#1K R Bodal Chemicals Ltd. COLOURS. INTEGRATION. INNOVATION. R K R Bodal Chemicals Limited Investor Presentation - November 2023#2Safe Harbour R K Bodal Chemicals Ltd. COLOURS. INTEGRATION. INNOVATION. R This presentation and the accompanying slides (the "Presentation"), which have been prepared by Bodal Chemicals Limited (the "Company"), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securities, and shall not form the basis or be relied on in connection with any contract or binding commitment whatsoever. No offering of securities of the Company will be made except by means of a statutory offering document containing detailed information about the Company. This Presentation has been prepared by the Company based on information and data which the Company considers reliable, but the Company makes no representation or warranty, express or implied, whatsoever, and no reliance shall be placed on, the truth, accuracy, completeness, fairness and reasonableness of the contents of this Presentation. This Presentation may not be all inclusive and may not contain all of the information that you may consider material. Any liability in respect of the contents of, or any omission from, this Presentation is expressly excluded. This presentation contains certain forward looking statements concerning the Company's future business prospects and business profitability, which are subject to a number of risks and uncertainties and the actual results could materially differ from those in such forward looking statements. The risks and uncertainties relating to these statements include, but are not limited to, risks and uncertainties regarding fluctuations in earnings, our ability to manage growth, competition (both domestic and international), economic growth in India and abroad, ability to attract and retain highly skilled professionals, time and cost over runs on contracts, our ability to manage our international operations, government policies and actions regulations, interest and other fiscal costs generally prevailing in the economy. The Company does not undertake to make any announcement in case any of these forward looking statements become materially incorrect in future or update any forward looking statements made from time to time by or on behalf of the Company. N#3H S H NH H Cli Q2 & H1FY24 Highlights#4Business Highlights H1FY24 Rs.6,772 mn Revenue Rs.604 mn EBITDA Rs.35 mn PAT K R Bodal Chemicals Ltd. COLOURS. INTEGRATION. INNOVATION. DuringH1FY24, Turnover declined due to decline in prices of RM as well as FG. Margin for the Q2FY24 has remain similar but H1FY24 has declined as there was better performance in Q1FY23. Demand for the quarter was once again subdued. Total revenue for the H1FY24 stood at Rs.6,772 mn, a de- growth of 22% on a YoY basis. Inflation in major economies continuous to be higher level than the normal leading to lower purchasing power with mass. Which results in lower consumption at end user industries and lower demand for our industry. Uncertainty for end of war between Russia and Ukraine further decelerated demand scenario of chemical industry. Slow exports for textile, leather and paper leading to subdued performance of Dyestuff over the last few quarters. Revenue contribution from dyestuff stood at Rs 2,266 mn in H1FY24, has reported de-growth of 28% on a YoY basis. On positive side, Dyes intermediates revenue stood at Rs.2,048 mn in H1FY24, has reported growth of 16% on YoY basis mainly on account of improved volume. In Basic chemicals Sulphuric Acid and other products, despite of growth in volume by 12%, the revenue stood at Rs.631 mn, a de growth 42% YoY basis. This decline in revenue is due to decline in prices of RM as well as FG. Average prices of our key products, i.e., H Acid and Vinyl Sulphone in Q2FY24 to Rs 419 per kg and Rs.215 per kg, respectively. Chlor Alkali business has reported de-growth in revenue as well as steep decline in margin due to adverse market condition of Caustic-Chlorine industry. In H1FY24, post up-gradation capex, despite