Corporate Presentation

Hindusthan National Glass & Industries Limited

Industry Overview

Global Packaging Industry

• As per World Packaging Organization, the global packaging industry is expected to be USD 597 billion by 2014

with ten year historical growth at ~ 3.1% CAGR

• Projected to grow at ~ 3.5% CAGR in the medium term mainly driven by growth in emerging markets (Asia

Pacific region)

34%

34%

27%

5%

Geography

Europe

Asia, Oceana, Africa & ME

North America

South & Central America

52%

15%

11%

9%

13%

End-User

Liquor

Beer

Food

Pharma

Others

Source: Owens-Illinois, Inc. - Investor presentation, March 2010

Packaging Industry - India

• At USD14 bn, Indian packaging industry has been

growing at ~ 15% over the last few years

• Expected to accelerate further with increasing

urbanization, growing middle class and

expansion of modern retail

• Indian glass container market is estimated to be

around USD 1.1 bn and is growing at the rate of ~10%

p.a.

• Entry barriers in Indian Container Glass industry is

owing to capital intensive nature

• Top 3 players are HNG, HSIL and Piramal Glass

• Low per capita glass container consumption of

1.5 kg in India as compared to other countries

(refer chart alongside).

• Strong economic drivers for end-user segments (liquor,

beer, pharmaceuticals, food, cosmetics etc.)

89

63.9

50.3

27.5

27.5

19.5

10.2

5.9

4.8

1.5

1.2

0 50 100

South Korea

France

Spain

UK

USA

Mexico

Japan

China

Brazil

India

Indonesia

World glass container per capita consumption Market Overview

5

IMFL – Volume CAGR 10% Beer Packaged Food – Volume CAGR 12%*

Beer – Volume CAGR 11% Pharmaceuticals – CAGR 13%

222 250

277 303

329 354

2010 2011 2012 2013 2014 2015

Region-wise Demand (Mn Cases)

195 219

250 280

308 329

2010 2011 2012 2013 2014 2015

North 20%

East 10%

South 45%

West 25%

Region-wise Demand

North 20%

East 10%

South 50%

West 20%

13 15

18

21

25

30

2010 2011 2012 2013 2014 2015

(US$ Bn)

North 29%

East 17%

South 25%

West 29%

Region-wise Demand

24 27

31 35

39

45

2010 2011 2012 2013 2014 2015

(US$ Bn) (Mn Cases)

* Assuming value growth of 7% out of overall growth of ~19% Source: ASSOCHAM study, Capital Market Estimates

