Anupam Rasayan India Ltd. Investor Presentation Q2FY25 Nov 2024 PDF

ANUPAM RASAYAN INDIA LTD. R ARILSLDSTX20241114053 Date: November 14, 2024 To, To, BSE Limited, National Stock Exchange of India Li...

ANUPAM RASAYAN INDIA LTD. R ARILSLDSTX20241114053 Date: November 14, 2024 To, To, BSE Limited, National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers, ‘Exchange Plaza’, C-1, Block-G, Dalal Street, Bandra Kurla Complex, Bandra (East), Mumbai-400001, India Mumbai-400051, India SCRIP CODE: 543275 SYMBOL: ANURAS Dear Sir/ Madam, Subject: Investor Presentation Pursuant to Regulation 30 and other applicable regulations, if any, of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, we enclose herewith a copy of the ‘Investor Presentation’ in respect of the Unaudited Financial Results (Standalone and Consolidated) for the quarter and half year ended September 30, 2024, of Anupam Rasayan India Limited (the “Company”). The Investor Presentation will also be hosted on the website of the Company at www.anupamrasayan.com. We request you to kindly note the same and take into your records. Thanking you, Yours Faithfully, For Anupam Rasayan India Limited Digitally signed ASHISH byGUPTA ASHISH GUPTA Date: 2024.11.14 21:28:38 +05'30' Ashish Gupta Company Secretary & Compliance Officer Encl.: As above Registered Office: Tel. : +91-261-2398991-95 Office Nos. 1101 to 1107, 11th Floor, Icon Rio, Fax : +91-261-2398996 Behind Icon Business Centre, Dumas Road, E-mail : [email protected] Surat-395007, Gujarat, India. Website : www.anupamrasayan.com CIN - L24231GJ2003PLC042988 Anupam Rasayan India Limited Q2FY25 November 2024 Quarterly Highlights 1 2 Anupam Rasayan India Limited \  3 Quarterly Financial Highlights \ Limited India Consolidated EBITDA (Incl. Rasayan Consolidated Total Consolidated PAT stood Revenue was ₹ 2,959 Mn; Other Revenue) was ₹ 824 Mn.; at ₹ 306 Mn. Q-o-Q growth of 14% margin stands at 28% Anupam Standalone Total Revenue Standalone EBITDA (Incl. Standalone PAT stood at was ₹ 1,945 Mn; Q-o-Q Other Revenue) was ₹ 560 ₹ 140 Mn. growth of 15% Mn.; margin stands at 29% Added 2 new products in Capex of ₹6,012 Mn Q2FY25 taking total to 73 incurred till Q2FY25 out of products the ₹6,700 Mn announced  4 Managing Director’s Message \ Limited "In Q2FY25, we were nearing the end of a demand slump in the Agro segment, India and we are now seeing a good recovery. The Pharma and Polymer segments, meanwhile, have been showing robust growth, fuelled by the launch of over 17 Rasayan new molecules in FY24 and 3 additional molecules in H1FY25. As these products gain traction, we expect their contribution to grow. Additionally, the Anupam planned launch of more than 3 new molecules in the coming months should further accelerate growth in these areas. Our consolidated operating revenue for the quarter was ₹294 crores, representing QoQ growth of 14%, with a stable EBITDA margin of 28% in Q2FY25. We anticipate revenue to normalize as volumes increase in the latter half of the year. With the new capacity, scaling of recently launched fluorinated molecules, and signed LOIs and contracts, we are optimistic about strong growth over the medium term." Mr. Anand S Desai MANAGING DIRECTOR  5 HALF YEARLY FINANCIALS Consolidated Profit & Loss Summary \ Limited (All amounts are in ₹ Mn) H1FY25 H1FY24 INCOME: India Revenue from Operations 5,482 7,785 Other Income 80 158 Total Revenue Rasayan 5,562 7944 EXPENSES: Cost of Raw Materials Consumed 2,104 3,256 Gross Profit Anupam 3,378 4,530 Gross Margins (%) 62% 58% Employee Benefits Expenses 351 371 Other Expenses 1,691 2,070 EBITDA (Incl. Other Revenue) 1,416 2,247 EBITDA Margins (%) 25% 28% Finance Cost 490 382 Depreciation and Amortization 423 385 Profit Before Tax 502 1,480 Tax (Including Deferred Tax) 74 470 Profit After Tax 428 1,009 PAT Margins (%) 8% 13% Note: All numbers above have been rounded-off to zero decimal.  