#1(6) GULSHAN POLYOLS LIMITED GULSHAN POLYOLS LIMITED Expanding Potential Investor Presentation August, 2022.#2Safe harbour Investor Presentation August, 2022. GULSHAN POLYOLS LIMITED Certain statements in this document may be forward-looking statements. Such forward-looking statements are subject to certain risks and uncertainties like government actions, local, political, or economic developments, technological risks, and many other factors that could cause our actual results to differ materially from those contemplated by the relevant forward-looking statements. Gulshan Polyols Limited will not be in any way responsible for any action taken based on such statements and undertakes no obligation to publicly update these forward-looking statements to reflect subsequent events or circumstances. 02#3From the desk of the Chairman.... We are encouraged to witness revival in demand and consumption across markets. In sync with revival in demand, we increased production in a staggered manner across our production facilities. Gulshan has marked impeccable growth and achieved many admirable wins and milestones through the FY22 and continue to do so in Q1 FY23. Our primary focus in the years to come is was towards undertaking all necessary measures to maintain, excel and expand our business operations. I am delighted to share with you that despite challenging cost headwinds prevailing in the sector that we operate in we continue to grow profitably. Revenue from operations in Q1 FY23 increased to INR 2701.83 MN from INR 2,385.55 MN in Q1 FY22 showing a healthy growth of 13.26%. The Company remains focused on executing its major capex with sound financial management. Further, Company is undertaking effective cost controls to maintain resilient and healthy cash flow Moving towards government initiative on “Ethanol Blending Petroleum Program" on petrol blending with Ethanol up to 20% by 2025, we are very much enthusiastic about future outlook of Ethanol business and accelerated its expansion plan in both existing and new geographies, emphasizing growth potential in the Indian bio-ethanol space. Gulshan has great potential to grow and is constantly scouting for opportunities. We believe that Gulshan can become one of the major players in Ethanol segment in the coming 3 years. Investor Presentation August, 2022. GULSHAN POLYOLS LIMITED 03#4VISION Achieve, Expand, Innovate, Evolve Investor Presentation August, 2022. Vision Mission MISSION To be a profitable, efficient and customer focused organization, recognized as a leading supplier of quality products and services. GULSHAN POLYOLS LIMITED 04#5Company Overview Gulshan Polyols Limited ("Gulshan") is a multi-location, multi-product manufacturing company with global presence in 35+ countries, across various continents. The company features three main business segments namely, Grain Processing, Ethanol production and Mineral Processing. GULSHAN is amongst one of the market leaders in manufacturing sorbitol, precipitated calcium carbonate (PCC) and wet ground calcium carbonate (WGCC). The Company is planning to expand its footprints in Ethanol production segment and has embarked on a significant capex plan for manufacturing ethanol using damaged food grains. By FY24 the Company plans to expand its ethanol capacity to 810 KLPD from current KLPD. 60 Gulshan's product portfolio comprises of starch sugars and native starches, calcium carbonate; agro based animal feed, alcohol business & on-site PCC plants. Gulshan is providing solution to diverse range of Industries & niche markets in core sector i.e., from toothpaste to alcohol, from sweeteners to paints, from paper to medicines, from plastics to personal care. Gulshan has an impressive clientele comprising of the nation's Top FMCG's, Leading paint manufactures and many reputed brands. Gulshan was recognized by Government of India as Star Export House Since year 2016, for consistent export of products to various parts of the world and holds record for introducing on-site PCC plant as per Limca Book of Records in 2010. Investor Presentation August, 2022. GULSHAN POLYOLS LIMITED 05#6O 2 4 6 8 00 3000 2500- 2000 1500 1000 500 PAT % INR Mn 10 12 3.77% 500 Quarterly Performance at a glance Revenue from Operations INR Mn EBITDA INR Mn EBITDA% INR Mn PAT INR Mn GULSHAN POLYOLS LIMITED 400 300 200 100 T T ° ° Q1FY23 Q1FY22 Q4FY22 Q1FY23 10.97% 3.99% Q1FY23 Q1FY22 Q4FY22 Investor Presentation August, 2022. 