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Gujarat Alkalies and Chemicals Ltd.

2nd Nov. 2007, Mumbai

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Company – An Overview

Baroda Complex Dahej Complex

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05 Total :.2007 • GACL is An IS-ISO-9001. 100.00 3 3 .65 Foreign 6. 14001 and 18001 Company promoted by the Government of Gujarat in 1973 • Paid up capital of the company is Rs.23 Non-Promoter Corp. 734. Hold.09.72 General public / others 26. Share Holding Pattern as on 30. 13.35 Promoters 36.4 Millions • The broad share holding pattern is as under : Shareholders (%) Institutions 17.

Shri G M Yadwadkar Nominee Director of IDBI Ltd Shri H N Sinor Chief Executive Indian Bank’s Association Dr. GIIC Ltd. IAS Principal Secretary( Energy and Petrochemicals. Board of Directors Dr. V L Joshi. IAS MD. IAS GOG) Smt. Subramaniam. GoG) Shri G C Murmu. IAS 4 4 . Sukhdev Scientist Shri Guruprasad Managing Director Mohapatra. Manjula Chairperson (Chief Secretary.

00. Poly Aluminum Chloride. Chloromethanes. Highlights of the Company  Company commenced commercial operations with 37. Phosphoric Acid.425 MTA of Caustic Soda in 1976.  Has a basket of 26 products  Maintaining its leadership in Caustic-Chlorine in the country with 18 % share 5 5 .000 MTA and changed over to environment friendly Membrane Cell Technology during 1989 to 1994 – the first Chlor-Alkali manufacturer to do so  Added value added products like Sodium Cyanide. Aluminium Chloride.  Increased production capacity of Caustic Soda to 4. Potassium Hydroxide and Potassium Carbonate. Chlorinated Paraffin Wax etc. Hydrogen Peroxide.

Highlights of the Company  Company has been maintaining its plants near 103% capacity utilisation as against 80% Caustic Soda industry average.1 Millions as on 31-03-2007)  Record Accident free days of 1559 at Baroda Complex and 946 days at Dahej Complex as on 31st Oct.Never lost a man day due to labour relations since inception  Professional Management .10880 Millions.Eminent Board of Directors  Proximity to both raw material suppliers and end users  Depreciated plants.  Total income of the Company has reached Rs. significant debt already paid back  Continuous support of Government of Gujarat 6 6 .7. 2007.  Small workforce (1529 employees) with high productivity (Turnover per employee :.Rs.  Excellent Labour Relationship .

Market Share Product No of players % Share in Total Market Caustic Soda 34 18% Cyanide Salt 2 33% Chloromethanes 4 20% Potassium Carbonate 2 80% Hydrogen Peroxide 4 35% Phosphoric Acid 2 50% Aluminium Chloride 5 (Organize) 33%  Value Added Products are providing dual benefits to GACL  Hedging GACL against the Cyclical Fluctuations of the Chlor Alkali Industry  It is a major player in the value added products 7 7 .

Critical Success Factors GACL scores on most of the critical success factors : • Supply of Power at Low Cost • Closeness to Sources of Raw material • Proximity to Market • Environment Friendly Membrane Cell Technology • Integrated Value Added Products • ERP/IT Driven Business Management • Professional Management and dedicated employees • Dedicated Effluent discharge pipelines 8 8 .

 GACL CDM Projects are based on Fuel Switch Over and Energy Efficiency. GACL CDM Projects  GACL has taken initiatives for the CDM projects since May 2002.-2007-08 towards CDM Projects.56 crores in F. 9 9 . Company has received Rs.  Company is the first PSU in the country to get the Host country Approval for its CDM Projects.Y. 16.

GACL v/s Sensex (BSE) 10 .

GACL .Product Mix 3% 2% Caustic Soda 3% 4% Chlorine 5% Chloromethanes 7% Phosphoric Acid-85% Hydrogen Peroxide 52% Potassium Carbonate 10% Power Hydrochloric Acid- 30% 14% Aluminium Chloride 11 11 .

70 lakh tonnes  Indian Chlor-Alkali industry driven by Caustic Soda. ● China’s export subsidy of 13% withdrawn w.Alkali industry is driven by demand– supply of Chlorine ● INDIA  In India.  34 units having Total Capacity 23 lakh MT p.e.f.  Global Chlor .  Average Industry capacity utilisation at about 80%  Imports of 1.Sectoral Outlook : Chlor-Alkali ● GLOBAL  Chlor-Alkali industry is one of the 20 largest chemical industry in the world. ● The Chlor-Alkali industry is regionalized in terms of demand and pricing.a. 45% of the chemical industry is dependent on Chlor-Alkali. July’ 2007. 12 12 .

