Limited. VSD's Goa mining assets includes processing plants, barges, jetties, transhippers and loading capacities at Mormugoa port.
Over the last two decades, Sesa has diversified into manufacturing of pig iron and metallurgical coke. It directly operates a metallurgical coke plant with an installed capacity of 280,000 TPA and, through 88.3% owned subsidiary, Sesa Industries Limited (SIL), operates a pig iron plant with an installed capacity of 250,000 TPA. SIL manufactures pig iron through the blast furnace route. Sesa owns metallurgical coke production technology and have entered into technology licensing agreements with different licenses for marketing its technology for setting up non-recovery coke oven plants across the globe.
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Sesa Goa, over the years has created ‘Sesa’ brand of iron ore which caters primarily to the rapidly growing emerging economies of India and China. While this is true across the Sesa Group’s and the Company’s different business segments – iron ore, pig iron and met coke, there are variations among the businesses in terms of their relative focus on China and India.
Iron Ore -With over 80% of its sales in China, this business is focusing on mining different grades of ore in India and is exported mainly to China. With its cost competitive ore base and mine locations having relatively good accessibility to China, Sesa Goa has a niche positioning in the Chinese sea-borne iron ore business.
Pig Iron -This business, which was an initiative in moving up the iron-ore value chain, focuses on the domestic Indian market, especially in western and southern India, and caters to steel mills and foundries.
Metallurgical Coke (Met Coke) -The metallurgical coke business is primarily a backward integration initiative to support the pig iron business. The Company utilises its specialised coke making technology to build efficiencies in this business. Some of the production is sold externally based on market conditions and internal requirements.
In June 2009, Sesa Goa signed a definitive share purchase agreement under which the Company acquired all the outstanding common shares of VS Dempo and Company Private Limited (‘VSD’ or ‘Dempo’), which in turn, also held 100% equity shares of Dempo Mining Corporation Private Limited and 50% equity shares of Goa Maritime Private Limited. The deal was signed for a total consideration of Rs. 1,750 (equivalent to US$368 million), on a debt-free and cash-free basis, and included net normative working capital of Rs. 145 crore (equivalent to US$31 million). The acquisition was wholly financed by Sesa Goa’s own cash resources.
With this acquisition, the Company got access to VSD’s mining assets in Goa. VSD either owns or has the rights to mineable reserves and resources estimated at 70 million tonnes of iron ore in Goa. In addition, VSD’s mining assets in Goa includes processing plants, barges, jetties, transhippers and loading capacities at Mormugoa port. In 2008-09, VSD sold 4.36 million tonnes of iron ore, which included its own production and purchased ore.
Not only has the acquisition added to Sesa Goa’s resources but has also given the Company access to VSD’s customer base. At the time of acquisition VSD was one of the largest exporters of iron ore from Goa with exports of around 4 million tonnes.
During the course of the year, Sesa Goa has already started leveraging several synergies between the two Companies. These include:
While these are parts of an ongoing process, Sesa Goa has succeeded in optimising the Dempo business in 2009-10. This is reflected in the financial performance of the Company in 2009-10.
Initiatives fostering community development are implemented through the Sesa Community Development Foundation. In addition, the Company undertakes some need based initiatives, both directly and in association with the Mineral Foundation of India.
This foundation runs the Sesa Technical School which provides technical training to local students; and the Sesa Football Academy which nurtures future footballers from Goa. The junior football academy and the technical school is built on the reclaimed mine site at Sanquelim – an example of both environmental conservation and community development work.
The Sesa Technical School (STS) has become a leading vocational training institute in Goa and has a reputation of identifying and nurturing potential excellence of young Goans. For the last several years it has maintained 100% results in the Industrial Training Institute (ITI) trade examinations. An important accessory of Sesa Goa in its CSR initiatives, STS has lived up to the expectations by imparting rigorous training in the trades of fitters, machinists, instrument mechanics and electricians. In 2009, all the 54 trainees passed the ITI trade test with flying colours. Among them, three were top rankers. As a result of excellent training; it has become a practice of the prospective employers of surrounding industries to visit the school for campus interviews to choose their manpower requirement. The school arranges campus interviews and ensures that all the trainees get absorbed in industries after completion of the course.
The Sesa Football Academy has two centres. There is a junior level academy, which began functioning from June 1999 at Sanquelim, Goa; and a senior academy, which started from June 2008 at Sirsaim, Goa. The Company started its junior residential football academy in 1999 in its reclaimed mine site at Sanquelim with a beautiful football ground, a well established gymnasium, and a complete hostel facility along with a recreation centre. It presently houses 36 boys. SFA is the only residential academy of Goa which trains the boys for four years besides allowing them to pursue their regular academic studies. All the expenses including the trainee’s academic studies are taken care by the SFA. When Sesa Goa decided to start the senior academy true to its style, it created a full-fledged football infrastructure for the senior team. So, the seniors, along with their coaches, are housed under one roof with full scale facilities, such as nutritious food in the canteen, gymnasium, steam sauna as well as recreational and indoor game options.
This is an NGO established by the major mining companies of Goa, for implementation of social and environmental activities in the mining belt of the state. The MFG’s work centres on projects which are aimed to develop environmental and social infrastructure. The main thrust is to create livelihood options for rural youth through various training programmes like bed side nursing, food and beverage, plumbing, and others.
Sesa Goa and the MFG in association with the Government of Goa are jointly implementing a project “Gram Nirman 2010” aimed at overall development of the village. These are at Codli and Mayem – one each in south and north Goa respectively. The first phase of the project has been completed involving agriculture, education and social infrastructure development.
Health Safety and Environment
Corporate Social Responsibility