2500 2000 1500 1000 500 ° I Segment Revenue (Sales and Other Operating Income) I 453.02 439.90 525.12 5 10 20 15- 200 ° Q1FY22 Q4FY22 Q1FY23 Q1FY22 Q4FY22 2,005.82 1,757.78 Ethanol Distillery Grain Processing 2,126.55 242.99 186.04 270.60 Mineral Processing 150 100 50- INR Mn Segment Results (Profit before tax and Interest) Q1FY23 Q1FY22 250 Q4FY22 200 ° 100 50 150 I 4.00 83.04 16.79 111.12 Ethanol/Distillery Grain Processing 246.70 119.18 300 250 Q1FY23 Q1FY22 Q4FY22 36.84 24.79 38.00 Mineral Processing INR Mn Q1FY23 Q1FY22 Q4FY22 (minor differences due to rounding off). 06#7Financial Snapshot Revenue from Operations INR Mn 12000 EBITDA INR Mn 2000 EBITDA Margin 20 PAT INR Mn 1000 10000 8000 6000- 4000- 2000 1500 1000- 500- 15 10 ° ° FY22 FY21 FY20 FY22 FY21 FY20 FY22 FY21 FY20 PAT Margin ROE ROCE 10 8 6 FY22 FY21 FY20 Investor Presentation August, 2022. 20 30 25 800 600 400 200 GULSHAN POLYOLS LIMITED FY22 FY21 FY20 Debt/Equity Ratio 0.30 0.25 15 20 0.20 10 5 15 10 5 0.15 0.10- 0.05- О 0.00 FY22 FY21 FY20 FY22 FY21 FY20 FY22 FY21 FY20 205.84 (minor differences due to rounding off). 07#8Leadership pool GULSHAN POLYOLS LIMITED Dr. Chandra Kumar Jain Chairman & MD Gulshan Polyols Ltd. is conceived and promoted by Dr. Chandra Kumar 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 38 years. Mrs. Arushi Jain Joint Managing Director Mrs. Arushi Jain is MS in marketing from City University of New York, USA and Diploma in Banking Technologist from AIB, USA. She overviews operations and technology. Mrs. Aditi Pasari Joint Managing Director Mrs. Aditi Pasari is MBA from Cardiff University, UK. She is actively involved in the day to day Financial planning, Sales and Administrations and managing Investor Relations for the company. Mr. Ashwani Kumar Vats CEO & Whole Time Director Mr. Ashwani K Vats, graduate with PG 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. Rajiv Gupta Chief Financial Officer Mr. Rajiv Gupta is a Chartered Accountant by profession with 30 years of rich & varied experience, looks after the Financial, Accounting and Taxation work of the company. Investor Presentation August, 2022. 08#9Our journey so far... Incorporated as Gulshan Sugars and Chemicals Limited (GSCL). Increased capacity of Calcium Carbonate from 10,500 MT to 22,500 MT. Increased capacity of Calcium Carbonate from 22,500 MT to 32,000 MT. Incorporation of Gulshan Polyols Limited by demerger of GSCL. 1981 1984 1989 1991 1994 1997 2000 2005 Investor Presentation August, 2022. GULSHAN POLYOLS LIMITED Increased IPO & capacity of Listing Calcium Carbonate from 2,100 MT to 10,500 MT. on BSE. Set up Starch Sugar plant at Bharuch with capacity of 15,000 MT. Increased capacity of Sorbitol from 15,000 MT to 60,000 MT. 09#10Contd... GULSHAN POLYOLS LIMITED FPO by GSCL. Set up PCC plant at Ponta Sahib. Set up CC plant at Abu Road. Set up an Alcohol plant at Borgaon, Madhya Pradesh. Set up another Starch Sugar unit at Muzaffarnagar for Dextrose Monohydrate, Malto Dextrin, Liquid Glucose, Glucose Powder, using rice as raw material. Set up third On-site PCC plant for ITC Limited at Hooghly. 2007 2008 2009 2010 2012 2013 2014 2015 Investor Presentation August, 2022. Merger of GSCL with Gulshan Polyols Limited. Set up First On-site plant at Sahibabad. Set up another On-site Plant at Patiala, Punjab. Listing on NSE Set up two Onsite Plants on turnkey basis in Bangladesh Setup Onsite Satellite PCC Plant for Orient Paper Mills Birla Group, Madhya Pradesh. 10#11Contd... Setup Native Starch Plant at Muzaffarnagar, Uttar Pradesh using corn as raw material. Set up onsite plant in Silverstone Muzaffarnagar, Uttar Pradesh. New plant setup for Ethanol production at Assam. 