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1 Hindusthan National Glass & Industries Ltd.. 2 DisclaimerDisclaimer Certain statements in this communication may be forward looking statements within.

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Presentation on theme: "1 Hindusthan National Glass & Industries Ltd.. 2 DisclaimerDisclaimer Certain statements in this communication may be forward looking statements within."— Presentation transcript:

1 1 Hindusthan National Glass & Industries Ltd.

2 2 DisclaimerDisclaimer Certain statements in this communication may be forward looking statements within the meaning of applicable laws and regulations. These forward-looking statements involve a number of risks, uncertainties and other factors that could cause actual results to differ materially from those suggested by the forward- looking statements. Important developments that could affect the Companys operations include changes in the industry structure, significant changes in political and economic environment in India and overseas, tax laws, import duties, litigation and labour relations. Hindusthan National Glass & Industries 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.

3 Company Overview Business Overview Industry Snapshot Operating and Financial Performance Annexures 3 Table of Contents

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5 Company overview Market share of ~ 55% in the container glass segment Installed TPD capacity in India (2,925 MT) and Germany (320 MT); Planned capacity expansion to ~6,765 TPD by FY17 Manufacturing facilities in 6 locations across India, 7 th facility will start by April, 2012 Additionally, international manufacturing footprint through its 100% subsidiary HNG Global GmbH, Germany Diversified end user segment including Liquor, Beer, Beverages, Food, Pharmaceuticals and others Strong management with vast experience and domain knowledge Successful history of acquiring loss-making units and turning them around Six decades of presence in the industry has enabled the Company to develop long standing customer relations In a capital intensive industry, the Company has been able to maintain a comfortable long term debt/ equity ratio Dominant position Consumption Ancillary Competent management Well established customer relations Strong Balance Sheet 5

6 Corporate Milestones First 30 TPD plant commissioned in 1952 Second 90 TPD plant commissioned in 1964 Capacities expanded to 1,100 TPD Acquired 700 TPD facility in Owens Brockway India Ltd, a subsidiary of Owens Illinois, USA. Company renamed as Ace Glass Acquired 320 TPD loss making glass division from L&T at Nashik Ace Glass Containers merged with HNG Established float glass plant in Halol under HNG Float Glass Acquired 180 TPD Neemrana unit of Haryana Sheet Glass Rated Best Indian Glass & Ceramics Company by Dun & Bradstreet Work on 7 th plant at Naidupeta (650 TPD) initiated – operations to commence by Q1 FY13 Nashik plant to add capacity of 650 TPD by Q4 FY12. Acquired assets of Agenda Glas AG in May 2011; 320 TPD facility at Gardelegen, Germany

7 Corporate Structure 100% Net revenues: Rs. 299 millions. Capital Goods & Spares Supplier to Glass Industry Net revenues: Rs. 10 millions. Mineral Supplier to Glass Industry Net revenues: Rs. 2,948 millions. Manufacturer of Float & Processed Glass 47.4% -Consolidated net revenues: Rs. 15,678 millions. -Standalone net revenues: Rs. 15,525 millions. 7 Note: 1. All revenue figures are for FY HNG Global GmbH was acquired after March 31, % Glass Equipment (India) Ltd. Quality Minerals Ltd. HNG Global GmbH HNG Float Glass Ltd. (HNGFL) Acquisition of assets of Agenda Glas AG Hindusthan National Glass & Industries Ltd.

8 Business Strategy Acquired and turned around four loss making units over the last nine years Planned organic expansion to ~ 6,765 TPD by FY17 Introduced Narrow Neck Press and Blow (NNPB) technology, first in India Sustained competitive advantage through product optimization and continuous innovation Increasing production of light weighted bottles to enhance margins Presence across key user industries – liquor, beer, pharmaceuticals and food Capitalizing on opportunities in the high growth float glass industry Captive power plant to improve cost efficiencies (Existing and Proposed) Silica mining to support raw material supply chain (Proposed) Manufacturing of glass machines & spares in 100% subsidiary GEIL Gained European presence, one of the largest markets for food and alco-bev industries Access to technological strength and production processes Capacity Expansion Adapting new technology Expanding product portfolio Backward integration International Footprint 8

