Bodal Chemicals Ltd. COLOURS, INTEGRATION. INNCVA.TICN,

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1 COLOURS, INTEGRATION. INNCVA.TICN, Sec/18-19/228 Date: 27/03/2019 To, The General Manager, Department of Corporate Services BSE Ltd. 1st Floor, New Trading Ring, Rotunda Building, P. J Tower, Dalal Street, Fort Mumbai BSE Code: By online submission To, The General Manager, National Stock Exchange of India Ltd. Exchange Plaza, Plot No. C/1, G Block, Sandra Kurla Complex, Sandra (E), Mumbai NSE Code: BODALCHEM Dear Sir /Madam, Sub: Intimation of Analysts/ Institutional Investors Meetings & Investors presentation for March 2019: With reference to captioned subject and as per Regulation 30 and Para A of Part A of Schedule Ill of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, We hereby wish to inform you that Mr. Ankit S. Patel, Executive Director and Mr. Mayur B. Padt,ya, Chref Financial Officer of the Company will meet certain Analysts/Investors in Investors Meet Organised by SBI Capital Markets Ltd on Thursday, 28th March, 2019 at Mumbai. Further, we herewith enclose Investor/Corporate Presentation for March, No price sensitive inform:ltion will be discussed at the meeting. This is for your information and records. Thanking you, Yours faithfully, For, BODAL CHEMICA Ashutosh B Bhatt Company Secretary RMI:',...,. ::::::::'l!y' HEAD OFFICE1 Plot No , Phase-1, G.l.D.C, Vatva, Ahmedabad , Gujarat, India. CINNo.: L24110GJ1986PLC Tel: , Fax: , bodal@bodal.com

2 COLOURS. INTEGRATION. INNOVATION. Corporate Presentation March 2019

3 Forward Looking Statements This presentation contains statements that contain "forward looking statements" including, but without limitation, statements relating to the implementation of strategic initiatives, and other statements relating to Boda[ Chemicals' future business developments and economic performance. While these forward looking statements indicate our assessment and future expectations concerning the development of our business, a number of risks, uncertainties and other unknown factors could cause actual developments and results to differ materially from our expectations. These factors include, but are not limited to, general market, macro-economic, governmental and regulatory trends, movements in currency exchange and interest rates, competitive pressures, technological developments, changes in the financial conditions of third parties dealing with us, legislative developments, and other key factors that could affect our business and financial performance. Boda[ Chemicals undertakes no obligation to publicly revise any forward looking statements to reflect future I likely events or circumstances. Corporate Presentation March

4 Index COLOURS, INTEGRATION, INNOVATION. 1 Company Profile 4 2 Environmental Facilities 9 3 Advantage Bodal 12 4 The Way Forward 17 5 Financial Performance 21 6 Reward and Recognition 25 7 CSR Initiatives 26 Corporate Presentation March

5 COLOURS, INTEGRATION, INNOVATION. Company Profile 4

6 Bod al 's History Badal was incorporated in 1989 by Mr. Suresh Patel, a first generation entrepreneur. Badal is today one of the globally leading, integrated Dyestuff companies f ram India. Company commenced its operations by setting up a small Vinyl Sulphone plant at Vatva - Ahmedabad (Gujarat) with a small capacity which has now expanded to more than MTPA At present there are three sub -segments of Products: Dye Intermediates (about 25 products) Dyestuffs (about 175 products) Sulphur & Bulk Chemicals (about 12 products) At present, there are 9 manufacturing Units in Gujarat, 1 at Uttar pradesh and 4 depots across India. Company has four operating subsidiaries: (1.) SP S Processors Pvt. Ltd. (SPS), (2.)Trion Chemicals Pvt. Ltd. (TCPL), (3.) Badal Chemicals Trading Private Limited (Recently added) and (4.) Badal Chemicals Trading (Shijiazhuang) Co. Ltd (Recently added) Market capitalization is Rs billion ( ). Promoters own 57.4% Corporate Presentation March