Source: AM Mindpower Solutions Source: Datamonitor, Capital Market Estimates

Source: Datamonitor, Capital Market Estimates

End user Industry Overview

Company Overview

7

Company Overview

Incorporated in 1946, promoted by the C K Somany Group

Started operations with 30 TPD furnace at Rishra in 1952

Organic & inorganic expansion from 1,100 TPD in 2001 to ~4,300 TPD in

FY13

Market leader and the only pan-India player in the container glass

industry with a ~50% market share after current addition of 1,300 TPD

Existing market share of ~53% in North and ~95% in East

1,300 TPD expansion to help consolidate position in South & West

New plants at Nashik and Naidupeta (AP) of 650 TPD each to be

commissioned in Q1 FY13 and Q2 FY13 respectively

Catering to all segments – IMFL, Beer, Pharma & Vials, Foods &

Beverages (F&B), Cosmetics

Foray into global market through acquisition of assets of Agenda Glas

AG, Germany in May 2011

HNGIL

Glass Equipment (India) Ltd

Quality Minerals Ltd

HNG Global GmbH

HNG Float Glass Ltd

100% 47.4% 100% 99.7%

Manufacturer of

Float & Processed

Glass

320 TPD glass

container facility at

Gardelegen,

Germany

Capital Goods &

Spares Supplier to

Glass Industry

Mineral Supplier to

Glass Industry

Group Structure

Listed on BSE since Mar 1995 & on NSE

since Apr 2009

60 Years’ Experience in the Glass Industry

8

Shareholding Pattern as on 15th June 2012

Shareholding

Promoters 69.98

Public Shareholding 30.02

Insurance Companies 0.12

Bodies Corporate 3.58

Financial Institutional Investors 7.27

Individuals & Others* 19.05

Total 100.00

* Includes 16.76% held as Treasury Shares in the Company

Total 87.3 million shares

Listed at: National Stock Exchange (NSE) - HINDNATGLS

Bombay Stock Exchange (BSE) - 515145

Calcutta Stock Exchange (CSE) - 10018003

9

HNG Board

Chandra Kumar Somany Non-Executive Chairman

Sanjay Somany VC & MD

Mukul Somany VC & MD

J P Kasera Head –

International Ops

Vinay Saran Head – India Marketing

L N Mandhana CFO

B K Kedia Head - Purchase

Anil Choudhary Head – R&D &

Technical

Devdutta Hoare Head – Exports

B K Garodia Head – Finance &

Accounts

R K Khandelia Head – North India

N Ghosh Co-Head – HR &

Admin

R L Adya Co-Head – HR &

Admin

A Bannerjee Head – Rest of

India

J K Malpani Rishra Plant

Raman Poddar Bahadurgarh Plant

C S K Mehta Nashik Plant

K S Shetty Pondicherry &

Naidupeta Plants

V K Chitturi Rishikesh Plant

K K Sharma Neemrana Plant

Organization Structure

10

Mr. C K Somany, 79, Non-Executive Chairman

Mr. C K Somany is an expert in glass technology, he provides policy guidelines for the management and administration

He holds an F.B.I.M (London) degree and a degree in Glass Plant Instrumentation from Honeywell Brown, Minneapolis, USA

Served as the President of the All India Glass Manufacturers' Association and is associated with various charitable and philanthropic organisations

Currently the Chairman of CAPEXIL, sponsored by Ministry of Commerce & Industry, GoI

Mr. Sanjay Somany, 54, Vice-Chairman & Managing Director

Has over 30 years experience in the glass industry and is closely involved in the technical and engineering aspects of the business

He is a commerce graduate and holds a diploma in diesel engineering

Served as the President of All India Glass Manufacturers' Federation (AIGMF)

Mr. Mukul Somany, 47, Vice-Chairman & Managing Director

Over 26 years experience in the glass industry

Led the acquisition, turnaround and integration of India business of Owens Brockway and glass business of L&T Ltd, re-engineered business processes across six units

Currently the President of AIGMF, Executive Committee Member of CII (Eastern Region) & Member of CII National Council

Mr. Dipankar Chatterjee, 64, Independent Director

Chartered accountant and senior partner of LB Jha & Co., Chartered Accountants and is a member of National Council of CII

Former Chairman of CII-Eastern Region, member of the Central Council of ICAI, Chairman of the audit practices committee of ICAI

Appointed member of the Padmanabhan Committee (set up to review RBI’s supervision over banks)

Mr. Kishore Bhimani, 73, Independent Director

Noted journalist, was the Senior Assistant Editor at The Statesman and wrote columns on sports, finance and the stock market

Associated with various environmental & social NGOs and authored several books

Graduated from St Xavier’s College, Kolkata and holds a BSc (Economics) from LSE

Board of Directors

11

Mr. Rakesh Kumar Sharma, 59, Executive Director

Over 36 years experience in general management, EPC contracts and business development across Indian corporate sector

Holds a graduate degree in Mechanical Engineering and masters in Marketing management

Prior to joining HNG, he held a senior position at L&T

Mr. Ratna Kumar Daga, 72, Independent Director

Vast experience in the fields of engineering and finance

Former Chairman of Indian Institute of Materials Management, Kolkata, President of Calcutta Junior Chamber, President of Federation of Small & Medium Industries

Holds PG degree in Business Management from the UK

Mr. Sujit Bhattacharya, 69, Independent Director

Former senior partner of Lovelock & Lewes, Chartered Accountants, advisory experience in accounting, audit standards, corporate governance, business valuation &

taxation

Fellow member of the Institute of Chartered Accountants in England & Wales, ICAI

Was nominated as the Special Director by the BIFR, Govt of India

Dr. Venkatesan Sridhar, 65, Independent Director

Chartered accountant with over 36 years experience in banking and finance

Ex-Chairman & MD of UCO Bank and National Housing Bank

Member of Chalapathi Rao committee and Muniappan committee appointed by RBI for recommendations on working of RRBs/NBFCs/FIs

Board of Directors

12

Over 5,000 TPD by 2015

30 1,100

2,935

5,015

30

105

150 350

650

650

780

700

320

180

1952 2001 2002 2005 2007 2008 2010 2012 Jun-12 Sep-12 2013-15 2015

Total Cap (TPD) Expansion (TPD) Acquisition (TPD)

