Slide 1: Letter to stock exchanges: Investors' Presentation
DCW LIMITED September 22, 2023 To, National Stock Exchange of India Ltd. BSE Limited Exchange Plaza Bldg. Department of Corporate Services, 5 th Floor, Plot No.C-1 1st floor, New Trading Ring 'G' Block, Near Wockhardt, Rotunda Building, Bandra Kurla Complex Phiroze Jeejeebhoy Towers, Mumbai 400 051.
Slide 2: DCW Limited Investor Presentation September 2023
DCW Limited Investor Presentation September 2023 1
Slide 3: Snapshot
Snapshot BUSINESS 8+ 2 Pioneer Leading Largest and Unique Decades of State-of-the-Art In India Soda Ash, C-PVC, Manufacturer of Commercial scale Experience Integrated Synthetic Rutile & C-PVC and SIOP manufacturer of SIOP in Manufacturing Units SIOP in India the Asia OPERATIONS 12+ 2,000+ Zero 58 MW
Slide 4: Company Overview
Company Overview Business Overview Strategic Overview Industry Overview Financial Overview 3
Slide 5: Company Overview
Company Overview 0 DEW llMITI D Operating Revenue (INR Mn) and EBITDA Margins (%) • Incorporated in 1939, DCW Ltd. was established as Dhrangadhra Chemical Works at Dhrangadhra, 26,338 Gujarat as India’s first Soda Ash plant. 24,547 • Since then DCW has pioneered and created a strong presence in the
Slide 6: Board of Directors
Board of Directors 0 DEW LIMITI D Mr. Pramod Jain, Chairman & Managing Director Mr. Mahesh Vennelkanti, Independent director • Overall 51 years of wide experience in the Industry • Overall 40 years of wide experience in leading and • Under his leadership, the capacity of Soda Ash Plant shaping India
Slide 7: Key Management Personnel
Key Management Personnel 0 DEW LIMITI D Mr. Amitabh Gupta, CEO Mr. S. Ganapathy, COO Mr. Pradipto Mukherjee, CFO Mr. Ashish Jain, Sr. President Mr. Saatvik Jain, President • Holds Bachelor’s degree in • M.Sc. - Chemistry & • Chartered Accountant • M.B.A from New Port • Holds bachelors degree Physics
Slide 8: Key Milestones
Key Milestones 0 DEW LIMITI D Growth in Commodity Chemicals Expansion towards Specialty Chemicals Setup one of the Entered into a Technical Commenced Commissioning of the first integrated License and Support production of 1st Chlor-alkali Plant at plants in India to Agreement with Rockwood and only
Slide 9: Dhrangadhra, Gujarat Manufacturing Facility
Dhrangadhra, Gujarat Manufacturing Facility 0 DEW LIMITI D Location: Gujarat, India Manufacturing Process Flow Ammonia Area: ~400 acres Salt Installed capacity: 108,000 MTPA Soda Ash Products Manufactured: Soda Ash, Ammonium Bicarbonate, Sodium Bicarbonate Strategic Advantage: Sodium Bicarbonate Med
Slide 10: Sahupuram, Tamil Nadu Manufacturing Facility
Sahupuram, Tamil Nadu Manufacturing Facility 0 DEW l l M IU D Location: Tamil Nadu, India Area: ~2,500 acres Installed capacity: 4,62,800 MTPA Products Manufactured: Caustic Soda, PVC, Soda Ash, C-PVC, SIOP, Synthetic Rutile, Synthetic Rutile, Liquid Chlorine, Utox , Hydrochloric Acid, Trichloroethy
