JANUARY 2018

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Corporate Presentation

1/11/2018 1
 Disclaimer

This presentation is strictly private and confidential. This presentation is prepared exclusively for the benefit
and for the internal use of the recipient and/or its affiliates and does not carry any right of publication or
disclosure to any other party. Neither this presentation nor any of its contents may be used for any other
purpose without the prior consent of Gujarat Borosil Limited (GBL). The information in this presentation
reflects prevailing conditions and our view as of this date, all of which are, accordingly, subject to change. In
preparing this presentation, we have relied upon and assumed, without independent verification, the
accuracy and completeness of all information available from public sources. The ideas expressed herein
factor in the current regulatory framework and accordingly is subject to change.

GBL and their directors, officers, employees and promoters expressly disclaim any responsibility or liability
whatsoever in connection with the compilation of this presentation and the information contained herein.
This presentation may include future expectations, projections, or forward looking statements. These
forward looking statements involve known and unknown risks, uncertainties and other factors that may
cause actual events to be materially different from future events expressed or implied by such forward
looking statements

INVESTOR PRESENTATION 2
 BOROSIL – Established Glassware Manufacturer with over 5 decades of experience

Borosil Glass 25.25% Gujarat

Works Ltd. Borosil Ltd.

 Specialty Glass & Specialty

Laboratory Products  Solar Glass

 Consumer Division  Pattern Glass

INVESTOR PRESENTATION 3
 Gujarat Borosil Limited – A Brief Overview

Introduction Key Financials

INR Mn
 Incorporated in 1988 and having its registered office at
Y/E 31 March FY13 FY14 FY15 FY16 FY 17
Bharuch, Gujarat, Gujarat Borosil Limited (GBL) is engaged in Net Revenues
964 1,328 1,518 1,816 1830
the manufacturing of: from operations
growth % 21.8% 37.8% 14.3% 19.6% 1%
– Low-iron Solar Glass for application in solar power sector EBITDA 57 269 219 349 406
– Patterned Glass for architectural applications margin % 5.9% 20.2% 14.4% 19.2% 22.2%
PAT (72) 83 15 74 141
 GBL has successfully developed and produced solar glass
margin % -7.4% 6.3% 1.0% 4.1% 7.7%
without using antimony and have the capability to produce * Net Revenues & EBITDA exclude Other Income
fully tempered glass of two mm thickness
Shareholding Pattern
 GBL is a cost efficient and technology driven company

 Manufacturing facility in Govali, District Bharuch, Gujarat with Borosil Glass

Public, Works Ltd,
production capacity of 180 metric tons/ day equivalent to 25.05% 25.25%
production of 1 GW of modules annually with specialization in
Anti-Reflective coating 74.95%
Promoter
 Capacity expansion under way: Additional capacity for Holding
production of 210 metric tons/ day (equivalent to production P K Kheruka, Fennel
16.57% Investment,
of 1.4 GW of modules annually) at Bharuch. This will take the 33.13%
capacity to 2.4 GW p.a.
INVESTOR PRESENTATION 4
 Key Highlights

Strong Outlook for Solar Energy

 Strong Government impetus to solar energy, with targets of 100 GW installed capacity
01 by 2022 (Added 7.5 GW in 2016-17. Government target of 15 GW in FY18)
Leading Solar Glass manufacturer
02
 Proven cost competitiveness vis-à-vis foreign glass suppliers
 Broad base of domestic and international clients

03 Defending Competition through R&D Driven Innovation

 State-of-the-art manufacturing facility, with strong testing, innovation and R&D infrastructure.
Recently acquired capability to make fully tempered 2 mm solar glass.

Product Differentiation
04
 High-quality Solar Glass with low iron content, Anti-Reflective coating, highest glass
efficiency value and high resistance to Potentially Induced Degradation
Experienced Management Team
05  Highly qualified management team with more than 3 decades of experience in the glass
industry
Expanded Capacity to Capitalize on Strong Demand Outlook
06  Company looking to more than double its existing capacity. Solar glass demand growing
exponentially and will get further boost with emphasis on domestic manufacturing of
modules
07
Financials
 Steady Sales growth with improved EBITDA margins led by improved productivity and
cost savings