Acquired Pondicherry & Rishikesh plants of Owens

Brockway

Acquired L&T’s Nashik Plant

Acquired Neemrana plant of Haryana Sheet Glass

Brownfield expansion at Nashik

Greenfield plant & Naidupeta, AP

Re-build of existing furnaces

Capacity Build-Up Through Organic & Inorganic Route

13

Technological Strengths Leading to Smoother & More Efficient Operations

SAP Implementation for Better Integration & Standardization of Business Processes

Accurate real-time information with enhanced visibility and operational controls

Automation of report generation & month-end reconciliation

Alignment of functional objectives with corporate business plan leading to better coordination across functions, manufacturing units & marketing offices

Higher productivity through automation

Improved customer service

Lower inventory levels, cost control and uniform material code data across locations

Online tracking of production and sales-related performance data

Diversified vendor base for raw material procurement

Captive sand beneficiation facilities

In-house furnace maintenance & refurbishment capabilities

Proven ability to run plants at high capacity utilization

Draw and pack ratios consistently among the best in the

industry

Processes for Maximizing Capacity Utilization & Sales

Market Leader in Container Glass

15

Think Glass,

Think HNG

Market leader in container glass with pan-India presence, ~50% market share (including new plants in FY13)

End user segments growing at ~12% over next 3 years

Newly commissioned plants to improve market share in underserved markets

Demonstrated track record of inorganic growth through turnaround of sick units with highly skilled manpower

Use of best-in-class technology with captive developmental capabilities

Margin expansion due to higher scale & efficiency

Robust financials, balance sheet strength

Growth Drivers

16

Largest Container Glass Player in ~8,600 TPD Indian Market

Presence Across Segments – Play on Indian Consumption Story High Entry Barriers due to Capital Intensity

4,235

1,550

860

320 240 220 220 220 130

605

HNG HSIL Piramal Haldyn MBDL Universal Excel Janta Vitrum Others

(TP

D)

Pan-India AP Gujarat Gujarat Gujarat MH UP & Guj Pondi. UP Kerala Presence

Mkt. Share

50% 18% 10% 4% 3% 2% 7% 3% 3% 3%

HN

G

HSI

L

Pir

amal

Hal

dyn

Jan

ta

Vit

rum

Exce

l

Un

ive

rsal

MB

DL

Liquor

Beer

Pharma

F&B

Cosmetics

Capital intensive business with recurring maintenance capex

High customer stickiness

Interdependence of output scale & timing

Customization / bottle printing as per specs

Significant economies of scale

Integrated value chain from raw material mining, glass equipment &

moulds to printing

Source: Company estimates

Source: HNGIL

Dominant Share of Container Glass Market with Presence in All Segments

17

Catering to Significant Share of Customer Requirements Pan-India Player; Competitors Mainly Regional Players

95%

70%

65%

60%

60%

55%

50%

40%

25%

Bajaj Corp

PepsiCo

United Breweries

ABD Distillers

SAB Miller

Pernod Ricard

United Spirits

Coca Cola

John Distilleries

HNG's Share in the Total Requirement of Each Customer in FY12(%)

Mumbai Hyderabad

HNG

Naidupeta

Kosamba

Jambusar

Piramal

Padra

Haldyn

HSIL

Bhongir

Vitrum

Janta

Vadodara

Universal

Excel

MBDL

Source: HNGIL Source: HNGIL

Ghaziabad

Alleppey

Pan-India Presence Enabling Superior Customer Service

18

Sales Volume Mix

52.1% 53.9% 50.0% 52.3%

47.0%

13.2% 12.6% 15.1%

14.9% 22.9%

16.2% 17.4% 19.6% 18.2%

16.3%

15.0% 12.5% 11.4% 10.3% 9.5%

3.5% 3.6% 3.9% 4.3% 4.3%

FY08 FY09 FY10 FY11 FY12

Liquor Beer F&B Pharma C&P

Volume (MMT)

0.70 0.77 0.78 0.84 0.91

Focus on High Volume Segments – IMFL & Beer Comprise of ~70% of Volumes

19

Overview of HNG’s planned expansion capacity

Location FY12 Operated Capacity (TPD)

FY15 Operated Capacity (TPD)

Expected COD

New furnace (N) / Rebuild (R)