of growth in volume by 16%, due to a substantial price reduction, Chlor Alkali revenue stood at 1,293 mn, a de growth 26% on YoY basis. Sener Boya, our Turkish company, has performed satisfactory though there is global headwinds in chemicals industry. Whereas other subsidiaries have incurred nominal loss. Management is taking measures in terms of scale, costs and integration that will help to sail through in this tough time. Our Saykha Greenfield Project is expected to start trial run of Benzene Derivatives in Q3FY24. Once we have decent visibility of demand for our product portfolio and new site is stabilized, we will restart the Sulphuric Acid project. * On Consolidated basis 4 st R#5Performance Highlights Q2 FY24 Performance H1FY24 Performance * On Consolidated basis Revenue (Rs. In Mn) EBITDA (Rs. In Mn) 8.4% PAT (Rs. In Mn) 8.8% 2.5% R K Bodal Chemicals Ltd. COLOURS. INTEGRATION. INNOVATION. 0.4% Margin 338 294 103 4,029 3,359 12 Q2FY23 Q2FY24 Q2FY23 Q2FY24 Q2FY23 Q2FY24 10.1% 8.9% 3.8% 0.5% 8,694 6,772 874 604 328 35 H1FY23 H1FY24 H1FY23 H1FY24 H1FY23 H1FY24 10 R#6Geographic Breakup Revenue Breakup Performance Highlights H1 FY23 Revenue Rs 8,498 mn H1 FY24 Revenue Rs 6,456 mn 9% 13% 21% 37% 21% 68% C 20% 32% 10% 3% 35% 73% 32% 27% * On Consolidated basis -Sales of products excluding other non operating income ■Basic Chemicals ■ Dyestuff ■Dye Intermediates ■Caustic Soda ■ Others ■Domestc Export R K Bodal Chemicals Ltd. COLOURS. INTEGRATION. INNOVATION. 6 R#7Performance Highlights K R Bodal Chemicals Ltd. COLOURS. INTEGRATION. INNOVATION. Chlor Alkali^ (Rs in mn) Basic Chemicals 1,091 Dyestuff 3,138 2,266 Dye Intermediates 1,759 2,048 1757 1,293 Lai ni al mi 631 447 285 Q2'23 Q2'24 H1'23 H1'24 *Revenue breakup on a Consolidated basis 1,635 1,118 539 1,115 864 597 Q2'23 Q2'24 H1'23 H1'24 Q2'23 Q2'24 H1'23 H1'24 Q2'23 Q2'24 H1'23 H1'24 Production Volume 99,986 1,12,034 7,826 6,834 48,392 55,383 3,833 3,361 Q2'23 Q2'24 H1'23 H1'24 Q2'23 Q2'24 H1'23 H1'24 6,330 10,492 2,490 5,690 16526 18588 Q2'23 Q2'24 H1'23 H1'24 * Production Volume on a Standalone basis due to limited information on subsidiaries ^Production volume - Caustic Soda only 32974 38094 Q2'23 Q2'24 H1'23 H1'24 (MT) R#8Revenue Subsidiaries Performance BCL Indonesia BCL China Sen-er Boya 391 -51% 113 191 10% 125 5 271% 17 H1 FY23 H1 FY24 H1 FY23 H1 FY24 H1 FY23 H1 FY24 Particulars Sener Boya Bodal-China Bodal-Indonesia (Rs in mn) H1 FY23 H1 FY24 H1 FY23 H1 FY24 H1 FY23 H1 FY24 Sales 390.5 190.8 113.4 125.3 4.5 16.5 PBT 61.1 27.2 0.4 -3.8 -3.0 -2.7 PAT 54.6 22.3 0.4 -3.8 -3.0 -2.7 R K Bodal Chemicals Ltd. COLOURS. INTEGRATION. INNOVATION. (Rs in mn) R#9Consolidated Profit & Loss Statement K R Bodal Chemicals Ltd. COLOURS. INTEGRATION. INNOVATION. Particulars (Rs. In Mn) Q2 FY24 Q2 FY23 Y-O-Y% H1 FY24 H1 FY23 Y-0-Y% Revenue from Operation 3,300.0 4,012.2 6,624.8 8,639.8 Other Income 59.3 16.9 147.1 54.7 Total Revenue 3,359.3 4,029.1 -16.6% 6,771.9 8,694.5 -22.1% Raw Material Consumed 1,717.2 2,406.5 3,432.7 5,002.7 Employee Expenses 260.0 248.6 492.4 532.6 Other Expenses 1,087.9 1,036.2 2,243.0 2,285.4 EBITDA EBITDA (%) Depreciation 294.1 337.8 -12.9% 604.0 873.9 -30.9% 8.8% 8.4% 8.9% 10.1% 143.1 121.9 289.6 245.2 EBIT 151.0 215.9 314.3 628.7 EBIT (%) 4.5% 5.4% 4.6% 7.2% Finance Cost 134.2 72.6 265.6 193.4 Profit Before Tax 16.8 143.3 48.7 435.3 Tax 4.4 40.62 14.2 107.32 Profit After Tax 12.4 102.7 -87.9% 34.5 328.0 -89.5% Profit After Tax (%) 0.4% 2.5% 0.5% 3.8% EPS (in Rs.) 0.1 0.8 0.3 2.6 9 R#10Standalone Profit & Loss Statement K R Bodal Chemicals Ltd. COLOURS. INTEGRATION. INNOVATION. Particulars (Rs. In Mn) Q2 FY24 Q2 FY23 Y-0-Y% H1 FY24 H1 FY23 Y-O-Y% Revenue from Operation 3,277.0 4,046.1 6,534.5 8,563.5 Other Income 61.1 9.8 97.6 20.6 Total Revenue 3,338.1 4,055.9 -17.7% 6,632.1 8,584.1 -22.7% Raw Material Consumed 1,720.0 2,457.9 3,373.7 5,021.4 Employee Expenses 251.4 242.6 473.8 521.1 Other Expenses 1,082.1 1,031.7 2,227.7 2,294.8 EBITDA 284.6 323.8 -12.1% 556.9 746.9 -25.4% EBITDA (%) 8.5% 