2016 2017 2018 oooooo- 2019 2021 2022 Investor Presentation August, 2022. Started Fructose Plant in Muzaffarnagar, Uttar Pradesh Started ENA Production at Madhya Pradesh plant. Started Ethanol Production at Madhya Pradesh plant. Signed long-term offtake agreement with OMCS for supply of Ethanol for 10 years effective from January 15, 2022 under EBP Program. GULSHAN POLYOLS LIMITED 11#12Our geographical presence GULSHAN POLYOLS LIMITED Registered Office: Muzaffarnagar Corporate Headquarters: Delhi Marketing Office: Mumbai MANUFACTURING UNITS Grain Processing Units: Gujarat, Uttar Pradesh Ethanol Production Units: Madhya Pradesh, Assam Mineral Processing Units: Uttar Pradesh, Himachal Pradesh, Rajasthan On-site PCC Plants: Punjab, West Bengal, Uttar Pradesh, Madhya Pradesh Investor Presentation August, 2022. Punjab Delhi Rajasthan Gujarat Madhya Pradesh Maharashtra Himachal Pradesh Muzaffarnagar Uttar Pradesh West Bengal Assam LOCATIONAL ADVANTAGE 1. 2. 9+ (Including On Site PCC) Plants spread across country Plants located in and near the raw material belt 3. Plants are located near consumption centers and have central location which enables in quicker turnaround time and efficiencies in supply chain 4. Plant location near coal belt which allows reliable and consistent supply of power 12#13Exporting to 35+ countries scattered over 5 continents GULSHAN POLYOLS LIMITED Asia Afghanistan Bangladesh Africa Abidjan Cameroon Congo (DRC) Indonesia Iraq Senegal Iran Egypt Jordan Ghana Malaysia Kenya Myanmar Nigeria Nepal Pakistan South Africa Sudan Saudi Arabia Tanzania Sri Lanka Tunisia Syria North Thailand America Turkey UAE, Dubai Vietnam Canada Costa Rica El Salvador South America Argentina Brazil Colombia Guatemala Jamaica Nicaragua Ecuador Paraguay 00 Australia Investor Presentation August, 2022. 0000 G 13#14Segmental overview GULSHAN POLYOLS LIMITED Grain Processing Investor Presentation August, 2022. Ethanol Mineral Processing 14#15Financial performance across Business segment GULSHAN POLYOLS LIMITED (INR MN) FISCAL FY22 FY21 Particulars Grain Ethanol Processing Mineral Processing Grain Processing Ethanol Mineral Processing Revenue From operations 8,091.53 1,972.93 940.96 5,408.06 1,326.96 923.75 Segment profits 814.08 245.33 127.86 663.10 157.93 172.91 Segment margins 10.06% 12.43% 13.59% 12.26% 11.90% 18.72% FISCAL Particulars FY20 FY19 Grain Ethanol Processing Mineral Processing Grain Processing Ethanol Mineral Processing Revenue From operations 4,843.06 50.45 1,314.47 5,214.90 319.14 Segment profits 109.18 -47.32 329.13 411.39 -175.05 1,204.82 170.61 Segment margins 2.25% -93.80% 25.04% 7.89% -54.85% 14.16% *Segment profit figures are before finance costs and taxation. Investor Presentation August, 2022. 15#16155.78 891.59 Revenue contribution by key products 271.86 1,182.02 Sorbitol Fructose & Sweetner Starch Calcium Carbonate Revenue in FY21 (MN) 811.85 889.58 192.71 1,370.98 274.24 2,128.73 4% 1,328.94 2% 12% 15% % of total Revenue 2,568.74 2% Revenue By Products 2,149.16 in FY22 (MN) Liquor/Hand Sanitizer 1,941.27 Ethanol Others 833.88 1,676.30 Investor Presentation August, 2022. 11% 12% 2% 12% 20% % of total Revenue 8% 15% 28% 23% GULSHAN POLYOLS LIMITED 17% 18% 16#17GRAIN PROCESSING SEGMENT OVERVIEW GULSHAN POLYOLS LIMITED#18Grain processing Overview BUSINESS SEGMENT INPUT OUTPUT GRAIN PROCESSING Investor Presentation August, 2022. END USE INDUSTRIES GULSHAN POLYOLS LIMITED Maize Starch Powder • CORN / MAIZE Animal Feed RICE • • • Sorbitol 70% solution Liquid Glucose Dextrose Monohydrate Malto Dextrin Powder Glucose Powder • Rice Gluten Rice Syrup The company supplies to leading manufacturers of :- Oral Care, Paints Animal feed The company supplies to leading manufacturers of Food & Pharmaceuticals. The company supplies to leading manufacturers of Paper & Packaging Industry products, Food products, Textile & Adhesive 18#19Capacity utilization trend GULSHAN POLYOLS LIMITED FY20 FY21 FY22 Q1FY23 Sorbitol (Bharuch) Installed Capacity (MT) 72,000 72,000 72,000 18,000 Capacity utilization (MT) 54,000 56,378 64,214 16,248 Capacity utilization (%) 75% 78% 89% 90% Starch (Muzaffarnagar) Installed Capacity (MT) 73,800 73,800 73,800 18,450 Capacity utilization (MT) 36,887 38,179 60,216 12,872 Capacity utilization (%) Sugar (Muzaffarnagar) Installed Capacity (MT) Capacity utilization (MT) 50% 52% 82% 70% 36,000 36,000 36,000 9,000 17,285 30,392 42,212 8,062 Capacity utilization (%) 48% 84% 117% 90% Investor Presentation August, 2022.