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10 Pan – India Presence 10 HNG, the largest container glass manufacturer in India has a manufacturing capacity of 2,925 tonnes per day Multi-locational production facilities enable the Company to: Lower landed cost to customers Provide JIT supplies Cater to key customers across India Note : Further, the Company is setting up greenfield manufacturing facilities in new locations in West Bengal and Rajasthan. The total capacity is expected to grow to ~6,765 TPD by FY17 through Greenfield and Brownfield expansions in India. RishikeshBahadurgarh Chennai Delhi Neemrana Vadodara Kolkata Puducherry Rishra Nashik Mumbai Hyderabad Naidupeta Bengaluru Marketing Offices Container Glass Plant Locations Upcoming Greenfield Mega Project Upcoming Brownfield Mega Project (Nashik) Float Glass Unit GEIL

11 International Presence Plant location: Gardelegen, Germany Capacity: 320 TPD 11 Gardelegen

12 HNG Global GmbH, Gardelegen, Germany 12 One of the most modern production facilities in Europe, with 320 tpd capacity. HNG Global GmbH, is located closed to the regional raw material suppliers with easy and economic access to all key RMs. The Plant is ideally located for deliveries throughout Germany and to adjacent European Countries. Company has 147 FTE, the average age of employees is 37 years, with 50% of the workforce below the age group of 35 yrs. Germany is the largest market for Container Glass in Europe, with a share of ~ 20%. Companys technological edge can also be back pedalled in HNGs Indian operation, as Germany is always considered as two steps ahead in terms of technology, from the rest of the World.

13 Expanding Scale Present capacity of 3,245 TPD with proposed expansion to ~ 6,765 TPD by FY17 13 LocationPresent CapacityExpanded Capacity To be Commissioned by New Furnace(N) / Rebuild (R) RSR Furnace Already startedR RSR Furnace Already startedR RSR Furnace R EAST Furnace N BGR Furnace R BGR Furnace Already startedR BGR Furnace 5180 Already startedR NMR Furnace R RSK Furnace R RSK Furnace 1290-Already startedR RJSTHN Fur N RJSTHN Fur N RJSTHN Fur N PDY Furnace R NSK Furnace R NSK Furnace st March, 2012N Naidupeta N Gardelegen320 Already startedAcquisition TOTAL 3,245 6,765

14 Strong customer relationships Caters to customers across segments PHARMACEUTICALS BEER LIQUOR FOOD SOFT DRINKS 14


16 HNG Float Glass Overview Leveraged six-decade experience in glass manufacturing Synergies in technology – Significant part of float glass manufacturing process is similar to that of container glass Economies of scale achieved in raw material procurement Created a strong distribution base with over 928 dealers spread across India Achieved pan-India market share of 21% in clear glass and became industry leader in the west Indian market with 30% market share in clear glass in its first year of operations Established a 600 TPD Greenfield Plant at Halol, Gujarat Accomplished 100% capacity utilization in the first year of operations Diversification within the glass sector Extensive and expanding pan India dealer network One of the fastest growing Float Glass companies Commenced operations in February

17 HNG Float Glass Overview Setting up of a Mirror line, High performance Low E glass, Two float lines at Halol (Gujarat) & South India Second Float Line at Halol for 900 TPD for architectural glass by FY14 Setting up additional 1,200 TPD float glass Capacity for architectural quality in South India by FY16 Plan to commission production facility for Soft coated High performance Low E Glass by start of FY14 Nascent industry in India with just 8 float glass lines compared to 246 in China Indian Float Glass industry has been growing at c.20% CAGR over the last three years Indias total installed capacity for float glass is ~ 4,700 TPD which results into saleable production of 3,840 TPD Low per capita consumption of Float Glass in India of 0.8 kg as compared to 12 kg in China and 10.4 kg in USA 17

