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Table of Contents
2
Page No
1 Group Introduction 4
2 Company History 5
3 Business Divisions 6
4 Management Profile 7
5 Our Products Images 8
6 Revenue contribution by Products 9
7 Our Products 10-13
8 Our Plants Images 14
9 Key Financials 16
10 Growth Plans 18
11 Growth Prospects 19
12 SWOT Analysis 24
13 Application of our products…..by Industry 25
14 Our Esteemed partners 26
15 Our Esteemed customers…by Industry 27
16 Global Presence 28
Highlights
Largest producer of Calcium Carbonate with capacity of 135,000 TPA
3
>Rs. 1000 Cr
First in India to introduce concept of Onsite PCC plant; Recorded in Limca book or Records, 2010
One of the largest producer of Sorbitol with capacity of 60,000 TPA
Exports to 35 countries in the world
Only company in India to process Rice & Corn at the same location at Muzaffarnagar unit
Gulshan Polyols Ltd. is India’s leading multi products manufacturer
The company is promoted by Dr C.K. Jain, a technocrat with doctorate in Chemistry
Dr C.K Jain has been leading a team of highly experienced professionals for more than
35 years
Company has 9 manufacturing facilities spread over six states in India
Company is ISO 9001:2008, EMS 14001:2004 & OHSAS 18001:2007 certified
Ponta Sahib – (HP)
Calcium Carbonate
Delhi
Corporate Headquarters Patiala – (Punjab)
Onsite PCC
Borgaon & Amalai – (MP)
IMFL & On Site PCC – OPM
Abu Road – (Rajasthan)
Calcium Carbonate
Bharuch – (Gujarat)
Starch Sugar + Cal-Carb
Products
Manufacturing
Overview
Group Introduction
Production Facilities
Spread all across India
Starch Sugars
Calcium Carbonate
Onsite PCC Plants
IMFL Animal Feed
Muzaffar Nagar (UP)
Cal-Carb + Starch Sugars
Hoogly – (W. Bengal)
Onsite PCC - ITC Mumbai
Marketing Office
4
Company History – A Long and Cherished Journey
5
Key milestones:
Started Calcium Carbonate unit with consistent growth
Started Starch Sugar unit to produce Sorbitol & Liquid
Glucose
Started India’s first onsite PCC unit for paper industry
Ventured into IMFL business
Started Starch Sugar unit to produce DMH, MDP &LG
Partnered with ITC & OPM by setting up onsite PCC
plant
Started production of Native Starch from rice
Business Divisions…
GPL has 5 major divisions: Starch Sugars, Cal Carb, Onsite PCC Plant, Animal Feed & Alcohol
6
Products: Precipitated, Ground Natural, Activated & Wet Ground Calcium Carbonate
Plant Locations: Muzaffarnagar (UP), Ponta Sahib (HP), Abu Road (Rajasthan) & Bharuch (Gujarat)
Starch Sugars
Products: Sorbitol 70%, Native Starch, Fructose (HFRS), Brown Rice Syrup (BRS), Liquid Glucose, Malto Dextrine Powder (MDP), Dextro Mono Hydrate
Plant Locations: Bharuch (Gujarat) & Muzaffarnagar (UP)
Calcium Carbonate
Onsite
PCC Plant
Products: PCC for Paper Industry
Plant Locations: Patiala (Punjab), Hoogly (West Bengal), Bangladesh, Amalai (M.P.)
Alcohol Products: Potable Alcohol, Whisky, Rum under brand name “TIGER GOLD”
Plant Location: Boregoan (MP)
Animal Feed
Products: Corn Germ, Corn Gluten, Enriched Fiber, Rice Gluten
Plant Location: Bharuch (Gujarat) & Muzaffarnagar (UP)
Management Profile
Dr C. K. Jain
Chairman & Managing Director, Gulshan Polyols Ltd.
Mr A.K Vats, Executive Director & CEO
Gulshan Polyols Ltd is conceived and promoted by Dr C.K.
Jain, who is a sugar technologist and has been awarded a
Doctorate Degree in Chemistry. He has been leading the
company with a highly experienced team of professionals for
35 years.
Mr. Vats, Graduate with P.G. Diploma in Marketing and
Management, has vast experience in the calcium carbonate
industry and has been associated with the Company for over
3 decades.