#20Highlights of the Grain Processing Segment 2 facilities with a combined capacity of 1,81,800 MTPA for producing starch sugars at Bharuch (Gujarat) Muzaffarnagar (Uttar Pradesh) and One of the largest manufacturer Sorbitol and Facilities with strong quality checks, R&D Department captive consumption power plant of 7.5 MW and 6.75 MW One of the Largest exporter of Sorbitol of with in India with presence in 35+ countries across a capacity of 72,000 MTPA with leading market share various continents. the Maize starch, second major product after sorbitol, is used by the semi kraft paper industry for making corrugated boxes ( demand supported by e-commerce boom) The company's plant is situated in and around the paper belt in Muzaffarnagar which gives us strategic locational advantage. Fructose syrup is another major product in this segment, which is serving the food and beverage industry is showing a very high growth rate. grain Currently processing is the main revenue generator for the company with the contribution of 75% (approx.) to the total revenue. Investor Presentation August, 2022. GULSHAN POLYOLS LIMITED#21ETHANOL SEGMENT OVERVIEW GULSHAN POLYOLS LIMITED#22Ethanol segment overview BUSINESS SEGMENT INPUT OUTPUT Ethanol Capacity utilization trend Ethanol/RS/ENA/CL (Borgaon) Installed Capacity (LTR) Capacity utilization (LTR) Capacity utilization (%) Investor Presentation August, 2022. END USE INDUSTRIES GULSHAN POLYOLS LIMITED DAMAGED FOOD GRAIN Ethanol (bio-fuel) Country Liquor Grain-based ENA DDGS The company has agreements with OMCs, Reliance and Nyara Energy for EBPP, Liquor, Animal Feed FY20 FY21 FY22 Q1FY23 1,80,00,000 6,14,066 1,80,00,000 2,06,28,158 1,80,00,000 2,73,01,756 45,00,000 61,83,948 3% 115% 152% 137% 22 22#23Key highlights of ethanol segment Investor Presentation August, 2022. 20% ethanol blending target from current ~ 9.5% gives immense opportunity for growth. One of the first and pioneer in producing ethanol from damaged grains. Current capcity of 60 KLPD and 750 KLPD in development. Facility backed by inhouse captive power plant of 2.2 MW. Have entered into 10 year long offtake agreement with OMCs for ~50% of capacity. GULSHAN POLYOLS LIMITED 23#24PROSPECT OF ETHANOL SEGMENT GULSHAN POLYOLS LIMITED#25Current ethanol blending levels GULSHAN POLYOLS LIMITED 10 8 00 6 Ethanol Procrement by OMC's (in crore litres) Blending in Petrol achieved % 9.9% 8.0% 5.1% 4.2% 5.0% CAGR 29% اس + 3.5% 2.33% 2.1% 2 1.53% 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 OMC have finalized tenders for 428.56 Cr. Litres out of which 415.88 Cr. Litres has been contracted out of which 186.2 Cr. Litres has been delivered till 8th May 2022 resulting in Pan India Ethanol Blending of 9.9%. Source: Report of the Expert Committee, NITI Aayog | Ministry of Petroleum and Natural Gas Investor Presentation August, 2022. 25#26O 500 1000 2000 1500 3000 2500 I T T 1000 1500 о 3000 6000 9000 4260 T 2580 19/20 3500 Sugar Based Ethanol Grain Based Ethanol T 1100 1500 1100 1600 po. 4500 2600 5190 3000 6250 3500 7250 4500 7300 7000 The journey to 20% ethanol blending creates massive growth opportunity 15000 Sugar Based Ethanol Grain Based Ethanol 12000 15000 12000 Sugar Based Ethanol Grain Based Ethanol 12000 10000 Sugar Based Ethanol Grain Based Ethanol 20/21 21/22 22/23 23/24 24/25 25/26 Distillation Capacity (in Million Ltrs) 1100 1700 1100 1800 1100 1900 1340 2000 5 15 10 5 10 0.5. о 7600 7400 3000 6000 I 2570 9000 1660 20 Sugar Based Ethanol Grain Based Ethanol 1.1 I 4000 1920 4400 2670 5350 2930 6000 3880 6600 6260 19/20 20/21 21/22 22/23 23/24 24/25 25/26 Ethanol Demand (in Million Ltrs) 8.5 10 Ethanol available for other uses (in Million Ltrs) Ethanol Blend (%) Source: Report of the Expert Committee, NITI Aayog | Ministry of Petroleum and Natural Gas Investor Presentation August, 2022. 