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19 19 Global Packaging Industry As per World Packaging Organization, the global packaging industry at present is estimated to be USD 425 billion in revenues, with ten year historical growth at ~ 3.1% CAGR, expected to be USD 597 billion by 2014 Projected to grow at ~ 3.5% CAGR in the next five years mainly driven by growth in emerging markets (Asia Pacific region) Source: Owens-Illinois, Inc. - Investor presentation, March 2010

20 Indian Glass Packaging Industry World glass container per capita consumption At US$ 14 bn, Indian packaging industry has been growing at ~ 15% over the last few years Expected to accelerate further with increasing urbanization, growing middle class and expansion of modern retail Indian glass container market stood at US$ 1 bn plus in FY10 with a growth of ~ 12% Entry barrier owing to capital intensive nature Top 3 players are HNG, AGI Glaspac and Piramal Glass Low per capita glass container consumption of 1.5 kg in India as compared to 27.5 kg. in US and 10.2 kg. in Japan Strong economic drivers for end-user segments (liquor and beer, pharmaceuticals, food, cosmetics, etc.) (Kg) 20


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23 Operational Overview Key Highlights Firm domestic demand driven by growth in end user industries - liquor, beer, pharmaceuticals, foods and carbonated drinks Manufacturing facilities located across India provide an edge over peers who have regional presence Pan India distribution network Implementation of advanced technology enables improved cost efficiencies 23

24 End user segment Volume Mix -FY11 1 Others include soft drinks Geography 24 Production - Capacities FY11-12

25 Financial Performance All figures stated in Rs. millions on a standalone basis Net TurnoverEBITDA PATEPS (Rs. / share) 25

26 Balance Sheet Particulars (Rs. million) Half Year ended September, 2011 Year ended March, 2011 Year ended March, 2010 Share Holders Funds 12,10511,66110,428 Loan Funds 10,57163,955,657 Deferred Tax Liabilities TOTAL LIABILITIES 23,38818,76916,782 Net Block + Capital Work-in- progress 17,56013,84511,438 Investments 2,2811,7751,471 Net Current Assets 3,5473,1493,873 TOTAL ASSETS 23,38818,76916,782 All figures stated in Rs. millions on a standalone basis 26

27 Key Balance Sheet Ratios ROCE 27

28 H1 FY Financial Highlights Profit & Loss Statement Snapshot 28 Particulars (Rs. million)H1 FY2012H1 FY2011Shift (%) Total Income8,5577, EBIDTA1,5121, Margins17.7%20.3% Depreciation Interest Profit Before Tax Margins6.3%10.3% Tax expense Profit After Tax Margins5.0%8.0% EPS (in Rs.) All figures stated in Rs. millions on a standalone basis

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30 * Includes 16.76% held as Treasury Shares in the Company Total 87.3 million shares Listed at:National Stock Exchange (NSE) - HINDNATGLS Bombay Stock Exchange (BSE) Calcutta Stock Exchange (CSE) Shareholding Pattern Particulars % Shareholding (as on September, 2011) Promoters69.98 Public Shareholding Insurance Companies 0.31 Bodies Corporate3.93 Financial Institutional Investors 7.28 Individuals & Others*18.50 Total

31 Ratings, Rankings & Accreditations Business Today Ranking (Out of 500 top listed corporates, as of October, 2011) In terms of Average Market Capitalization – 368 th Rating by CARE (Credit Analysis & Research Ltd.) Long Term credit rating of AA+(implying high safety for timely servicing of debt obligations and carrying very low credit risk). Short Term credit rating of PR1(+), being the highest grade (implying the lowest credit risk). Rated as the best Indian Company in the Glass & Ceramics category by Dun & Bradstreet in years 2009 and 2010 Accredited with ISO 9001:2008 certification, ensuring stringent quality standards and ISO for food and safety Rated at No.35, out of the best 500 companies by Inc.India (Comprehensive ranking of Indias best performing mid-sized companies) in their Sep-Oct, 2010 issue. 31

32 Hindusthan National Glass & Industries Ltd. (HNG) For further information please log on to or contact : Laxmi Narayan Mandhana (CFO) HNG Tel: Anoop Poojari / Dipti Yadava Citigate Dewe Rogerson Tel: / / 32

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