8.0% 8.4% 8.7% Depreciation 140.8 118.1 284.9 239.1 EBIT 143.8 205.7 271.9 507.8 EBIT (%) 4.3% 5.1% 4.1% 5.9% Finance Cost 129.0 64.8 242.7 133.5 Profit Before Tax 14.8 140.9 29.2 374.3 Tax 4.6 38.4 8.2 98.8 Profit After Tax 10.3 102.5 -90.0% 21.0 275.5 -92.4% Profit After Tax (%) 0.3% 2.5% 0.3% 3.2% EPS (in Rs.) 0.1 0.8 0.2 2.2 10 R#11Consolidated Balance Sheet K R Bodal Chemicals Ltd. COLOURS. INTEGRATION. INNOVATION. Particulars (In Mn) ASSETS Sep-23 Mar-23 Particulars (In Mn) Sep-23 Mar-23 Equity & Liabilities Non-current assets 13,822.9 12,700.2 Equity 10,725.6 Property, Plant and Equipment 9,238.4 9,520.8 Equity Share capital 251.6 10,777.0 251.3 Right of use of assets 2.7 5.5 Other equity 10,474.1 10,525.8 Capital Work-In-Progress 3,616.0 1,934.7 Goodwill 84.8 84.8 LIABILITIES Other Intangible Assets 55.2 60.7 Non-current liabilities 4,956.1 4,218.4 Financial Assets Financial liabilities (i) Investments 2.2 1.9 Borrowings 4,346.4 3,618.3 (ii) Loans 33.0 30.3 Lease Liabilities (iii)Other financial assets 280.2 264.2 Provisions 1.3 Deferred tax assets 135.7 4.6 Deferred tax liabilities (net) 608.5 600.1 Non-current Income tax assets (net) 4.9 140.9 Current liabilities 6,098.0 6,213.5 Other non-current assets 370.0 651.9 Current assets 7,956.9 8,508.8 Financial liabilities Inventories Financial Assets 2,902.9 2,925.3 (i) Borrowings 3,335.8 3,356.4 (ii) Trade payables 1,863.9 1,778.2 (i) Trade receivables 3,222.1 3,581.6 (iii) Other financial liabilities 159.9 209.8 (ii) Cash and cash equivalents 61.7 168.0 (iv) Customers Bills discounted 490.6 621.2 (iii) Bank Balances other than above (ii) 19.8 18.7 (v) Lease Liabilities 2.9 5.7 (iv) Customer Bill discounted 490.6 621.2 Other current liabilities 165.4 116.5 (v)Loans 15.3 22.6 Provisions 69.9 115.1 (vi)Other financial assets 29.0 39.1 Current tax liabilities (net) 6.3 7.5 Other current assets Assets held for sale TOTAL-ASSETS 1,215.4 1,132.1 Liabilities classified as held for sale 3.3 3.3 0.1 0.1 21,779.8 21,209.0 TOTAL - EQUITY AND LIABILITIES 21,779.8 21,209.0 11 R#12H S H NH H Cli Company Overview#13A Leading Chemical Manufacturer B 3 Decade Old Organization 70+ Distributors Across India 200+ Products 10 Manufacturing Facilities 11 7% 11% 21% 35% 7 Domestic + 4 Overseas Depots 26% R K Bodal Chemicals Ltd. COLOURS. INTEGRATION. INNOVATION. Rs. 15,859 mn FY23 Consolidated Revenue ■Basic Chemicals ■ Dyestuff ■Dye Intermediates ■Chlor Alkali ■ Others ■ Domestc 600+ Customers 69% 31% ■ Export Integrated Dyestuff Chemical Player Having Global Presence Across Multiple Products Revenue includes other income Export data are as per standalone 13 R#14Company Evolution 1989 Incorporated as JK Pharma at Unit II-A 1993-1994 Acquired Unit II & Unit III Name changed to Bodal Chemicals Pvt. Ltd. 1997-2004 1997-Acquired two Units 2004 -Acquired Unit I & Forward integrated in Dyestuffs segment 2006-2010 2006-Listed on BSE via reverse merger with Dintex Dye Chem (Unit 1) Acquired Unit IV 2007-Built Unit VII & Acquired Unit VIII [ Д Û 2017 Acquired 70% stake in SPS Processors & 40% stake in Trion Chemicals Д 介 2016 Amalgamation: Bodal Agrotech, becomes Unit X 2018 Expanded Dyestuffs capacity by 12,000 MTPA 2013-15 MEEP at Unit I, Unit VII 2011 Backward integration of Basic Chemical at Unit VII 2019 Enhanced Dyestuffs capacity by 6,000 MTPA capacity expanded by 36,000 MTPA. 2019-20 Acquired 80% stake in Sener Boya (a Turkish entity) Recognized as Bluesign System partner Acquired 100% stake of Trion Chemicals and Amalgamated with Bodal as a unit XI 2021-23 Started Diversification into Specialty Benzene Downstream Products in Saykha, Gujarat Acquisition of Chlor Alkali plant in Punjab and Completed technology upgradation with capacity expansion Amalgamation of SPS with Bodal Installed additional 5MW ■ TC co-generation powerplant R K Bodal Chemicals Ltd. COLOURS. INTEGRATION. INNOVATION. 