Polyethylene Terephthalate (PET) Resin From

Canada, China, India and Oman

INV. 701-TA-531-533 and 731-TA-1270-1273

USITC Final Investigation Commission Hearing

March 1,2016

PRESENTATION OF RELIANCE INDUSTRIES LTD.

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Polystyrene

Reliance

Consumer Products Using HOPE • HOPE Plwtic #2 • Yogurt & Margarine Tubs • Juke Jugs • Milk Jugs • Cereal Box Liners • Food Jars • Detergent Botties • Water Jugs • Bottles from Household Cleaners

HDPE

What is PET resin? Reliance

• polyethylene terephthalate, is a clear, strong and lightweight plastic belonging to the polyester family.

• The basic building blocks of PET are monoethylene glycol and terephthalic acid, which are combined to form pellets of PET. These resin pellets are then heated to a molten liquid that can be easily extruded or molded into items of practically any shape.

PET Chips

4

Polyester Chain Reliance

TYPES OF PET Reliance

Remarks

Fiber grade

Film grade

Bottle grade

0.40-0.70 Textile 0.72-0.98 Technical, tire cord

0.60-0.70 BoPET (biaxially oriented RIL produces only sheet-grade for thermoforming PET film) 0.70-1.00 Sheet grade for thermoforming

0.70-0.78 Water bottles (flat) RIL Produces all types of bottle grade PET Chips 0.78-0.85 Carbonated soft drink Strapping grade - -0.84—1.0 grade (in scope)

RIL focuses on bottle grades which has major sub grades like: General Purpose; Hot Filled; Quick Re-heat; Film Grade- fo r food grade packing Recycled - PET for non- food application.

6

PET - Market Share in Polyesters Reliance

2014 68 MMT

Source: PCI

PET is the fastest growing polymer in the world.

Transition in PET Reliance

o •CSD

•Juices

• Bottled Water

• RTD Teas

• RTD Juice

• Flavored RTD Tea

• Isotonic

• Wellness Drink

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O O

o r N

•CSD

• Milk

• Bottled Water

• RTD Tea & Juice

• Flavored Tea

• Isotonic

• Wellness & Energy Drink

• Functional Beverages

• Fortified Water

D

o

•CSD

• Milk

• Bottled Water

• RTDTea & Juice

• Flavored Tea

• Isotonic

• Wellness & Energy Drink

• Fortified Water

• Beer

• Pharmaceutical

• Children targeted Drinks

PET AAANUFACTURING

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Reliance Fabric

Texturised, Twisted, Dyed Yarn

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Wool. Viscose. Silk. Linen

Spun Yarn Textiles

PSF U -

Polyester Chips *o l^stj^rte^^^^"' PTA N - Paraffin Fibres & Petrochemicals

PP | PE

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MTBE

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Polyester Resin PTA

C4s Propylene 1

Fuel Gas Ethylene CBFS i 1 1

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CYC

Xylene

Cracker *-

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VCM

zene

EDC

Chlorine Polyolefines Fibres & Chemicals

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g h u r j [ G a s o l i n e J [ ^ i e s e j | ^ G ^ | " ^ a r j h t h a j l r ^ ^ | j | | | e j I A T f J [Kerosene |

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Acetic acid

Refining & Distribution

[N-ButaneJ [^tyr^ne | | Ethylene

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Refining

Oil and Gas Exploration and Production Oil & Gas

Rplianrp InHiistrips I imitpr) Ha7ira Manufarturinp Division

RIL Production Location - Hazira -Rel iance

PET Production Site

Rel iance Panorama at Hazira

Rplianrp InHustrips I imitpH Ha7ira Manu fa r t u r i np Division

SOME PET Products Reliance

PET/PETE GRANULES DRINKING BOTTLES ASSORTED CONTAINERS

WALL INSJJLATION I

BREEZE BLOCK A

A BRICK

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MICROWAVABLE TRAYS FRUIT CONTAINERS

SYNTHETIC CLOTHES SYNTHETIC CARPET

1 ^ Type 1 - PETE Polyethylene Terephthalate (PET)

PETE

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SELECTED PRICING PRODUCTS

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Water bottles

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Carbonated

Strapping

Reliance

HOT FILL

sheet

12

PET Markets

13

The PET Resin Industry Has Undergone Tremendous Consolidation Since 2010, Resulting in an Extremely Concentrated

Market 2010 2014

• DAK Eastman • Invista Nan Ya Plastics

• PET Processors • Mossi & Ghisolfi • Indorama Wellman

Shares of Total Domestic Bottle-Grade PET Resin Capacity in millions of pounds. Source: Chemical Data, LP.

4 US Producers Reliance

• DAK Americas: subsidiary of Alfa S.A.B. de CV in Mexico (Alfa Group); affiliated production site in Mexico, Argentina

• M&G Chemicals: part of Italy's Mossi & Ghisolfi, affiliated production site in Mexico (590,000 tons) and Brazil (650,000 tons)

• Nan Ya Plastics: part of Formosa Plastics in Taiwan

• Indorama (non-petitioner): part of Indonesian Indorama Group, the largest producer of PET in the world.

