MeghmaniMeghmani Organics LimitedOrganics LimitedMeghmaniMeghmani Organics LimitedOrganics Limited1H and 2Q 1H and 2Q FY08 ResultsFY08 Results

Corporate Overview - MOL

Established in 1986, MOL is amongst the leading pigments and

agrochemicals manufacturers in India

Capitalizing on the global outsourcing trend

Corporate Focus

PIGMENTS & AGROCHEMICALSSpecializes in the manufacture of green & blue Business p gpigment products and a broad spectrum of commonly used generic pesticides

BusinessFocus

PIGMENTS: Multiple applications in printing inks, plastics, paints, textiles, leather, paper & rubber

AGROCHEMICALS: Crop protection and non-crop applications like Industry

Focus AGROCHEMICALS: Crop protection and non crop applications like Public health, termite & insect control, veterinary applications

Focus

GLOBAL FOCUSwith markets in the US, Europe, Latin America & Asia Pacific

MarketFocus

The Art of Manufacturing

4 multi location plants in Gujarat, Western Part of India

Total floor area of 180,000 sq mtsq

ISO 9001-2000 certified

A kl h Panoli Plant

Ankleshwar PlantPigments Agrochemicals

Vatva Plant Chharodi Plant

Strategic Location

Meghmani Group’s plants are located in the state of Gujarat famous for its natural locational famous for its natural locational advantage

PigmentsDyestuffs

Vatva Plant/sy

Additives

Agro Chemicals

Panoli Plant

Chharodi Plant/s

Ankleshwar PlantAnkleshwar Plant

New site near port - Dahej

Located in India’s prime chemical beltLocated in India s prime chemical belt

Close proximity to sources of raw materials at low cost

Proximity to key ports, railway and road knetwork

Large pool of scientists and engineers

Meghmani’s Global Network

i k f 20 di ibExtensive network of 20 overseas distributors:

Branch offices in the US, Europe, Turkey and China

Warehouses in Germany, Belgium, Turkey, Russia, USA, Uruguay and China

Over 1 000 stockists agents distributors and dealers covering Indian marketOver 1,000 stockists, agents, distributors and dealers covering Indian market

Over 350 customers worldwide incl. MNC’s and OEM’s 75% revenue from Exports market

Corporate Strategy

Two Strategic Business Units

MEGHAFAST ™ MEGASTAR™MEGACYPER™

Applications Applications

SBU Pigments & Additives

SBU Agrochemicals

Paints & Coatings, Inks, Plastics, Textiles, Leather, Rubber, etc.

Crop protectionNon-crop applications like Public health,Control of insects in household applicationshousehold applicationsVeterinary applications

1H & 2Q (2008) 1H & 2Q (2008) Results AnalysisResults Analysis

Key Highlights of 2Q2008

of Rs1 7 billionRs1 7 billion +25 2%Sales … of Rs1.7 billionRs1.7 billion, +25.2%

… of Rs329.4 millionRs329.4 million, +6.0%

Sales

Gross profit

… of Rs93.0 millionRs93.0 million, -12.7%

profit

Net profit

… of Rs77 centsRs77 centsEPS

Record Achievements for 2 consecutive quartersRecord Achievements for 2 consecutive quarters Exceeding Rs1 billion in Revenue

Financial Highlights

3 months ended 30 Sep3 months ended 30 Sep 6 months ended 30 Sep6 months ended 30 Sep

In Rs millionsIn Rs millions 20082008 20072007 % Chg% Chg 20082008 20072007 % Chg% Chg

Revenue 1,771.1 1,366.8 25.2 2,842.2 2,381.2 19.4

Gross Profit 329.5 310.7 6.0 596.7 530.7 12.4

Profit from ops 140.4 140.8 (0.2) 280.2 268.6 4.3

P fit b f t 117 5 109 5 7 4 223 5 217 5 2 8Profit before tax (PBT)

117.5 109.5 7.4 223.5 217.5 2.8

Income tax (24.5) (2.8) 761.0 (46.6) (20.5) 127.7

Profit after tax (PAT) 93.0 106.6 (12.7) 176.9 197.0 (10.2)( ) ( ) ( )

Gross margin (%) 19.3 22.7 3.4 21.0 22.3 (1.3)

PBT margin (%) 6.6 8.0 (1.4) 7.9 9.1 (1.2)

PAT margin (%) 5.3 7.8 (2.5) 6.2 8.3 (2.1)

EPS (Rs) 0.37 0.53 (0.16) 0.77 0.98 (0.21)

Earnings per SDSs (Rs)

0.19 0.27 (0.08) 0.39 0.49 (0.20)

For conversion to SGD, please use an average exchange rate of S$1: Rs29.1345 for Sept 2007

Balance Sheet Highlights

In Rs millionIn Rs million 1H 081H 08(30 Sep 07)(30 Sep 07)

1H 071H 07(30 Sep 06)(30 Sep 06)

FY 07 FY 07 (31 Mar 07)(31 Mar 07)(30 Sep 07)(30 Sep 07) (30 Sep 06)(30 Sep 06) (31 Mar 07)(31 Mar 07)