6 QUARTERLY FINANCIALS Consolidated Profit & Loss Summary \ Limited (All amounts are in ₹ Mn) Q2FY25 Q2FY24 INCOME: India Revenue from Operations 2,940 3,921 Other Income 19 35 Total Revenue Rasayan 2,959 3,956 EXPENSES: Cost of Raw Materials Consumed 1,082 1,625 Gross Profit Anupam 1,858 2,296 Gross Margins (%) 63% 59% Employee Benefits Expenses 181 185 Other Expenses 872 1,036 EBITDA (Incl. Other Revenue) 824 1,109 EBITDA Margins (%) 28% 28% Finance Cost 267 204 Depreciation and Amortization 217 198 Profit Before Tax 340 707 Tax (Including Deferred Tax) 34 220 Profit After Tax 306 487 PAT Margins (%) 10% 12% Note: All numbers above have been rounded-off to zero decimal.  7 HALF YEARLY FINANCIALS Standalone Profit & Loss Summary \ Limited (All amounts are in ₹ Mn) H1FY25 H1FY24 INCOME: India Revenue from Operations 3,546 6,055 Other Income 94 134 Total Revenue 3,641 6,189 Rasayan EXPENSES: Cost of Raw Materials Consumed 1,116 2,337 Gross Profit 2,430 3,718 Anupam Gross Margins (%) 69% 61% Employee Benefits Expenses 239 271 Other Expenses 1,301 1,753 EBITDA (Incl. Other Revenue) 984 1,828 EBITDA Margins (%) 27% 30% Finance Cost 472 378 Depreciation and Amortization 384 349 Profit Before Tax 129 1,101 Tax (Including Deferred Tax) (26) 365 Profit After Tax 154 736 PAT Margins (%) 4% 12% Note: All numbers above have been rounded-off to zero decimal.  8 QUARTERLY FINANCIALS Standalone Profit & Loss Summary \ Limited (All amounts are in ₹ Mn) Q2FY25 Q2FY24 INCOME: India Revenue from Operations 1,907 3,171 Other Income 39 35 Total Revenue 1,945 3,206 Rasayan EXPENSES: Cost of Raw Materials Consumed 598 1,237 Gross Profit 1,309 1,934 Anupam Gross Margins (%) 69% 61% Employee Benefits Expenses 123 135 Other Expenses 665 887 EBITDA (Incl. Other Revenue) 560 947 EBITDA Margins (%) 29% 30% Finance Cost 254 202 Depreciation and Amortization 198 179 Profit Before Tax 109 566 Tax (Including Deferred Tax) (32) 178 Profit After Tax 140 387 PAT Margins (%) 7% 12% Note: All numbers above have been rounded-off to zero decimal. Business Overview 2 9 Anupam Rasayan India Limited \  10 Innovating Sustainable & Custom Solutions for Global Markets \ Limited Company at a glance India Established Custom Specializes in multi-step Catering to globally Strong supply chain Synthesis player with 40 synthesis undertaking relevant chemical & with backward Rasayan years of track record complex chemical agrochemical companies, integrated facilities since 1984 reactions including 31 MNC and Anupam cumulative 75 clients ~27,200 MT Manufacturing Strong technical 73 Complex products 1,705+ committed Capacity, spread over 6 capabilities in complex manufactured as of Q2FY25 employees manufacturing facilities chemistries supported consisting of Life science Strong and Dedicated by an R&D team of 88 related specialty chemical Management Team professionals and other specialty chemical Note: All data as of Q2FY25.  