• Together these four producers account for 100% of U.S. production of all PET and over 80% of the US market. Adding in their foreign supply sources, the percentage is even higher. Essentially they control the North American market.

J 5

DAK Expansion Reliance

DAK's Cape Fear Plant Was Not Closed Due to Subject Imports, But Because DAK Purchased and Invested in Much Larger and More Modern Facilities to Replace It

Cape Fear

I I I I l l l l l i i i i

Columbia, SC - bought from Eastman

Port Bienville, MS - bought from Wellman

Charleston, SC

• Wilmington, NC - "Cape Fear"

• Fayetteville, NC

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Source: Chemical Data, L.P.

16

PET Import Sources/Volume Reliance

Country 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Percent Change

2014 - 2015

Country

In 1,000 Units of Quantity

Percent Change

2014 - 2015

First Unit of Quantity where quantities are collected in kilograms

Oman 0 0 0 0 12,770 15,504 9,995 16,212 61,486 89,139 68,497 -23.20%

India 36,421 79,537 24,449 33,728 43,465 20,117 15,701 24,860 43,051 46,466 32,177 -30.80%

India & Oman 36,421 79,537 24,449 33,728 56,235 35,621 25,696 41,072 104,537 135,605 100,674

Mexico 240,232 255,296 236,060 186,264 187,189 182,561 218,544 190,487 162,280 228,945 252,807 10.40%

Korea 52,925 42,254 40,117 23,804 30,737 31,121 33,008 40,793 58,022 54,105 55,670 2.90%

Taiwan 22,887 9,025 30,888 16,872 16,281 31,865 14,560 37,786 40,630 38,621 106,885 176.80%

Indonesia 53,373 68,098 90,799 116,327 94,602 68,279 40,092 18,753 18,000 22,369 21,349 -4.60%

Pakistan 0 43 681 17,525 17,351 15,529 11,722 16,785 34,031 13,302 18,791 41.30%

Peru 2,518 3,826 7,357 9,783 4,440 9,183 8,757 5,866 4,401 18,030 18,335 1.70%

Total non subject 371,935 378,542 405,902 370,575 350,600 338,538 326,683 310,470 317,364 375,372 473,837

Total Imports

ki lograms

805,082 878,642 817,649 743,981 647,306 536,599 603,119 660,831 722,331 869,990 869,773

India % 4.52% 9.05% 2.99% 4.53% 6.71% 3.75% 2.60% 3.76% 5.96% 5.34% 3.70%

India and Oman % 8.69% 6.64% 4.26% 6.22% 14.47% 15.59% 11.57%

Mexico % 29.84% 29.06% 28.87% 25.04% 28.92% 34.02% 36.24% 28.83% 22.47% 26.32% 29.07%

Sources: Data on this site have been compiled from tariff and trade data from the U.S. Department of Commerce and the U.S. International Trade Commission.

17

U.S. PET Imports From India Reliance

90,000

Import Quantity from India (1000 kg)

80,000

70,000

60,000

50,000

40,000

30,000

20,000

10,000

0

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Source: Trade Data from USITC DATAWEB (Census Bureau)

18

PET - per capita consumption Reliance

10.00

cf, 8.00 CM

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4.00

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Russia, 3.88

South Africa, 2.77 B r a z j l 2 g 8

China, 2.43

USA, 9.13

India, 0.52

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Italy, 8.20

I I H Mexico, 6.69

Philippines, 0.68 • +

Indonesia, 0.63

France, 5.80

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• Turkey, 4.05

World average: 2.56 •

Source: PCI/IMF

Tremendous growth potential for Indian PET market.

Changing Lifestyle and Food habits

Increasing Population & G D P

g r o w t h

Branding C o n c e p t & E c o n o m i c va lue

add i t ion

Increasing Disposable

income

GROWTH DRIVERS

Replacement glass &. meta\s

;

Increasing growth of PET market in India

Domestic Consumption Pattern KTA FY'14 FY'15 FY"16 FY'17 FY'18 CAGR

CSD 170 190 230 255 285 14% Alcoholic Beverages 95 100 125 155 170 17% Non- Alcoholic Beverages 180 205 240 270 290 13% Food & Oil 75 80 95 103 125 14% FMCG/ Health Care 115 130 153 188 230 19% Others /APET Sheets 5 5 7 9 15 14%

Total 640 710 850 978 1115 15%

Key growth drivers : CSD/ Beverages

Unique growth segment: Alcoholic Beverages & Healthcare formulations

Emerging trend : Edible oil, Milk, Barrier PET, FMCG, APET, Barrier APET

Reliance

(KT)

555

Beverages - The growth driver, Tuned with world trend

Jumbo Bag Pallet Reliance

New Initiative under evaluation and development

T H A N K Y O U

3/1/2016 22