Jindal Poly Films Limited

Corporate Presentation
January 2016

Disclaimer
This presentation has been prepared by Jindal Poly Films Limited (also referred to as JPFL or Company) and is strictly confidential and may not be taken away, copied, published, distributed or transmitted or
redistributed or passed on directly or indirectly to any other person, whether within or outside your organization or firm, or published in whole or in part, for any purpose by recipients directly or indirectly to any
other person. By accessing this presentation, you agree to be bound by the following restrictions and to maintain absolute confidentiality regarding the information disclosed in these materials. The Company may
alter, modify or otherwise change in any manner the contents of this presentation, without obligation to notify any persons of such change or changes. By attending the meeting where this presentation is being made
or by reading the presentation materials, you agree to be bound by following limitations:
The information in this presentation has been prepared for use in presentations by JPFL for information purposes only and does not constitute, or should be regarded as, or form part of any offer, invitation,
inducement or advertisement to sell or issue, or any solicitation or initiation of any offer to purchase or subscribe for, any securities of the Company in any jurisdiction, including the United States and India, nor shall
it, or the fact of its distribution form the basis of, or be relied on in connection with, any investment decision or any contract or commitment to purchase or subscribe for any securities of the Company in any
jurisdiction, including the United States and India. This presentation does not constitute a recommendation by the Company or any other party to sell or buy any securities of the Company. The distribution of this
presentation in certain jurisdictions may be restricted by law and persons into whose possession this presentation comes should inform themselves about and observe any such restrictions. None of the Companys
securities may be offered or sold in the United States without registration under the U.S. Securities Act of 1933, as amended, except pursuant to an exemption from registration therefrom.
This presentation and its contents are not and should not be construed as a prospectus or an offer document, including as defined under the Companies Act, 2013, including the rules formulated thereunder (to the
extent notified and in force) or an offer document under the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009 as amended.
In particular, this presentation is not for publication or distribution or release in any country where such distribution may lead to a breach of any law or regulatory requirement. No person is authorized to give any
information or to make any representation not contained in or inconsistent with this presentation or and if given or made, such information or representation must not be relied upon as having been authorized by us.
Receipt of this presentation constitutes an express agreement to be bound by such confidentiality and the other terms set out herein. Any failure to comply with this restriction may constitute a violation of applicable
securities laws. In no event shall the Company be responsible to any person or entity for any loss or damage, whether direct, indirect, incidental, consequential or otherwise, arising out of access or use or
dissemination of information contained in this presentation, including, but not limited to, loss of profits.
No representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions contained in this presentation.
Neither JPFL nor any of its affiliates, advisors or representatives shall have any responsibility or liability whatsoever (for negligence or otherwise) for any loss howsoever arising from any use of this presentation or its
contents or otherwise arising in connection with this presentation. The information set out herein may be subject to updating, completion, revision, verification and amendment and such information may change
materially. This presentation is based on the economic, regulatory, market and other conditions as in effect on the date hereof. It should be understood that subsequent developments may affect the information
contained in this presentation, which neither JPFL nor its affiliates, advisors or representatives are under an obligation to update, revise or affirm.
This presentation contains forward-looking statements based on the currently held beliefs and assumptions of the management of JPFL, which are expressed in good faith and, in their opinion, reasonable. Forwardlooking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results, financial condition, performance, or achievements of JPFL or industry results, to differ
materially from the results, financial condition, performance or achievements expressed or implied by such forward-looking statements. Significant factors that could make a difference to the Companys operations
include, but are not reasonable to, domestic and international economic conditions, changes in government regulations, tax regime and other statutes.Unless otherwise indicated, the information contained herein is
preliminary and indicative and is based on management information, current plans and estimates. Industry and market-related information is obtained or derived from industry publications and other sources and has
not been independently verified by us. Given these risks, uncertainties and other factors, recipients of this document are cautioned not to place undue reliance on these forward-looking statements. JPFL does not
undertake any obligation to update or revise these forward-looking statements to reflect future events or developments.
This presentation contains certain supplemental measures of performance and liquidity that are not required by or presented in accordance with Indian GAAP, and should not be considered an alternative to profit,
operating revenue or any other performance measures derived in accordance with Indian GAAP or an alternative to cash flow from operations as a measure of liquidity of the Company.
You must make your own assessment of the relevance, accuracy and adequacy of the information contained in this presentation and must make such independent analysis as you may consider necessary or appropriate
for such purpose. Any opinions expressed in this presentation are subject to change without notice and past performance is not indicative of future results. By attending this presentation you acknowledge that you
will be solely responsible for your own assessment of the market and the market position of the Company and that you will conduct your own analysis and be solely responsible for forming your own view of the
potential future performance of the Companys business.
By accessing this presentation, you accept that this disclaimer and any claims arising out of the use of the information from this presentation shall be governed by the laws of India and only the courts in Mumbai, and
no other courts, shall have jurisdiction over the same.
THIS PRESENTATION IS NOT AN OFFER FOR SALE OF SECURITIES IN INDIA, THE UNITED STATES OR ELSEWHERE