Pidilite.Caustic supply with companies like Lubrizol. Sectoral Outlook Chlor-Alkali ● International price of Caustic soda is firming up due to increase in crude prices. GNFC etc. ● GACL is working on long-term Chlorine. 13 13 . FOB prices in China has touched to USD 280-290 PMT ● International price of Chlorine is more than USD 300 PMT ● Higher Chlorine prices will result in additional Chlorine based investment in India and additional export of chlorine base products.

0 . b. g.0 0 .0 .0 .0 r.0 .0 l.0 .06-Oct07 Increasing trend from April. ne ay pt pt ar ct ct ec ly ov Ju Ja Fe Ap O O M M D Jul.0 0 .0 . ECU Price Trends ECU Prices with Caustic Soda Flakes/Prils 23000 22000 21000 Rs/ MT 20000 19000 18000 17000 16000 Ju 7 Au 6 Ju 7 07 07 7 6 7 Au 7 Se 6 N 6 6 6 Se 7 7 7 .0 . 2007 onwards 14 14 .0 n. g.

Avg growth ● Gujarat leads in Chemical Industry and 8.9% in Soaps & 8 14 Caustic Soda. Future Growth ● Alumina production expected to double by 2010.15% p. growth of the paper industry 8 30 Paper ● Average estimated growth of 8. Detergents ● Growth in Paper and Pharma Industries Manmade 9 25 shall increase demand of Hydrogen Fibers Peroxide & Chloromethanes Others 10 10 respectively. 15 15 . Estimated Contri- Sectors Growth bution ● Textile industry expected to double in (%) (%) the next 5 years.a.9 in Alkalies proposed SEZs. in the next 5 years. Chemicals 12 9 ● Rising literacy levels resulting in the Newsprint. Aluminum 10 12 ● Chemicals industry expected to grow at 12% .

1 87.3 PBIDTM(%) 49.0 EPS (Rs.7 72. Co_Name Caustic GACL Chem.2 46.03 20.7 25.Peer Comparison – 2006 .0 25.1 79.) 14.7 0. in Million Bihar Kanoria Punjab Sr.3 205.4 25.6 13.5 65.9 38.4 11.0 675.8 Exp % Sales 54.) 63.1 21. Net Sales 1430 10448 4301 2017 3780 RMC % Sales 34.2 PBIDT 713 3985 843 263 785 Interest 107 377 264 126 306 Profit After Tax 338 1866 195 10 181 Equity 233.8 0.1 19.9 734.07 Rs.2 27.5 38. Alkalies Alka.7 83.9 18. Rayal.5 PFC % Expenditure 4.2 31.5 2.7 Book Value (Rs.4 167.8 16 16 .2 117.0 116.

14 25.61 87 97 -10 PAT 133.17 44.00 . Crs) (2007-08) (2006-07) Net Sales 544.63 198.81 -70.44 - EPS (Rs.35 399 413 -3 Profit Interest 14.) 18.59 95.68 -18.40 26. GACL – FY07 Key Financials Particulars H1 H1 Var % FY07 FY06 Var % (Rs.83 38 39 -3 Tax 13.95 1045 944 11 Operating 208.44 .98 40.06 104.35 17.34 40. 73.11 187 198 -5 Equity 73.19 12.56 -.56 38 44 -13 17 17 .44 73.03 5.58 5.34 38. 117 96 22 OPM % 38.13 513.44 73.96 -6 Book Value 134.

63 815.41 381.44 73.44 73.41 336. in Crore 07-08 Particulars up to 06-07 05-06 04-05 03-04 30.Expenditure to the extent not (37.00 95.60) (29.73 27.44 Reserves & Surplus 948.40 514.28) (19.09.68) (27.57) written off Net Worth 984.07 Share Capital 73.15 36.78 70.50 18 18 .86 Increase in Book 14.20 703. 25 20 15 7.44 73.47 859.44 73.58 Book Value Per Share 134.64 468.69 - Value (%) Dividend Paid (%) .05 54.04 649.06 117. NET WORTH OF THE COMPANY Rs.44) (28.71 Misc.58 22.

54 10.08 Cash Earning Per 6 Rs.98 9.86 20.81 47.13 23.65 9.21 29.57 10.18 49.66 to Net Sales Profit After Tax to 3 % 24.89 Share 19 19 .86 35.22 Sales Profit Before Tax 2 % 26.34 38.09.55 17.40 26.69 44.97 26.78 3.05 Net Sales Interest Coverage 4 Times 14.96 19.19 25.97 15.48 6./Share 53.13 50.18 31.07 Gross Profit / Net 1 % 38./Share 18.N Particulars Unit Up to 06-07 05-06 04-05 03-04 o.17 43. ACCOUNTING RATIOS S 07-08 r. 30.82 12.11 Ratio 5 Earning Per Share Rs.