14 R#15Geographical Footprint ~31% of Total revenue comes from exports North America South America Europe Rest of Asia India Note: Maps not to scale. All data, information are provided "as is" without warranty any representation of accuracy, timeliness or completion Export data are as per standalone 30+ Countries Global Presence Revenue Breakup Domestic Export R K Bodal Chemicals Ltd. COLOURS. INTEGRATION. INNOVATION. 100% 100% 100% 100% 100% 56% 59% 67% 68% 69% 44% 41% 33% 32% 31% FY19 FY20 FY21 FY22 FY23 15 R#16Longstanding Clientele Basic Chemicals LANXESS MOL MEGHMANI ORGANICS LIMITED DEEPAK NITRITE ADITYA BIRLA GRASIM GFD™ GUJARAT FLUOROCHEMICALS VALUE THROUGH GREEN CHEMISTRY Dye Intermediates Dyestuffs OHYOUNG McFills Enterprises Pvt. Ltd. DyStar. D-BASF The Chemical Company K R Bodal Chemicals Ltd. COLOURS. INTEGRATION. INNOVATION. Chlor Alkali TRIDENTGROUP™ Being different is normal एन एफ एल NFL ARCHROMA ENHANCED stabl ( इंडियन ऑयल) IndianOil Shreyans GROUP COLOR ROOT ALPS LIFE Chemistar COLORS FOR RIGHT FOR FAVE ONEPIC SRF EVONIK Akshar Chem POWER TO CREATE 888 70+ Distributors Across India ACETO REPICO ROHRANLAGENBAU HUNTSMAN Enriching lives through innovation. ORNET Intermediates Everlight Chemical united RIFA® TFL Nestle Arvind FASHIONING POSSIBILITIES RSPL EVOLUTION IS CONSTANT Vardhman KISCO SENIOR LIVING adani wilmar For a healthy growing nation WELSPUN INDIA Home Textiles 600+ Customers 16 R#17Experienced Board & Management Team R K Bodal Chemicals Ltd. COLOURS. INTEGRATION. INNOVATION. Mr. Suresh J. Patel Chairman & MD Experience: 35 years Background: ■ Founder company & Visionary of the ■Involved in day-to-day operations & Dye Intermediates marketing +3 decade of experience in the chemicals manufacturing & trading Mr. Bhavin S. Patel Executive Director Mr. Ankit S. Patel Executive Director Experience: 19 years Background: ■ He played an instrumental role in Dyestuffs business He heads the Dyestuffs division including production, marketing etc Increased business presence in global market significantly Experience: 15 years Background: Economics Graduate from University of Nevada & MBA from Dervi University, USA ■ He heads basic chemicals division and lead the sulphuric acid and Chlor Alkali plant expansion Mr. Mayur Padhya Chief Financial Officer Experience: 27 Years Background: Qualified Chartered Accountant & Cost Management Accountant ■ He handles finance, corporate affairs and investor relationship Mr. Rajarshi Gosh Director HSE Experience: 23 years Background: Progressive experience in Cross functional management and senior leadership roles ■ Well versed in EHSS Management, Principles of Risk Management Mr. Rohit B. Maloo Independent Director Experience: 15 years Background: ■ CA, MBA, M.Com & & CFA Level II ■ Has been a practicing in the field of audit and taxation since a decade of listed companies having turnover of more than Rs. 1500 crores Mr. Nalin Kumar Independent Director Experience: 26 years Background: BTech, IIT-Kharagpur, MBA, IIM-Calcutta Previously associated with with leading financial services firms like HSBC, JP Morgan etc Mr. Mayank Mehta Independent Director Experience: 40+ years Background: Banking & Finance professional with over 4 decade of experience ■ Previous associated as CFO of Union Bank of India and Executive Director at Bank of Baroda Mrs. Neha Huddar Independent Director Experience: 34 years Background: & Qualified C.A Finance professional with experience in funds management, audit, accounting, taxation etc. Previously associated with Thirumalai Chemicals as CFO & Reliance Foundation as Head Finance 17 R#18Awards & Certifications Awards Certificates R K R Bodal Chemicals Ltd. COLOURS. INTEGRATION. INNOVATION. 2005-06 Received the prestigious Chemexcil Gold Award for outstanding performance in Exports by Merchant Exporters Panel of Chemexcil, Government of India 2009-10 Award for direct export of Dye Intermediates and Dyestuffs from the Gujarat Dyestuffs Manufacturers Association. 