Jindal Poly Films Limited

One of the leading manufacturers of BOPP films in the world
Jindal Poly Films Limited (JPFL or Company) is a global flexible packaging solutions
provider for consumer goods, with manufacturing operations in India, Europe and US with
sales footprint in over 40 countries
Global Market: One of the largest manufacturers of BOPP films with around 5% share of
global capacity1

Domestic Market: One of the key manufacturers in India with largest capacity for both
BOPP and BOPET2
Capacity to manufacture 430 KTPA (000 Tons Per Annum) of BOPP; 126 KTPA of BOPET
globally, along-with coating and metalising facilities 1,2,3
Plans to increase combined BOPP capacity by 161 KTPA globally along-with additions in
coating and metalising facilities
Offers wide spectrum of packaging solutions with strong R&D capabilities and 250+
registered patents
Significant scale economies, Nashik plant is the largest single location plant in the world for
manufacture of BOPP Films3
Enjoys relationship with several global packaging /consumer goods companies
Successful acquisition and turnaround of ExxonMobils BOPP films business

1. As per the report on the Global BOPP Film Industry by PCI Films Consulting Ltd dated Dec 2014
2. As per the report on the Global BOPP Film Industry by PCI Films Consulting Ltd dated Dec 2014 and World BOPET Film Market 2013-18 A Statistical Review y PCI Films Consulting Ltd dated Jun 2014 b
3. As per the report on the Global BOPP Film Market Trends to 2016 by PCI Films Consulting Ltd dated August 2012

Business Overview

Jindal Poly Films in Flexible Packaging Value Chain

Film Production
(BOPP or
BOPET)

Polypropylene
Resin

Addition of
certain
characteristics

Core resins

Extrusion

Coating

Specialty resins,
chmecal and
additives

Casting on a die

Metallizing

Stretching

Rolling, etc.

Slitting to
custom widths
and outer
diameters

Resulting in plain
clear films

Customization &
Converting

Printing &
laminating

Roll stock
coating and
laminating

Slitting to
finished widths
for packaging or
labeling
machines

End Markets

Flexible food packaging

for snacks, confections,
biscuit & bakery, dry
mixes & beverages

Container labeling for

beverages, health &
beauty, household
chemicals

Product Portfolio
Flagship Business
Base Films
BOPET

BOPP

Specialized Films

Product
Features

BOPP is a thin, flexible film which can be

used as interface with food products or as
stretchable packaging items
It has higher moisture retention properties

BOPET is a strong/thick film which is

largely used for external applications in
packaging.
BOPET improves shelf life of product

Metalized / Coated Films are improvisations

in BOPP or BOPET to provide advanced
barrier, decorative applications

Product Range

Upto 75 Micron

Thin : Upto 50 Micron

Thick: Over 50 Micron

Customised as per end use requirements

Applications

FMCG packaging, Textile, Tape, Labels

Lamination to Paper and other plastic films

Thin: FMCG packaging, lamination to

other plastic films
Thick: Electronics, Stationary, Motor
Insulation, Sequence for textile

Flexible Packaging Industry, Packaging of

food items with moisture, oxygen barrier,
Pressure sensitive labels, etc.