11 Evolution of \ Phase II- Limited Phase I-Inception Anupam The Acceleration India Raised ₹5,000 mn. through QIP Formed Rasayan Commissioned Solar partnership firm Power Plant of 5.4MW “Anupam Rasayan” at Bharuch Fast growing Anupam Specialty Chemical Acquired ~26% Manufacturer with Started supplying controlling stake in focus on Custom Anti-Bacterial products Tanfac Industries Ltd. Synthesis. for German MNC Long running relationships with Started working with leading MNCs Adama Started supplying to Syngenta Listed on NSE and BSE Leveraging deep Commissioned Solar expertise across Power Plant of complex chemistries 12.5MW at Bharuch Building platforms across business Commercialized Awarded ‘Green Started Commercialized Received DSIR verticals of Agro, large scale Innovation Award’ supplying to 2 more registration for Personal Care, Pharma manufacturing by Corning Reactor Sumitomo manufacturing R&D Centre and Other Specialty site - Unit 4 Technology Japan sites – Unit 5 & 6 Chemicals.  12 Chemical Conduits and Global Partnerships \ Limited India Business Verticals Overview Few of our top global clients Rasayan Life Science Related Other Specialty Specialty Chemicals Chemicals Agrochemicals Anupam (including Crop Protection) Specialty Pigments Manufacturing agro intermediates and agro active ingredients (insecticides, fungicides and herbicides) Specialty Dyes Personal Care Manufacturing anti-bacterial and ultraviolet protection intermediates Polymer Additives and ingredient Pharmaceuticals Developing intermediates and ‘key Business Verticals-Wise Revenue starting materials’ for APIs, material sciences and surface chemistry Agro 51% Personal 19% Contributes Contributes Care 90%* 10%* Pharma 20% of revenues of revenues Other Speciality 10% Note: Financials, revenue from operations proportion rounded-off to zero decimal also *as of H1FY25.  13 Charting New Frontiers with R&D Excellence \ Limited Process technologies deployed India Flow Chemistry Photo Chemistry Reduced lead time Simplified Rasayan Material efficient & synthesis of cost benefits complex molecules Lesser Larger potential for environmental automation impacts in the Increased access to Anupam laboratory novel compounds Current R&D highlights DSIR recognized R&D center R&D Capex of ₹55 crores in last 5 years Team of 88 R&D professionals headed by Dr Nilesh Naik New Chemistry Additions Balz Schiemann Vilsmeier–Haack Hofmann rearrangement Sandmeyer Grignard Pyridine Chemistry Lithiation Vapour Phase & high temperature chlorination  14 Experienced Leadership & Deep Technical Talent Pool \ Limited India Mr. Anand S Desai Mrs. Mona A Desai Rasayan Managing Director Vice-chairman & Whole-time Director Over 30 years of experience in chemicals Over 20 years of experience in chemicals industry associated with company since 1992 & industry and associated with the Board since the was one of first Directors of company incorporation of the company Anupam Mr. Gopal Agrawal Mr. Ravi Desai Mr. Amit Khurana Chief Executive Officer Sales Head Chief Financial Officer Qualified CA with 25+ yrs. Exp in 15+ years of experience in sales; Qualified CA with 13+ yrs. exp in Corporate Strategy, global M&A and with ARIL for ~12 years taxes/ accounts; Former Head of Mgmt Consultancy. Former MD & Indirect Taxes & Costing of co., with Head - IB at Edelweiss India ARIL for ~10years Mr. Vishal Thakkar Dr. Nileshkumar Naik Dr. Anuj Thakar Deputy CFO Technical Head Whole time director and R&D 22+ yrs. exp. in M&A, BD, contract PhD (Chem), M.Sc. (Organic Head mgmt. with Shell, Essar, GE Capital, chemistry); with ARIL since PhD (Chem), M.Sc. (Organic Crisil incorporation chemistry); with ARIL for ~18 yrs. We have also built a strong global business development team to strengthen our