INVESTOR PRESENTATION 5
 The Gujarat Borosil: The Solar Company
 Solar PV market internationally
seeing high growth
 Government launches NAPCC in
June 2008 which declares
National Solar Mission as one of
the core 8 national missions
2008
 GBL moves to capitalize the
significant opportunity for Solar Glass
INVESTOR PRESENTATION
 The Solar Glass market worldwide
goes through upheavals as the
prices of modules and
components crash (Solar Glass
prices crashed by almost 35% vs
FY11)
 Top 3 solar module markets i.e.
Germany, Italy and Spain
continue with slow down
 Overcapacity goes up as new
facilities are commissioned in
China
2012
 GBL secures its market position
through diversification into the
Extra-Clear Architectural patterned
glass and starts focusing on the
domestic market
 Government provides huge
impetus to the industry with the
revised National Solar Mission
target of 100 GW of Solar
Installed Capacity by 2022
 Anti dumping margin of ~40% is  GoI imposed an anti-dumping
established against Chinese duty on tempered glass imported
imports in EU from China for 5 years
2015 2017
 GBL benefits in the exports segment  GBL commissioned tempering line
with capability for 2mm.Now aims to
expand its current production
capacity of 1 GW per annum to 2.4
GW per annum
6
 Solar PV Module

Solar Glass

Polymer
Encapsulate (EVA)

Solar Cell

Polymer
Encapsulate (EVA)

Back Sheet
Junction Box for
connecting panels
electrically Aluminum
Frame

Solar Glass is the 2nd highest value item in the Solar PV Module, next only to the Solar Cell
Note: EVA stands for Ethylene Vinyl Acetate

INVESTOR PRESENTATION 7
 Key Growth Drivers for Indian Solar Industry

Strong Policy Initiatives

 National Solar Mission (NSM) sets out the target of 100 GW of grid-connected solar power by 2022
 Solar Parks Policy:
Indian Solar
Mission ― A scheme by MNRE to set up solar parks across the country, each with a capacity of Solar Projects generally above
500 MW, with an aggregate target of 40 GW
― The above target helps achieve the overall solar power target of 100 GW by 2022

 Aims to reduce the conventional energy consumption of 60 selected cities by a minimum of 10% through the adoption of
Solar Cities
a combination of renewable energy alternatives (with a focus on solar energy) and energy efficiency measures

 Viability gap funding (VGF) scheme, Bundling scheme, Domestic content requirement (DCR)
 Tax and Financial Incentives to support the rooftop solar market:
Tax and
― Capital subsidy: 30% subsidy for residential and institutional consumers (INR 50 bn)
Financial
Incentives ― Accelerated depreciation: 80% depreciation (40% from FY18)
― Tax holiday: 10 year tax holiday (MAT payable)
― Low cost funding from global financial development institutions

 Amendments to National Tariff Policy (NTP), 2016 re-emphasizes a push for renewables, especially solar energy:
― Solar RPO target increased to 8% by 2022
National Tariff ― Renewable Generation Obligation (RGO): Mandates coal and lignite based power plants established after a specified
Policy (NTP) date to set up renewable capacity, or purchase renewable energy, as per the directions of central Government
― Allowing fully depreciated power plants whose PPAs have expired to bundle renewable power with power from plants
― Exempting renewable sources from inter-state transmission charges
Source: MNRE

INVESTOR PRESENTATION 8
 Renewable Energy Targets

Renewable Energy Targets - Overall

Target Implied Capacity Per Annum CAGR

Capacity (GW) Till FY17
Capacity (FY22) Addition Addition (FY17-22)
Solar 12.3 100 87.8 17.5 52%
Wind 32.3 60 27.7 5.5 13%
Bio-mass 8.2 10 1.8 0.4 4%
Others 4.4 5 0.6 0.1 3%

Renewable Energy Targets - Solar (by 2022)

Target Capacity Addition Measures Identified by GoI

Rooftop Solar PV  Changes in land use regulations and tenancy laws

40 GW  Identifying large chunks of land for solar land and rooftop
INR 6 Tn projects
 Developing power transmission network and green energy
Investment Ground mounted solar projects corridor
Required 57 GW
 Setting up exclusive parks for domestic manufacturing of
solar PV modules
 Considering infrastructure status to solar projects
Others
3 GW  Strong enforcement of RPO norms and for providing RGO
 Making net-metering compulsory

Source: MNRE, Solar Energy Sector (ICRA Report)

INVESTOR PRESENTATION 9
 Solar PV Modules Competitive Landscape

Solar Glass Market Place

Indian Glass
Manufacturers
Domestic PV (Gujarat Borosil)
Module Solar glass
Production suppliers
Imported Glass
Solar PV Modules
(majority China)
Imported PV
Modules
(majority China)

High growth in domestic manufacturing of Solar PV Modules

Strong policy initiatives for solar PV modules
 Solar Module: Out of total installed capacity of ~8.4 GW, of which ~5.5 GW is operational, the utilized capacity is much
lower due to stiff Chinese competition. Hence, rest of the demand for solar modules is met through imports. Any
imposition of anti-dumping duty on solar modules could expand the target market for GBL further.
 Solar glass demand is growing exponentially driven by Government strong impetus to solar energy and emphasis on
domestic manufacturing. It will get further boost with emphasis on domestic manufacturing of modules.