JPFL Capacity

210 KTPA in India, 220 KTPA in Europe and

US1

126 KTPA (only in India)2

Metalising 63 KTPA, Coating 4.5 KTPA in

India. Also has metalising and coating
facilities in Europe and US3

Raw Material

Resins procured from petro-chemical

suppliers

Backward integrated with 176.4 KTPA

Polyester Chips making Capacity at Nasik,
Maharashtra

Base films, aluminum wires and other

additives and chemicals

1. As per the report on the Global BOPP Film Industry by PCI Films Consulting Ltd dated Dec 2014
2. As per the report on World BOPET Film Market 2013-18 A Statistical Review y PCI Films Consulting Ltd dated Jun 2014
3. As per the report on the Global BOPP Film Market Trends to 2016 by PCI Films Consulting Ltd dated August 2012

Product Portfolio
Associated Businesses
Technical Textiles
(Global Non Wovens)

Photo Films

Products

Polypropylene based nonwoven packaging solutions

with Germany Technology

Marketing/manufacturing of Photographic Color

Paper, Photographic Chemicals, Thermal Printers &
Media, Medical X-Ray Films

Applications

Hygiene and medical applications

Imaging and medical/diagnostics

Capacity

Nasik, India plant commissioned on 1st July 2015,

Capacity 18 KTPA

NA

Currently major part of Indian demand of these

products is serviced by imports

Jindal Photo and the Company have filed a Scheme

of Arrangement under Sections 391-394 of the
Companies Act 1956 before the High Court of
Allahabad and the High Court of Bombay for
demerger of the manufacture of photographic paper
and film business and transfer to JPFL

Other
Particulars

End Use Markets for Flagship Products

BOPP End Uses1

BOPET End Uses2

Imaging and
Magnetic
Tape
4%

Industrial
20%

Other
Industrial
16%

Food
Packaging
68%

Non-Food
Packaging
12%

Electrical
21%

Global capacity ~ 9,500 KTPA3

1. 2011data: As per the report on Global BOPP Film Market Trends to 2016 by PCI Films Consulting Ltd dated August 2012
2. 2013 data: As per the Report on World BOPET Film Market 2013-18 A Statistical Review by PCI Films Consulting Ltd dated June 2014
3. 2013 data: As per the report on the Global BOPP Film Industry by PCI Films Consulting Ltd dated Dec 2014

Packaging
59%

Global capacity ~ 5,000 KTPA2

Key Investment Highlights

Key Investment Highlights

1. Favourable Industry
Scenario

5. Robust Financial
Performance

4. R&D and
Technology Focused
Product Development

2. Leading Market
Position

3. Global Platform

10

1. Favourable Industry Scenario

Growth Drivers

Growing penetration
of packaged food
driven by new
applications in food retailing,
higher disposable
incomes

Growing importance of
smaller pack sizes

New converting and

packaging equipment,
which have
increased applications
of poly films

Increasing prominence
of organised and
online retailing

Shift from rigid

material, aluminum foils,
towards flexible packaging
driven by lower cost, endproduct quality

11

1. Favourable Industry Scenario contd..

Growth Projected
South East Asia & Oceania
(including India) BOPP Demand1

Global BOPP Demand1

> 5%
* 5%/

6,627

7%

5,212

CY08

CY13

8%

CY18E

1%
1,047

1,065

2%
1,121

North America BOPP Demand1

4%

1,265

4%

759

860

716

595

CY18E

CY13

8%

5,123

5%

3,564

CY13

CY08

India BOPET Demand2

CY08

CY18E

CY08

CY13

CY18E

CY18E

CY08

CY13

CY18E

End products (FMCG) growth

innovations/changes in consumption
ensured global volume growth 4-5%1

In medium term US is expected to grow around 4%,

Europe being slightly mature market would grow 2.4%1

Indian BOPP market demand was ~300 KTPA in 2013,

which grew by 10-12% during 2008-13 period1

In BOPET global as well as India demand is expecting 8%

growth in 2013-18 period2

375

257

CY13

197

2,384

CY08

Europe BOPP Demand1

538

Global BOPET Demand2

8%

7%

8,200

(Demand in KTPA)