Slide 11: Sahupuram Facility Integrated Manufacturing Process
Sahupuram Facility Integrated Manufacturing Process Alumina Bricks VCM Coal Salt Water Hydrogen Caustic Soda Boiler Fly Ash PVC Plant Chlorine HCL Processing Steam Steam 58 MW Power PVC Resin PVC Pipes PVC Resin Nitrogen Oxygen Water CaCl2 Rawore Sulfuric Acid C-PVC Plant Ilmenite Steam Steam Hydroc
Slide 12: Global Footprint
Global Footprint Europe United States Japan India China Turkey Bangladesh Malaysia Brazil Sri Lanka Nigeria Indonesia Manufacturing Facilities Head Office 11
Slide 13: Marquee Customers
Marquee Customers 0 DEW LIMITI D Commodity Chemicals ~ ~FinOlex ~ ®- • NDUSTRIES l,♦:ITNPLI (ashirvad) NALCO PIPES ' ' - - - - - - - - - - - - - - - - - - - - - _. - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
Slide 14: ESG Initiatives
ESG Initiatives 0 DEW l l M I UD Environmental • Promotes GREEN ENVIORNMENT by regular plantation • Motto- REDUCE, REUSE,RECYCLE and RECOVER drive • Zero effluent process • Converted Sahupuram facility into green belt region • Green Cover & Environment Conservation • Operating 25 Windmills in Rajast
Slide 15: Business Overview
Company Overview Business Overview Strategic Overview Industry Overview Financial Overview 14
Slide 16: Speciality Chemicals: C-PVC
Speciality Chemicals: C-PVC 0 DEW LIMITI D • DCW Ltd. is a pioneer and the only in manufacturing of C-PVC (Chlorinated Poly Vinyl Chloride) in India with a technical license from Arkema, France. • The company commenced operations of manufacturing C-PVC in the year 2017 at its Sahupuram, Tamil Nadu f
Slide 17: Speciality Chemicals: SIOP
Speciality Chemicals: SIOP 0 DEW LIMITI D • DCW Ltd. operates one of the largest commercial-scale plant to produce SIOP (Synthetic Iron Oxide Pigments) using in- house, environment-friendly chloride technology. • Synthetic Iron Oxides are one of the most important parts of the Inorganic Pigments fam
Slide 18: Commodity Chemicals: Soda Ash
Commodity Chemicals: Soda Ash 0 DEW LIMITI D • DCW Ltd. started its journey with India’s first Soda Ash factory at Dhrangadhra, Gujarat, back in the year 1939. Operating Revenue (INR Mn) and EBITDA Margin(%) • Basic raw material for Soda Ash is salt and limestone. 3,621 Properties 1,983 2,024 • Soda
Slide 19: Commodity Chemicals: PVC
Commodity Chemicals: PVC 0 DEW LIMITI D • DCW’s PVC (Poly Vinyl Chloride) integrated plant is located at Sahupuram , Tamilnadu and is operational from 1970. • PVC resin is produced by Polymerization of Vinyl Chloride Monomer (VCM), which is a high strength thermoplastic material. • It is the world’s
Slide 20: Commodity Chemicals: Caustic Soda Segment
Commodity Chemicals: Caustic Soda Segment 0 DCW llMIIID Caustic Soda Segment Operating Revenue (INR Mn) and EBITDA Margins (%) • DCW is a pioneer of Caustic Soda manufacturing in India • It uses the latest energy-efficient and environment friendly Mercury free state-of-art Membrane Cell Technology.
