GRP Limited — Investor Presentation 2020

Jun 13, 2020

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13.06.2020

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

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GRP Limited Investor Presentation June 2020

Click Here for GRP LTD’s Corporate Video

Safe Harbor

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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.

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2

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Performance Highlights

Performance Highlights for FY20[*]

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(in Rs. Mn)
Revenue Gross Profit EBIDTA PAT
3,573.7 1,866.9 253.7
3,487.0 1,783.8
189.4
53.3
29.7
FY19 FY20 FY19 FY20 FY19 FY20 FY19 FY20
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Revenue / Profitability

• Revenue has been slightly lower as compared to last year due to subdued demand by the tyre companies amid the ongoing auto slowdown and further accentuated due to the nation-wide lockdown imposed due to COVID-19 pandemic

• Profitability has been lower as compared to last year due to higher operating expenses coupled with lower utilization levels of plants

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*Data on Consolidated Basis

4

Segment Wise Quarterly Performance Trend*

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	Revenue Geographical Break-Up 72% 27% Q1FY20 24% 76% Q4FY19 73% 72% 28% Q2FY20 28% Q3FY20 29% 71% Q4FY20 Export Domestic			Revenue Business Segments Break-Up 6.5% Q4FY19 95.8% 93.5% 94.1% 5.9% Q1FY20 4.2% Q3FY20 Q2FY20 3.8% 95.7% 96.3% 4.3% Q4FY20 Non-Reclaim Rubber Reclaim Rubber

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*Data On Standalone Basis

5

Segmental Financial Highlights*

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Particulars (in Rs. Mn)*	Reclaim Rubber	Reclaim Rubber	Non-Reclaim Rubber	Non-Reclaim Rubber
	FY20	FY19	FY20	FY19
Revenue	3319.9	3,392.4	166.3	177.2
Raw Material	1657.0	1,651.4	63.0	67.9
Other Expenses	1491.6	1510.5	87.6	90.1
EBIDTA	171.3	230.6	15.7	19.1
EBIDTA Margin	5.2%	6.8%	9.5%	10.8%

• ✓ 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

• ✓ Although Non-Reclaim business performance was subdued in FY20 due to global uncertainties in auto and allied sectors leading to lower demand and lower capacity utilization, several breakthroughs in application development will help improve performance in FY21

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*Data on Standalone Basis.

6

01

02

COVID-19 Impact on the Business

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Manufacturing Operations

Production was temporarily suspended at all our facilities as per Central and State Government directives of Lockdown to contain the spread of the virus. Presently, all our manufacturing facilities have commenced operations, although at lower utilization levels. The company is working closely to revert demand, focussed on availability & safety of workers at its facilities, reconfiguring its facilities for effective social distancing and is working towards resumption of operations to normalcy at the earliest

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Financial position and profitability

Due to the suspension of operations our revenues & profitability has been impacted. In order to mitigate some of the impact, Company has taken various initiatives to manage its costs across the organization and to conserve cash. There may be some impact on receivable cycle from customers. However, the company foresees no major risk given its high quality of customers. The Company has postponed and/or deferred most of its capex while ensuring long term sustainability of the business.

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03
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Demand for the products

The lockdown resulted in most of the Company’s customers in India also having to shut their operations. The resultant sales to these domestic customers is starting to resume and we hope to ramp up capacity utilization over the next months. The silver lining for the company has its been its export customers. Significant plants of the Company’s customers in overseas markets continued to operate even during the lockdown in India. This led to a quick resumption in sales in the international markets for such customers.

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04
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Liquidity Position

The Company is currently in a comfortable liquidity position to meet its financial and other commitments. Company will continue to monitor the liquidity situation and if required, take appropriate steps to augment it further.

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7

COVID-19 Impact – Initiatives taken at GRP

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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

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8

Safety is the priority at GRP

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Health & well-being of the employees is GRP’s priority We have taken utmost precautions before resuming the operations at all our manufacturing facilities

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9

Consolidated Profit & Loss Statement

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Profit & Loss (Rs. Mn)	Q4 FY20	Q4 FY19	Y-o-Y	Q3 FY20	Q-o-Q	FY20	FY19	Y-o-Y
Revenue from operations	794.4	918.5	-14%	905.8	-12%	3,487.0	3,573.7	-2%
Cost of Goods Sold	365.7	453.7		445.1		1703.2	1706.8
Gross Profit	428.7	464.8	-8%	460.7	-7%	1783.8	1,866.9	-4%
Gross Profit Margin	54.0%	50.6%		50.9%		51.2%	52.2%
Employee Cost	158.7	143.8		155.6		607.8	586.3
Other Expenses	225.1	281.1		259.9		986.7	1026.9
EBIDTA	45.0	40.0	12%	45.1	0%	189.4	253.7	-25%
EBITDA Margin	5.7%	4.4%		5.0%		5.4%	7.1%
Other Income	3.0	2.4		1.0		6.4	4.9
Depreciation	33.9	33.7		35.7		136.4	133.1
Finance Cost	37.3	0.5		20.4		81.8	47.3
Profit Before Share of Profit/ (Loss) of JV's	-23.2	8.2	-	-10.0	-	-22.5	78.1	-
Share of Profit/(Loss) of JV's	0.0	-1.7		0.0		0.0	-6.0
PBT	-23.2	6.5	-	-10.0	-	-22.5	72.1	-
Tax	-9.5	4.5		-7.0		-52.2	18.9
PAT	-13.7	2.0	-	-3.0	-	29.7	53.3	-44%
PAT Margin	-1.7%	0.2%		-0.3%		0.9%	1.5%
Cash Profit	20.2	35.7	-43%	32.7	-38%	166.1	186.4	-11%