54 20 20 .76 25.49 1.20 Ratio Debt Equity 9 Times 0.79 1.57 1.53 1.92 Net Worth 12 Current Ratio Times 1.51 4.62 2.09.07 Book Value 7 Rs.67 6.05 54.61 14.62 Ratio Debt Service 10 Coverage Times 1.02 1. Particulars Unit Up to 06-07 05-06 04-05 03-04 No.11 0.77 1. 30.78 70. ACCOUNTING RATIOS Contd… 07-08 Sr.10 Ratio Return on 11 % 27.58 5.26 0.72 1.06 117./Share 4.13 1.86 2.00 95.14 19.86 Per Share Price Earning 8 Rs.82 4.25 25./Share 134.

24 MW Wind Farm 122 Expected to be commissioned by Energy February.50 Expected to be commissioned by December. Crore) Projects on Hands 38 TPD Hydrogen 112 Commissioned in July. 100 TPD Flaking Unit 11. PROJECTS ON HAND Project Investment Status ( Rs.07 Peroxide (on 100 %) Aluminum Chloride 50 Expected to start commercial production in Nov’07. 2008. New Projects under Deliberation Caustic Soda 400 350-500 TPD Power Plant 450 90 MW Hydrogen Peroxide 175 75 TPD (on 100 %) Total 1320. 2007.5 21 21 .

Crore) 38 TPD Hydrogen Peroxide 50 Aluminum Chloride 50 100 TPD Flaking Unit Balancing Activity 24 MW Wind Farm Energy Saving in Power Cost Caustic Soda 360 90 MW Power Plant Low Cost Power 75 TPD Hydrogen Peroxide 100 Total 560 22 .Likely Increase in Turnover at current market price Projects Turnover ( Rs.

Future Expectations ● Being a basic chemical an expected growth of 8-9% in consumption. ● Upward movement in ECU prices with stabilisation of Chlorine off-take. ● Future expansions in Caustic– Chlorine and other products. ● Joint ventures / Tie-ups expected to yield positive returns. 23 23 . ● Introduction of value added Chlorine based products.

EXPECTATIONS OR PREDICTIONS MAY BE FORWARD LOOKING STATEMENTS/ INFORMATION WITHIN THE MEANING OF APPLICABLE SECURITY REGULATIONS AND LAWS. THESE STATEMENTS/ INFORMATION ARE BASED ON CERTAIN ASSUMPTIONS AND EXPECTATION OF FUTURE EVENTS. ACTUAL RESULTS COULD HOWEVER DIFFER MATERIALLY FROM THOSE EXPRESSED OR IMPLIED. CHANGES IN GOVERNMENT REGULATIONS AND TAX STRUCTURE. ESTIMATES. THE INVESTORS SHOULD USE THEIR OWN JUDGEMENT AND DISCRETION BEFORE TAKING ANY DECISION FOR INVESTMENT IN COMPANY’S SHARES. IMPROTANT FACTORS THAT COULD MAKE A DIFFERENCE TO THE COMPANY’S OPERATIONS INCLUDE GLOBAL AND DOMESTIC DEMAND-SUPPLY CONDITIONS. 24 24 . ECONOMIC DEVELOPMENTS WITHIN INDIA AND THE COUNTRIES WITH WHICH THE COMPANY HAS BUSINESS CONTACTS AND OTHER FACTORS SUCH AS LITIGATION AND INDUSTRIAL RELATIONS. PROJECTIONS. ● THE STATEMENTS/ INFORMATION HEREIN MAY NOT BE CONSIDERED AS AN ADVISE OR INVITATION FOR INVESTMENT IN THE STOCKS OF THE COMPANY. INFORMATION OR EVENT. RAW MATERIALS COST AND AVAILABILITY. ● THE COMPANY ASSUMES NO RESPONSIBILITY IN RESPECT OF FORWARD LOOKING STATEMENTS/INFORMATIONS HEREIN WHICH MAY UNDERGO CHANGES IN FURTURE ON THE BASIS OF SUBSEQUENT DEVELOPMENTS. FINISHED GOODS PRICES. DISCLAIMER ● STATEMENTS/INFORMATION IN THIS PRESENTATION DESCRIBING THE COMPANY’S OBJECTIVES.

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