Corporate Presentation

June 2013

Hindusthan National Glass & Industries Limited

Industry Overview

Global Packaging Industry

• As per World Packaging Organization, the global packaging industry is expected to be USD 597 billion by 2014

with ten year historical growth at ~ 3.1% CAGR

• Projected to grow at ~ 3.5% CAGR in the medium term mainly driven by growth in emerging markets (Asia

Pacific region)

34%

34%

27%

5%

Geography

Europe

Asia, Oceana, Africa & ME

North America

South & Central America

52%

15%

11%

9%

13%

End-User

Liquor

Beer

Food

Pharma

Others

Source: Owens-Illinois, Inc. - Investor presentation, March 2010

3

Packaging Industry - India

• At USD14 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 is estimated to be

around USD 1.1 bn and is growing at the rate of ~10%

p.a.

• Entry barriers in Indian Container Glass industry is

owing to capital intensive nature

• Top 3 players are HNG, HSIL and Piramal Glass

• Low per capita glass container consumption of

1.5 kg in India as compared to other countries

(refer chart alongside).

• Strong economic drivers for end-user segments (liquor,

beer, pharmaceuticals, food, cosmetics etc.)

89

63.9

50.3

27.5

27.5

19.5

10.2

5.9

4.8

1.5

1.2

0 50 100

South Korea

France

Spain

UK

USA

Mexico

Japan

China

Brazil

India

Indonesia

World glass container per capita consumption in Kg.Market Overview

4

5

IMFL – Volume CAGR 10%Beer Packaged Food – Volume CAGR 12%*

Beer – Volume CAGR 11% Pharmaceuticals – CAGR 13%

Region-wise Demand(Mn Cases)

195 219

250

280 308

329

2010 2011 2012 2013 2014 2015

North

20%

East

10%

South

45%

West

25%

Region-wise Demand

North

20%

East

10%

South

50%

West

20%

1315

18

21

25

30

2010 2011 2012 2013 2014 2015

(US$ Bn)

North

29%

East

17%

South

25%

West

29%

Region-wise Demand

24 27

31 35

39

45

2010 2011 2012 2013 2014 2015

(US$ Bn)(Mn Cases)

* Assuming value growth of 7% out of overall growth of ~19%

Source: ASSOCHAM study, Capital Market Estimates

Source: AM Mindpower SolutionsSource: Datamonitor, Capital Market Estimates

Source: Datamonitor, Capital Market Estimates

End user Industry Overview

222250

277 287315

347

2010 2011 2012 2013 2014 2015

Company Overview

7

Company Overview

� Incorporated in 1946, promoted by the C K Somany Group

� Started operations with 30 TPD furnace at Rishra in 1952

� Organic & inorganic expansion from 1,100 TPD in 2001 to ~4,300 TPD in

FY13

� Market leader and the only pan-India player in the container glass

industry.

� New plant of 650tpd each to help consolidate position in South & West

� Brownfield expansion at Nashik, Maharashtra commissioned in

Q1 FY13.

� Greenfield expansion at Naidupeta, Andhra Pradesh

commissioned in Q2 FY13.