2011-12 CHEMEXCIL - "Trishul Award"- 2011-12 and 2013-14 2013-14 Highest Self Manufacturing Turnover for Domestic and Export of Dyes and Dye Intermediates from the Gujarat Dyestuffs Manufacturers Association 2015-16 2016-17 Highest Self Manufacturing Turnover for Domestic and Export of Dyes and Dye Intermediates from the Gujarat Dyestuffs Manufacturers Association. First in Large scale unit category for outstanding performance on Domestic CHEMEXCIL "Award of Excellency" 2017-18 Second in Large scale unit category for Excellent performance in Export of Dyestuffs from the Dyestuffs Manufacturers' Association of India Listed amongst the Top 500 Indian Companies by the Dun & Bradstreet in 2018 for the second consecutive time 2018-19 ET Enterprise Icons 2018 | Gujarat Best brand award 2018 25 Best Companies to Work For (Industry) 2019 by CEO Insights 2022-23 Highest self Manufacturing Turnover from Domestic and Export of Dyes and Dye Intermediates by GDMA First Award for the outstanding performance in Domestic Market by Large Scale Unit by DMAI BCL has ISO 9001:2015 and ISO 14001:2015 certifications for their production of Dye intermediates & Dyestuffs. Bluesign Certification - Recognized as Bluesign System partner Bluesign approved Product Supplier GOTS (Global Organic Textile Standard) Certification ZDHC Certification ISO 45001 2018 Certification BEHIVE Certification ECOTAX Certification Ø ZDHC Zero Discharge of Hazardous Chemicals ISO ORGANIC GLOBAL SYSTEM PARTNER 9001:2015 bluesign® TEXTILE GOTS STANDARD CHEMEXCIL - "Gold Award" 18#19H S H NH H Cli Product Overview#20End User Industries Diversified Product Portfolio Existing Products New Products Additions Basic Chemicals Sulphuric Acid Chlorosulphonic Acid Sulphur Trioxide Oleum 23% & 65% Sodium Bisulphate Acetanilide Thionyl Chloride Beta Nephthol Para Nitro Aniline ~12 Products Dye Intermediates Derivatives H Acid Sulpho Tobias Acid 4.N.A.D.P.S.A 6-Nitro MPDSA Meta Ureido Aniline 1:2:4 DIAZO ~25 Products Dyestuffs Chlor Alkali Benzene Derivative Vinyl Sulphone & Reactive Dyes Caustic soda MCB Acid Dyes Chlorine PNCB DASA Direct Dyes Hydrogen ONCB F.C. Acid Liquid Dyes Hydrochloric Acid (HCL) MNCB Gamma Acid, K Acid Sodium Hypochlorite (HYPO) Stable Bleaching Powder (SBP) ~175 Products 6 Products Leather Textiles *Capacity Addition of existing products Paper Water Treatments Home Care СТ R K Bodal Chemicals Ltd. COLOURS. INTEGRATION. INNOVATION. Pharma Agro-Chemical Home Care Moving From Integrated Dyestuffs Player to Niche Value-added Products 20 R#21Manufacturing Value Chain Input Materials Basic Chemicals Dye Intermediates K R Bodal Chemicals Ltd. COLOURS. INTEGRATION. INNOVATION. Dyestuffs Trion Chemicals End Use Industry Water Vinyl Sulphone + Derivatives Reactive Dyes Para Nitro Aniline Ice H Acid Textiles Beta Naphthol Steam DASA Sulphuric Acid Power Acid Dyes Leather FC Acid Chloro Sulphonic Acid Sulphur Aniline Oleum 65% Oleum 23% Gamma Acid Direct Dyes Paper Naphthalene Sodium Bi Sulphate K Acid PNCB Acetanilide Meta Ureido Aniline Liquid Dyes Caustic Soda Thionyl Chloride Other Specialty Intermediates Chlorine Input Materials - part/full in-house Input Materials - external Detergent TCCA Water Treatment ~ Bodal Chemicals Products ~ 48% of the Basic Chemicals to be captively consumed by Dye Intermediates and 43% of Dye Intermediates output to be consumed by Dyestuffs, giving us a cost- End use industries competitive advantage 21 R#22Manufacturing Facilities Gujarat Punjab Uttar Pradesh TCCA 12,000 Total 10 Manufacturing Facilities 3- Ahmedabad, Gujarat 4- Vadodara, Gujarat 1- Khambhat, Gujarat 1 Rajpura, Punjab 1 Kosi, Uttar Pradesh In-house R&D Lab 1 Ahmedabad, Gujarat 2 - Vadodara, Gujarat Total Employees ■ Domestic 2,000+ ■ Contract Labours ~1,500 Overseas 30+ Current Capacity (MTPA) Caustic Soda 99,000 Liquid Dyestuff 10,000 ~421,000 MTPA Dyestuff 35,000 Basic Chemicals 2,26,000 Dye Intermediates 39,000 + R K Bodal Chemicals Ltd. COLOURS. INTEGRATION. INNOVATION. 