GULSHAN POLYOLS LIMITED

An Organization on the

forefront of growth…

Table of Contents

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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

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>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

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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

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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.

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Our Products

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Revenue contribution of Products…

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Calcium Carbonate ,

29.5%

Starch Derivatives, 70.3%

Liquor, 0.2%

FY 2016 Revenue of Rs4,388m

Our products- Calcium Carbonate

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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

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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

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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

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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

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Main Plant, Muzaffarnagar, UP Sorbitol Unit, Bharuch-Gujarat

Calcium Carbonate Plant, H.P. Calcium Carbonate Plant, Gujarat

Our Plants

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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

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Growth Prospect- Indian Oral care Industry

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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)

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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

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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

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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

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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…

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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

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Toothpaste Plastics

Electrical Cables

Paint & Coating

Paper Footwear

Pharma Cosmetics

Food & Beverage

Cattle & Poultry

Our Esteemed Partners…

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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

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Export Countries

Global Presence…

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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

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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.

THANK YOU 29