Chemplast Sanmar Limited

rs,

May 11, 2022 To, BSE Limited Phiroze Jeejeebhoy Towers, Dalal Street, Mumbai – 400 001 Scrip Code - 543336 To, National Stock Exchange of India Limited

Rs. 1,807

lights Business Highlights Q4FY22 FY22 Key highlights Chemplast Sanmar Limited Revenues Rs. 1,807 cr | 35% YoY growth Rs. 5,892 cr | 55% YoY growth Rs. 346 cr | 1% YoY growth Rs. 1,197

35%

ss Highlights Q4FY22 FY22 Key highlights Chemplast Sanmar Limited Revenues Rs. 1,807 cr | 35% YoY growth Rs. 5,892 cr | 55% YoY growth Rs. 346 cr | 1% YoY growth Rs. 1,197 cr | #

Rs. 5,892

Y22 FY22 Key highlights Chemplast Sanmar Limited Revenues Rs. 1,807 cr | 35% YoY growth Rs. 5,892 cr | 55% YoY growth Rs. 346 cr | 1% YoY growth Rs. 1,197 cr | # 40% YoY growth EBITDA

55%

y highlights Chemplast Sanmar Limited Revenues Rs. 1,807 cr | 35% YoY growth Rs. 5,892 cr | 55% YoY growth Rs. 346 cr | 1% YoY growth Rs. 1,197 cr | # 40% YoY growth EBITDA 19.2%

Rs. 346

plast Sanmar Limited Revenues Rs. 1,807 cr | 35% YoY growth Rs. 5,892 cr | 55% YoY growth Rs. 346 cr | 1% YoY growth Rs. 1,197 cr | # 40% YoY growth EBITDA 19.2% Margin 20.3% Margin

1%

mited Revenues Rs. 1,807 cr | 35% YoY growth Rs. 5,892 cr | 55% YoY growth Rs. 346 cr | 1% YoY growth Rs. 1,197 cr | # 40% YoY growth EBITDA 19.2% Margin 20.3% Margin Rs. 232

Rs. 1,197

Rs. 1,807 cr | 35% YoY growth Rs. 5,892 cr | 55% YoY growth Rs. 346 cr | 1% YoY growth Rs. 1,197 cr | # 40% YoY growth EBITDA 19.2% Margin 20.3% Margin Rs. 232 cr | 29% YoY growth

40%

YoY growth Rs. 5,892 cr | 55% YoY growth Rs. 346 cr | 1% YoY growth Rs. 1,197 cr | # 40% YoY growth EBITDA 19.2% Margin 20.3% Margin Rs. 232 cr | 29% YoY growth PAT Rs. 649

19.2%

| 55% YoY growth Rs. 346 cr | 1% YoY growth Rs. 1,197 cr | # 40% YoY growth EBITDA 19.2% Margin 20.3% Margin Rs. 232 cr | 29% YoY growth PAT Rs. 649 cr | ++ 109% YoY growth

20.3%

wth Rs. 346 cr | 1% YoY growth Rs. 1,197 cr | # 40% YoY growth EBITDA 19.2% Margin 20.3% Margin Rs. 232 cr | 29% YoY growth PAT Rs. 649 cr | ++ 109% YoY growth 12.8% Margin

Rs. 232

r | 1% YoY growth Rs. 1,197 cr | # 40% YoY growth EBITDA 19.2% Margin 20.3% Margin Rs. 232 cr | 29% YoY growth PAT Rs. 649 cr | ++ 109% YoY growth 12.8% Margin 11.0% Margin

Note

6

Capacity expansion

1

Note

1. 2. 3. S-PVC – Suspension PVC ; Through its wholly owned subsidiary, Chemplast Cuddalore Vinyls Limited (“CCVL”) Through FIH Mauritius Investments Limited For significant portion of its operation Experienced management team with deep domain expertise 11 … with a Diversified Product Portfolio Chemplast Sanmar Limited Chemplast Sanmar CCVL (1) Specialty Chemicals Non-Specialty Chemicals Suspension PVC Specialty Paste PVC resin Custom manufacturing Caustic soda Hydrogen peroxide Chloromethanes End user industries Footwear Auto upholstery Pharma Agrochemicals Paper Textile Paper & Pulp Textile Park Pharma Leather Mats API Molecules Chemicals Chemicals Effluent treatment at refineries Dis- infectants Agro- Chemicals Refrigerants (HFOs) 66,000 mtpa 1,068 mtpa 119,000 mtpa 34,000(2) mtpa 35,000 mtpa 22% 12% Capacity FY22 Sales split

