Chemplast Sanmar Limited

rs,

August 7, 2022 To, BSE Limited Phiroze Jeejeebhoy Towers, Dalal Street, Mumbai – 400 001 Scrip Code - 543336 To, National Stock Exchange of India Limited

10%

Good Performance in tough Circumstances…  The debottlenecking of our suspension PVC capacity by 10% at our Cuddalore plant got completed ahead of schedule by May 22 Q1FY23  PVC prices have com

Rs. 1,411

edium to long term outlook remains strong. Key highlights Chemplast Sanmar Limited Revenues Rs. 1,411 cr | 47% YoY growth EBITDA Rs. 194 cr | 28% YoY growth 13.8% Margin Rs. 41 cr | 41%

47%

erm outlook remains strong. Key highlights Chemplast Sanmar Limited Revenues Rs. 1,411 cr | 47% YoY growth EBITDA Rs. 194 cr | 28% YoY growth 13.8% Margin Rs. 41 cr | 41% YoY grow

Rs. 194

Key highlights Chemplast Sanmar Limited Revenues Rs. 1,411 cr | 47% YoY growth EBITDA Rs. 194 cr | 28% YoY growth 13.8% Margin Rs. 41 cr | 41% YoY growth 2.9% Margin PAT On Conso

28%

s Chemplast Sanmar Limited Revenues Rs. 1,411 cr | 47% YoY growth EBITDA Rs. 194 cr | 28% YoY growth 13.8% Margin Rs. 41 cr | 41% YoY growth 2.9% Margin PAT On Consolidated Ba

13.8%

ar Limited Revenues Rs. 1,411 cr | 47% YoY growth EBITDA Rs. 194 cr | 28% YoY growth 13.8% Margin Rs. 41 cr | 41% YoY growth 2.9% Margin PAT On Consolidated Basis  While the su

Rs. 41

venues Rs. 1,411 cr | 47% YoY growth EBITDA Rs. 194 cr | 28% YoY growth 13.8% Margin Rs. 41 cr | 41% YoY growth 2.9% Margin PAT On Consolidated Basis  While the sudden surge of imp

41%

,411 cr | 47% YoY growth EBITDA Rs. 194 cr | 28% YoY growth 13.8% Margin Rs. 41 cr | 41% YoY growth 2.9% Margin PAT On Consolidated Basis  While the sudden surge of imports from

2.9%

Y growth EBITDA Rs. 194 cr | 28% YoY growth 13.8% Margin Rs. 41 cr | 41% YoY growth 2.9% Margin PAT On Consolidated Basis  While the sudden surge of imports from China have been abs

94%

one of its key customers for carbon reduction.  Our non-Specialty Chemicals segment registered a 94% increase in the revenues on YoY basis, mainly led by surge on the pricing front especially for Ca

42%

surge on the pricing front especially for Caustic Soda.  Suspension PVC witnessed an increase of 42% in the overall revenues on a YoY basis driven by a 40% increase in the sales volumes. A part of hi

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 331,000 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

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1. Source : CRISIL Research ‘ktpa’ stands for kilo tons per annum and ‘kt’ stands for kilo tons 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  Capabilities include wide range of chemistry capabilities such as cyanation, hydrogenation and liquid purification  In-house process scale manufa

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 #4 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 331 ktpa Installed capacity at Cuddalore 31 ktpa added in May-22 via debottlenecking  Manufactured at Cuddalore facility since 2009. This facility has a captive import terminal facilitating VCM imports for PVC production 16 Legacy of Over Five Decades Chemplast Sanmar Limited Commencement of manufacturing of PVC resins at Mettur facility Expansion of production capacity of PVC resins to 60,000 tpa Marine terminal facility and EDC Plant commissioned at Karaikal