19/20 20/21 21/22 22/23 23/24 24/25 25/26 19/20 20/21 21/22 22/23 23/24 24/25 25/26 7.4 7.6 + 9.3 2.7 12 10.5 4.5 15 11.1 8.9 O 10.8 9.2 5 20 20 25 10 15 20 6840 6660 о 2000 4000 6000 8000 1570160 I I 2900 420 3300 1070 4250 1230 4900 2080 19/20 20/21 21/22 22/23 23/24 24/25 Ethanol Available for Fuel (in Million Ltrs) Sugar Based Ethanol. Grain Based Ethanol 19/20 20/21 21/22 22/23 23/24 24/25 25/26 Sugar Diversion / Grain Usage For Ethanol (MMT) 26 6.5 15.7 17.2 25/26 5500 4380 5500 4660 GULSHAN POLYOLS LIMITED#27Multiple benefits to the government and society We are positive about the multifold growth of Ethanol in India GULSHAN POLYOLS LIMITED Import Substitution: Blending crude oil with ethanol would reduce import dependency and improve Balance of Payments Linked to farmers: The Government is supporting farmers by promoting ethanol from damaged food grains Policy Advancement: New policies would encourage the use of 100% ethanol-efficient vehicles creating huge demand for ethanol in the future Investor Presentation August, 2022. 1 2 3 6 5 4 Sustainable Consumption: Ethanol as a bio-fuel contributes to reduction in carbon footprint Employment Opportunities: Providing livelihood to local communities Logistical Support: Government is setting up pumps to support supply from ethanol manufacturers 27#28Very supportive governement policies favouring investment GULSHAN POLYOLS LIMITED Recent interventions by both the Central Government and the State Government reflect a gradual shift towards sustainable blending of ethanol which augurs well for the industry. Presently, 14 states allow unrestricted interstate movement of ethanol in India with more states undergoing positive policy changes. Ethanol prices delinked from crude or petrol prices Government Support Investor Presentation August, 2022. GST Differential and attractive prices for ethanol produced from damaged/surplus food grains, broken rice and maize A lower GST of 5% on ethanol from 18% Interest subvention scheme for molasses and grain-based distilleries (DFPD) Setting of standards for E5 (Ethanol 5%, Petrol 95%), E10 and E20 blends of ethanol blended petrol, as well as introducing E100 two-wheeler vehicles BS-VI Emission norms effectively applicable for E-20 Vehicles Source: 'Roadmap for Ethanol Blending in India 2020-25' 28#29Subsidies provided by state governments Sr. No. Kind of Concession MADHYA PRADESH 1 2 Production Linked Fiscal Assistance @ 1.50 Per Litre for 7 Years One-time reimbursementon Stamp Duty and Registration Charges 3 Electricity duty exemption on captive power plant for 5 years Electricity duty exemption on grid for 5 years 4 Zero Liquid Discharge 5 Investment Promotion Assistance on Plant Machinaery @ 40% of Plant & Machinery Total GULSHAN POLYOLS LIMITED Concession sought by the Company (Rs.) 1,73,25,00,000 44,04,000 31,41,00,000 20,94,000 10,00,00,000 86,00,00,000 3,01,30,98,000 ASSAM Northeast Industrial Development Scheme, DPIIT (NEIDS) Year Component CII (Interest on W/C) Total Year SGST Power CCIIAC (Capital Subsidy) 5,00,00,000 13,20,00,000 Interest on W/C Assam Industrial & Investment Policy 2019 (AIIP) Total 91,85,73,702 2,50,00,000 2,50,00,000 Year SGST Power CCII (Insurance incentive) 1,00,13,000 CGST & IGST (58%) 58,12,46,798 Employees Incentives 3,00,000 Interest on W/C Employees Incentives Ethanol Production & Promotion Policy of Assam 2021 (EPPPA) Total 32,56,66,897 3,75,00,000 2,50,00,000 3,00,000 IT reimbursement (Income tax) 68,58,54,419 Transport Incentive ETP Total 25,00,000 97,13,73,702 ETP Total 25,00,000 39,11,66,897 Employment Incentive (EPF/EPS) 54,00,000 Total Investor Presentation August, 2022. 1,46,45,14,217 Total Incentives 2,82,70,54,816 29#30MINERAL PROCESSING SEGMENT OVERVIEW S GULSHAN POLYOLS LIMITED#31Mineral processing segment overview Business Segment Input Mineral Processing Lime Stone Our Manufacturing Capacities Plants GULSHAN POLYOLS LIMITED Output Precipitated Calcium Carbonate Activated Calcium Carbonate Wet Ground Calcium Carbonate End Use Industries The company supplies to leading manufacturers in the sector of Paints, Polymers, Plastics & PVC formulations Pharmaceuticals Paper, Oral Care, FMCG Products UOM Installed Capacity Muzaffarnagar, UP Calcium Carbonate MT 50,400 Paonta Sahib, Himachal Pradesh Calcium Carbonate MT 60,000 Abu Road, Rajasthan Calcium Carbonate MT 60,000 Investor Presentation August, 2022. 