1. As per the report on the Global BOPP Film Industry by PCI Films Consulting Limited dated December 2014
2. As per the Report on World BOPET Film Market 2013-18 A Statistical Review by PCI Films Consulting Limited dated June 2014

as well as
patterns have

12

2. Leading Market Position

Global Leader in BOPP films
(Rated Capacity in KTPA)
Global BOPP1

Europe BOPP1

185

430

JPFL

North America BOPP1

140
105

132

385

382

Taghleef (UAE)

Formosa
(Taiwan)

80

128

JPFL

Treofan
(Germany)

Taghleef (UAE)

Formosa/Amtopp Taghleef (UAE)

JPFL

India BOPET2

India BOPP1

126

210

103

62

60

SRF Polyester

Vacmet

63

JPFL

Cosmo Films

Max Specialty

JPFL

1. 2013 data: As per the report on the Global BOPP Film Industry by PCI Films Consulting dated December 2014;
2. 2013 data: As per the Report on World BOPET Film Market 2013-18 A Statistical Review by PCI Films Consulting dated June 2014

13

3. Global Platform
Geographical Spread
Manufacturing facilities in India, USA, Belgium, Italy and Netherland
Breakup of Consolidated
Revenues (FY15)
India
25%

Rest of
the
World
75%

Presence
Manufacturing Facilities
Innovation Centre

Note: Map not to scale

14

3. Global Platform contd..

Manufacturing Facilities

Nashik - India

Netherlands Europe

Georgia US

Oklahoma US

Belgium Europe

Italy Europe

15

3. Global Platform contd..

Jindal Films Transformation
Jindal Poly Films India acquired the global BOPP films business of ExxonMobil (now called Jindal Films) in 2013

Jindal Films is a leading manufacturer of BOPP (including

Metalized and Coated Films) in US and Europe

Modern technology and R&D capabilities with 250+ patents

and a strong product pipeline

Products mainly used in flexible packaging and label

applications by large FMCG companies

Local customer base includes global brand owners (FMCG)

and large converters

5 manufacturing units globally 3 in Europe and 2 in the US

total capacity of 220 KTPA

BRC Packaging Standard Certified

.. And has implemented a remarkable improvement in profitability

Quality of
Revenue

Took targeted price increases across product categories and also

reduced the sales of loss making products

SG&A Cost
Reduction

Renegotiated all service and procurement contracts and revisiting

the scope of the services, resulting in lower cost

Planning &
Implementation

Pre acquisition planning followed by close monitoring during

implementation

Global RM
Procurement

Leveraging global requirements and relationships for sourcing &

introduced new suppliers to create competition

Manufacturing
Efficiencies

Continuous focus and shorter payback capex initiatives have

resulted in reduction of waste and improvement in the productivity

# As per Consolidated Financial Statements of JPF Netherlands BV prepared as per IFRS-EU

4x EBIDTA by 1st full FY of operations

USD 60 Million#
USD 52 Million#

USD 14 Million#

Jan 2013 to
March 2014

FY15 (1st
Full year of
Operations)

H1 FY16

16

3. Global Platform contd..

Jindal Poly Films + Jindal Films consolidated strengths

Jindal Poly Films Ltd (India)

Standard Products

Jindal Films (business

acquired from ExxonMobil)
(Europe & US)
Premium FMCG Products

Latest Orientation
Technology

R&D and Process Know

how

Highly Competitive Cost

Structure (largest single
location plant in the world)1

Downstream Customer
Relations and Sales Network

Quality Standard Products

Quality Standard and Value

Added Products in the
premium segment

Un-interrupted supply with

high emphasis on quality

Core Business with Long

Term Commitment

1. As per the report on the Global BOPP Film Market Trends to 2016 by PCI Films Consulting Ltd dated August 2012

One of the leading manufacturers in

BOPP films
250+ Registered Patents and access
to value added products, R&D spend
USD 11 million in FY15