Mr S.K. Tewari, Executive Director
Mr. Tewari is M.Tech (Chemical Engineering) from Indian
Institute of Technology, Kanpur, PGD Project & Management
from Punjabi University, Patiala (Punjab). He has been
associated with GPL since 1989. He has over 30 years of
experience in varied industrial managing skills.
Mrs Arushi Jain, Executive Director
Mrs. Jain is MS in marketing from City University of New
York, USA and Diploma in Baking Technologist from AIB,
USA. She overviews operations and technology.
Mrs Aditi Pasari, Executive Director
Mrs. Pasari is MBA from Cardiff University, UK. She has the
experience of having conceived and set-up a packaging unit
in Haridwar, under the umbrella of GPL.
7
Revenue contribution of Products…
9
Calcium Carbonate ,
29.5%
Starch Derivatives, 70.3%
Liquor, 0.2%
FY 2016 Revenue of Rs4,388m
Our products- Calcium Carbonate
10
Production Four plants with integrated capacity of 135,000 TPA
In-house microbiology laboratory for R & D and
8MW captive power plants
Eco-friendly production facilities with clarifiers to recover maximum solids and waste water discharge
Market Largely an unorganised market
Product is being used as a commodity
Estimated market size of 300,000 TPA
GPL’s market share is estimated to be ~30-33%. Exports to neighboring countries like Nepal, Bangladesh, Muscat, Nigeria, U.A.E., etc
Application Paper Industry
Plastics
Oral Care
PVC & Cables
Detergents
Paints & Coatings
Adhesive & Sealants
Market Drivers
Replacing Kaolin in paper industry
Increasing demand for Nano-Caco3 in PVC & plastics
Increasing usage as drug templates
Growing demand for high quality paper (mineral loading)
Growing consumption in paints
Calcium Carbonate 19 grades (Precipitated,
Activated, Ground Natural Calcite Powder and Wet - WCC)
Our products- Onsite PCC plants
11
Plants Gulshan Polyols is the first to introduce the concept of On-site PCC plant in India.
First plant was set up at the site of Magnum Papers ltd.
This has been recorded in the Limca Book of Records, 2010.
A niche segment, largely controlled by large MNCs
Projects/Plants ITC Ltd. Hoogly, Kolkotta
Orient Paper Mill, Amlai, Madhya Pradesh
BMPIL, Meghnaghat, Bangladesh
BMPIL, Joya, Bangladesh, (WGCC)
DSG Paper Mill Ltd., Patiala, Punjab
Magnum Paper, Sahibabad, Uttar Pradesh
Application Paper Industry- In an On-site Plant, PCC (Precipitated Calcium Carbonate) is produced in a satellite facility; onsite of a paper mill and the resultant slurry is pumped directly to the mill.
The utilities like Power, Water, Steam and the CO2 from the boiler stake are used to make PCC in slurry form for its use in paper application.
Benefits of Onsite PCC plant Economy in cost, production and supply chain
No transportation costs
Readily available of raw material
Improves paper quality & properties like brightness, opacity, bulk, scattering-coefficient & printability.
Reduces the consumption of OBA and Titanium
Increases filler loading in paper
Onsite PCC Have set up 6 plants
Our products- Native Starch
12
Production Plant situated at Muzaffarnagar, U.P.
Close proximity of paper mills from plant ensures demand for our products
By products (Cattle Feed) are also very valuable source of revenue
Recovery rate
• Starch- 60-62% Gluten- 5%
• Germ- 5-6% Husk- 25-28%
Market Asia-Pacific represents the largest as well as the fastest growing market worldwide.
Global market for Starch is projected to exceed 150 MMT by the year 2020
Indian starch Industry revenue is expected to grow 16% CAGR
Application Paper & Packaging Industry- To enhance bonding strength
Food Industry
Textile Industry
Adhesive Industry
Pharmaceutical Industry- As a coating and binding agent
Market Drivers
Evolved usage in baking Industry
Health benefits is fuelling use in medicines, cosmetics, toothpaste, building material, polish, and paper etc.
Growing consumer demand for healthy and natural ingredients in food products
Demand for better quality paper increasing consumption of starch in industry
Native Starch Corn/Maize starch
Our products- Starch Sugar Products
13
Production 72,000 TPA capacity Plant (with 7MW captive power plant) at Gujarat for Corn based Sorbitol & LG
30,000 TPA capacity Plant at Muzaffarnagar for rice based LG, DMH & MDP
Close proximity of raw material production belt ensures timely and cost efficient supply
Market 80% of Sorbitol is consumed in personal care products (mainly toothpaste), food and confectionery and in the manufacture of vitamin C.