31#32Key highlights of mineral processing segment الس Gulshan's manufacturing facilities have an integrated combined capacity of producing more than 170,400 MTPA of calcium carbonate products. Gulshan's dedicated manufacturing facilities are equipped with in-house microbiology laboratory and state-of-the-art research facilities. Company manufactures 19 grades of calcium carbonate. Gulshan is the market leader and hold a healthy market share in the calcium carbonate business segment in India. Company exports to neighboring countries like Nepal, Bangladesh, Nigeria, and U.A.E. Investor Presentation August, 2022. GULSHAN POLYOLS LIMITED 32#33On-Site PCC / WGCC Plants GULSHAN POLYOLS LIMITED 01 One of the largest calcium carbonate manufacturers, with one of a Kind On Site PCC Plant and Expertise in commissioning WGCC plants within and outside India.. Gulshan 03 Polyols Ltd. has multiple successfully installed on-site PCC plants for paper companies. Investor Presentation August, 2022. 02 04 Company provides the raw materials and expertise to set up and maintain an on-site PCC plant. This reduces energy consumption and drying time for users Holds Limca Book of record for such innovation. LIMCA BOOK of RECORDS 33#34Capex update GULSHAN POLYOLS LIMITED Gulshan is looking at a total capex of INR 4,500 MN over the next 12 months, out of which INR 3,000 MN will be required to set up the 500 KLPD Ethanol plant in the state of M.P. and INR 1,500 MN will be required for expanding the aggregate capacities across the grain processing division. Further, an estimated capex of INR 1,850 MN is to be deployed for ethanol plant in Assam over next 24 months. The Company plans to finance this Capex through a loan of INR 1,700 MN from HSBC Bank for the Ethanol facility in M.P, proceeds of the Qualified Institutions Placement ("QIP") and internal accruals. BUILDING CAPACITIES FOR THE ETHANOL SEGMENT The Company has embarked on a humungous capex plan to build two plants dedicated to the production of Ethanol for the Government's Ethanol Blending in Petroleum Programme- 2025. The sites are located at two locations viz. 500KLPD plant at Boregaon, Madhya Pradesh The aforementioned capital expenditure is proceeding as planned. The company expects to commission this plant by FY 2023. 250 KLPD Ethanol Plant at Goalpara, Assam. Company has started land and site developmental work at its Goalpara site at Assam for setting up a 250 KLPD Ethanol plant to take care of its next leg of growth. Grain Processing Division The planned Capex for upgradation of capacities of the grain processing division in Gujarat is ~ INR 1,500 MN. The company expects ~ 20% increase in total combined capacities of the plants. The Company is progressing well on the said capex. Investor Presentation August, 2022. 34#35Industry outlook GULSHAN POLYOLS LIMITED Company will be able to achieve good financial performance owing to structural industry tailwinds in the sectors that we operate. Segment wise industrial growth opportunities are as follows: Grain Processing • The India sorbitol market is a very dynamic market and is expected to witness steady growth over the forecast period. • Sorbitol, a key product offering, is a low-calorie sugar substitute used in many products such as candies, chewing gum, ice cream, baked goods, cosmetics, toothpaste, personal care products and pharmaceuticals. • Liquid sorbitol segment is expected to hold the largest market share by the year 2030. The segment growth can be attributed to factors such as technological advancements in production, easy usability and reduced manufacturing cost. Owing to increased customer awareness, demand for low sugar and low-calorie products and diversified applications, company shall continue to witness good growth rates. The Powder/Crystal sorbitol segment is expected to observe significant growth as it is widely used as additive in food for production of