INVESTOR PRESENTATION 10
 Indian Solar PV Modules Industry: Supported by Policy Impetus

Strong Policy Initiatives

♦ Government has proposed developing 7.5 GW of Solar by 2022 with a target that at least 5.5 GW of
solar modules will be made in India every year in connection.

♦ Under the Modified Special Incentive Package Scheme

(M-SIPS), announced by the Department of Electronics and Information Technology, 20% and 25%
subsidy on capital expenditure has been announced for entities establishing cell and module lines in
Special Economic Zones (SEZ) and Non-SEZs, respectively.
Boost to Domestic
Solar Modules ♦ The rooftop solar sector recently received approval from World bank for a global environmental facility
Production in India (GEF) grant of US $ 22.93 Million to enhance installed capacity of grid connected rooftop solar (GRPV)
and to strengthen the capacity of relevant institutions for wise spread installations in India.

♦ Government is finalizing a scheme to subsidize manufacturing of solar equipment in India - Subsidy

would be in the form of either interest subvention or cheaper loans from banks or any other suitable
form.

Boost to ♦ The Indian Ministry of Finance has imposed an anti-dumping duty on tempered glass (solar glass)
Production of Solar imported from China in the range of $52.85 per metric ton (MT) to $136.21/MT for 5 years.
Module
Components ♦ India’s Jawaharlal Nehru National Solar Mission (JNNSM) mandates solar power project developers to
Domestically locally source a portion of their solar panel requirements as per the Domestic Content Requirement
(DCR) clause to boost the sale of solar panels in India.

Source: MNRE

INVESTOR PRESENTATION 11
 Leading to top PV module manufacturers ramping up capacity
Indian Solar PV Module Manufacturers –
Domestic PV Modules Installed Capacity
Installed and Operational Capacity*
In GW
The installed capacity of the Sr. Installed Operational
PV Module Manufacturer
module manufacturers has seen No. Capacity (MW) Capacity(MW)
a constant increase 1 Vikram Solar Pvt Ltd 500 500
2 Waaree Energies Pvt Ltd 500 500
3 Emmvee Photovoltics Pvt Ltd 500 500
8.4 4 TATA Power 400 300
5 Renewsys India Pvt Ltd 180 180
6.9 6 Lanco Solar Pvt Ltd 175 175
7 Alpex Exports Pvt Ltd 300 150
5.8
8 Sova Power Limited 200 150
9 Goldi Green Technoligies Pvt Ltd 125 125
10 HHV Solar Tehnologies Pvt Ltd 100 100
11 Premier Solar Systems Pvt Ltd 100 90
12 Websol Energy Systems Limited 90 90
13 Moser Baer Solar Limited 230 50
14 Savitri Solar Pvt Ltd 80 0
15 Mundra Solar 1,200 0
16 Others 3,718 2,596
Jun-2016 Dec-2016 May-2017 Grand Total (in GW) 8.4 5.5
* As on 31st May 2017

Aiming to capture strong Domestic and Exports demand, top PV players are expanding capacities significantly
Source: MNRE

INVESTOR PRESENTATION 12
 Indian Solar PV Module Industry- Exports emerging to be next growth kicker

Overseas PV Module Market Dynamics

High Quality Product Rise of Anti-Dumping Benefit to GBL in

of GBL Laws Globally Exports Market
EU
 Minimum import price (MIP)
agreement and maximum annual
 Low Iron content at less than 90 PPM
import quota cap for Solar
Manufacturers
 Higher duties to non-complying
manufacturers if not complied with
GBL already have export revenues
 High Chemical durability of 25% in H1FY18, which is
USA
 Countervailing duty and anti-dumping expected to grow further
duty on top Chinese PV module
manufacturers.
 Glass Efficiency value of 0.952  The recent ruling of ITC in favor of
Suniva / Solarworld to impose ADD on
solar modules that includes imposition Demand expected from emerging
of tariffs on module imports market like Turkey

