Asahi Songwon Colors Limited

₹33.50 crore

n and supply agreement with DIC Japan • 2007 – The company went public and successfully raised ₹33.50 crores from IPO. • 2008 – Enhanced capacities of CPC blue crude from 3,000 TPA to 7,000 TPA and setup

90%

Presence in 18 countries and Ramping up operations Revenue contributions from top 5 customers - 90% Revenue contributions from top 5 customers - Over the last few years, the revenue contributions

rs,

ns from top 5 customers - 90% Revenue contributions from top 5 customers - Over the last few years, the revenue contributions from the ink industry have come down from more than 90% to ~ 55% 06 A

55%

ew years, the revenue contributions from the ink industry have come down from more than 90% to ~ 55% 06 A s a h i S o n g w o n C o l o r s L i m i t e d 07 • List of countries we export to 1. US

80%

s 08 • We have not lost a single customer in our more than 3 decades of existence • More than 80%of business is repeat business OTHER MARQUEE CLIENTS A s a h i S o n g w o n C o l o r s L i m i

70%

nt force in the markets by continuously taking share away from China, which contributed more than 70% share in phthalocyanine pigments. Today India caters to more than 70% of phthalocyanine pigment r

100%

requirements across the globe. 12 • One of largest manufacturer of CPC Blue crude globally • 100% revenue contributor for the company till Q3FY21 • Major raw materials – Phthalic Anhydrite & C

5 billion

NTS CHINA +1 A STRONG TAILWIND The global organic and specialty pigment market is estimated at $5 billion and Azo is the largest in volume. High demand that is largely met through imports from China D

25%

manufacturing will ensure lower cost of production Very few operational player in the segment 25% 20% 55% Azo Pigments Phthalocyanine Pigments HPP & others Customers Looking to shift from

20%

acturing will ensure lower cost of production Very few operational player in the segment 25% 20% 55% Azo Pigments Phthalocyanine Pigments HPP & others Customers Looking to shift from China

50%

thalocyanine Pigments HPP & others Customers Looking to shift from China • China accounts for >50% of global pigment production. • Production shift from China to put Asahi in a sweet spot. A s a h

₹82 crore

g up a state of the art Red & Yellow Azo pigment Plant with Capacity of 2400 TPA Cost of project ~₹82 crores • Have required approvals to expand capacities to 10,000 TPA • • • Ramp up of yellow pigment

“We are optimistic that these gains, further aided by our sustained market share gain, will be well-reflected in our future financial performance.” A s a h i S o n g w o n C o l o r s L i m i t e d 27 Mr.”

“While it is a fact that product approvals at the end of our customers have taken time, we aim to offset this by efficiently prioritizing outlays to account for the same.”

Products manufactured

2

Products manufactured

Phthalocyanine Pigments Waste and effluent treatment facilities available • CPC Blue crude • Beta Blue • Alpha Blue Available capacities • 10,200 TPA CPC Blue crude • 3,600 TPA Beta Blue • 600 TPA Alpha Blue Situated on 98,000 sq. mt. plot Available area for further expansion - 25,000 sq. mt. Team strength of 475 people No forced pollution shutdown in the last decade Green cover around factory premises A s a h i S o n g w o n C o l o r s L i m i t e d At Asahi Songwon has entered into a joint venture with UK’s leading colour manufacture Tennants Textiles Colours Limited (TTC) to manufacture red, yellow and orange Azo pigments. 14 WHY AZO PIGMENTS CHINA +1 A STRONG TAILWIND The global organic and specialty pigment market is estimated at $5 billion and Azo is the largest in volume. High demand that is largely met through imports from China Domestic manufacturing will ensure lower cost of production Very few operational player in the segment 25% 20% 55% Azo Pigments Phthalocyanine Pigment

Products manufactured

Azo Pigments Waste and effluent treatment facilities available Situated on 60,000 sq. mt. plot Capacities expandable upto - 10,000 TPA Available capacities • 1,200 TPA Red Pigments • 1,200 TPA Yellow Pigments Team strength of 50 people Phase 2 brownfield capex to begin after reaching 40% capacity utilization levels Available area for further expansion to meet future demand requirements. A s a h i S o n g w o n C o l o r s L i m i t e d Strategic Advantages and Investment Merits 19 20 – Strategic Advantage – Investment Merits 18 HIGH LEAD TIME REALIGNMENT OF GLOBAL SUPPLY CHAIN STRATEGIC LOCATION LONG TERM SALES CONTRACT • Customer approvals take long time. However, once the relationship is established, it becomes difficult for the other player to take the market share. Due to its long track record and presence in the markets Asahi enjoys a long-standing relationship with majority of its customers • The Chinese government's crackdown a few years ago culminated not only in a rise in the