11 Depots (Exclusive Distribution Warehouse) 7 - India 1 - China 1 - Turkey 1 - Bangladesh 1- Indonesia Upcoming Capacity (MTPA) Strategically located at western belt of India which is largest chemical manufacturing zone Proximity to nearby seaport at Mundra, Pipavav, Hazira and Nhava Sheva Benzene Dowstream 63,000 ~63000 MTPA Note: Maps not to scale. All data, information are provided "as is" without warranty any representation of accuracy, timeliness or completion 22 R#23Our Subsidiaries Company Name Location Stake FY23 Revenue Details Bodal Chemicals Trading Private Limited Gujarat, India 100% Rs 0.01mn Trading and Marketing subsidiary K R R Bodal Chemicals Ltd. COLOURS. INTEGRATION. INNOVATION. Bodal Chemicals Trading Shijiazhuang Limited China 100% Rs 293 mn Trading & Marketing subsidiary for China and adjacent countries (Rs in mn) Sen-er Boya Kimya Tekstil Turkey 100% Rs.623 mn Standardizing, trading, and marketing subsidiary for Turkey Sanayi ve Ticaret Pt Bodal Chemicals Indonesia Indonesia 100% Rs.20 mn Trading, and marketing subsidiary for Indonesia 23#24Key Growth Drivers Dyestuff Expansion TCCA Division Vinyl Sulphone-UP Unit Turkish entity Sener Boya Dyestuffs capacity of 35,000 MTPA will be ramped-up gradually Acquired 100% stake in Trion Chemicals and amalgamated with Bodal. Production has been stabilized & became profitable Vinyl Sulphone plant of 6,000 MTPA capacity has been commercialized in Kosi Kalan, Uttar Pardesh 2 Acquired 100% stake to strengthen the global presence Revenue Marketing Initiative Profitability Bodal China Revenue Presence in Turkey & nearby markets Rajpura, Punjab Unit Saykha Project Opened multiple warehouses & incorporated marketing subsidiaries to strengthen relationship with marquee clients directly Trading & Marketing subsidiary will increase our presence in China Newly acquired Chlor Alkali products have started contributing to our business and will increase gradually Greenfield Saykha Project will lead to new level of growth with Benzene Downstream products Direct Client Relationship Revenue Revenue Revenue R K Bodal Chemicals Ltd. COLOURS. INTEGRATION. INNOVATION. 24 R#25Our Key Strengths 0 Integrated Business Model Integrated business model leading to cost competitiveness and protection against commodity cycles Strong Relations with Marquee Clients ✓ Strict quality adherence has made us a long term business partner for many clients across the globe 3 Decades of Presence R K R Bodal Chemicals Ltd. COLOURS. INTEGRATION. INNOVATION. ✓ Home grown player with deep understanding of Indian & global chemicals market In house R&D Facilities ✓ Well-equipped production facilities and laboratories. Strict quality adherence and continuous investment into R&D Strong and Experienced Management Team ✓ Long term association of senior management team enables the company to meet its strategic goals with their extensive knowledge & experience Highly Compliant ✓ Strict environmental compliance with in-house ETP and MEEP plants 25#26India's Edge in the Global Chemicals Market K R Bodal Chemicals Ltd. COLOURS. INTEGRATION. INNOVATION. R Industry Megatrends Structural Shift Unorganized players in the Dye Intermediates and Dyestuffs Industry have been declining China +1 India is emerging as the next alternative supplier for the global market Compliance Companies that are compliant with global environment laws will sustain Policy Changes in China Stringent measures & environment norms have eliminated small companies in china Rising Exports India has increased their chemical exports over the last few years Textile Industry Textiles constitutes ~80% of the total Dyestuffs demand and is expected to recover gradually Atamanirbhar Bharat Abhiyan The govt. initiative to reduce dependency on import of chemicals Dyestuff Production Gujarat is a leader with over 75% market share in Dyestuff Industry Integrated player Companies that have backward integration will have higher competitive edge Availability of Raw Material All key raw materials are available in India Bodal's Edge Highly Compliant & Large Integrated Dyestuffs Player Dyestuff Market Share Dye-Intermediates Market Share Domestic ~13% Global ~3% Domestic Global ~20% ~6% *Above market share figures are based on management