 High PID resistance Turkey

 Turkey imposed definitive anti-
dumping duties on solar glass
originating in Israel and mainland China
 Antimony-Free glass with less  China-based PV panel manufacturers
Poisonous Content are now subject to an anti-dumping fee
of at least US$20/m²

INVESTOR PRESENTATION 13
 Product Offerings: High-Quality Solar & Architectural Glass

Product Specifications

Solar Glass Patterned Glass

 Thickness Range: 2 mm onwards

Dimension  Thickness Tolerance: ±0.2 mm for 3.2 mm and 4.0 mm thickness  Maximum sheet width: 2,660 mm
Parameters  Maximum sheet width: 2,500 mm (Standard sheet width ~ 2150 mm gross)  Maximum sheet length: 3,500 mm
 Maximum sheet length: 3,500 mm

 ≥ 91.5% for uncoated Solar Glass

PV Transmission
 ≥ 94% for Anti-Reflective coated glass

 Fully computerized online automatic cutting can produce fractional sizes

Fractional Sizes  Available in standard thickness (mm): 2 – 10
 Available in standard thickness (mm): 3.2, 4.0, 5.0

Fully tempered 2 mm Solar Glass made from Air floatation Tempering line available in 2017
(High speed automatic glass tempering line which is capable of processing all custom specific sizes)

Product Application
Solar Glass Patterned Glass
Architectural applications:

Photo Voltaic Solar Thermal Flat Plate High-efficiency

Shower Cubicles Partitions and Tabletops
Modules Collectors Greenhouses

INVESTOR PRESENTATION 14
 GBL’s Solar Glass: Technologically Advanced with High Performance

Better Longevity
Better Transmission
High PID resistance
Low Iron content
90 PPM
03 Durability
02
High Chemical
durability

Antimony-Free
Less Poisonous 04
substances
01

High Efficiency
Glass Efficiency value
of 0.952

05

INVESTOR PRESENTATION 15
 Innovation led -Engineering and R&D Capabilities

Results Achieved through Passion for Innovation and R&D

Antimony free Low

1  Developed technology to manufacture antimony free low iron textured Solar Glass
Iron Solar Glass

 Antimony Free Solar Glass in FY15

2 Patents Filed
 Use of Egg shell in glass in FY16

Borosil’s 302KVA  Setup of Solar modules of 302 KVA for R&D Rooftop installations which is used to
3
R&D Installation power an associate company

Higher Energy
Output
 Total power produced per inverter for Glass with antimony is 32078 KWH and
4 (in context of
BOROSIL glass without antimony is 34496 KWH. Hence Extra energy achieved by
Rooftop R&D
BOROSIL glass is 7.5 %.
Installation)

INVESTOR PRESENTATION 16
 New Photovoltaic

1 APPLICATIONS
New generation
frameless
6 photovoltaic
modules 2
Tempered as per Thin glass
EN 12150 for technologies
qualifying it as a of the future
safety glass
ONE Solar windows Solar car parks
TECHNOLOGY
SIX
ADVANTAGES
Quality, Long No roller waves,
term performance white stripes &
5 reliability & cost pick ups on 3
effectiveness processed glass

Environment
friendly and Solar rooftops Solar curtain walls
sustainable
technology

INVESTOR PRESENTATION 17
 Fully Tempered 2mm Solar Glass

INVESTOR PRESENTATION 18
 Quality Assurance

Quality Control & Quality Assurance Measures Customized packing standard

 Quality Control & Quality Assurance measures with an

emphasis on continual improvement

 Implemented 5S training program in various work areas

to improve cleanliness

 Implementing Cp / CpK analysis and Pareto charts for

monitoring and controlling various defects

End Cap Pallet

 Implemented OEE ( Overall equipment effectiveness ) by
identifying critical parameters

 Customer complaint analysis is being done by CAR

format, similar to 8D format. CAPA is also being done
where ever required to investigate root cause and
implement preventive action

INVESTOR PRESENTATION 19
 Borosil’s Solar Glass- Efficiency Value Certifications

SPF, a leading test Institute in Switzerland, has measured the glass efficiency of the Gujarat Borosil product as 0.952, thus
putting it at the highest efficiency amongst the glasses tested by them

