Establishing an Adhesives Foot Print in India

Corporate Profile

Brazil September, 2011

The Jai Group

Business Services for the BRICs Economies

An experienced business group being the leader in Brazil, South America while spanning into China

SUMMARY PROFILE
Business Description Founded by the leader in footwear exports in Brazil Reichert Group when footwear was the largest export item to the US, FCC started operations as a manufacturer of components for the footwear industry. Soon, it expanded its portfolio to include thermoplastics and adhesives and its market reach to include other sectors such as automotive, furniture, health care, and civil construction Basic Figures Industrial capacity: Annual turnover: Total assets: Structure 6 company sites in 5 countries 4 industrial plants (3 in Brazil and 1 in Uruguay) 2 DCs (1 in Brazil and 1 in China) 1 industrial JV (Argentina)

Corporate Timeline
Foundation of FCC as a captive supplier to Reichert and Schmidt Opened 3rd plant in Started production of elastomers: TPU and TR Cear and expanded into segments outside footwear

50 thousand tons USD 200 million USD 100 million*

1969

70s

80s

90s

00s

Started chemical business unit focused on adhesives * Book value. Source: Jai Group Analysis.

Opened 2nd plant in Brazil and expanded portfolio

Business Services for the BRICs Economies

The Jai Group

Diversified product base; strong technology & innovation focus; efficient & safe environmental practices

CORPORATE ACHIEVEMENTS
Business
One of the global leaders in waterbased adhesive technology
Diversified production in adhesives Solvents Hotmelt Thinners and cleaners Primers Water-based Largest and most diversified thermoplastic elastomer compounder in Latin America TR, TPU, TPE, TPV, TPO EVA Top of mind brands in every product category

Quality
ISO 9001
ISO 14001 ISO TS 16949:2002 Large number of patents and a new product every week Quality academic publications 60 highly qualified technicians with PHDs and MScs in intellectual property research & development Own technology synthesis of polyurethane

Social Responsibility
Environment protection Water diluted products Thermoplastic adhesives Safe storage orientation Certified production Effluent-free process Vegetable tanning Eco-friendly safe disposal
Human development Community-oriented educational programs Sponsorship of cultural and sport events

Source: Jai Group Analysis

Business Services for the BRICs Economies

The Jai Group

Strategically located across South America and

Morada Nova Brazil Industrial Site

established base in China ; INDIA now on the radar

LOCATIONS AND PRODUCTS

Adhesives

Conceio do Jacupe Brazil Industrial Site Shenzen - China Distribution Center Adhesives Thermoplastics Footwear Components

Joint venture will initially leverage current production of local partner Rosario - Argentina Industrial Partnership

Adhesives and Sealant

Thermoplastics Campo Bom Brazil Headquarters Footwear Components

Montevideo - Uruguay
Industrial Site Adhesives Thermoplastics

Source: Jai Group Analysis

Business Services for the BRICs Economies

The Jai Group

FCC looking to seek a majority to 100% equity position in ADVANCE POLYMERS to establish manufacturing base in India and footprint in Emerging Asia

INDIA PROJECT
Company Tactics* Context of Synergies
BRICS integrating. Especially Brazil and India coming together Bilateral Trade (USD billion) 7x
to Brazil to India

5.6

2.1

FCC is expanding rapidly in international markets and has selected India as a priority market for expansion Company intends to invest in capacity production of adhesives in India and is primarily looking at inorganic opportunities to acquire or invest in existing capacity Jai Group is the advisor to FCC to identify opportunities in India and activate the expansion strategy. Project team has identified your company as a priority for FCC
0.5

0.8

3.5

0.3 2001

2010

Cross investments growing at an even higher pace than trade Large number of successful joint ventures between India and Brazil

fueled by geographic synergies and diplomatic alignment Large market in India for large stock of natural resources in Brazil Common geopolitical agenda (WTO/GATT, Security Council) Best double taxation avoidance treaty of India and Brazil

* This document shares confidential information on FCCs corporate structure and strategy under the terms defined in the non-disclosure agreement signed by your company. Source: Jai Group Analysis.

Business Services for the BRICs Economies

The Jai Group

Establishing an Adhesives Foot Print in India

THANK YOU

Business Services for the BRICs Economies

The Jai Group