GULSHAN POLYOLS LIMITED

An Organization on the
forefront of growth…
 Table of Contents
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

2
Highlights

Largest producer of Calcium Carbonate with capacity of 135,000 TPA

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
>Rs. 1000 Cr

3
Group Introduction
 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
Overview  Dr C.K Jain has been leading a team of highly experienced professionals for more than
35 years

Starch Calcium Onsite PCC Animal

Products Sugars Carbonate Plants Feed
IMFL

 Company has 9 manufacturing facilities spread over six states in India

Manufacturing
 Company is ISO 9001:2008, EMS 14001:2004 & OHSAS 18001:2007 certified

Abu Road – (Rajasthan) Delhi Ponta Sahib – (HP)

Calcium Carbonate Corporate Headquarters Calcium Carbonate
Patiala – (Punjab)
Onsite PCC

Bharuch – (Gujarat)
Starch Sugar + Cal-Carb Borgaon & Amalai – (MP)
IMFL & On Site PCC – OPM

Muzaffar Nagar (UP)

Cal-Carb + Starch Sugars

Hoogly – (W. Bengal)

Mumbai Production Facilities Onsite PCC - ITC
Marketing Office
Spread all across India
4
Company History – A Long and Cherished Journey
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

5
Business Divisions…
GPL has 5 major divisions: Starch Sugars, Cal Carb, Onsite PCC Plant, Animal Feed & Alcohol

Products: Sorbitol 70%, Native Starch, Fructose (HFRS), Brown Rice Syrup
Starch (BRS), Liquid Glucose, Malto Dextrine Powder (MDP), Dextro Mono Hydrate
Sugars
Plant Locations: Bharuch (Gujarat) & Muzaffarnagar (UP)

Products: Precipitated, Ground Natural, Activated & Wet Ground Calcium

Calcium Carbonate
Carbonate Plant Locations: Muzaffarnagar (UP), Ponta Sahib (HP), Abu Road
(Rajasthan) & Bharuch (Gujarat)

Onsite Products: PCC for Paper Industry

Plant Locations: Patiala (Punjab), Hoogly (West Bengal), Bangladesh,
PCC Plant Amalai (M.P.)

Animal Products: Corn Germ, Corn Gluten, Enriched Fiber, Rice Gluten
Feed Plant Location: Bharuch (Gujarat) & Muzaffarnagar (UP)

Products: Potable Alcohol, Whisky, Rum under brand name “TIGER GOLD”
Alcohol
Plant Location: Boregoan (MP)
6
Management Profile
Mr A.K Vats, Executive Director & CEO

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

Dr C. K. Jain
Chairman & Managing Director,
Gulshan Polyols Ltd.
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.
Institute of Technology, Kanpur, PGD Project & Management
from Punjabi University, Patiala (Punjab). He has been
associated with GPL since 1989. He has over 30 years of
experience in varied industrial managing skills.
Mrs Arushi Jain, Executive Director
Mrs. Jain is MS in marketing from City University of New
York, USA and Diploma in Baking Technologist from AIB,
USA. She overviews operations and technology.
Mrs Aditi Pasari, Executive Director
Mrs. Pasari is MBA from Cardiff University, UK. She has the
experience of having conceived and set-up a packaging unit
in Haridwar, under the umbrella of GPL.

7
Our Products

8
Revenue contribution of Products…

FY 2016 Revenue of Rs4,388m

Liquor, 0.2%

Calcium
Carbonate ,
29.5%

Starch Derivatives,
70.3%

9
Our products- Calcium Carbonate

Production Market
Four plants with integrated capacity of 135,000 TPA Largely an unorganised market
Product is being used as a commodity
In-house microbiology laboratory for R & D and Estimated market size of 300,000 TPA
8MW captive power plants GPL’s market share is estimated to be ~30-33%.
Exports to neighboring countries like Nepal,
Eco-friendly production facilities with clarifiers to Bangladesh, Muscat, Nigeria, U.A.E., etc
recover maximum solids and waste water discharge
Calcium Carbonate
19 grades (Precipitated,
Activated, Ground Natural Calcite
Powder and Wet - WCC)
Application Market Drivers
Paper Industry
Replacing Kaolin in paper industry
Plastics
Increasing demand for Nano-Caco3 in PVC &
Oral Care plastics
PVC & Cables Increasing usage as drug templates
Detergents Growing demand for high quality paper (mineral
Paints & Coatings loading)
Adhesive & Sealants Growing consumption in paints