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10

Consolidated Balance Sheet

	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 inprogress	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 than mentioned	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

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Liabilities(Rs. Mn)	Mar-20	Mar-19
EquityShare 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-ControllingInterests	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

11

Certified “Great Place to Work”

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

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12

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Introduction

Tyre Graveyards are increasing across the Globe

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7.6 Billion people in the world

1.7 billion new

tyres produced a year

Creating huge

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1.4 Billion vehicles on the road

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Over 1 billion waste tyres generated per year

TYRE GRAVEYARDS…

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… HUGE OPPORTUNITY

14

…presenting a HUGE OPPORTUNITY

Huge tyre graveyards that can be seen from Space

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

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Reclaimed rubber, Engineering plastics, Diecut products & Polymer Composite Products

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15

It is our raison d’etre

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

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16

…to Reduce, Reuse & Recycle

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• TYRE POLYMER

• REDUCE RETREADING COMPOSITES • Process to extend the life of • Manufactured from 100% Commercial Vehicle tyres recycled rubber and plastics beyond single use • Product is environmental

• • Environmental friendly friendly, strong and durable as process ensuring saving in a substitute to wood & valuable resources concrete

• Product is environmental friendly, strong and durable as a substitute to wood & concrete

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• Custom die forms engineered from end of life
CUSTOM
REUSE truck and bus bias tyres used in application
DIE FORMS
where low cost solutions are a necessity like
door mats, impact resistance products and
Agricultural equipment's
RECLAIM INDUSTRIAL
RUBBER POLYMERS
• Produced from end of life • Recovery and Reuse of
tyres, automotive inner tubes, polyamide from end-of-life
RECYCLE automobile profiles and tyres, a key competitive
moulded rubber products to advantage is the continuous
produce consistent quality availability of in-house raw
reclaim rubber materials
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17

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Our Business

Believing in possibility of better tomorrow…

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8 Manufacturing Units with 72,700 Export presence in 60+ Countries tons/year capacity across 300+ customers

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18% share in Indian Market & 50% of ~1.2 Mn End-of-Life tyres saved from India’s Export in reclaimed rubber reaching landfills Every Year

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IATF, ISO and BS OHSAS REACH Certified for EU Zone

Supplies to 7 out of top 10 global tyre companies

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OUR VALUES

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SUSTAINABILITY TRUST COMMITMENT
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INTEGRITY

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19

… since Four Decade & Counting

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Gujarat Reclaim and 1 [st] Unit at Got its first ever
Rubber Products Ankleshwar export order
Limited incorporated
1978 1984
1974
1997
2011 2006
4 [th] unit established 3 [rd] Unit established Diversified in
at Solapur at Panoli Custom Die Forms
2012 2014 2015 2017
5 [th] Unit established Diversify into Joint Venture with Diversify into
at Tamil Nadu & Industrial Marangoni S.p.a., Italy Polymer Composite
Revenue USD 50 mn Polymer to form Maragoni GRP
Private Limited for
retreading
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20

…serving the needs of Global Mobility Industry

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60+ 300+
Countries Customers
400+ Distributors Panoli Indore
across 20
Vendors Ankleshwar
countries
Mumbai
Sholapur
Headquarters
Reclaim Rubber
C-DF
Industrial Polymers
8
~1800 Perundurai R&D Centre
Manufacturing
Units Employees
>75% customers belong to
Transportation Industry
Map not to scale. All data, information and maps are provided “as is” without warranty or any representation of accuracy, timeliness or completeness.
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21

…supported by self designed Manufacturing Facilities

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Installed Capacity in MT Build up capacity for Reclaimed Rubber over the years
66,000 66,000
2,600 2,600 66,000
7,800
58,200
10,000
48,200
1,500
20,000
28,200
21,000
7,200
Industrial Custom Polymer Reclaimed 2,400 4,800
Polymers Die Forms Composite Rubber
1976 1985 2006 2011 2012 2015 2018
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22

…with our R & D Capabilities

Product

• Product Process

• ▪ Continuous ▪ Automation of

• Development of New Processes

• Products ▪ Environment friendly

• ▪ Expansion in New – Zero Discharge

• Product Categories New Products Margin Improvement

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Application

• Developing New Application across diversified Industries

• ▪ Products designed based on Customer application needs

Customer Relationship

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23

…with Diversified Product Applications

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Tyre Application Inner Liner Inner Tubes Tyre Side Walls

Tyre Piles Tyre Treads & Retreads

Non - Tyre Application Conveyor Belts Adhesives Automotive Roofing Footwear Profiles Moulded Goods Matting