7 Badal- Milestones Notes: Units are manufacturing sites Unit Nos. are as per current numbering of sites Acquired Unit II-B Acquired Unit Changed name to Bodal Chemicals Pvt Ltd Listed on BSE-reverse merger with Dintex Dye Chem (Unit I) 2006 Acquired Unit IV 2007 Started building Unit VI I World-class mega site 2008 Acquired Unit VIII Closed Unit V, Closed Unit VI 2010 Backward integration: Basic Chemicals at Unit VII Amalgamation: Bodal Agrotech, LABSA, Unit X Zero Discharge Facility 2017 Acquired 70%: SPS Processors, Dye Int' diates, Zero Discharge Facility 2017 Acquired Trion Chemicals, TCCA specialist Zero Discharge Facility 2018 Dyestuff expansion by 12000MTPA 5MW Co-generation Power plant 2019 Opening of trading subsidiaries (India & China) Dyestuff expansion by 6000MTPA TC capacity addition by 36000MTPA 1989 Started as JK Pharma at Unit II-A Acquired Unit V Acquired Unit VI 2004 Acquired Unit I 2004 Forward integration: Dyestuff at Unit I Completed Unit VI I 2012, 2013 Industry Downturn 2013, 2015 MEEP at Unit I, Unit VI I 2014, 2015 Turnaround Zero Debt onwards Corporate Presentation March

8 Manufacturing Capacities 226,000 MT* 98% Captive Power Plant and Steam generation Centrally located, latest upgraded manufacturing facilities Produces about 12 products 49% MT** ' 75% Advance technology MEEP for effluent treatment with capacity, of 5 lakhs liters/ day Produces about 25 products 35% MT*** ' 63% Range of Reactive, Acid & Direct dyes that are used in Textile, leather & paper industries respectively Permission for treated effluent disposal of 1 million liters/ day Advanced technology Effluent Treatment Plant (Brine treatment) Produces about 175 products Notes: (1.) *Thionyl Chloride capacity of 36,000 MTPA added in March (2.) ** Includes SPS existing Capacity. (3.) ***Dyestuff capacity of 6,000 MTPA added in March Dyestuff capacity refers to Powder Form. (4.) Vinyl Sulphone capacity of 6,000 MTPA will be added in SPS Badal is keenly investing for sustained growth Corporate Presentation March

9 Integrated Business Model - Input Materials - part/full in-house Input Materials - external Badal Chemicals Products End use industries Water J I Ir - ~ -,. I r '\ I, IL Para Nitro Aniline Reactive Dyes 1 I I Textiles Ice I I I..,) ~ I I I r Vinyl Sulphone ' Para Nitro Aniline Steam l I I~ \ I I H Acid Beta Naphthol Power ~ ~H I_.L Acid Dyes I I Sulphur _) I I I I I I Sulphuric Acid DASA I I Chloro Sulphonic Acid I Aniline I I ~I FC Acid 1-.1 Direct Dyes I Naphthalene I IL_ Oleum 23% - Oleum 65% - I Sodium Bi Sulphate l Gamma Acid PNCB I I I 1,. I I Caustic Soda I ' Acetanilide I I I VS Derivatives I I I I r ~ Thionyl Chloride I I I Leather I ' I I Paper l LABSA j l Detergent \ ) Cree~ Chlorine I I I l ~ l T t----+i Water Treatment About 45% of Basic Chemicals and Dye Intermediates are captively used Corporate Presentation March

10 COLOUR.. INTEGRATION, INNOVATION. Environmental Facilities Corpd' ~ Presentation March

11 In house Environmental Facilities In-house Facilities at Badal 1. Treats low load waste water 1. Treats high load waste water 1. Treats high load waste water 2. Compliant with GPCB, CPCB 2. Recovers salts- captive use/ sold beyond MEEP norms 3. Capacity 500,000 liters/ day 2. Minimizes treatment cost 3. Capacity 500,000 liters / day 4. Investment of Rs 350mn 3. Spray Dryers: 3 * 100,000 liters/ 4. Chemical oxidation 5. Benefits: day 5. Flocculation Needs low steam, power 4. Incinerators: 3* 125,000 liters/ 6. Clarification Re-use of condensed water day 7. Bio- degradation by AIS Integrated Zero Discharge 8. Tertiary Poly system System 9. Online monitoring system Note: AIS is Advent Integrated System, Advent Corporation, USA Environment and safety are high priority for Badal and key to sustainable growth Corporate Presentation March