estimates 26#27H S H NH H Cli Next Level of Growth#28Capex To Drive Next Level Of Growth Project Location Saykha, Gujarat Products Project Cost Greenfield Saykha Project Benzene Downstream ~63,000 MTPA Key Synergies Strategic Location K R Bodal Chemicals Ltd. COLOURS. INTEGRATION. INNOVATION. ■ ~Rs 2,700 mn Benzene plant + ~ Rs 1,200 mn related soft cost including onetime infrastructure cost = Rs 3,900 mn Diversified Product Portfolio Integration for Captive Consumption Expected Revenue ~Rs 3,200 mn with EBIDTA Margin of 12% - 15% Expected Commercialisation End User Industry ■Trial run expected in Q3 FY24 for Benzene Derivatives Once we have decent visibility of demand and new site is stabilized, we will restart Sulphuric Acid plant Pharmaceuticals, Agrochemicals, Dyes Industry and Rubber Industry Margin Expansion De-risk & Diversified Client Base Key Rationale Enhance 'Specialty Chemicals Segment' Import substitution Integration for cost efficiency, better productivity and high margins Portfolio diversification Cost Efficiency Long term Sustainable Growth 28 R#29Moving Up The Value Chain With New Chemistries New Products Benzene Chain Chlor Alkali Chain Chlorine PNCB Salt & Water Solution Electrolysis (Power) Caustic Soda ONCB Benzene MCB MNCB Hydrogen Captive Consumption: MCB :100% . PNCB: ~45% Punjab unit has strong internal consumption of chlorine ~ 30% of Chlorine will be captively used for HCL, SBP and HYPO 45% will sold through pipeline to adjacent units ~25% will be sold in cylinder to other near by units Backward Integration Cost savings De-risking material sourcing Reducing risk of handling hazardous MCB Horizontal Integration Product, industry & customer diversification Value-addition - moving up the Value chain PNCB, ONCB, MNCB R K Bodal Chemicals Ltd. COLOURS. INTEGRATION. INNOVATION. 29 R#30Way Forward Lower cost of production Economies of scale Long term relationship with customers 3+ decades of experience International presence Capacity rampup New client penetration R K Bodal Chemicals Ltd. COLOURS. INTEGRATION. INNOVATION. Ongoing internal efficiencies Our Edge Rigorous integration Superior quality Diverse client base New greenfield expansion Higher focus on B2C approach Increasing international presence Way Forward Backward integration Strengthening of market leadership 30 R#31H S H NH H Cli Responsible Corporate#32Environmentally Compliant Common Plant Location Zero Discharge Site (Solid+ Liquid+Air) Effluent Treatment Plant Effluent Treatment Plant, (at GIDC) Unit I Ahmedabad Unit II Ahmedabad Unit III Ahmedabad Unit IV Ahmedabad Unit -VI Kosi Unit VII Vadodara Unit VIII Vadodara Unit IX Vadodara Unit X Vadodara Unit XI Khambhat Unit XII Rajpura I I I . K R Bodal Chemicals Ltd. COLOURS. INTEGRATION. INNOVATION. Multiple Effect Evaporator (MEEP) Effluent Spray Dryer Plant (ESDP) Solid Waste Incinerator Plant Treated Effluent Discharge Access VECL Cala Lit./Day 949,000 23,800 32 R#33Pollution Control Systems Effluent Treatment Plant (ETP) Treats low load waste water Compliant with GPCB, CPCB norms Capacity 500,000 liters / day Chemical oxidation ■ Flocculation Clarification Bio-degradation by AIS Tertiary Poly system Online monitoring system R K Bodal Chemicals Ltd. COLOURS. INTEGRATION. INNOVATION. Brine Treatment Plant Installed world's first Brine Treatment Plant at Unit-VII Its is based on Modern Water's all-membrane brine concentration process (AMBC) It treats the effluent from Dyes and Zero Liquid Discharge (ZLD) is achieved at the end of treatment cycle Multiple Effect Evaporator Plant (MEEP) Treats high load waste water Recovers salts- captive use/ sold Capacity 500,000 liters/day Investment of Rs 350mn Benefits: Needs low steam, power Re-use of condensed water Integrated Zero Discharge System Effluent Spray Dryer Plant (ESDP) Treats high load waste water beyond MEEP Minimizes treatment cost Spray Dryers: 3 * 100,000 liters/day Incinerators: 3* 125,000 liters/ day 33 R#34Responding To Critical Issue Key Challenges High costs involved in