� Catering to all segments – IMFL, Beer, Pharma & Vials, Foods &

Beverages (F&B), Cosmetics

� Foray into global market through acquisition of assets of Agenda Glas

AG, Germany in May 2011

HNGIL

Glass Equipment

(India) Ltd

Quality Minerals

Ltd

HNG Global

GmbH

HNG Float Glass

Ltd

100%18.3% 100% 99.7%

Manufacturer of

Float & Processed

Glass

320 TPD glass

container facility at

Gardelegen,

Germany

Capital Goods &

Spares Supplier to

Glass Industry

Mineral Supplier to

Glass Industry

Group Structure

Listed on BSE since

Mar 1995 & on NSE

since Apr 2009

60 Years’ Experience in the Glass Industry

8

Shareholding Pattern as on date

Shareholding

Promoters 69.98

Public Shareholding 30.02

Insurance Companies 0.10

Bodies Corporate 4.86

Financial Institutional Investors 7.27

Individuals & Others* 17.79

Total 100.00

* 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) - 515145

Calcutta Stock Exchange (CSE) - 10018003

HNG Board

Chandra Kumar Somany

Non-Executive Chairman

Sanjay Somany

VC & MD

Mukul Somany

VC & MD

Organization Structure

Neemrana Plant Head–

K K Sharma

Bahadurgarh Plant

Plant Operations –

Raman Poddar

Commercial Head -

S R Bansal

Rishikesh Plant Head –

V K Chitturi

Rishra Plant Head –

Pankaj SrivastavaNashik Plant Head –

Indranil Chatterjee

Naidupeta Plant Head –

Ajay Chakraborty

International

Operations –

J P Kasera

North India

Plant

Operations –

R L Khandelia

Rest of India

Plant

Operations –

L N Mandhana

Domestic

Marketing –

Vinay Saran

Purchase –

B K Kedia

Tech Centre –

Pawan

Bhardwaj

Strategy &

Management

Cell –

Ajay Kr. Rai

Management

Audit & SAP –

Somnath

Sengupta

Exports –

Devdutta

Hoare

CFO–

B K Garodia

Pharma &

Cosmetics –

Sanjay Jain

9

Pondichery Plant Head –

V Ramanan

10

Mr. C K Somany, 79, Non-Executive Chairman

� Mr. C K Somany is an expert in glass technology, he provides policy guidelines for the management and administration

� He holds an F.B.I.M (London) degree and a degree in Glass Plant Instrumentation from Honeywell Brown, Minneapolis, USA

� Served as the President of the All India Glass Manufacturers' Association and is associated with various charitable and philanthropic organisations

� Currently the Chairman of CAPEXIL, sponsored by Ministry of Commerce & Industry, GoI

Mr. Sanjay Somany, 54, Vice-Chairman & Managing Director

� Has over 30 years experience in the glass industry and is closely involved in the technical and engineering aspects of the business

� He is a commerce graduate and holds a diploma in diesel engineering

� Served as the President of All India Glass Manufacturers' Federation (AIGMF)

Mr. Mukul Somany, 47, Vice-Chairman & Managing Director

� Over 26 years experience in the glass industry

� Led the acquisition, turnaround and integration of India business of Owens Brockway and glass business of L&T Ltd, re-engineered business processes across six units

� Currently the President of AIGMF, Executive Committee Member of CII (Eastern Region) & Member of CII National Council

Mr. Dipankar Chatterjee, 64, Independent Director

� Chartered accountant and senior partner of LB Jha & Co., Chartered Accountants and is a member of National Council of CII

� Former Chairman of CII-Eastern Region, member of the Central Council of ICAI, Chairman of the audit practices committee of ICAI

� Appointed member of the Padmanabhan Committee (set up to review RBI’s supervision over banks)

Mr. Kishore Bhimani, 73, Independent Director

� Noted journalist, was the Senior Assistant Editor at The Statesman and wrote columns on sports, finance and the stock market

� Associated with various environmental & social NGOs and authored several books

� Graduated from St Xavier’s College, Kolkata and holds a BSc (Economics) from LSE

Board of Directors

11

Mr. Rakesh Kumar Sharma, 59, Executive Director

� Over 36 years experience in general management, EPC contracts and business development across Indian corporate sector

� Holds a graduate degree in Mechanical Engineering and masters in Marketing management

� Prior to joining HNG, he held a senior position at L&T

Mr. Ratna Kumar Daga, 72, Independent Director

� Vast experience in the fields of engineering and finance

� Former Chairman of Indian Institute of Materials Management, Kolkata, President of Calcutta Junior Chamber, President of Federation of Small & Medium Industries

� Holds PG degree in Business Management from the UK

Mr. Sujit Bhattacharya, 69, Independent Director

� Former senior partner of Lovelock & Lewes, Chartered Accountants, advisory experience in accounting, audit standards, corporate governance, business valuation &

taxation

� Fellow member of the Institute of Chartered Accountants in England & Wales, ICAI