presence in key target markets U N I T E D S TAT E S Mr. John Grant Business Advisor - Specialty Fluoro Chemicals 30 years+ of experience in Chemicals industry; former business development at 3M Mr. Rob Bryant JA PA N Business Advisor - Mr. Tsutomu Suetomi Fluoropolymers Director - Business Development 30 years+ of experience in - Crop Protection Chemicals industry; Currently 30 years+ of experience in working in NASA EUROPE Chemicals industry; former Senior sales manager at DuPont Mr. Thierry Baumlin Key Account Manager - Crop Protection Mr. Hiroaki Matsudaira 30 years+ of experience in Director - Business Development Chemicals industry; former strategy - Fluoropolymers & Electronics procurement head at BASF 20 years+ of experience in Chemicals industry; former strategy products head at Mitsubishi Mr. Pierre Joris Business Advisor - Specialty Fluoro Chemicals 30 years+ of experience in Chemicals industry; former SBU head at Solvay Drivers Growth 3 16 Anupam Rasayan India Limited \  17 Growth Drivers \ Limited India Rasayan 1 2 3 Anupam Growth of Execution of Expansion in Polymer and Signed LOIs and Fluorination Pharma Product Contracts chemistry Portfolio  18 Growth of Pharma and Polymer Portfolio \ Limited New Strategic Custom 65+ 6+ India Development Products under pipeline to be manufactured by Number of molecules of Number of molecules in Rasayan Anupam in India: pharma and polymer in pharma and polymer to be R&D and pilot commercialized in FY25 Anupam Pharma Polymer Import Substitute “Key Starting Materials” Key Intermediates for New Launch Active Ingredients which To manufacture KSM/intermediates for blockbuster are currently being manufactured in Japan and US. molecules Niche high end molecules Pharmaceuticals: Large, fast-growing market; 10+ molecules commercialized, 19 \ 30+ molecules under pilot/ R&D Limited …and are targeting a large ~$15B TAM with We have made significant progress in Pharma … significant growth India Rasayan Focus segment for Anupam: High-value KSM/intermediates 10+ 25+ Anupam molecules commercialized Leading Pharma (over the past 18 months) players serviced ~$15B ~5% 30+ Manufacturing KSMs/intermediates for blockbuster molecules like To t a l Addressable CAGR Growth molecules in R&D Market (2023-28) and pilot stages Atorvastatin Vonoprazan Sitagliptin Dapagliflozin Losartan and many more… Polymer & Electronic chemicals: Made significant strides with focus on global 20 \ marquee customers across multiple industries Limited Forayed into polymer by working with leading global …across major emerging applications with a ~$10B innovators … growing TAM India Rasayan 2 Leading Anupam High-value global ~$10B ~4% polymer innovators being To t a l A d d r e s s a b l e CAGR Market Growth chemicals serviced (2023-28) commercialized High-value intermediates across applications 35+ Defense and Aero Space Backward (adv intermed., monomers, cross- Semiconductor integrated into linkers for polymers, polymides, and thermoplastic) (photoresist, encapsulation, molecules in fluorination sealant, lithography, FKM/FFKM, varnish, display R&D and pilot Manufacturer of Electronics chemicals, heat transfer fluids fluorinated molecules (photoresist, lithography) stages with uninterrupted etc.) access to key RMs (HF, Ionomers KF) (used in fuel cells) …and others actively explored  21 Strong Order Book – Recent LOI/Contracts Signed \ Limited Signing Quarter Segment Customer LOI/Contract Tenor (Years) Status Value(₹ Crores) Multinational Life Science India Q1FY22 Life Science