Chemplast Sanmar Limited

rs,

February 11, 2023 BSE Limited Phiroze Jeejeebhoy Towers, Dalal Street, Mumbai – 400 001 Scrip Code - 543336 National Stock Exchange of India Limited Exch

21%

: Q3 & 9M-FY’23 Total Revenues Total Revenues EBITDA PAT Rs. Cr Rs. Cr 4,085 3,794 21% 10% 10% 3% Margin 850 417 371 ^ 9M FY’22 9M FY’23 9M FY’22 9M FY’23 9M FY

10%

9M-FY’23 Total Revenues Total Revenues EBITDA PAT Rs. Cr Rs. Cr 4,085 3,794 21% 10% 10% 3% Margin 850 417 371 ^ 9M FY’22 9M FY’23 9M FY’22 9M FY’23 9M FY’22

3%

Total Revenues Total Revenues EBITDA PAT Rs. Cr Rs. Cr 4,085 3,794 21% 10% 10% 3% Margin 850 417 371 ^ 9M FY’22 9M FY’23 9M FY’22 9M FY’23 9M FY’22 9M FY’23

24%

371 ^ 9M FY’22 9M FY’23 9M FY’22 9M FY’23 9M FY’22 9M FY’23 1,452 1,189 353 24% 7% 16% 2% 237 78 CHEMPLAST SANMAR LIMITED Key highlights • Prices for both Paste PVC

7%

^ 9M FY’22 9M FY’23 9M FY’22 9M FY’23 9M FY’22 9M FY’23 1,452 1,189 353 24% 7% 16% 2% 237 78 CHEMPLAST SANMAR LIMITED Key highlights • Prices for both Paste PVC and

16%

9M FY’22 9M FY’23 9M FY’22 9M FY’23 9M FY’22 9M FY’23 1,452 1,189 353 24% 7% 16% 2% 237 78 CHEMPLAST SANMAR LIMITED Key highlights • Prices for both Paste PVC and Suspen

2%

’22 9M FY’23 9M FY’22 9M FY’23 9M FY’22 9M FY’23 1,452 1,189 353 24% 7% 16% 2% 237 78 CHEMPLAST SANMAR LIMITED Key highlights • Prices for both Paste PVC and Suspension

Rs. 170

’23 as compared to the corresponding period last year growth • Power & fuel cost increased by Rs. 170 Cr and by Rs. 37 Cr as compared to 9M and Q3 of FY’22, respectively - mainly due to increase in co

Rs. 37

to the corresponding period last year growth • Power & fuel cost increased by Rs. 170 Cr and by Rs. 37 Cr as compared to 9M and Q3 of FY’22, respectively - mainly due to increase in coal, natural gas &

Rs. 680

Manufacturing multi-purpose facility. The total capex outlay (including the next phase) will be ~ Rs. 680 Cr to be spent over the next 15 months 106 • The Custom Manufacturing business continues to ach

Rs. 81

Q3 FY’22 Q3 FY’23 Q3 FY’22 Q3 FY’23 Q3 FY’22 Q3 FY’23 ^ Excludes negative impact of ~ Rs. 81 cr in Q1-FY’23 due to write down in the carrying value of stocks of major intermediates and finished

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 operations 11 … with a Diversified Product Portfolio CHEMPLAST SANMAR LIMITED Chemplast Sanmar CCVL (1) Specialty Chemicals Other 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 Irrigation Urban infra Leather Mats API Molecules Chemicals Chemicals Effluent treatment at refineries Dis- infectants Agro- Chemicals Refrigerants (HFOs) Real estate 66,000 mtpa 1,068 mtpa 119,000 mtpa 34,000(2) mtpa 35,000 mtpa 331,000 mtpa 22% 18% 60% Capacity 9M FY’23 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 Specialty Paste PVC Resin CHEMPLAST SANMAR LIMITED Industry Overview Company Overview 143 ktpa Indian demand FY20 (1) Domestic 55% Imports 45% 9.3% CAGR (FY21-25) (1) Key growth drivers 1 1 2 High entry barriers: Licensed technology and lack of availability of raw materials 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 FY‘24 • Manufactured at Mettur facility since 1968 • Primary raw materials include VCM, EDC, ethylene and Footwear Automotive Vinyl Gloves Western Europe North America China India 0.1 0.8 0.6 4 Permanent shut down of some plants globally (~10% of total capacity closed) 5 Lack of substitutes

Note

1. Source : CRISIL Research ‘ktpa’ stands for kilo tons per annum 2.4 chlorine • Manufactures significant portion of EDC and all of VCM requirements 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 Leading player in custom manufacturing 1,068 mtpa Installed capacity at Berigai Setting up a multi- purpose facility in phases Availability of skilled economic labor Surge in global food grain demand Growth in demand for drugs and hygiene products PLI Scheme for bulk drug parks Higher penetration of API manufacturing in India India to be a focus region as companies move away from China for custom manufacturing

Note

1. Source : CRISIL Research • Engaged in advanced custom manufacturing intermediates to global innovator companies in the agro- chemical, pharmaceutical and fine chemical end uses of • Capabilities include wide range of chemistry capabilities such as cyanation, hydrogenation and liquid purification • In-house process research, process engineering and large scale manufacturing capabilities, enables us to act as one- stop shop for manufacture of newly discovered molecules 14 Other Chemicals 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) Key growth drivers Key growth drivers Key growth drivers Industry Overview • Growth in paper and textile industry • Increasing demand from end user industries, especially: • Alumina – increase in refineries • Chemical industries – dyes and paints #4 manufacturer

Note

1. Source : CRISIL Research • Setting up of textile parks • Growth in paper & pulp industry • Effluent treatment at refineries to aid demand growth • Rapid growth in market disinfectants during COVID-19 size for manufacturer of hydrogen peroxide in South India region #1 • Hydrogen peroxide is part of downstream integration as a value added product. • Hydrogen peroxide plant is designed for a capacity of 34000 tons per year of 50 percent concentration. Production process adopted is environment-friendly. • Rapid growth in pharma industry • New generation refrigerants (HFOs) • Rising agrochemicals demand • PLI scheme to boost API and bulk drugs One of the oldest manufacturers of chloromethanes in India • Chloromethanes refers to a group of products namely, Methyl Chloride, Methylene Di Chloride, Chloroform and Carbon Tetra Chloride. 15 Suspension PVC (CCVL) CHEMPLAST SANMAR LIMITED Industry Overview Company Overview #1 manufacturer of S-PVC in South India and 2nd largest in India 331 ktpa

Note

1. Source : CRISIL Research 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