frozen raw fish, dried squid thread, roasted fish fillet, and several other aquatics products. • Liquid fructose is another product in which Gulshan is establishing its strong footprints as a major supplier backed by heavy import substitution. Ethanol Production • With government's increased focus on ethanol blending in petroleum, company believe that there is a long runway for growth. • As per current statistics, ethanol blending stands at 9.9% and is targeted to reach 20% by 2025-26. • In order to capitalize on this opportunity, the Company is augmenting its capacity to 810 KLPD from 60 KLPD currently. This shall turn the company into a formidable player with a sizeable market share in distillation segment. Mineral Processing In mineral processing, our key product is calcium carbonate which is a widely used compound as an industrial filler and finds application in paints, paper, plastic, rubber and pharma industries. With growth in underlying industries, we shall continue to witness decent growth due to our capabilities and diversified offerings. As part of the growth strategy, company intends to stay focus on setting up of innovative on-site PCC plants for our established clientele by way of installing, commissioning, operating and maintaining at least one on-site PCC plant every year, from which company will have consistent revenue growth. Source: Market Research Future Report Investor Presentation August, 2022. 35#36Quarterly profit & loss statement GULSHAN POLYOLS LIMITED Particulars (INR Mn) Q1 FY23 Q1 FY22 YOY% Q4 FY22 QoQ% Revenue from Operations 2,701.83 2,385.55 13.26% 2,922.27 -7.54% Other Income 4.68 4.15 11.02 Total Revenue 2,706.50 2,389.70 13.26% Raw Material Cost -1,601.46 -1,183.34 2,933.29 -1,557.40 -7.73% Employee Expense -85.23 -82.36 -124.88 Other Expenses -801.98 -688.70 -990.96 EBITDA (Includes Other Income) 217.83 435.30 -49.96% 260.04 EBITDA Margin (%) 8.05% 18.22% 8.87% Depreciation -70.59 -75.69 -84.84 Finance Cost -10.88 -8.20 -13.75 PBT Before Exceptional Item 136.37 351.42 161.45 Exceptional Items 0.00 0.00 0.00 PBT 136.37 351.42 -61.20% 161.45 -15.54% Tax -34.51 -89.79 -44.77 -16.23% Financial Performance Comparison: Q1 FY23 vs Q1 FY22 Revenue from Operations grew by healthy 13.3% from INR 2,385.55 Mn in Q1 FY22 to INR 2,701.83 Mn in Q1 FY23 backed by healthy growth across our three segment. EBITDA degrew by 50% from INR 435.30 Mn in Q1 FY22 to INR 217.83 Mn in Q1 FY23 owing to decline in EBITDA margin from 18.2% to 8.0% primarily led by commodity cost headwinds faced by the industry on account of continued high inflation in the prices of basic raw materials, rice and maize. Further, global supply chain issues related to coal supply has also led to significant increase in power cost which impacted the margin. Net profit has decreased by 61.1% from INR 261.62 Mn in Q1 FY22 to INR 101.86 Mn in Q1 FY23. The Net Profit Margins were at 3.8% in Q1 FY23 from 10.9% in Q1 FY22 due to increased operating costs as mentioned above. PAT 101.86 261.62 -61.07% 116.68 -12.71% Other comprehensive profit / loss -0.13 0.00 -1.85 Net PAT 101.99 261.62 -61.02% 118.53 -13.97% PAT Margin % 3.76% 10.95% 3.98% Diluted EPS 1.96 5.28 -62.87% 2.24 -12.50% (minor differences due to rounding off) Investor Presentation August, 2022. 36#37Management guidance/ financial outlook GULSHAN POLYOLS LIMITED Management is expecting a revenue of ~2,300 crores by FY24 and 2,800 crores by FY25 on significant back capacity of expansion in Ethanol segment. The company is expected to have an EBITDA margin of 13% to 14% over FY 23 & FY 24. With the addition of capacities in the ethanol segment, the revenue mix will change. Currently, -75% of the revenue is contributed by grain processing about 18% segment, from Ethanol processing segment and Balance 7% from Mineral processing segment. After commissioning of new capacities, management is expecting -50% revenue from Ethanol segment and balance -50% from grain processing segment. The contribution from mineral processing segment will gradually decrease. Investor Presentation August, 2022. 