Global Solutions for Packaging

Innovation

Global Foot Print with

Manufacturing Base in 3 Continents

Amalgamating best practices from

two different organizational cultures

17

4. R&D and Technology Focused Product Development

Keeps JPFL ahead of the curve..
Differentiating Capabilities
40 years of commitment & continuous investments in product, process and application technologies
Technology building blocks, 250+ patents
Strong market and applications knowledge
Customer/end-use focused approach for product development
Technology centres dedicated for developing innovative product platforms globally
Focus on innovations across the organisation
Ideation with
focus on value
creation

Explore
breakthrough
technologies

Extensive market
intelligence

Using IP as
Competitive
Advantage

Identify
new/advantage
technologies
Create new areas of
growth
Understand source
of value creation by
product platform

Strengthen R&D
team and setup
Leverage Scientific
community
Explore technology
alliance
partnerships

Customer watch
Continuously
analyse trends and
needs
Actively
participating in
conferences, fairs
Increasing customer
interfaces

Patent monitoring
Competitive
sampling
New product
launches as input to
roadmap

R&D expenditure USD 11

Million in FY15
Focus areas..

Lighter weight alternatives

Ultra high barriers
Robust print surfaces
Enhanced sealants for
integrity and faster speeds
Films to enable recyclability
Disruptive Technology

18

5. Robust Financial Performance

Recent Trends (consolidated numbers in INR million unless otherwise stated)
Sustained revenue growth ..

.with improving EBIDTA margins

EBIDTA

72,869

EBIDTA Margin

51,426

16%
36,939

22,318
7%

FY13

FY14

FY15

H1FY16

Steadily improving RoE ..

9%

9%

1,625

4,432

6,588

6,081

FY13

FY14

FY15

H1FY16

Healthy debt position provides significant headroom for growth

12.7%#

Net Debt

Networth

Net Debt/Equity

10.2%
2.9x

13,832 3.1x

5.6%

FY13
FY14
FY15
H1FY16
# Not Annualised, based on only half years PAT
ROE = PAT/Average Networth of FY and corresponding previous FY

Source: Annual Reports, Audited Accounts

15,670

2.4x
4,639

0.4%

Net Debt/EBITDA

0.4x

0.8x

0.9x

16,755
16,901
11,281
FY13
FY14
FY15
Net Debt = Long Term Borrowings plus Short Term Borrowings plus Current Maturities
of Long Term Debts minus Cash and Cash Equivalents minus Current Investments

19

Strategy

20

Business Strategy
Consolidate leadership position, capitalize on opportunities
Expand capacity to increase market share in a fragmented industry
Increase combined BOPP capacity by 161 KTPA globally along-with
additions in coating and metalising facilities
Expanding BOPP
production in select
locations
Further strengthen R&D &
technical capabilities
Strive to leverage technology
and R&D strengths to create
niche products

Implementation of
new technologies

Realignment of
production and
marketing
strategies

Realign product mix in favour of higher

value added and higher margin items
Increase production of base films

Inorganic growth
opportunity

Continue
to
evaluate
consolidation and geographical
expansion opportunities

Continue to
focus on cost
management

Further improve cost efficiency

Strive to further ring-fence from raw
material price variability

21

Thank you for your Interest

Annexures Follow

Jindal Poly Films Limited

Plot No 12, Sector B-1, Local Shopping Complex, Vasant Kunj, New Delhi-110070

22

Annexure 1
Operating Subsidiaries and Associate Companies
Jindal Poly Films Limited
India Manufacturing of BOPP, BOPET,
Metalised and Coated films

Shareholding Pattern (As of Sept 30, 2015)

Other Public
17.6%
Bodies Corporate
5.2%
Institutions
2.6%
Promoter Group
74.6%

60.40%

Global Nonwovens Limited

Manufacturing of technical textiles and
non-woven packaging solutions for
hygiene and medical applications in India

*51% directly, and 8.75% through a wholly owned subsidiary

59.75%#

JPF Netherlands B.V.