Trade receivables 2,348.9 2,238.8 1,850.8

Inventories 916 5 885 0 905 2Inventories 916.5 885.0 905.2

Cash & bank balances 60.6 58.8 82.5

Shareholders’ equity 3 933 4 2 595 0 2816 1Shareholders equity 3,933.4 2,595.0 2816.1

NTA per share Rs15.47 Rs12.93 Rs13.98

Inventory turnover 75 days 88 days 93 daysInventory turnover 75 days 88 days 93 days

Debtors holding 151 days 172 days 145 days

For conversion to SGD, please use an average exchange rate of S$1: Rs29.1345 for Sept 2007

1H FY08 Performance1H FY08 Performance

Revenue

Rs'm A h i l di i i +28 3%

1,500

2,000

Rs'm Agrochemicals division +28.3%

Higher quantity sales of Acephate

780.4 1,001.21,000

Pigments division -6.9%

Domestic sales of Pigments affected due to breakage in effluent treatment pipe line of

577.8 537.8

0

500

1H07 1H08

effluent treatment pipe line of Pigment Panoli division owned and installed by Bharuch Environ Infrastructure Limited (BEIL).

Trading sales not shown.

Pigments Agrochemicals

g

G ’ A h i l di i i t d Group’s Agrochemicals division outpaced Pigments division

Revenue by Geographical Market

2Q 082Q 08By Geographical Market

E t l +29 4% t R 1010 8

40.9%42.8%

• Export sales +29.4% to Rs 1010.8m

• Domestic sales +19.6% to Rs 700.34m

59.1%57.2%

2Q 072Q 07 1H 081H 08

Export Domestic35.5%

38.1%

1H 071H 0764.5%

61.9%By Geographical Market

• Export sales +14.5% to Rs 1759.1m

Export Domestic

• Domestic sales +28.1% to Rs 1083.1m

Gross Profit

Rs'm

700800900

1,000

For Agrochemicals: Percentage of gross profit increased marginally while profit

289.88 293.4

300400500600

increased marginally while profit margin reduced, due to pressure on pricing on all Agrochemical products

240.0 273.4

0100200

1H07 1H08

For Pigments: Gross profit suffered due to less quantity sales.

1H07 1H08

Pigments Agrochemicals

Gross Margin Analysis

Gross Gross MarginMargin

2Q08 2Q08 (%)(%)

2Q07 2Q07 (%)(%)

Chg Chg (% pts)(% pts)

1H08 1H08 (%)(%)

1H07 1H07 (%)(%)

Chg Chg (%pts)(%pts)gg

Pigments 20.7 23.7 (18.6) 23.5 22.5 13.9

Agrochemicals 18.9 22.3 8.6 19.8 22.5 1.2

Total 19.3 22.7 6.0 21.0 22.3 12.4

Pigments gross profit suffered due to less quantity sales due to less production for the reasons beyond the control of Management production for the reasons beyond the control of Management.

Agrochemicals percentage gross profit increased marginally due to pressure on pricing on all Agrochemical products.

Cost Structure

In Rs’m 2Q08 2Q07 % Chg 1H08 1H07 % Chg

COS (1,381.7) (1,056.1) 30.8 (2,245.6) (1,850.4) 21.4

Distribution expenses

(143.7) (119.5) 20.2 (240.4) (215.6) 11.5

Admin. expenses (49.3) (54.9) (10.2) (82.5) (84.2) (2.1)p ( ) ( ) ( ) ( ) ( ) ( )

Other operating expenses

(16.9) (0.7) 2319.4 (28.9) 22.3 (229.3)

Finance cost (36 1) (28 2) 28 1 (76 5) (50 5) 51 5

Costs increase in tandem with sharply improved export sales

Finance cost (36.1) (28.2) 28.1 (76.5) (50.5) 51.5

Distribution costs increased in line with rise in sales

Administrative costs lowered by 10.2% to RS 49.3million

Other operating expenses mainly due to Indian Rupee become stronger Other operating expenses mainly due to Indian Rupee become stronger against US Dollar