Facility highlights

Sou

th Puducherry 360 550 FY15 R On-site printing facility with three decoration lines

Sand beneficiation plant, foundry & mould workshop

Naidupeta - 650 Q2FY13 N Power available at concessional rates under state incentive plan

We

st

Nashik 1 364 495 FY14 R Plant running on LNG

Nashik 2 - 650 Q1FY13 N

No

rth

Bahadurgarh 3 337 340 N.A - Plant running on RLNG

On-site bottle printing facility with four decorating lines

Produces amber and flint glass

Has foundry and mould workshop

Has captive multi-fuel power generating facilities

All furnaces have multi-fuel combustion system (FO/Gas/HSD)

Bahadurgarh 4 294 315 N.A -

Bahadurgarh 5 185 195 N.A -

Neemrana 195 300 FY13 R Plant running on RLNG

Dedicated power supply from 220KV S/S

Produces flint, amber and green glass

Rishikesh 1 290 325 N.A - On-site printing facility with three decorating lines

Green, flint and Georgia green glass

Excise exemption and tax holidays Rishikesh 2 140 170 N.A -

East

Rishra 1 200 280 N.A - On-site bottle printing facility

Produces amber and flint glass

Mould workshop facility at plant

Rishra 2 243 270 N.A -

Rishra 6 327 475 FY14 R

TOTAL 2,935 5,015

HNG’s expansion plan will improve market share and drive efficiencies in production

20

Acquisition of 320 TPD Plant at Gardelegen, Germany

Location Map

Germany is the largest market in EU with ~20% share

Annual demand in Germany of 3.8 million MT/year

Acquired assets of Agenda Glas AG, one of the most modern production facilities in Europe, in May 2011.

Agenda Glas had commenced production in Feb 2010

Production capacity of 120,000 MT per year

Currently produces flint glass of various SKUs

HNG Global GmbH, is located closed to the regional raw material suppliers with easy and economic access to

all key raw materials.

The Plant is ideally located for deliveries throughout Germany and to adjacent European Countries.

Company’s technological edge is planned to be back pedaled in HNG’s Indian operations, as Germany is always

considered ahead in terms of technology.

The Finished-ware quality in Germany is of superior standards than in India and it will help us embark the

upward quality journey in India.

International Operation - HNG Global Gmbh

Key Financials

22

Balance Sheet

Balance Sheet FY09 FY10 FY11 FY12

Shareholders Fund 935 1,043 1,166 1,158

Debt 507 566 640 2,058

Deferred Tax 42 70 71 95

Total Liabilities 1,484 1,678 1,877 3,312

Net Block 906 1,116 1,157 1,393

CWIP 82 27 228 1,157

Investment 105 147 178 181

Net Current Assets 391 387 315 581

Total Assets 1,484 1,678 1,877 3,312

All figures are in Rs. Crore and for HNGIL standalone

23

Profit and Loss Snapshot

Profit and Loss FY09 FY10 FY11 FY12

Net Sales 1,313 1,357 1,544 1,878

EBITDA 229 306 267 298

Margins 17% 23% 17% 16%

Other Income 9 14 6 8

Depreciation 77 89 103 119

Interest 43 47 51 92

PBT 118 183 120 95

Margins 9% 13% 8% 5%

Tax 10 28 33 4

PAT 108 155 86 91

Margins 8% 11% 6% 5%

All figures are in Rs. Crore and for HNGIL standalone

24

Financial Performance

1,313 1,357

1,544

1,878

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2,000

FY09 FY10 FY11 FY12

229

306

267

298

0

50

100

150

200

250

300

350

FY09 FY10 FY11 FY12

108

155

86 91

0

20

40

60

80

100

120

140

160

180

FY09 FY10 FY11 FY12

12.3

17.8

9.9 10.5

-

2

4

6

8

10

12

14

16

18

20

FY09 FY10 FY11 FY12

PAT

Revenue EBITDA

EPS

All figures are in Rs. Crore and for HNGIL standalone

Thank You

For further information please log on to www.hngil.com or contact:

Laxmi Narayan Mandhana (CFO) / Bikash Kumar Sipani HNG Tel: 033-2254-3100 Email: investor.relations@hngil.com

Anoop Poojari/Dipti Yadava Citi gate Dewe Rogerson Tel: 022 6645 1211/1218 Email: anoop@cdr-india.com/dipti@cdr-india.com