Note

1. 2. Wholly owned subsidiary of Chemplast Sanmar Ltd. The hydrogen peroxide capacity is calculated at 50% concentration level, in line with industry standards. ‘mtpa’ stands for metric tons per annum 12 Irrigation Urban infra Real estate 300,000 mtpa 66% Specialty Paste PVC Resin Chemplast Sanmar Limited Industry Overview Company Overview 143 ktpa Indian demand FY20 (1) 9.3% CAGR (FY21-25) (1) Domestic 55% Imports 45% Key growth drivers 1 1 High entry barriers: Licensed technology and lack of availability of raw materials 2 Growth in the end-user industries Growth in the end-user industries 3 Low per capita consumption (kg, 2019) #1 manufacturer of specialty paste PVC resin in India 66 ktpa Installed capacity at Mettur 41 ktpa Planned capacity addition at Cuddalore by FY24  Manufactured at Mettur facility since 1968  Primary raw materials include VCM, EDC, ethylene and chlorine Western Europe 2.4  Manufactures significant portion of EDC and all of VCM requirements Footwear Automoti

Note

1. Source : CRISIL Research ‘ktpa’ stands for kilo tons per annum and ‘kt’ stands for kilo tons in-house. This provides flexibility in operations and reduces dependence on external suppliers  High repeat business – customer stickiness 13 Custom Manufactured Chemicals Chemplast Sanmar Limited Industry Overview Company Overview US$ 6.0 bn Indian market size FY21 (1) 9.1% CAGR (FY21-25) (1) Key growth drivers Availability of skilled economic labor Surge in global food grain demand Growth in demand for drugs and hygiene products India to be a focus region as companies move away from China for custom manufacturing PLI Scheme for bulk drug parks Higher penetration of API manufacturing in India Leading player in custom manufacturing 1,068 mtpa Installed capacity at Berigai Setting up a multipurpose facility in stages (Blocks 1 & 2)  Engaged in custom manufacturing of advanced intermediates to global innovator companies in the agro-chemical, pharmaceutical and fine chemical end uses  Capabi

Note

1. Source: CRISIL Research 14 Non-specialty Products Chemplast Sanmar Limited Caustic Soda Hydrogen Peroxide Chloromethanes 3.5 mn mtpa Indian demand FY21(1) 8.2% CAGR (FY21-25) (1) 282 ktpa Indian demand FY21 (1) 10.3% CAGR (FY21-25) (1) 510 ktpa Indian Demand FY21 (1) 10.1% CAGR (FY21-25) (1) Industry Overview Key growth drivers Key growth drivers Key growth drivers  Growth in paper and textile industry  Increasing demand from end user industries, especially:  Alumina – increase in refineries  Chemical industries – dyes and paints  Setting up of textile parks  Growth in paper & pulp industry  Effluent treatment at refineries to aid demand growth  Rapid growth in market size for disinfectants during COVID-19  Rapid growth in pharma industry  New generation refrigerants (HFOs)  Rising agrochemicals demand  PLI scheme to boost API and bulk drugs #3 manufacturer of caustic soda in South India region #1 manufacturer of hydrogen peroxide in South India region One of the oldest

Note

1. Source: CRISIL Research 15 Suspension PVC (CCVL) Chemplast Sanmar Limited Industry Overview Company Overview 3,340 ktpa Indian demand in FY20(1) 7.7% CAGR (FY21-25) (1) #1 manufacturer of S-PVC in South India and 2nd largest in India Key growth drivers Significant gap between demand and supply : No new capacity additions in India in the near future and increasing supply tightness due to Chinese PVC capacity shutdowns Low per capita consumption in India Significant demand-supply gap due to lack of new capacity in India Strong growth in end-use markets 1 2 3 4 Irrigation spending Urban Infra Spending Real Estate Sector Spending

Note

1. Source: CRISIL Research 300 ktpa Installed capacity at Cuddalore 31 ktpa Debottlenecking is underway  Manufactured at Cuddalore facility since 2009. This facility has a captive import terminal facilitating VCM imports for PVC production 16 Sustainable Opportunity Across Products Entry barriers Chemplast Sanmar Limited Specialty Paste PVC  Global supply tightness  India is a net importer  Rising demand from end user industries  Import substitution opportunity Custom Manufacturing  Shortage of capable & reliable partners globally  India is a net exporter  Rising demand from end user industries  Export Opportunity High High Non-Specialty Chemicals  India is a deficit market for non-specialty range produced by the company  Rising demand from end user industries Medium Suspension PVC  Growing global tightness  India is a large net importer  Rising demand from end user industries  Import substitution opportunity High Sustainable Opportunity 17 Legacy of Over Five Decades Ch