� Was nominated as the Special Director by the BIFR, Govt of India

Board of Directors

12

Over 4,500 TPD by 2015

Acquired Pondicherry &

Rishikesh plants of Owens

Brockway

Acquired L&T’s Nashik

Plant

Acquired Neemrana plant

of Haryana Sheet Glass

Brownfield expansion

at Nashik and

Greenfield plant at

Naidupeta, AP Re-build of existing

furnaces

Capacity Build-Up Through Organic & Inorganic Route

301100

2935

4520

30

105

1300

285

700

320

180150

350

1952 2001 2002 2005 2007 2008 2010 2012 2013 14-15 FY15

Total (TPD) Expansion (TPD) Acquistion (TPD)

13

Technological Strengths Leading to Smoother & More Efficient Operations

SAP Implementation for Better Integration & Standardization of Business Processes

� Accurate real-time information with enhanced visibility and operational controls

� Automation of report generation & month-end reconciliation

� Alignment of functional objectives with corporate business plan leading to better coordination across functions, manufacturing units & marketing offices

� Higher productivity through automation

� Improved customer service

� Cost control and uniform material code data across locations

� Online tracking of production and sales-related performance data

� Diversified vendor base for raw material procurement

� Captive sand beneficiation facilities

� In-house furnace maintenance & refurbishment capabilities

� Proven ability to run plants at high capacity utilization

� Draw and pack ratios consistently among the best in the

industry

Processes for Maximizing Capacity Utilization & Sales

Market Leader in Container Glass

15

Think Glass,

Think HNG

Market leader in container glass with pan-India presence, ~50% market share (including new plants in FY13)

End user segments growing at ~12% over next 3 years

Newly commissioned plants to improve market share in underserved markets

Demonstrated track record of inorganic growth through turnaround of sick units with highly skilled manpower

Use of best-in-class technology with captive developmental capabilities

Margin expansion due to higher scale & efficiency

Growth Drivers

16

Largest Container Glass Player in ~8,600 TPD Indian Market

Presence Across Segments – Play on Indian Consumption Story High Entry Barriers due to Capital Intensity

4,235

1,550

860

320 240 220 220 220 130

605

HNG HSIL Piramal Haldyn MBDL Universal Excel Janta Vitrum Others

(TP

D)

Pan-India AP Gujarat Gujarat Gujarat MH UP & GujPondi. UP KeralaPresence

Mkt.

Share50% 18% 10% 4% 2% 1% 8%3% 2% 2%

HN

G

HS

IL

Pir

am

al

Ha

ldy

n

Jan

ta

Vit

rum

Exc

el

Un

ive

rsa

l

MB

DL

Liquor � � � � � � �

Beer � � �

Pharma � � � � � �

F&B � � � � �

Cosmetics � � �

� Capital intensive business with recurring maintenance capex

� High customer stickiness

� Interdependence of output scale & timing

� Customization / bottle printing as per specs

� Significant economies of scale

� Integrated value chain from raw material mining, glass equipment &

moulds to printing

Source: Company estimates

Source: HNGIL

Dominant Share of Container Glass Market with Presence in All Segments

17

Catering to Significant Share of Customer Requirements Pan-India Player; Competitors Mainly Regional Players

HNG's Share in the Total Requirement of Each Customer in FY13 (%)

