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MEGHMANI FINECHEM LTD

CHLORO-ALKALI & DERIVATIVES COMPLEX

Leading toward Excellence

INTRODUCTION – MEGHMANI FINECHEM LTD

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• Meghmani Finechem Limited (MFL) a Subsidiary of Meghmani Organics Limited was incorporated in September 2007.

• The Company has promoted by Meghmani Organics Limited which hold 57.16% of MFL Equity, Promoters of MeghmaniOrganics Limited in individual capacity hold 42.84% Equity of MFL.

• The flagship Company, Meghmani Organics Limited (MOL) is a listed Entity and is regarded as one of the leadingproducers of Pigments and Agrochemicals in the Country.

• Meghmani Finechem Ltd.( MFL) has set up a state of the art Caustic Chlorine & its Derivatives Complex (CCC Complex)at Dahej in the state of Gujarat. The Company began operations in July 2009 with an installed capacity of 119000 TPAwith Captive Power Plant of 40 MW, the said Capacity later enhanced to 294000 TPA with total Captive Power Plant of96 MW in 2020.

• The Company added Caustic Potash, another product with installed capacity of 21000 TPA in April 2016.

• Further to increase its Enterprise value and sustain future growth, the Company went for value addition downstreamProjects and have commissioned new plants of Chloromethane( 50000 TPA) in July 2019 and Hydrogen Peroxide( 60000TPA) in July 2020.

• The Company has announced for setting up of new Epichlorohydrin Plant with capacity @ 50000 TPA . It is expected tostart in FY 2022. It will be the first plant in India based on glycerin which is from 100 % renewable sources

• The Company has also has announced to set up another downstream project of Chlorinated Polyvinyl chloride (CPVCresin ) in its integrated Chloralkali Complex. CPVC capacity will be 30000 TPA and expected to be commissioned in FY2023.

VISION –MISSION -VALUES

VISION

MISSION

VALUES

To be a responsible chemical conglomerate withdiversified portfolio focused on providing qualityproducts and services and respects stakeholders aspartners in growth.

We will lead through empowered work environment,speed of decision making, ethical way of functioning,business integrity, honoring commitments, focusing onresults, innovation & efficiency.

TrustEthicsAdaptabilityIntegrityDiversity

Journey till date. . .

FY 2019

FY 2018

FY 2017

FY 2015

FY 2010

FY 2008

FY 2007

FY 2020

Meghmani Finechem Ltd: Subsidiary of Meghmani Organics Limited

International Finance Corporation (World Bank) Joined in as a partner with 24.97% stake

Started Operation from July 2009 as Greenfield Project of 1,19,000 TPA of Caustic Chlorine andCaptive Power Plant of 40MW.

Expanded Caustic Chlorine to 1,67,000 TPA with 60MW Captive Power Plant

Commissioned KOH Plant of 21,000 TPA and Convert all Membrane to ZERO Gap.

Planned for New Caustic Expansion and Chlor-Alkali Derivatives (Chloromethane and HydrogenPeroxide).Achieved Turnover of USD 95 Million (Rs. 609 Cr.)

Achieved Turnover of USD 107 Million(Rs. 718 Cr.), YoY growth @ 18%

Commissioned 50,000 TPA Chloromethane Plant in July 2019.Announcement for setting up new Epichlorohydrin Plant ( Capacity- 50000 TPA)

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FY 2021

Expanded Caustic Chlorine capacity to 294000 TPA and Captive Power Plant to 96 MW in June2020Commissioned 60,000 TPA Hydrogen Peroxide Plant in July 2020.Announcement for setting up new CPVC Plant ( Capacity- 30000 TPA)

MFL (DAHEJ) – NEW PROJECTS AND EXPANSIONS TO SUSTAIN FUTURE GROWTH

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Product Name ProductionCapacity

( TPD)

Capacity( TPA)

Year of Commissioning

Chloromethane 150 50000 July 2019

Caustic Soda Expansion- Phase II 400 132000 June- 2020

Captive Power Plant –Phase II 36MW 36MW June 2020

Hydrogen Peroxide 180 60000 July 2020

Epichlorohydrin 150 50000 FY 2022

Caustic Soda Expansion – Phase III 300 126000 Future expansion

Captive Power Plant - Phase III 36MW 36MW Future expansion

Chlorinated Polyvinyl Chloride ( CPVC) 90 30000 FY 2023

Capacity expansions and new Projects to drive value growth

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Product Name ProductionCapacity TPA ( Existing)

( FY 2021)

ProductionCapacity TPA

( after expansion )

Caustic Soda 294000 400000

Chlorine 258000 352000

HYDROGEN ( 1000 Nm3) 85000 116000

Caustic Potash 21000 21000

Chloromethane 50000 50000

Hydrogen Peroxide 60000

Epichlorohydrin 50000

Captive Power Plant 96 MW 132 MW

Chlorinated poly vinyl chloride ( CPVC Resin) 30000

CHLOROALKALI & DERIVATIVES – EXISTING & FUTURE CAPACITIES

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CHLOROALKALI & DERIVATIVES COMPLEX INTIGRATION

Dahej

SEA PORT CONNECTIVITY

▪ Gujarat has second highest numberof sea ports (42) in India.

▪ Dahej is in close proximity to westcost sea ports like Hazaria, NhavaSheva, Mundra & Pipavev.

▪ An Ideal location to serveinternational clients such as Middleeast, Africa, Europe and NorthAmerica.

SURFACE CONNECTIVITY

▪ Well connected with domesticregion through rail, road and waterways.

▪ An ideal location India to serveNorth, West and Central India

▪ Mumbai is only 350km from Dahej.