12 Environmental Facilities at different plants Plant Location Zero Waste Discharge Site (Solid + Liquid + Air) Common Effluent Multiple Effect Effluent Spray Effluent Treatment Treatment Evaporator Dryer Plant Plant (ETP) Plant, (CETP, at (MEEP) GIDC) (ESDP) Solid Waste Incinerator Plant Treated Effluent Discharge Access VECL Cata Lit./Day Unit I Unit II Unit Ill Unit IV rhmedabadl IAhmedabadl rhmedabadl I IAhmedabad l l l Unit VII IVadodara I I I == I I Unit VIII I I Unit IX Vadodara I./ I./ I./ I././././././ I I./ -././ I./ I 949,000./ I I././ I./ I 23,800 Unit X Vadodara SPS Processors Kosi UP Trion Chemicals IKhambhat I Note: VECL- Vadodara Enviro Channel Limited./ Environment and safety are high priority for Badal and key to sustainable growth Corporate Presentation March

13 COLOUR INTEGRATION. INNOVATION. Advantage Bodal Corporate Presentation March

14 Badal 's Competitive Edge BodalChemicalsltd. Strong and experienced management team with continuous focus on growth and increase in shareholder's value Strong customer relationship across the globe Integrated business model leading to cost competitiveness and protection against commodity cycle Successful and consistent track record of organic and inorganic growth Well- equipped production facilities and laboratories. Strict quality adherence and continuous investment into R&D Strict environmental compliance with in house ETP and MEEP plants Presence in multiple countries minimizing country specific risks. And significant share of revenues coming from exports Sustainability of profit and growth ensured Corporate Presentation March

15 Sustainability Environmental norms Shut down of units Market Share Dyestuff Global Dyestuff Forex Low cost Indian fluctuation imports Dye Intermediates Global Volatile raw Volatile materials price sales price discipline hedging Dye Intermediates Indian Consistent growth that we are proud of Corporate Presentation March

16 Customer Relationship BodalChemicalsltd. COLOURS, INTEGRATION, INNOVATION. ~. DyStar AARTI INDUSTRIES LIMITED McFills Enterprises Pvt, Ltd. 4 1.i,,it' n 11f n ~. qgn,,to E,port 1ou An ISO 900 I :2008 Certified Co. An ISO :2015 Cemfied Co. Cl BASF The Chemical Company LIFE ENHANCED Unidye S.A. FARBEN The Chem cal Proctucer Strong long term Relationships with top Domestic and International Customers Corporate Presentation March

17 Global Revenues Dominican ReJ:>.ubhc Rising Share of Exports in total Revenues* FY17 FY18 9MFY19 Share of exports in respective segment - 9MFY19 Revenues* Dye Intermediates Dye Stuffs Total 29.5% 30.2% 45.1% 45.8% 62.5% 45.1% Badal Exports 45% of its sales to 150+ customers in 45+ countries * Note: Revenues are Standalone Corporate Presentation March

18 The Way Forward Poised for strong growth in coming years Thriving for increase in profitability and market share Corporate Presentation March

19 Badal on Strong Growth Trajectory Increase in profitability ft market share Increasing Capacities of Core Business Expanding the reach into different geographies Diversification into Specialty Chemicals Focus on gradual Margin Expansion Increase in stakeholders' value Higher cash flow generation Continuous efforts to make higher integrated business model Corporate Presentation March

20 Key Growth Drivers (1 /2) 1. Dyestuff: As part of the expansion plan, the company continues to expand the Dyestuff business. Last year added 12,000 MTPA and recently expanded by 6,000MTPA. Share of Dyestuff in total sales will gradually increase. 2. Dye Intermediate: Adding VS capacity at SPS. Addition of VS plant should turn SPS profitable and it is expected to contribute to the growth in the coming years. 3. Trion Chemicals (TCPL): Gradual improvement in business with expected break even by 1 HFY20E and should contribute to growth in coming years 4. Promoter's continuous focus on integrated business model including plans to foray into Specialty Chemicals 5. Opening up of subsidiaries in key geographies for the company Key drivers in place to lead Badal to new heights in coming years Corporate Presentation March

