About JSW INFRA Limited

Fastest growing port-related infrastructure company in terms of growth in installed cargo handling capacity and cargo volumes handled during Fiscal 2020 to Fiscal 2022, and the second largest commercial port operator in India in terms of cargo handling capacity in Fiscal 2022. It provides maritime related services including, cargo handling, storage solutions, logistics services and other value-added services to our customers, and are evolving into an end-to-end logistics solutions provider.

Operations have expanded from one Port Concession at Mormugao, Goa to nine Port Concessions as of December 31, 2022 across India, making a diversified maritime ports company.

Installed cargo handling capacity in India grew at a CAGR of 22.35% from 102.50 MTPA as of March 31, 2020 to 153.43 MTPA as of March 31, 2022, whereas cargo volumes handled in India grew at a CAGR of 34.97% from 34.01 MMT to 61.96 MMT.

A diversified presence across India with Non-Major Ports located in Maharashtra and port terminals located at Major Ports across the industrial regions of Goa and Karnataka on the west coast, and Odisha and Tamil Nadu on the east coast.

Prominent Customers:- JSW Energy Limited as part of its tolling arrangements with JSW Steel, Amba River Coke Limited, JSW Cement Limited, JSW Steel Coated Products Limited, JSW Steel Coated Products, Western Concessions, JSW Steel, Karam Chand Thapar & Bros Coal Sales Limited, India Coke and Power Private Limited.

The Indian economy occupies a commercially enviable location on the global map, straddling Bay of Bengal, Indian Ocean, and Arabian Sea with a coastline of approximately 7,517 km. Ports in India handle 90% by volume and 70% by value of India’s external trade. The maritime route is used to import crude petroleum, iron ore, coal, and other critical goods.

Major ports: - The Major Port Authorities Act, 2021 provides for regulation, operation and planning of major ports in India. The Major Port Authorities Act, 2021 revises the provisions of earlier act and vests the administration, control and management of such ports to the boards of major port authorities.

Non-major ports: - These ports come under the purview of the respective state governments and regulated by state departments, or the state maritime boards.

In Fiscal 2023, the growth in container traffic is expected to witness a muted growth of 2-5% after a robust increase of 12.7% in Fiscal 2022. The muted growth is due to emergence of unfavourable macroeconomic factors such as economic slowdown, inflationary pressures, and high freight costs during the fiscal. Furthermore, reduced stress levels on global supply chains due to the absence of COVID-19 induced restrictions is likely to result in the easing of acute shortage in container availability and faster turnaround times in ports. As a result, lesser number of containers would be needed for transportation.

Port traffic is driven by mineral, steel, cement, power and discrete manufacturing clusters. Key mineral clusters are located in Odisha, Jharkhand, Chhattisgarh and Karnataka. Major steel capacities are located near the key mineral clusters or end user markets.

Government has set up institutions to develop, monitor and regulate the operations of these Indian ports. In addition, there are institutions which implement the policies related to the sector.

RISK FACTORS

1. Lack of an efficient transportation network can affect the connectivity of the company to the outer world.
2. Working in a highly competitive and capital-intensive industry, any change in the cost of electricity and fuel can affect the company to a large extent.
3. Company is not able to utilize its capacity appropriately. It was able to use 50% up to December last year, and prior to that it used 30-40% only.
4. Top 5 customers of the company hold majority of the revenue.
5. Fluctuation in exchange rates can affect the profitability of the company.
6. Company do not own the trademark of JSW. Also, the company works on land with lease contracts. With high reliance on subcontractors to fulfill the contracts.
7. Company relies on concessions and Licenses from government and quasi-governmental organizations, with these licenses being provided for limited period of time.