10
Our products- Onsite PCC plants
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
Onsite PCC
Have set up 6 plants
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.
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
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
11
Our products- Native Starch

Production Market
Plant situated at Muzaffarnagar, U.P. Asia-Pacific represents the largest as well as the
Close proximity of paper mills from plant ensures fastest growing market worldwide.
demand for our products Global market for Starch is projected to exceed 150
By products (Cattle Feed) are also very valuable MMT by the year 2020
source of revenue Indian starch Industry revenue is expected to grow
Recovery rate 16% CAGR
• Starch- 60-62% Gluten- 5%
• Germ- 5-6% Husk- 25-28%
Native Starch
Corn/Maize starch

Application Market Drivers

Paper & Packaging Industry- To enhance bonding Evolved usage in baking Industry
strength Health benefits is fuelling use in medicines,
Food Industry cosmetics, toothpaste, building material, polish, and
paper etc.
Textile Industry
Growing consumer demand for healthy and natural
Adhesive Industry ingredients in food products
Pharmaceutical Industry- As a coating and binding Demand for better quality paper increasing
agent consumption of starch in industry

12
Our products- Starch Sugar Products

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

Starch Sugar products

Sorbitol 70%, HFRS, BRS, DMH, MDP, LG

Application Market Drivers

Health benefits is fuelling use in Food & Beverages
Functional properties as a humectant, sweetener, industry
bulking agent, stabilizer, softener and emulsifier;
used in- The rising diabetic population is primarily boosting
the market growth of Sorbitol as it is relatively low in
Oral Care & Cosmetics sweetness
Pharmaceuticals Increasing production of artificial honey
Food & Beverage
Demand for allergic free sweetener
Textile & Polymers
Paints

13
 Our Plants

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

Calcium Carbonate Plant, H.P. Calcium Carbonate Plant, Gujarat 14

 Our Plants

Onsite PCC Plant, Patiala Punjab Onsite PCC Plant, ITC West Bengal

Calcium Carbonate Plant, Abu Road Alcohol Unit, Madhya Pradesh 15

Key Financials (Rs in Crores Except EPS)

Net Sales EBIDTA & PAT

500 446 70 65
405 57
400 60
327 47 48
50
274 284 38
300 40
27 30
30 24 25
200
18
20
100 10
0
0
2012 2013 2014 2015 2016
2012 2013 2014 2015 2016

EPS ROE, PAT & Dividend

35 32
31
29 29
30

25
21
20

15

10

5
2012 2013 2014 2015 2016
0 ROE 13% 15% 15% 12% 12%
2012 2013 2014 2015 2016 PAT 7% 8% 8% 6% 7%
Dividend 25% 50% 50% 70% 70%
16
Key Financials (Rs in Crores)

NET WORTH CAPITAL EMPLOYED & DEBT

300
244 400
250 336
212 350
200 181 300 251
158 250 232
150 137
200 159 175
100 150
86
100
50 44 33
50 15 13
0 0
2012 2013 2014 2015 2016 2012 2013 2014 2015 2016

FIXED ASSETS RECEIVABLES, INVENTORY & CREDITORS

300
242
250

200
149 148
150
109 104
100

50
2012 2013 2014 2015 2016
0 Creditors 11.43 12.97 17.78 16.68 21.67
2012 2013 2014 2015 2016 Inventory 23.39 25.57 42.47 40.11 41.94
Receivables 38.52 55.09 59.93 63.57 73.66
17
Growth Prospect- Indian Oral care Industry

Oral care Industry has Industry is expected to

Oral care Industry size of
recorded growth of grow CAGR ~13.9%
US$1bn in India
~17.5%in 2015 FY16-18

Only 55% penetration Growth Drivers

level of toothpaste in Growing awareness about healthy
India lifestyle and oral hygiene

Innovative oral care products such as

sensitive toothpaste, gum care
Only 15 % of them toothpaste, sensitive mouthwashes and
brush twice a day dental flosses