complying with environmental regulations Moreover, the rising industrial water and power rates are a concern. Scarcity of water can lead to insufficient supply affecting our production needs. ■ The Chemical Industry is energy and CO2 intensive. It represents more than 30% of global Greenhouse Gas (GHG) emissions. If not controlled, it can have a profound effect on climate change Our Response Outcome R K Bodal Chemicals Ltd. COLOURS. INTEGRATION. INNOVATION. Abides by the mantra of 'reduce, recover and reuse' of natural resources ■ Taken appropriate pollution control systems including implementation of Effluent Treatment Plants (ETPs), Multiple Effect Evaporator Plant (MEEP), Brine Treatment Plant and Effluent Spray Dryer Plant (ESDP). ■ The Company possesses 5 MW Co-generation lignite-based & 1.73 MW steam (waste recovery heat) based captive power plant at Unit 7 Multiple Effect Evaporator Plant (MEEP) Reusable clean water ■Zero liquid discharge Salt extracted through MEEP process is captively used or sold Cost optimization through proper management of the energy consumption Creating a better future for all stakeholders Effluent Treatment Plant (ETP) 34 R#35CSR Activities Key Focus Areas Eradicating hunger, poverty and malnutrition Promoting healthcare and sanitation including contribution to the Swach Bharat Kosh Promoting education and enhancement of rural infrastructure Ensuring environmental sustainability Providing funds for construction for drinking water pipelines Conducting regular health check-up camps Promotes Sports, with Contribution to : Sports Council of the Deaf Basketball Club Promoting individual talent to represent the country in sporting events To support various Trusts and NGO's like YUVA Unstoppable R K Bodal Chemicals Ltd. COLOURS. INTEGRATION. INNOVATION. 35 R#36H S H NH H Cli Financial Highlights#37Financial Highlights Revenue (Rs. In Mn) EBITDA (Rs. In Mn) PAT (Rs. In Mn) K R Bodal Chemicals Ltd. COLOURS. INTEGRATION. INNOVATION. 14,369 13,852 12,424 20,724 2,495 15,859 1,481 1,198 2,369 1,450 1,413 860 987 mli lili liai 398 FY19 FY20 FY21 FY22 FY23 *On Consolidated basis 16.6 EBITDA Margin (%) 10.7 380 FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23 11.4 9.6 9.1 FY19 FY20 FY21 FY22 FY23 Revenue includes other income 9.9 PAT Margin (%) 6.26 4.8 3.24 2.4 FY19 FY20 FY21 FY22 FY23 Note: FY22 financials has been restated due to amalgamation of SPS Processors Pvt. Ltd. 37 R#38Key Ratios *On Consolidated basis Net Debt/Equity (x) 0.33 0.12 0.19 0.63 17.0% 0.53 Return on Equity (%) 9.2% Trending lower due to increasing capital expenditure 9.4% 4.1% 3.5% FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23 24.5 Return on Capital Employed (%) 12.3 Trending lower due to increasing capital expenditure 5.4 11.7 5.2 Net Working Capital Days 95.8 103.2 146.4 147.0 124.8 FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23 R K Bodal Chemicals Ltd. COLOURS. INTEGRATION. INNOVATION. 38 R#39Segmental Performance Basic Chemical Dyestuffs Dye Intermediates Chlor Alkali K R Bodal Chemicals Ltd. COLOURS. INTEGRATION. INNOVATION. (Rs in mn) 1,955 1,726 1,601 1,282 4,808 5,324 1,269 3,993 6,995 5,412 6,544 4,618 4,589 7,354 3,936 mindi mi 2,587 3,270 FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23 Basic Chemical (MT) Dyestuffs (MT) Dye Intermediates (MT) Chlor Alkali (MT) ^ 2,25,908 20,058 25,985 1,97,051 1,88,534 1,74,780 1,98,732 18,890 18,588 23,674 23,898 14,756 13,652 21,811 mithili FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23 15,432 FY19 FY20 FY21 FY22 FY23 67,488 62,048 FY19 FY20 FY21 FY22 FY23 * Production On Standalone basis Revenue includes other income Basic Chemical production include Thionyl Chloride ^Production volume - Caustic Soda only 39 R#40Thank You Contact Information Ⓡ K Bodal Chemicals Ltd. COLOURS. INTEGRATION. INNOVATION. Ⓡ Bodal Chemicals Ltd. CIN L24110GJ1986PLC009003 - Mr. Mayur Padhya Chief Financial Officer Email [email protected] www.bodal.com VIB Mn A IVA Solids Liquids B C Gases Artificially Prepared As