INVESTOR PRESENTATION 20
 Key Domestic Customers

Key Customers - Domestic

INVESTOR PRESENTATION 21
 Key International Customers

Key Customers – International

Spain Kenya Croatia

Spain Italy Italy

US US Germany

Kenya Italy Greece

Germany

INVESTOR PRESENTATION 22
 Financial Highlights

Consistent Revenue Growth with… …with Healthy EBITDA Margins…

INR Mn INR Mn
1,829 1,840

1,518 22.1%
19.1%
1,328 20.3%
14.4%

1,328 1,518
1,829 1,840 269 219 349 406

FY14 FY15 FY16 FY17 FY14 FY15* FY16 FY17

EBITDA EBITDA Margin

…and PAT Margins… …leading to Attractive Return Ratios

INR Mn
7.7% 26%
6.3%
16%
4.0% 14%

6%
1.0% 8%
83
74 141 1%
15
FY14 FY15* FY16 FY17 FY15 FY16 FY17

PAT PAT Margin ROE RoCE^

*Net of write off to the extent of ~INR 56 Mn
^RoCE = EBIT/Average Capital Employed

INVESTOR PRESENTATION 23
 Corporate Governance: Board of Directors
Name Designation Age Background
 Associated with the Company since incorporation
Chairman & Non-Executive
B. L. Kheruka 87  Over 30 years of experience in glass industry
Director  Chairman of Borosil Glass Works Limited

 Associated with the Company since incorporation

P. K. Kheruka Non-Executive Director 66  Experience of nearly 30 years in glass industry
 On the board of Borosil Glass Works Limited.

Shashi Kumar
 Member of ICAI
Madanlal Independent Director 65
 Partner at Mehra & Sharma Associates
Mehra

 Chartered Accountant, B.Com and Member of ICAI

Ashok Kumar
Non executive Director 59  Director of Motilal Oswal Asset Management and Hopewell Tableware Private
Jain
Limited

Rajesh Kumar  B.Com, Member of ICAI

Whole-time Director 47
Chaudhary  Former CFO of Borosil Glass Works Limited

 Ex- I.A.S – retired as Additional Chief Secretary (Planning)

Jagdish Joshi Independent Director 73
 Held various positions in Maharashtra State Government and GoI

Ashok Kumar  B. Tech(Honors) from IIT Bombay

Independent Director 71
Doda  Former director of IDBI Bank Limited and IFCI Limited

 Director of Graphite India Limited

Shalini Kamath Independent Director 53
 Director of the company since November, 2014

INVESTOR PRESENTATION 24
 Corporate Governance: Key Management Personnel
Name Designation Age Background

Rajesh Kumar  B.Com, Member of ICAI

Whole Time Director 47
Chaudhary  Former CFO of Borosil Glass Works Limited

Sunil Kishanlal  Member of ICSI, ICWAI & ICAI

CFO 47
Roongta  Experience in Finance and accounts

 Commerce Graduate, Law Graduate and member of ICSI

Kishor Talreja Company Secretary 42
 Experience in Corporate sector – Secretarial & Listing compliance.

INVESTOR PRESENTATION 25
Annexure
 List of Abbreviations
GBL : Gujarat Borosil Limited ADB : Asian Development Bank
PV : Photovoltaic KfW Development Bank, a German Government-owned
KFW :
EVA : Ethylene Vinyl Acetate development bank
MAT : Minimum Alternate Tax
ARC : Anti-Reflective Coating
IP : Intellectual Property
HSE : Health, Safety and Environment
GW : Gigawatt
PID : Potential Induced Degradation
GWh : Gigawatt-hour
PPM : Parts Per Million
MT : Metric Tons
NAPCC : National Action Plan on Climate Change
TPD : Ton per Day
COP : Conference of Parties
KWh : Kilowatt Hour
JNNSM : Jawaharlal Nehru National Solar Mission IPO : Initial Public Offering
NSM : National Solar Mission Earnings before interest, tax, depreciation and
EBITDA :
NTP : National Tariff Policy amortization
CEA : Central Electricity Authority Return on capital employed- Calculated as (EBITDA -
MNRE : Ministry of New and Renewable Energy ROCE : Taxes)/ Average (Total Assets - C.L. + ST Debt + Current
Maturities of LT Debt)
SECI : Solar Energy Corporation of India
CAGR : Compounded Annual Growth Rate
RPO : Renewable Power Obligation
Capex : Capital Expenditure
REC : Renewable Energy Certificate
FY : Financial Year ending 31st March
RGO : Renewable Generation Obligation
INR : Indian Rupee
VGF : Viability Gap Funding mm : Millimetre
FiT : Feed-in-Tariff Mn : Million
PLF : Plant Load Factor N.A. : Not Available
PPA : Power Purchase Agreement PA : Per Annum

INVESTOR PRESENTATION 27
Thank You

28