Change in the spending power of people

per capita consumption on the oral care products
0.5x of other emerging
markets and .25x of U.S

18
Growth Prospect- Indian Pharma Industry (as excipients)

Indian Pharma Industry Industry size to reach Global excipients market

has recorded CAGR US$55bn by 2020 with is 0.4-0.5% of global
~14.4%in last 7-8 years CAGR 15.9% Pharma market

Growth Drivers
North America and
Europe consume ~70% of It slowly absorbed and digested in human
excipients output body so significant reduces level of blood
glucose

Increasing recognition Sorbitol is listed in the FDA’s Generally

and research on role of
excipients
India, China & Brazil have
become major single
markets in recent years
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

19
Growth Prospect- Indian Paper Industry

Indian produces ~13 MT of Growth Drivers

paper; ~3% of the world’s
production Growing awareness and emphasis on
education and literacy

Domestic demand of ~14.5 MT; Increasing need for documentation, shift

per capita consumption ~11 kg towards high end printing and photocopying
vs. global average of 57 kg

Growth in organised retail and greater

Production expected to reach demand for better quality paper
22/33.4 MT (baseline/optimistic
scenario) by FY2025

Consumption to reach 23.5/36.9 In addition of above,

MT (baseline/optimistic modernization of mills,
scenario) by FY2025 productivity improvement
and building new capacities
to improve demand for GPL
products/services
20
Growth Prospect- Indian Paint Industry

Has been growing at

Indian paint industry- A Expected to grow above
CAGR ~15% in last 5-7
~Rs.400bn Industry 10-12% in near future
years.

India’s per capita Growth Drivers

consumption of paint is Growing per capital spending and
little over 4kg income level

way below China’s per Fiscal incentives given by the

capita consumption of
~10kg
~65% of Indian market
organised, beneficial for
raw material suppliers
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

21
Growth Prospect- Animal Feed Industry

Indian Animal feed industry- A CAGR of 8% with poultry, cattle

Feed consumption volumes to
~US$15bn Industry poised to and aqua feed sectors emerging
reach 30 MT by 2017-18
double in 5 years as major growth drivers

India milk production per Growth Drivers

animal is way below world Emergence of modern dairies; replacement
average
of traditional feed with more nutritional feed

Increasing milk demand requires more

India has ~320mn livestock production per cattle; possible with rich in
population; among top five in protein, minerals & pro-biotic feed
the world

With increasing intake of protein rich food ,

there is higher requirement of processed
Industry supplying only 10% of dairy, aqua and poultry products, which in
cattle and aqua feed and 50% turn will result in higher feed requirement
of poultry feed requirement

22
 SWOT Analysis…
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 Opportunities
•Low value addition in •Export potential for new
Production products like (Fructose,
•High volatility in raw Brown rice syrup etc.)
material prices is not •Improving quality
completely pass through consciousness in finished
•Availability of skilled goods improves
manpower consumption of our
•Commoditized products products
(except HFRS & BRS) •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
23
Application of our products

Toothpaste Plastics

Electrical Paint &

Cables Coating

Paper Footwear

Pharma Cosmetics

Food & Cattle &

Beverage Poultry
24
Our Esteemed Partners…

25
Our Esteemed Customers… by Industry
 Colgate Palmolive
 Unilever
FMCG
 Dabur
 Wipro, Persona Cosmetics, Choice lab etc
 Asian Paints
Paint  Berger Paints
 Goodlass Nerolac, Advance Paint, Bombay Paint, Punjab Paints etc

 Pfizer
 Novartis
Pharma  Glenmark Pharma
 Cipla, Cadila, German Remedies, Lupin Laboratories, IPCA Laboratories,
Torrent Pharma Emerk, RPG lifeline, Sarabhai, etc
 ITC
 Ballarpur Industries
Paper
 Orient Papers
 Century Paper, Tamil Nadu New Print etc
 Bata
Footwear  Relaxo
 Liberty 26
Global Presence…
GPL exports to major markets around the world

Canada

Sri Lanka
Nigeria Bangladesh
Egypt Nepal
Turkey Pakistan
Iran Vietnam
UAE
Jordan South Africa
Syria Australia

Export Countries

27
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.

28
THANK YOU 29