China is a major consumer, consuming >40% of world production
Indian market largely organised with 5-6 major domestic players
GPL accounts for 30% of market share
Application Functional properties as a humectant, sweetener, bulking agent, stabilizer, softener and emulsifier; used in-
Oral Care & Cosmetics
Pharmaceuticals
Food & Beverage
Textile & Polymers
Paints
Market Drivers
Health benefits is fuelling use in Food & Beverages industry
The rising diabetic population is primarily boosting the market growth of Sorbitol as it is relatively low in sweetness
Increasing production of artificial honey
Demand for allergic free sweetener
Starch Sugar products Sorbitol 70%, HFRS, BRS, DMH, MDP, LG
Our Plants
14
Main Plant, Muzaffarnagar, UP Sorbitol Unit, Bharuch-Gujarat
Calcium Carbonate Plant, H.P. Calcium Carbonate Plant, Gujarat
Our Plants
15
Onsite PCC Plant, Patiala Punjab Onsite PCC Plant, ITC West Bengal
Calcium Carbonate Plant, Abu Road Alcohol Unit, Madhya Pradesh
Key Financials
274 284 327
405 446
0
100
200
300
400
500
2012 2013 2014 2015 2016
21
29 31
29
32
0
5
10
15
20
25
30
35
2012 2013 2014 2015 2016
(Rs in Crores Except EPS)
2012 2013 2014 2015 2016
ROE 13% 15% 15% 12% 12%
PAT 7% 8% 8% 6% 7%
Dividend 25% 50% 50% 70% 70%
Net Sales EBIDTA & PAT
EPS ROE, PAT & Dividend
38
47 48
57
65
18 24
27 25 30
0
10
20
30
40
50
60
70
2012 2013 2014 2015 2016
16
Key Financials
137 158
181
212
244
0
50
100
150
200
250
300
2012 2013 2014 2015 2016
109 104
149 148
242
0
50
100
150
200
250
300
2012 2013 2014 2015 2016
(Rs in Crores)
2012 2013 2014 2015 2016
Creditors 11.43 12.97 17.78 16.68 21.67
Inventory 23.39 25.57 42.47 40.11 41.94
Receivables 38.52 55.09 59.93 63.57 73.66
NET WORTH CAPITAL EMPLOYED & DEBT
FIXED ASSETS RECEIVABLES, INVENTORY & CREDITORS
15 13 44 33
86
159 175
232 251
336
0
50
100
150
200
250
300
350
400
2012 2013 2014 2015 2016
17
Growth Prospect- Indian Oral care Industry
18
Growth Drivers
Growing awareness about healthy lifestyle and oral hygiene
Innovative oral care products such as sensitive toothpaste, gum care
toothpaste, sensitive mouthwashes and dental flosses
Change in the spending power of people on the oral care products
Oral care Industry has recorded growth of
~17.5%in 2015
Oral care Industry size of US$1bn in India
Industry is expected to grow CAGR ~13.9%
FY16-18
Only 55% penetration level of toothpaste in
India
Only 15 % of them brush twice a day
per capita consumption 0.5x of other emerging
markets and .25x of U.S
Growth Prospect- Indian Pharma Industry (as excipients)
19
Indian Pharma Industry has recorded CAGR
~14.4%in last 7-8 years
Industry size to reach US$55bn by 2020 with
CAGR 15.9%
Global excipients market is 0.4-0.5% of global
Pharma market
North America and Europe consume ~70% of
excipients output
Increasing recognition and research on role of
excipients
India, China & Brazil have become major single
markets in recent years
Growth Drivers
It slowly absorbed and digested in human body so significant reduces level of blood
glucose
Sorbitol is listed in the FDA’s Generally Regarded as Safe GRAS listing
Sorbitol is used in direct compression applications for making tablets. It also provides bulkiness and sweet taste to
different drug products
Growth Prospect- Indian Paper Industry
20
Growth Drivers
Growing awareness and emphasis on education and literacy
Increasing need for documentation, shift towards high end printing and photocopying
Growth in organised retail and greater demand for better quality paper
Indian produces ~13 MT of paper; ~3% of the world’s
production
Domestic demand of ~14.5 MT; per capita consumption ~11 kg
vs. global average of 57 kg
Production expected to reach 22/33.4 MT (baseline/optimistic
scenario) by FY2025
Consumption to reach 23.5/36.9 MT (baseline/optimistic scenario) by FY2025
In addition of above, modernization of mills,
productivity improvement and building new capacities to improve demand for GPL
products/services
Growth Prospect- Indian Paint Industry
21
Growth Drivers
Growing per capital spending and income level
Fiscal incentives given by the government to the housing sector
Demand for Industrial paint linked to user industries like auto, engineering
and consumer durables are expected to see good growth
Indian paint industry- A ~Rs.400bn Industry
Has been growing at CAGR ~15% in last 5-7
years.