Consolidated entity for operating

subsidiaries acquired from
ExxonMobil
US and Europe
Manufacturing of BOPP and specialised
films

40%

Rexor Holding SAS

Manufacturing of tear tapes, film wraps, etc.
in France
JPFL has also invested INR 6,372.5 Million in
the form of redeemable preference shares in
Jindal India Power Tech Limited (JIPL)
JIPL is the holding company for Jindal India
Thermal Power Limited (JITL). JITL operates
2x600 MW thermal pit head fully operational
domestic coal based power project in Angul,
Orissa

23

Annexure 2
Key Milestones
Polyester Yarn Business

Expansion BOPET & BOPP

Gained leadership in BOPP market

Reorganization

Commenced
manufacturing of Polyester
Yarns at Bulandshar, UP

Expansion of BOPP capacity

by 32 KTPA & BOPET
capacity by 25 KTPA

Yarn production discontinued

Initiated merger of Jindal Photo

business, pending approval of Bombay
High Court

Backward Integration into

manufacturing of polyester
chips for captive use

1974

Incorporation of the
Company

Commissioned 3rd BOPP line of 45

KTPA, one of the largest in the world
Commissioned two BOPP film lines with
capacity of 90 KTPA (4th & 5th Line)

1985-93

1996-2003

2004-05

2006-08

Received BRC Packaging and

Packaging Materials Standard
Certified at Nasik Facility

2009-13

Entry BOPET & BOPP

Acquired BOPP films business of ExxonMobil

Started Manufacturing BOPET Films at Nasik,

Maharashtra

Installed 8.7 meter, thin PET film line (6th Line)

Diversified into BOPP Films and entered the

metallised films segment

2014-16

Acquired BOPP films business from ExxonMobil, with 5 plants,

R & D centre and over 250 registered patents
Set up 6th BOPP line at Nasik

Acquisition of Rexor SAS, France

24

Annexure 3
Financial Snapshot
Profit & Loss (Consolidated)
Particulars (INR Million)

Balance Sheet (Consolidated)

Particulars (INR Million)

FY13
22,318

FY14
51,426

FY15
72,869

H1FY16
36,939

Other Income

240

274

128

109

Total Income

22,558

51,700

72,997

37,048

Cost of materials

16,595

32,943

43,101

20,035

(171)

(104)

602

(246)

Personnel Cost

337

4,459

8,146

4,179

Other expenses

4,171

9,971

14,560

6,999

Sub-total

20,933

47,269

66,409

30,967

EBIDTA

1,625

4,432

6,588

6,081

EBIDTA Margin

7.2%

8.6%

9.0%

16.4%

Finance costs

351

1,195

823

394

Depreciation and amort.

889

1,876

2,269

1,189

Exceptional items

216

268

1,169

-56

PBT

169

1,093

2,327

4,555

Tax

87

407

456

1,297

PAT (before MI)

82

686

1,872

3,258

(21)

(18)

(54)

(5)

60

781

1,721

2,407

Shareholder's Fund

0.3%

1.5%

2.4%

6.5%

Total

Revenue from operations

Change in inventories

PAT from discontinued operation

PAT
PAT margin
Source: Annual Reports

FY13

FY14

FY15

H1FY16

12,496

27,848

24,354

29,099

488

1,296

5,398

1,977

Non-current investments

86

1,755

4,051

6,275

Other Non Current Assets

44

699

350

344

Total Current Assets

7,299

23,158

21,359

22,409

Less: Current Liab. & Prov.

5,657

18,124

15,594

14,877

Net Current Assets

1,642

5,034

5,764

7,532

196

1,373

1,211

1,597

14,951

38,005

41,127

46,823

Long Term Borrowings

1,959

9,498

12,294

12,982

Deferred Tax Liabilities

1,711

5,476

5,478

4,902

Other Non Current Liabilities

2,020

1,770

2,126

Minority Interest

4,255

4,683

5,679

11,281

16,755

16,901

21,133

14,951

38,005

41,127

46,823

Assets
Fixed Assets
CWIP (incl. unallocated capex)

Cash & bank

Total

Liabilities

25