21 Key Growth Drivers (2/2) 6. Gradual margins expansion due to: D Further integration of business with more captive consumption of Dye Intermediates and Basic Chemicals D Utilization of Thryniol Chloride (TC) Plant of 36,000 MTPA at Unit VII, a forward integration for sulphuric acid and backward integration for Vinyl sulphone D Optimum utilization of co-generation power plant will lead to substantial saving in power & fuel costs going ahead D Gradually increasing share of B2C in Dye Stuff across the world 7. Strict financial discipline to ensure consistent returns and leverage ratios Gradual expansion in margins to increase profitability Corporate Presentation March

22 COLOURS. INTEGRATION. INNOVATION. Financial Performance Corporate Presentation March

23 Financial Performance Net Sales EBITDA and EBITDA Margins Net Sales (Rs. million) - EBITDA (Rs. million) -EBITDA Margin(%) 9,496 10,358 8,968 11,693 11,091 2,500 2, % 19.0% 17.0% 1, % 1, % % FY 14 FY 15 FY 16 FY 17 FY 18 FY 14 FY 15 FY 16 FY 17 FY % PAT and PAT Margins Net worth 1,400 -PAT (Rs. million) -PAT Margin(%) 11.4% 11.5% 1,200 j 8.9% ~ ~ 10.0% 1, % Networth (Rs. million) 7, % 4.0% 2.0% FY 14 FY 15 FY 16 FY 17 FY % FY 14 FY 15 FY 16 FY 17 FY 18 Strong performance over the years Note: Standalone data Corporate Presentation March

24 9MFY19 Financials Total Income (Rs. Million EBITDA* (Rs. Million) and Marein (% 26% Growth 24 % Growth 17.9% 17.9% 8,474 1,499 9MFY18 9MFY19 9MFY18 9MFY19 Profit After Tax (Rs. Million) and Margin (% Ooerational EBITDA 30 % Growth ~ 10.7% (Rs. Millions) 9MFY19 9MFY18 (YoY %) 10.4% ---- Revenue f ram Operations 10,587 8,386 A 26% 877 I EBITDA* 1,896 1,499 A 27% EBITDA Margin (%) 17.9% 17.9% A 4 bps Net Profit 1, A 30% 9MFY18 9MFY19 Consistent margins showing strength of our integrated business model Note: Standalone data * EBITDA excluding other income Corporate Presentation March

25 Balance Sheet Ratios Total Debt/ EauityJX ROCE* 31.8% 27.4% 0.0 X Mar'18 Sep'18 Mar'18 Sep'18 Net Debt I EBITDA * Net Workin2 Caoital 2,362 o.ox Mar'18 Sep'18 Mar'18 Sep'18 *Note: To calculate Net Debt/EBIDTA, the EBIDTA is annualized and similarly, to calculate ROCE,EBIT is annualized Net Debt to Equity & Net Debt to EBITDA are near Zero Note: Standalone data Corporate Presentation March

26 Rewards and Recognition BodalChemicalsltd. Award for Highest Self Manufacturing Turnover from Domestic and Export of Dyes and Dye Intermediates during FY The Gujarat Dyestuffs Manufacturers Association (in June-18) First in Large scale unit category for outstanding performance on Domestic Market and one as a Second in Large scale unit category for Excellent performance in Export of Dyestuffs The Dyestuff Manufacturers' Association of lndia(in July -2018) Recently, recognised by ET Enterprise Icons 2018 Gujarat Best brand award 2018 Corporate Presentation March

27 CSR Initiatives Badal seeks to be a responsible corporate citizen. It works through Trusts and YUVA - a renowned NGO Bodal's focus area is enhancement of rural infrastructure and healthcare Providing funds for construction for drinking water pipelines Conducting regular health check-up camps Badal also promotes sports, with contributions to Sports Council of the Deaf Basketball Club Promoting individual talent to represent the country in sporting events Bodal's CSR contribution was Rs million in FY2018 Bodal's areas of work are into rural infrastructure, healthcare, hospitals, schools and sports Corporate Presentation March

28 Thank you, COLOURS. INTEGRATION. INNOVATION. CIN: L24110GJ1986PLC Plot No , Phase - I, G.I.D.C., Vatva, Ahmedabad , Gujarat For any queries, please contact: Meet Chande IR, Bod al Chemicals Ltd. ir@bodal.com Mayur Padhya CFO, Bod al Chemicals Ltd. mayur@bodal.com Ph: