GRP Limited — Investor Presentation 2020

Aug 19, 2020

19.08.2020

To	To
BSE Limited	National Stock Exchange of India Limited
Phiroze Jeejeebhoy Towers,	Exchange Plaza, Bandra Kurla Complex,
Dalal Street,	Bandra (E),
Mumbai - 400 001.	Mumbai - 400 051.
Scrip code : 509152	Symbol : GRPLTD – Series: EQ

Dear Sir / Madam,

Sub: Investor Presentation

Pursuant to regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, we enclose herewith Investor Presentation.

The aforesaid presentation has been uploaded on the Company's website viz., www.grpweb.com

You are requested to take the above on record and oblige.

Thanking you,

Yours faithfully, For GRP Ltd.

Abhijeet Sawant Company Secretary

Encl.: : a/a

Investor Presentation August 2020

Click Here for GRP LTD's Corporate Video

This presentation and the accompanying slides (the "Presentation"), which have been prepared by GRP Limited (the "Company"), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securities, and shall not form the basis or be relied on in connection with any contract or binding commitment what so ever. No offering of securities of the Company will be made except by means of a statutory offering document containing detailed information about the Company.

This Presentation has been prepared by the Company based on information and data which the Company considers reliable, but the Company makes no representation or warranty, express or implied, whatsoever, and no reliance shall be placed on, the truth, accuracy, completeness, fairness and reasonableness of the contents of this Presentation. This Presentation may not be all inclusive and may not contain all of the information that you may consider material. Any liability in respect of the contents of, or any omission from, this Presentation is expressly excluded

Certain matters discussed in this Presentation may contain statements regarding the Company's market opportunity and business prospects that are individually and collectively forward-looking statements. Such forward-looking statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties and assumptions that are difficult to predict. These risks and uncertainties include, but are not limited to, the performance of the Indian economy and of the economies of various international markets, the performance of the industry in India and world-wide, competition, the company's ability to successfully implement its strategy, the Company's future levels of growth and expansion, technological implementation, changes and advancements, changes in revenue, income or cash flows, the Company's market preferences and its exposure to market risks, as well as other risks. The Company's actual results, levels of activity, performance or achievements could differ materially and adversely from results expressed in or implied by this Presentation. The Company assumes no obligation to update any forward-looking information contained in this Presentation. Any forward-looking statements and projections made by third parties included in this Presentation are not adopted by the Company and the Company is not responsible for such third party statements and projections.

Performance Highlights

Performance Highlights for Q1FY21*

• Q1FY21 has been severely impacted as business was not operational for most part of the quarter due to the COVID-19 induced lockdown
• Business operations started gaining normalcy from May end at lower capacity utilization and ramped up gradually with limited staff ensuring strict social distancing norms
• Company has also undertaken sincere efforts to optimize operating expenses to reduce the impact on its profitability in Q1FY21

Segment Wise Quarterly Performance Trend*

*Data On Standalone Basis

Segmental Financial Highlights*

Particulars (in Rs. Mn)*		Reclaim Rubber	Non-Reclaim Rubber
	Q1FY20	Q1FY21	Q1FY20	Q1FY21
Revenue	842.2	300.5	54.8	16.0
Raw Material	433.1	144.4	23.3	6.3
Other Expenses	366.8	175.7	23.9	12.9
EBIDTA	42.3	(19.6)	7.6	(3.2)
EBIDTA Margin	5.0%	-	14.0%	-

✓ GRP's non-Reclaim rubber businesses are allied along the value chain and help the company diversify its offerings to various end customer segments reducing our overall dependence on the tyre sector

• ✓ Q1FY21 was severely impacted due to the COVID-19 induced lockdown. As things have started easing off, our focus is back on increasing business share from non-reclaim rubber businesses
• ✓ Most of the ground work and research has already been done and our products have started gaining acceptance from customers. Thus we expect to gain traction in non-reclaim rubber businesses in FY21

GRP is certified as a "Great Place to Work"

"It is humbling and extremely heartening to learn of the confidence that fellow colleagues have expressed in GRP's culture and work practices for us to qualify for this prestige"

-Mr. Harsh Gandhi Joint Managing Director

COVID-19 Impact & Outlook

With GRP's quick adaptability to new way of working, diversified product portfolio, strong partnerships with customers & suppliers and with rich experience in the industry, company is well placed to tackle the challenges and come out much stronger than ever in times to come

COVID-19 Impact – Initiatives taken at GRP

At GRP, our focus in the days around the lockdown centred around:-

• ✓ Employee safety & well being
• ✓ Getting effective at work from home to continue serving our partners
• ✓ Ensuring our short term financial liquidity & long term survival

Safety is the priority at GRP

Health & well-being of the employees is GRP's priority

We have taken utmost precautions before resuming the operations at all our manufacturing facilities

Consolidated Profit & Loss Statement

Profit & Loss (Rs. Mn)	Q1 FY21*	Q1 FY20	Q4 FY20	FY20
Revenue from operations	316.5	898.3	794.4	3,487.0
Cost of Goods Sold	150.3	453.5	365.7	1703.2
Gross Profit	166.2	444.8	428.7	1783.8
Gross Profit Margin	52.5%	49.5%	54.0%	51.2%
Employee Cost	89.9	149.5	158.7	607.8
Other Expenses	100.6	244.2	225.1	986.7
EBIDTA	-24.3	51.1	45.0	189.4
EBITDA Margin	-7.7%	5.7%	5.7%	5.4%
Other Income	1.4	0.9	3.0	6.4
Depreciation	29.8	33.3	33.9	136.4
Finance Cost	21.3	11.5	37.3	81.8
Profit Before Share of Profit/ (Loss) of JV's	-74.0	7.3	-23.2	-22.5
Share of Profit/(Loss) of JV's	0.0	0.0	0.0	0.0
PBT	-74.0	7.3	-23.2	-22.5
Tax	-18.2	-34.1	-9.5	-52.2
PAT	-55.8	41.4	-13.7	29.7
PAT Margin	-17.6%	4.6%	-1.7%	0.9%

*Since the lockdown was in force for a significant part of Q1, the results for Q1FY21 were adversely affected by the COVID-19 pandemic

and may not be strictly comparable with those of other quarters

Assets (Rs. Mn)	Mar-20	Mar-19
Non-Current Assets	1,279.5	1,289.0
Property, Plant and Equipment	1,107.5	1,207.4
Capital work in progress	13.4	9.7
Right of use assets	104.3	-
Investment Property	10.7	11.0
Other Intangible assets	1.5	2.1
Intangible assets under development	3.1	1.2
Financial Assets
(i)Investments	6.6	6.1
(ii)Others	0.0	0.0
Other Non-Current Assets	32.4	51.5
Current Assets	1,408.8	1,178.8
Inventories	467.7	348.1
Financial Assets
(i)Trade receivables	652.0	657.3
(ii)Cash and cash equivalents	82.5	44.0
(iii)Bank balances other thanmentioned	2.0	2.1
(iv)Other Financial assets	3.4	14.8
Current Tax Assets (Net)	9.3	-
Other Current Assets	192.1	112.4
Total Assets	2,688.4	2,467.8

Liabilities (Rs. Mn)	Mar-20	Mar-19
Equity Share Capital	13.3	13.3
Other Equity	1,258.6	1,284.8
Equity attributable to owners of the
Company	1,272.0	1,298.1
Non-Controlling Interests	0.0	0.0
Total Equity	1,272.0	1,298.1
Non-Current Liabilities	288.0	249.2
Financial Liabilities
(i)Borrowings	114.8	28.9
(ii)Other Financial liabilities	9.5	1.1
Provisions	6.6	5.4
Deferred Tax Liabilities (Net)	157.0	213.8
Current Liabilities	1,128.5	920.5
Financial Liabilities
(i)Borrowings	695.2	593.0
(ii)Trade Payables	234.5	217.0
(iii)Other Financial Liabilities	93.4	38.2
Other Current Liabilities	94.7	69.1
Provisions	10.6	0.3
Current tax liabilities (Net)	-	2.7
Total Equity & Liabilities	2,688.4	2,467.8

Introduction

… HUGE OPPORTUNITY

…presenting a HUGE OPPORTUNITY

Huge tyre graveyards that can be seen from Space

GRP uses end-of-life tyres to recycle and manufacture

Recover, Recycle, Reuse' is GRP's raison d'etre as well as mantra for creating a clean planet

• GRP is one of the leading producers of reclaim rubber
• It recycles end- of-life tyres, automotive inner tubes, automobile profiles and moulded rubber products to produce consistent quality reclaim rubber
• The rubber produced emits 95% Lower greenhouse gas v/s virgin polymers

…to Reduce, Reuse & Recycle

Our Business

Believing in possibility of better tomorrow…

8 Manufacturing Units with 76,100 tons/year capacity

18% share in Indian Market & 50% of India's Export in reclaimed rubber

Supplies to 7 out of top 10 global tyre companies

Export presence in 60+ Countries across 300+ customers

~1.2 Mn End-of-Life tyres saved from reaching landfills Every Year

IATF, ISO and BS OHSAS REACH Certified for EU Zone

OUR VALUES

… since Four Decade & Counting

…serving the needs of Global Mobility Industry

…supported by self designed Manufacturing Facilities

• Continuous Development of New Products
• Expansion in New Product Categories

• Automation of Processes
• Environment friendly – Zero Discharge

Product Process Application

• Developing New Application across diversified Industries
• Products designed based on Customer application needs

New Products Margin Improvement Customer Relationship

…across Business Verticals

Industrial Polymers			Custom Die Forms
Industry Application			Application
Consumer	Automotive		Link Mats	Door Mats
Electrical & Electronics	Industrial		Industrial Mats	Dock Bumpers

…across Business Verticals

Air drop pallets Transportation floor

Oil rigs set back areas beds Retreading Franchisee

…all Major Tyre and Non Tyre Customer Relationships

…Global Partnerships for Business Growth

Tyre Retreading

Joint venture with an Italian company since 2015 for building a tyre retreading franchise business in India

Polymer Composite

Contract Manufacturing with an American company since 2017 to manufacture polymer composite products in India

Reclaim Rubber

Successful in setting up a reclaim rubber unit in Malaysia and handed over to the local partner

Contract Manufacturing with an American company since 2000 to manufacture products for absorbing vibration and sound

…Distinguished Board of Directors

Dr. Peter Philip

Chairman & Non-Executive Director

No. of Years of Experience : More than 40 years in General Management

Qualification : Graduate with Honours from St. Stephen's College (Delhi) and Alumnus of Stanford University, USA and Selwyn College, Cambridge, UK. Also a director in The Malayala Manoram Co Ltd & Commercial Broadcasts Ltd.

Rajendra Gandhi

Managing Director

No. of Years of Experience : More than 40 years in General Management

Qualification : Graduate engineer from the Indian Institute of Technology, Mumbai. Also a director in Steelcast Ltd.

Harsh Gandhi

Joint Managing Director

No. of Years of Experience : 16 years in various Managerial positions

Qualification : OPM program from Harvard Business School USA & holds a Bachelor of Science in Management Purdue University USA

Rajeev Pandia

Independent Director

No. of Years of Experience : More than 40 years and been influential in Strategic Planning, Project Evaluation & Management, Technology Transfer

Qualification : Bachelor in Technology (Ch.Eng.) IIT, Mumbai, & has obtained his Masters in Science from Stanford University, USA. Also a director in Excel Industries Ltd & The Supreme Industries Ltd.

…Distinguished Board of Directors

Mahesh Gandhi

Non-Executive Director

No. of Years of Experience : More than 30 years in General Management

Qualification : He is a Graduate and an accomplished industrialist and the Chairman of the Industrial Development & Investment Co. Pvt Ltd

Alpana Parida

Independent Director

No. of Years of Experience : 30 year Marketing career, spanning USA and India;

Qualification : Graduate from IIM (Ahmedabad) and has a Bachelor's degree in Economics from St. Stephen's College, Delhi University. Also a director in Cosmo Films Ltd & Primesec Investments Ltd

Saurabh Shah

Independent Director

No. of Years of Experience : More than 20 years of experience as advisor in the fields of public equity investments, private equity, capital markets and Merger & Acquisition in India

Qualification : MBA from the Stern School of Business at New York University. Also a director in Citicorp Finance (India ) Ltd.

Nayna Gandhi

Non-Executive Director

No. of Years of Experience : More than 40 years and also director in Grip Polymers Ltd., (wholly owned subsidiary of GRP Ltd.) since November, 1993

Qualification : Diploma holder in Home Science

…with Experienced Management Team

		RajenDoshi
Ganesh GhangurdeChief Compliance Officer•Chartered Accountant(ICAI) & CompanySecretary (ICSI)•Associated with GRP'ssenior ManagementCadre for more than 25years•Experience coversFinance & Accounts,Legal & Statutory,Compliances, Projects,,Rights & Public Issues,IT & SAPImplementations	Hemant KaulPresident Marketing &CEO of Marangoni GRP•MBA, Leeds UniversityBusiness School, UK•At GRP since 2012 postspending 19 years intyre sector in India &Europe with Apollotyres and Birla tyres·Handling MGPLbusiness in India ;oversee Sales andMarketing & BusinessDevelopment for	President & COO•MBA Georgia State,MS, IIT Mumbai•Experienced inexecuting businesstransformations, M&Aand ChangeManagement acrossManufacturing, Serviceand Technologycompanies.•Worked across NorthAmerica, Europe andAsia in B2B and B2Cspace for companieslike GE, Honeywell,Coke, Citigroup, Legal& General (UK) and	Kush GiramkarBusiness Head IndustrialPolymers & HeadProcurement•MBA from IndoGerman Chamber ofCommerce, Graduatemechanical engineerfrom Govt. College ofEngineering, Pune•More than 22 years ofrich experience in thediverse fields ofmanufacturing sectorsuch as MaterialsManagement, Project	ShilpaMehtaChief Financial Officer•Chartered Accountant(ICAI)•Overall 20+ years'experience and 15years in seniormanagement cadre•Work experienceincludes Accounts &Finance, Company law,Direct & Indirecttaxation, SAPimplementation &operations, Audit	SanjeebLahriHead HR &Administration•Post Graduate Diplomain Industrial Relations& PersonnelManagement fromUniversity of Burdwan,•More than 20 years ofprofessionalexperience in thediverse fields of TalentAcquisition, Staffing,Employee/IndustrialRelations, Productivity& Analysis, Learning &Development.
	Reclaim Rubber.	Mahindra (India).	Management,Operations, R & D andNew BusinessDevelopment.		•More than 19 years ofexperience with TATAGroup (Domestic &International)

Awards & Accolades – Testimony to our raison d'etre

At GRP, we are committed to transitioning from a 'recycled material company ' to a 'Sustainable Raw Material Company'. Therefore, embracing the certifications, partnerships required for achieving that status. PLUS embracing the UN's Sustainability Development Goals.

CSR – Impact Positive Initiatives

• Our CSR vision "to contribute towards social and economic development of the communities where we operate in. And while doing the same, we want to build a sustainable way of life for all sections of society".
• GRP believes in doing business the right way and ensuring that we reach out to underserved communities in the way we do business.
• GRP believes in focus beyond business interests and addressing the "quality of life" challenges that underprivileged communities face, and working towards making a meaningful difference to them

• Balwadis/Mobile Vans for Elementary Education
• Toy-bank to strengthen development through play in rural areas
• Merit based scholarship to support University Education
• Strengthen/Support existing institutes engaged in providing primary, secondary & higher level Education

EDUCATION SUSTAINABLE LIVELIHOOD HEALTHCARE WOMEN EMPOWERMENT

• Supporting initiatives around Yoga, meditation, other selfhelp
• Awareness programs for clean living/housing facilities (5S, etc.)
• Awareness programs on hygiene, safe water
• Encouraging plantation of trees through self-help groups of women

• Primary health care centres
• Mobile health care projects
• Preventive health through awareness programs

• Gram Pari in rural areas
• Girl child education up to university level
• Introduction of Water wheel for women to roll it from a distance

▪ GRP has built a strong association with institutes like such as: Tata Institute of Social Science, Pravara Medical Trust, Ankleshwar Rotary Welfare Trust, K C Mahindra Education Trust, Nanhi Kali Foundation

Business Verticals

Reclaim Rubber - Industry Leading Technology

1 ST Company in India to design, fabricate and install an entire plant & machinery for manufacture of reclaim rubber from complete indigenous components

Strong focus on innovation and R & D with DSIR approved lab, 1 st company in India to develop reclaims like EPDM & High Tensile

1 st company in reclaim rubbersector in India to become SAP ERP enabled

ISO certified company following strict quality control norm ensuring right material supply to its customers

Recycles 1 out of every 10 truck tyres & 1 out of every 8 tubes produced in India

Largest exporter of reclaim rubber from India to more than 60 countries around the world. Caters to 7 out of Top 10 global tyre companies

VALUE PROPOSITION

ECONOMIC

• Cost-saving compared with virgin rubber
• Reduced Energy Consumption

ENVIRONMENTAL

▪ Alternative to hazardous landfills

▪ Substitutes natural rubber & crude based synthetic rubbers saving natural resources

PROCESSING

• Faster Mixing Cycle
• Improved extrusion rate
• Retention of good ageing properties
• Reduced splicing defects
• Controlled die swell

Reclaim Rubber – Cost Effective Alternative

Tyre Industry - Largest Consumer of Rubber

Industrial Polymer – Valuable Engineering Plastic

Custom Die Forms – Diverse Product Portfolio

Converts end-of-life tyres to design products used for civil & agricultural applications