37#38Market Indicators Capital market information Particulars Promoter and Promoter Group 66.65% 400.0 Public 29.29% Mutual Funds & FPIs 3.84% 350.0 Employee Trust 0.23% 300.0 TOTAL 100.00% Shareholding Pattern as on 30th June, 2022 Stock Performance Of Last One Year Issued Shares 5,19,75,489 Share Price (08-08-2022) 258.6 150.0 Market Cap (MN) 13,438.3 52 Weeks High/Low 429.0/204.7 Investor Presentation August, 2022. 200.0 Jul-21 250.0 Aug-21 Sep-21 Oct-21 Nov-21 Dec-21 Jan-22 Feb-22 Mar-22 Share Price Movement Apr-22 May-22 Jun-22 Jul-22 Source BSE 38 Aug-22 GULSHAN POLYOLS LIMITED#39CSR GULSHAN G 806 GULSHAN POLYOLS LIMITED Gulshan Polyols Ltd. actively contributes to the social and economic development of the communities in which the company operates. In so doing Gulshan build a better, sustainable way of life for the weaker sections of society and raise the country's human development index. Gulshan have always considered sustainable development the keystone of business strategy. Gulshan's strategy includes nurturing close and continuous interaction with the people and communities around our manufacturing divisions, bringing qualitative changes in their lives and supporting the underprivileged. Gulshan's focus is on the all-round development of the communities located mostly in distant rural areas. • • • • • Rural Development Projects Implementing community need-based projects in rural areas focusing on quality education and health facilities. Providing access to electricity to households in remote rural areas. Micro projects in rural areas that are community need-based - to promote local community development. In line with the Swachh Bharat campaign, one of the primary focus areas under CSR, is creating conducive environment for children in schools by providing sanitation infrastructure. Besides, Gulshan have also provided facilities for potable water as well as improvement in basic infrastructure in schools neighbouring our facilities, which includes the following: Construction/repair of school buildings & facilities including boundary walls, separate toilets for boys & girls. Provision of adequate furniture including desks and chairs for students and teachers, closets, blackboard, sound system, etc. Development of playground with new swings and sporting equipment. • Provision of uniforms, books, stationery, computer & Laboratory equipment etc., to schools. • Promote computer literacy and technology assisted learning. • • Provision of drinking water by RO water system and To promote Technical/ professional/ medical education by giving financial assistance through Organizations/ infrastructural support. Investor Presentation August, 2022. 39#40Awards & certifications ITC Ltd. Recognition for Co- Creating Value, 2015 Contifants of Conformit HACCP certificate, Muzaffarnagar Plant GELDERS PORNOLA LFB PLASTINDER POUNION Indplas "15 Miss Polyol Lad PLASTINDIA Award of Acknowledgement for Participation in Indplas 15 Award of Acknowledgement for Participation in PLASTINDIA, 2012 KK GULSHAN POLYOLS LIMITED Certificate of Registration bsi Certificate of Registration bsi bsi Certificate of Registration Poperex. 2005 - Award of Acknowledgement for Participation in Paperex 2005, India FSSAI certificate EMS ISO 14001:2004 OHSAS 18001:2007 HACCP certificate, Bharuch Plant Cestif of purc Cuntarer Corporation of India Ltd Cham Poly FOLLOW GULSHAN POLVOLS LTD. HALAL certificate, Bharuch Plant ISO 901:2008, Muzaffarnagar Plant Excellence certificate from CONCOR E-Certificate for GST Orthodox Union HALAL encore, Muzaffarnagar Plant KOSHER certificate (OU) Investor Presentation August, 2022. Abbott Polls M SAMAN VAY Limca 201 ABBOTT Partners Award 2015 Colgate Palmolive (India) Limited Certificate of Recognition, 2014 Limca Book of Records, National Record 2010 40#41GULSHAN POLYOLS LIMITED THANK YOU For further information on the Company, please visit www.gulshanindia.com Asha Mittal Gulshan Polyols Limited Contact: +91 11 49999200 Email: [email protected] Investor Presentation August, 2022. Krunal Shah | Naman Maheshwari Captive IR Strategic Advisors Pvt. Ltd. Email: [email protected]/ [email protected] Contact: +91 93724 67194 41