Slide 21: Intermediate Chemicals
Intermediate Chemicals 0 DEW LIMITI D • Intermediate chemicals ensure self-sufficiency as they effectively compliment other segments and also acts as an additional source of revenue. • They are either used to make other products or are sold in the open market based on prevailing market demand and su
Slide 22: Strategic Overview
Company Overview Business Overview Strategic Overview Industry Overview Financial Overview 21
Slide 23: Value Proposition
Value Proposition 0 DEW l l M IU D Significant Scale-up Opportunities Technology Tie-ups Diversified Application Base Niche & Diversified Product Mix Over 2,500- acre land bank available at Licensed technology from Arkema Catering to over 15 industries with Diversified product mix of Sahupuram facil
Slide 24: Natural Hedge
Natural Hedge The company’s product basket provides a classic natural hedge in protecting the entities bottom line. c l~ Direct Co-relations: • Caustic Prices with the Net realization of Surplus Chlorine is sold in the market. • The PVC prices have a direct co-relation to the input cost for CPVC. In
Slide 25: Future Growth Drivers
Future Growth Drivers 0 DEW LIMITI D • To further strengthen its position, DCW has planned a capital expenditure of INR 125 Crs to make further inroads into Specialty Chemicals and expand its CPVC capacity and with line-balancing capex to increase the utilization of SIOP capacity to near 100% from c
Slide 26: SIOP Capex Journey
SIOP Capex Journey 0 DEW LIMITI D • In 2016, the company commissioned a plant which was the first of its kind in India, and only second in the world to manufacture SIOP using in-house patented environment-friendly chloride technology. • The investment rationale was to effectively convert a rich iron
Slide 27: Industry Overview
Company Overview Business Overview Strategic Overview Industry Overview Financial Overview 26
Slide 28: Chemical Industry Landscape
Chemical Industry Landscape 0 DEW LIMITI D Global Markets • According to Chemicals Global Market Report 2023, the chemicals market is expected to grow from $5079.29 billion in 2023 to $6851.59 billion in 2027 at a CAGR of 7.8%. • Soda Ash market is expected to grow at a CAGR of 6.2% from 2022 to 203
Slide 29: Products catering to High Growth Industries
Products catering to High Growth Industries Construction/ Building/ Housing • Outlay for PM Awas Yojana is being enhanced by 66% to over INR 79,000 Cr. • Real estate sector in India is expected to reach a market size of USD 1 trillion by 2030 and contribute 13% to the country’s GDP by 2025. • Retail
Slide 30: Financial Overview
Company Overview Business Overview Strategic Overview Industry Overview Financial Overview 29
Slide 31: Historical Income Statement
Historical Income Statement 0 DEW LIMITI D Particulars (INR Mn) FY20 FY21 FY22 FY23 Q1-FY24 Operational Income 12,773 14,643 24,547 26,338 4,380 Total Expenses 11,308 12,549 21,299 22,053 3,869 EBITDA 1,465 2,094 3,248 4,285 511 EBITDA Margins (%) 11.47% 14.30% 13.23% 16.27% 11.67% Other Income 85 1
Slide 32: Historical Balance Sheet
Historical Balance Sheet 0 DEW LIMITI D Particulars (INR Mn) FY21 FY22 FY23 Particulars (INR Mn) FY21 FY22 FY23 ASSETS EQUITY AND LIABILITIES Non-Current Assets Equity Property, Plant & Equipment 13,962 13,386 12,839 Share Capital 522 522 590 Other Equity 6,350 7,496 9,661 Capital Work in progress 3
Slide 33: Financial Performance
Financial Performance 0 DEW LIMITI D Revenue From Operations (INR Mn) EBITDA (INR Mn) & EBITDA Margins % PAT (INR Mn) 26,338 4,285 24,547 1,920 3,248 14,643 1,075 12,773 2,094 11.67% 1,465 - - 16.27% - 4,380 14.30% 13.23% 100 11.47% 511 38 FY20 FY21 FY22 FY23 Q1-FY24 FY20 FY21 FY22 FY23 Q1-FY24 FY20
Slide 34: Capital Market Data
Capital Market Data 0 DEW LIMITI D Stock Performance Data (As on 30th June, 2023) 80% 70% 60% 50% 40% 30% 20% 10% 0% -10% Jul-22 Aug-22 Sep-22 Oct-22 Nov-22 Dec-22 Jan-23 Feb-23 Mar-23 Apr-23 May-23 Jun-23 DCW Sensex Price Data (As on 30th June, 2023) INR Shareholding Pattern (As on 30th June, 2023)
Slide 35: Disclaimer
Disclaimer 0 DEWl l M IUD DCW Ltd. 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. Such information and opinions are in all events
Slide 36: Thank You
THANK YOU 35