MumbaiHyderabad

HNG

Naidupeta

Kosamba

Jambusar

Piramal

Padra

Haldyn

HSIL

Bhongir

Vitrum

Janta

Vadodara

Universal

Excel

MBDL

Source: HNGIL Source: HNGIL

Ghaziabad

Alleppey

Pan-India Presence Enabling Superior Customer Service

25%

40%

45%

50%

60%

60%

65%

70%

95%

John Distilleries

Pernod Ricard

ABD

United Spirit

Pepsico

SAB Miller

United Breweries

Coca Cola

Bajaj Corp

18

Customer Base Across all Segments

HNG Customer Base

PHARMACEUTICALS

BEER

LIQUOR

FOOD

SOFT DRINKS

19

Sales Volume Mix

Volume

(MMT)0.77 0.78 0.84 0.91

Focus on High Volume Segments – IMFL & Beer Comprise of ~65% of Volumes

53.9%50.0% 52.3%

47.0% 48.8%

12.6%15.1%

14.9% 22.9%16.2%

17.4% 19.6% 18.2%16.3%

19.1%

12.5% 11.4% 10.3% 9.5% 11.3%

3.6% 3.9% 4.3% 4.3% 4.5%

FY09 FY10 FY11 FY12 FY13

Liquor Beer F&B Pharma C&P

0.85

20

Acquisition of 320 TPD Plant at Gardelegen, Germany

Location

Map

� Germany is the largest market in EU with ~20% share

� Annual demand in Germany of 3.8 million MT/year

� Acquired assets of Agenda Glas AG, one of the most modern production facilities in Europe, in May 2011.

� Agenda Glas had commenced production in Feb 2010

� Production capacity of 120,000 MT per year

� Currently produces flint glass of various SKUs

� HNG Global GmbH, is located closed to the regional raw material suppliers with easy and economic access to

all key raw materials.

� The Plant is ideally located for deliveries throughout Germany and to adjacent European Countries.

� Company’s technological edge is planned to be back pedaled in HNG’s Indian operations, as Germany is always

considered ahead in terms of technology.

� The Finished-ware quality in Germany is of superior standards than in India and it will help us embark the

upward quality journey in India.

International Operation - HNG Global Gmbh

Key Financials

22

Balance Sheet

All figures are in Rs. Crore and for HNGIL standalone

* Includes Share application

Balance Sheet FY09 FY10 FY11 FY12 FY13

Shareholders Fund* 935 1,043 1,166 1,158 1,001

Debt 507 566 640 2,058 2698

Deferred Tax 42 70 71 95 21

Total Liabilities 1,484 1,679 1,877 3,311 3,720

Net Block 906 1,116 1,157 1,393 2687

CWIP 82 27 228 1,157 148

Investment 105 147 178 181 181

Net Current Assets 391 387 315 580 705

Total Assets 1,484 1,677 1,878 3,311 3,720

23

Profit and Loss Snapshot

Profit and Loss FY09 FY10 FY11 FY12 FY13

Net Sales 1,313 1,357 1,544 1,878 1811

EBITDA 229 306 267 298 150

Margins 17% 23% 17% 16% 8%

Other Income 9 14 6 8 6

Depreciation 77 89 103 119 198

Interest 43 47 51 92 203

PBT 118 184 119 95 -246

Margins 9% 14% 8% 5% -14%

Tax 10 28 33 4 -74

PAT 108 156 86 91 -171

Margins 8% 11% 6% 5% -9%All figures are in Rs. Crore and for HNGIL standalone

Pls note that company has commissioned two new furnaces (30% of its present capacity) in FY13 and it will take sometime to get absorbed in the market but corresponding interest and depreciation

cost has started coming in Income statement. This has resulted in company reporting loss in FY13.

24

Financial Performance

PAT

Revenue EBITDA

EPS (Rs./Share)

All figures are in Rs. Crore and for HNGIL standalone

Pls note that company has commissioned two new furnaces (30% of its present capacity) in FY13 and it will take sometime to get absorbed in the market but corresponding interest and depreciation

cost has started coming in Income statement. This has resulted in company reporting loss in FY13.

1,313 1,357

1,544

1,8781811

0

300

600

900

1,200

1,500

1,800

2,100

FY09 FY10 FY11 FY12 FY13

229

306

267

298

150

0

50

100

150

200

250

300

350

FY09 FY10 FY11 FY12 FY13

108

156

86 91

-171-200

-150

-100

-50

0

50

100

150

200

FY09 FY10 FY11 FY12 FY13

12

18

10 10

-20-25

-20

-15

-10

-5

0

5

10

15

20

FY09 FY10 FY11 FY12 FY13

Thank You

For further information please log on to www.hngil.com or contact:

Bikash Kumar Sipani

HNG

Tel: 033-2254-3100

Email: investor.relations@hngil.com