Expected to grow above 10-12% in near future
India’s per capita consumption of paint is
little over 4kg
way below China’s per capita consumption of
~10kg
~65% of Indian market organised, beneficial for raw material suppliers
Growth Prospect- Animal Feed Industry
22
Growth Drivers
Emergence of modern dairies; replacement of traditional feed with more nutritional feed
Increasing milk demand requires more production per cattle; possible with rich in
protein, minerals & pro-biotic feed
With increasing intake of protein rich food , there is higher requirement of processed dairy, aqua and poultry products, which in turn will result in higher feed requirement
Indian Animal feed industry- A ~US$15bn Industry poised to
double in 5 years
CAGR of 8% with poultry, cattle and aqua feed sectors emerging
as major growth drivers
Feed consumption volumes to reach 30 MT by 2017-18
India milk production per animal is way below world
average
India has ~320mn livestock population; among top five in
the world
Industry supplying only 10% of cattle and aqua feed and 50%
of poultry feed requirement
SWOT Analysis…
23
Strengths
•Strong customer base
•Strong technical expertise
•Strong in rice processing
•Multi location plants an advantage for raw material sourcing
•Low cost of production with local sourcing and captive power plants
•More than three decades of operational history
•All necessary regulatory approvals, export clearances & certification in place (HACCP, HALAL, ISO 901:2008, FAASI, KOSHER etc.)
•Strong oversea presence with export to 35 countries
Weaknesses
•Low value addition in Production
•High volatility in raw material prices is not completely pass through
•Availability of skilled manpower
•Commoditized products (except HFRS & BRS)
Opportunities
•Export potential for new products like (Fructose, Brown rice syrup etc.)
•Improving quality consciousness in finished goods improves consumption of our products
•Increasing per capita income and consumerism
•Changing food habits and calorie consciousness improves consumption of our products
•Increasing trend of organised dairy/poultry business helpful for high consumption of cattle feed
Threats
•Large unorganized market for Calcium Carbonate and Native Starch
•High dependence on agriculture production which is dependent on weather/monsoon
•High volatility in raw material pricing
•Large multinational establishing manufacturing base in India
•Liquor business is highly regulated.
•Changing Govt. policies (Prohibition) and promoting low liquor consumption
Application of our products
24
Toothpaste Plastics
Electrical Cables
Paint & Coating
Paper Footwear
Pharma Cosmetics
Food & Beverage
Cattle & Poultry
Colgate Palmolive
Unilever
Dabur
Wipro, Persona Cosmetics, Choice lab etc
Asian Paints
Berger Paints
Goodlass Nerolac, Advance Paint, Bombay Paint, Punjab Paints etc
Pfizer
Novartis
Glenmark Pharma
Cipla, Cadila, German Remedies, Lupin Laboratories, IPCA Laboratories,
Torrent Pharma Emerk, RPG lifeline, Sarabhai, etc
ITC
Ballarpur Industries
Orient Papers
Century Paper, Tamil Nadu New Print etc
Bata
Relaxo
Liberty
Paint
Pharma
Paper
Footwear
FMCG
Our Esteemed Customers… by Industry
26
Export Countries
Global Presence…
27
Canada
Australia South Africa
Nigeria
Egypt
Turkey
Iran
UAE
Jordan
Syria
Sri Lanka
Bangladesh
Nepal
Pakistan
Vietnam
GPL exports to major markets around the world
28
Safe Harbor
Some of the statements in this document that are not historical facts, are forward-looking
statements. These statements entail risks and uncertainties that could cause actual
events to differ materially from these forward-looking statements. These risks include, but
are not limited to, the level of market demand for our product, market situation for our key
inputs, market conditions that could cause our customers to reduce their spending for
our products, our ability to create, acquire and build new businesses and to grow our
existing businesses and other risks not specifically mentioned herein but those that are
common to industry. The Company does not undertake to update these statements
publicly to reflect changed eventualities.
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