Capacity Utilisation: Pigments

1 2 0 0 0M T p a

2 0 0 %

%

In s t a lle d c a p a c it y U t lis a t io n

1 3 9 %1 0 ,0 0 0

1 2 ,0 0 0

1 5 0 %

2 0 0 %In s t a lle d c a p a c it y U t lis a t io n

1 1 7 %

7 7 %

1 1 3 %

6 ,0 0 0

8 ,0 0 0

1 0 0 %

3 6 0 0

1 0 , 2 0 05 0 %

2 ,0 0 0

4 ,0 0 0

5 0 %

1 ,2 0 0 6 0 0

3 , 6 0 0

6 0 00

2 ,0 0 0

G 7

Blu

e

Blu

e

Blu

e

ent

ives

0 %

P

CPC

B

Alp

ha

B

Bet

a B

Pigm

Add

it

Production up to 30.09.2007

Capacity Utilisation: Agrochemicals

1 8 0 0

2 , 0 0 0

M T p a

2 5 0 %

%I n s t a lle d c a p a c it y U t lis a t io n

1 3 4 %1 , 4 0 0

1 , 6 0 0

1 , 8 0 0

2 0 0 %

1 , 7 5 0

1 , 5 0 08 3 %

1 2 9 %

8 0 0

1 , 0 0 0

1 , 2 0 0

1 0 0 %

1 5 0 %

7 5 0

1 , 2 0 0

9 0 0 1 , 0 0 0

6 0

5 7 %

1 4 % 2 0 0

4 0 0

6 0 0

5 0 %

6 00

B/M

PB

A

AC

/CM

A

ep

ha

te

me

thri

n

me

thri

n

ph

am

eth

rin

py

rip

ho

s

0 %

MP

B

CM

A

Ac

Cy

pe

r

Pe

r Al

Cy

pe

r

Ch

lor p

Production up to 30.09.2007

Outlook & Business StrategiesOutlook & Business Strategies

Growth Strategies

Pigments Agrochemicals

Increase production of PG7 plant at Installed multi faceted productionExpand Expand production production capacitycapacity

Increase production of PG7 plant at Vatva

Evaluating possibilities of expanding PB capacities of Panoli plant

Installed multi-faceted production capacities to produce Permethrin, Alpha Cypermethrin and Acephate at Ankleshwar Plants

New New ProductsProducts

Introduce new range of High Performance Pigments (HPP) for global customers

430 new registrations in the pipeline in 60 countries in various stages

Gains expected from new registrations in B il d P ki tBrazil and Pakistan

Outsourcing opportunities: India’s ability to provide high quality manufacturing

Focus on domestic branded formulations

Meghmani Energy Limited – CaptiveOtherOther attracting a higher level of outsourcing

from companies in developed countries

Meghmani Energy Limited Captive power plant at Chhrodi unit

Meghmani Finechem Limited – Caustic Chlorine project at Dahej

Our Future Roadmap Our Future Roadmap

Meghmani Finechem Limited

Project Status

Acquired 650,000 sq. mts land in Dahej

Major Technology tie ups

for Caustic-Chlorine Complex (AKCC)

for CPP (Cethar Vessels)( )

for detailed engineering (Simon India Limited)

Recruited 1 VP 4 AGM 3 ConsultantsRecruited 1 VP, 4 AGM, 3 Consultants

Project investment: 504 crores

Expected date for the commencement of the 1st phase: December 2008 or January 2009

Why Gujarat?

5% of India’s population contributes to 16% industrial production

Largest coastline in India – 1600 kmsg

Highest production of salt in India

41 ports, 11 airports, best road and rail connectivity

A il bilit f l t t kill d l bAvailability of low cost yet skilled labour

Power infrastructure

Well connected to major cities in the USA, EU, Asia, Middle-East and other j I di itimajor Indian cities

Well developed chemical belt

Why Dahej?

Strategically located on the Chemical belt of India

Proximity to port, rail, highways, and SEZy p g y

Proximity to salt fields

Proximity to Caustic-Chlorine consuming industries

Pl tif l il bilit f ft i t Plentiful availability of soft river water

Dahej - a new industrial area in focus

Why MOL?

Acquisition of land in Dahej – a strategic move

Captive power plant of 40 MGWp p p

Strong growth fundamentals

Meghmani Group – a well known and respectable name in the Chemicals field

F ll d f h i l t i t dFully geared up for chemical outsourcing trend

A transparent company lead by techno-commercial promoters and professional management

Summary: Proposed Caustic Chlorine Complex

What: • A special purpose vehicle incorporated on 11 Sep 2007 to set up a Caustic Chlorine Complex in Dahej

• The large-scale, integrated complex will be used for the production of Caustic Soda Lye/Flakes, Chlorine Gas and production of Caustic Soda Lye/Flakes, Chlorine Gas and Hydrogen Gas.

Estimated cost and P d

• Approximately Rs 503.16 crores (S$186.47m)

• Funded Rs 344.18 crores (S$127.55 m) by Debt and Rs Proposed funding:

Funded Rs 344.18 crores (S$127.55 m) by Debt and Rs 158.98 crores (S$58.92m) by Equity/Quasi equity.

Significance for

• Achieve inorganic growth and vertical integration in a diversified yet chemistry-related business

Meghmani: • A ready and captive source of some basic chemicals for Meghmani’s Pigments and Agrochemicals operations

• Dahej – a strategic location for chemical and related industries

Phase 1 of the project is expected to commence by December 2008 / January 2009. Phase 2 will comprise the production of derivative products with higher value-add. The annual manufacturing capacity of the complex will be as follows: be as follows:

•Caustic Soda – 113,000 Ton per Annum (TPA)• Chlorine Gas – 100,000 TPA • Hydrogen Gas – 258,000 NM3

• Diluted Sulphuric Acid – 2,600 TPA • Hydrochloric Acid – 9,970 TPA • Sodium Hypo Chloride – 8,300 TPA

Thank YouThank YouThank YouThank YouQ & AsQ & As