INDUSTRIAL INFRASTRUCTURE

▪ Dahej is a part of PCPIRs* complex▪ More than 60% of Chemical

intermediates and Agrochemicalcompanies are located within 300 kmradius.

▪ Opportunities for new big projects –It will not require public hearing andclearance from Ministry ofenvironment and forest (MoEF).

▪ Easy access to disposal for treatedeffluent.

PROXIMITY TO MARKET

▪ Easy availability to Raw materials – Saltand Coal.

▪ Close proximity to customers (Causticsoda & Chlorine supplied via pipeline)leading to lower logistic cost.

DAHEJ STRETEGIC ADVANTAGE

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DAHEJ SITES STRATEGIC ADVANTAGE

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Industry Track Record

• A leader in the Indian chemicals industry and has an impressive track record

• MFL has well established market in India with 80% of revenue coming from domestic sales.

• Achieved CAGR @ 12% in last five year.

Financial Stability

• Strong business case, and steady profitability

• Low debt to equity ratio, making it feasible for MFL to pursue capital intensive investments for itsgrowth plans

Management Focus

• Strong management involvement in Strategy and Decision Making.

• Commitment to long term agreements and contracts.

• New down stream projects under Evaluation to secure future Growth

MFL – LONGTERM PARTNER FOR GROWTH

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MEGHMANI FINECHEM LTD – BUSINESS OVERVIEW

Production & Utilisation (%)

1,45,985 1,43,977

1,61,674 1,61,473

1,79,203

88%

77%86% 86.10%

80.20%

FY16 FY17 FY18 FY19 FY20

Net Sales (Rs Mn)

3,988 3,920

5,975

7,104

6,098

FY16 FY17 FY18 FY19 FY20

EBITDA (Rs Mn) & Margin (%)

1,523 1,432

2,554

3,117

1,976

38.20% 36.50%42.70% 43.90%

32.40%

FY16 FY17 FY18 FY19 FY20

The Company plan to achieve Turnover of Rs. 20000 Mn by FY 2024 with CAGR of 35%

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CHLOROALKALI & DERIVATIVES COMPLEX – SEGMENT WISE REVENUE OUTLOOK

Chloroalkali80%

-Derivatives -CMS20%

FY 2020(A)

Chloroalkali44%

Derivatives 56%

FY 2024 (E)

CMS15%

H2O216%

ECH40%

CPVC29%

Derivatives Segment

NaOH77%

KOH23%

Chloro-Alkali Segment

NaOH86%

KOH14%

Chloro-Alkali Segment

Revenue Share for FY 2020

Revenue Share after Expansion and New Projects

Chloroalkali75%

Derivatives 25%

FY 2021(E)

NaOH83%

KOH17%

Chloro-Alkali Segment

CMS69%

H2O231%

Derivative Segment Revenue Share for Exiting Scenario

Revenue share of derivative segment to increase further in Coming future

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APPLICATION

SEGMENTS

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R e f i n e r y P a p e r & P u l p S o a p s & D e t e r g e n t

CHLOROALKALI APPLICATION SEGMENTS

T e x t i l e D y e s & P i g m e n t s P h a r m a c e u t i c a l s

A g r o c h e m i c a l s W a t e r T r e a t m e n t A l u m i n a P r o d u c t i o n

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Metal cleaning PU foams Paint stripper solvent in Pharma

OTHERS – Refrigeration gases , Industrial adhesive and coating formulation

Methylene Dichloride

CHLOROMETHANES APPLICATIONS

CHLOROALKALI DERIVATIVES APPLICATION SEGMENTS

Chloroform

PTFE PIPES PTFE VALVES PTFE Industrial parts Refrigerant gas – R 22

OTHERS –• Industrial Solvents in Agrochemical and Pharmaceutical Industries .• Chemical intermediate in the preparation of dyes, plastics, resins and pesticides

Carbon Tetrachloride Agrochemical Intermediates

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OTHERS – Organic and Inorganic Peroxide, Oxidizing agent in chemical synthesis, Cleaning & Sanitization

HYDROGEN PEROXIDE –H2O2

P a p e r & P u l p B l e a c h i n g

T e x t i l e B l e a c h i n g

E f f l u e n t T r e a t m e n t

P h a r m a c e u t i c a l s

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C o a t i n g

C o m p o s i t e s

E l e c t r o n i c s

A d h e s i v e s

E P O X Y R E S I N

E P I C H L O R O H Y D R I N

Other Use – paper/textile sizing, Ion exchange resin,Pharmaceuticals/Agrochemical intermediates

C P V C R E S I N

Pipe and fitting having heat and Chemicalresistant used for Cold and Hot waterdistribution.

Pipes with good mechanical strength athigh temperature used in ChemicalIndustries.

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PLANT OUTLINE

MFL - DAHEJ PLANT OUTLINE

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Chloromethane plant – 50000 TPA

Caustic plant – 294000 TPA

MFL - DAHEJ PLANT OUTLINE

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Zero gap Membrane Cell Technology- H2O2 Plant ( 60000 TPA)

Chlor-Alkali & Derivatives Complex

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MEGHMANI FINECHEM POSITION AFTER EXPANSIONS AND NEW PROJECTS

CAUSTIC SODA

CAUSTIC POTASH

CHLOROMETHANE

HYDROGEN PEROXIDE

EPICHLOROHYDRIN

400000 TPA

21000 TPA

50000 TPA

60000 TPA

50000 TPA

4TH Largest in India

2nd Largest in India

3rd Largest in India

3rd Largest in India

1st Largest in India based on 100%renewable sources

CPVC RESIN 30000 TPA 1st Largest in India

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THANK YOU