Custom Die Forms are meant to absorb vibrations in heavy equipment and for insulation against sound

GRP – C-DF has produces these products in collaboration with leading North America Companies

Ensures reuse of end-of-life tyres with minimal energy needs

PRODUCTS

• Link Mats

• Door Mats

• Industrial Mats

• Dock Bumpers

Retreading - Marangoni Joint Venture

Portfolio of Products = Ringtread + Unitread + Classico

Entry into Retrading Markets of India with a Unique Technology, RINGTREAD – The Spliceless Retread

Ringtread Delivers: More mileage, Better grip, More reliable and eventually lower cost per KM (CPKM) savings to fleets

Marangoni S.P.A, World's Leading Tyre Retreading Company with a legacy of 70+ years

+

GRP Ltd, India's largest and world's leading rubber recycling company

=

The JV will aim to leverage the strengths of the two partners:

Marangoni as a retreading technology specialist

GRP's understanding of Indian Markets, Strong Supply Chain along with the reach to the End Customers

MARKET OPPORTUNITY

• Radial tyres at present account for 40-45% of Tyre Industry, expected to reach 75%+ by 2020
• Radialisation is estimated to double in the next 4-5 years, thus offering a big opportunity for tyre retreaders in the country
• India's retreading market is estimated at $ 700 mn with a CAGR of 7-8% with organized sector accounting for 50 %

With Radialization there is a great opportunity for organized players in the retreading industry in CV segment as it reduces per/km cost

…Retreading across Segments

No Waste: No material wastage

High Efficiency: More efficiency due to less handling and lower process time

Less Space: Less space required for same capacity due to efficient equipment & layout

ABOUT RINGTREAD

• Ringtread Concept: Tyres are circular in structure and rotate when they work, therefore the new tread must be perfectly circular in order to integrate harmoniously with the casings and recreate a perfect unit

• Ringtread

  • The only precured tread with the profile of original tyre
  • The ring has no joints and fits perfectly to the casing without tension or deformation
  • It guarantees reduced processing times and less waste, and performance levels are equivalent / exceeds those of a new tyre

• More Reliability: No risk of downtime due to the exclusive ring system

• More Life: Less tread wear also on highly abrasive surfaces

• More Grip: The best traction even in poor road condition

• More Savings: Very low rolling resistance leading to reduced fuel consumption

Polymer Composite

ABOUT Polymer Composite Products

• GRP is the exclusive manufacturer to a US based company for supply of composite products
• The composite products are manufactured from 100% recycled rubber and plastics
• The product is environmentally friendly, strong and durable
• The products are well suited for variety of application in sectors such as aviation, military, logistics, construction, oil & gas, marine and agriculture.

Products benefits & features

	Composite	Wood
IMPREVIOUSTOFLUIDS	✓	
EXCELLENT GRIP	✓	
UVRESISTANT	✓	
COSTEFFECTIVE	✓	
DURABLE,LONG-LASTING,LIGHTWEIGHT	✓	
WILLNOTROT,CRACK,ORSPLINTER	✓	

Growth Drivers

We have built Sustainable Business

Usage of Reclaimed Rubber on a Growth Path

Global Reclaimed Rubber Demand

Global Reclaimed Rubber market is expected to reach USD 6.32 billion by 2025

With strategic shift towards increasing Reclaimed Rubber

To Reduce, Reuse and Recycle the use of fossil fuels and strategic shift towards Reclaimed Rubber. By 2050 companies envisages higher use of Recycled Rubber

By major tyre manufacturing companies

47

" In the Rubber Group, the use of recycled materials is assuming an increasingly important role. Production waste generated in physical/chemical processes is used as reclaim and adhesive mixtures as recycled products. "

In the year under review, the percentage of recycled products of the total raw materials used in tire production was 3%. Our goal is to increase this share to 10% by 2025.

Reclaimed rubber is also used at 2.5% to replace virgin rubber for compounds

Break-Up of Recycled Raw Materials by Type - FY17

CIN: L25191GJ1974PLC002555

Mr. Ganesh Ghangurde Chief Compliance Officer ganesh.ghangurde@grpweb.com

www.grpweb.com

Company : Investor Relations Advisors :

CIN: U74140MH2010PTC204285

Mr. Sagar Shroff / Mr. Shrenik Shah sagar.shroff@sgapl.net / shrenik.shah@sgapl.net +91 98205 19303 / +91 96647 64465

www.sgapl.net