LOI 5 Commercialized ₹1,100 Company Q1FY22 Life Science Two Multinational Companies Contract 5 Commercialized ₹540 Rasayan Q2FY22 Life Science European Multinational Company Contract 5 Commercialized ₹144 Anupam Q3FY22 Life Science Japanese Multinational Company Contract 4 Commercialized ₹135 Multinational Crop Protection Q4FY22 Life Science LOI 5 Commercialized ₹700 Company To commercialize in Q4FY23 Life Science Japanese Chemical Company LOI 6 ₹984 FY26 One Product Commercialized, Other Specialty Q1FY24 Japanese Multinational LOI 7 other two to ₹1,500 Chemical commercialized in FY26 Other Specialty To commercialize in Q1FY24 American Multinational LOI 5 ₹380 Chemical FY26 To commercialize in Q1FY24 Life Science Japanese Chemical Company LOI 5 ₹2,186 FY28 Other Specialty Japanese Multi National Chemical Q3FY24 LOI 9 Commercialized ₹507 Chemical Company Other Specialty Japanese Multinational To commercialize in Q4FY24 LOI 7 ₹743 Chemical FY26 Total ₹8,919  22 Anupam’s Strategic Expansion in Fluorination with Tanfac \ Limited Anupam acquired ~26% stake in India Tanfac for ~₹1,530M in May'22 Rasayan Producer of Leading Anupam fluorinated producer of intermediates KF/HF Specialty fluoride chemical Anupam Tanfac manufacturer in India Only Indian Leading producer of manufacturer of hydrofluoric acid Backward integration with niche molecules in fluorination (HF) and organic and Tanfac to secure KSM chemistry inorganic fluorine- based products Anupam + Tanfac FY24 revenues of Uninterrupted access to key raw materials (HF and KF) for fluorination ~₹3,780 Mn chemistry Enable future expansion of product series under fluorination chemistry Reduce import dependence on China Increased capacities of existing product portfolio of Tanfac through process improvement & debottlenecking  23 Expansion in Fluorination Chemistry \ Limited FOCUSED SEGMENTS MOLECULES END APPLICATION CUSTOMER SEGMENT REVENUE India POTENTIAL Product A Elastomer US MNC Rasayan Polymers $ 40 – 70 Mn. Product B Semiconductor/Flame Retardant Japanese MNC Anupam Product X/Y Cardio/Anti-viral Indian MNC Pharmaceuticals $ 80 – 90 Mn. Product Z Oncology Indian MNC Product M Insecticide Global MNC Agrochem $ 100 Mn. Product N Herbicide European Originator $5+ Bn $220 – Anupam will source All molecules in these series are high fluorinating agents (KF value high margin product and HF) from Tanfac and For most of this products, Anupam $260 Mn Addressable market of manufacture Value will be single supplier out of Asia Targeted Series for Added Products (VAPs) on exclusive basis to originators Anupam* at Anupam Revenue Potential for Anupam* *Global Consulting Firm Research  24 Summary \ Limited Strengths and Key Highlights India Doubled manufacturing capacity in the last three years Rasayan Manufacturing Strong capex plans to expand capacity into newer Prowess molecules / chemistries Anupam R&D DSIR recognized R&D center with a team of 88 R&D professionals Capabilities Strong technical capabilities and robust R&D pipeline (90+ molecules) Strengthening Integration in Customer supply Chain Supply Chain Acquisition of Tanfac for backward integration Sustainable Partner of choice for originators/leading MNC Business model Multi pronged strategy leading to high growth  Corporate Office ANUPAM Anupam Rasayan India Ltd. India (HQ) 10th Floor, Icon Rio, Dumas Road, Surat, Gujarat, RASAYAN INDIA India – 395 007 LIMITED ThankYou BSE: 543275 | NSE: ANURAS | ISIN: INE930P01018 ©2022 – Anupam Rasayan India Limited, All Rights Reserved. DRAFT