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24

…across Business Verticals

Industrial Polymers

Industry Application Consumer Automotive Electrical & Electronics Industrial

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Reprocessed Nylon Reprocessed Nylon Modified Nylon Glass Filled Unfilled

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Custom Die Forms

Application Link Mats Door Mats

Industrial Mats Dock Bumpers

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Door Mats Harvestor Pads Dock Bumpers

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25

…across Business Verticals

Polymer Composite

Industry Application

Commercial Livestock transportation transportation Military and Government Oil fields

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Transportation floor Oil rigs set back Air drop pallets beds areas

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Retreading

Application Link Mats Door Mats

Harvestor Pads Dock Bumpers

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Retreading Franchisee

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26

…all Major Tyre and Non Tyre Customer Relationships

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The Brand Names mentioned are the property of their respective owners and are used here for identification purpose only.

27

…Global Partnerships for Business Growth

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Reclaim Rubber
Successful in setting up a
reclaim rubber unit in
Malaysia and handed over to
the local partner
Custom Die Form
Contract Manufacturing with an
American company since 2000 to
manufacture products for absorbing
vibration and sound
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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

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28

…Distinguished Board of Directors

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Dr. Peter Philip

Rajendra Gandhi

Chairman & Non-Executive Director

Managing Director

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

No. of Years of Experience : More than 39 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.

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

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Harsh Gandhi

Joint Managing Director

No. of Years of Experience : 15 years in various Managerial positions

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

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Rajeev Pandia

Independent Director

No. of Years of Experience : More than 39 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.

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29

…Distinguished Board of Directors

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Alpana Parida

Mahesh Gandhi

Independent Director

Non-Executive Director

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

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

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

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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.

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Nayna Gandhi

Non-Executive Director

No. of Years of Experience : More than 39 years and also director in Grip Polymers Ltd., (wholly owned subsidiary of GRP Ltd.) since November, 1993

Qualification : Diploma holder in Home Science

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30

…with Experienced Management Team

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				Rajen Doshi
Ganesh Ghangurde				President & COO		Kush Giramkar		Shilpa Mehta		Sanjeeb Lahri
Chief Compliance Officer		Hemant Kaul President Marketing &		• MBA Georgia State, MS, IIT Mumbai		Business Head Industrial Polymers & Head		Chief Financial Officer		Head HR & Administration
• Chartered Accountant (ICAI) & Company Secretary (ICSI) • Associated with GRP’s senior Management Cadre for more than 25 years • Experience covers Finance & Accounts, Legal & Statutory, Compliances, Projects,, Rights & Public Issues, IT & SAP Implementations		CEO of Marangoni GRP • MBA, Leeds University Business School, UK • At GRP since 2012 post spending 19 years in tyre sector in India & Europe with Apollo tyres and Birla tyres · Handling MGPL business in India ; oversee Sales and Marketing & Business Development for Reclaim Rubber.		• Experienced in executing business transformations, M&A and Change Management across Manufacturing, Service and Technology companies. • Worked across North America, Europe and Asia in B2B and B2C space for companies like GE, Honeywell, Coke, Citigroup, Legal & General (UK) and Mahindra (India).		Procurement • MBA from Indo German Chamber of Commerce, Graduate mechanical engineer from Govt. College of Engineering, Pune • More than 22 years of rich experience in the diverse fields of manufacturing sector such as Materials Management, Project Management, Operations, R & D and		• Chartered Accountant (ICAI) • Overall 20+ years’ experience and 15 years in senior management cadre • Work experience includes Accounts & Finance, Company law, Direct & Indirect taxation, SAP implementation & operations, Audit		• Post Graduate Diploma in Industrial Relations & Personnel Management from University of Burdwan, • More than 20 years of professional experience in the diverse fields of Talent Acquisition, Staffing, Employee/Industrial Relations, Productivity & Analysis, Learning & Development. • More than 19 years of
						New Business				experience with TATA
						Development.				Group (Domestic &
										International)

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Awards & Accolades – Testimony to our raison d’etre

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EcoVadis CSR Rating
2017: BRONZE
2019: SILVER
2017
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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.

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CSR – Impact Positive Initiatives

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• 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

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EDUCATION

SUSTAINABLE LIVELIHOOD

HEALTHCARE

WOMEN EMPOWERMENT

• Balwadis/Mobile Vans for ▪ Supporting initiatives around Elementary Education Yoga, meditation, other self-

• ▪ Toy-bank to strengthen help development through play in ▪ Awareness programs for clean rural areas living/housing facilities (5S,

• ▪ Merit based scholarship to etc.) support University Education ▪ Awareness programs on

• ▪ Strengthen/Support existing hygiene, safe water institutes engaged in providing ▪ Encouraging plantation of primary, secondary & higher trees through self-help groups level Education 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

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▪ 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

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Business Verticals

…Manufacturer of sustainable products through 5 Business Verticals

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Reclaim Rubber - Industry Leading Technology

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

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VALUE PROPOSITION

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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 rubber sector in India to become SAP ERP enabled

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

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ECONOMIC

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ENVIRONMENTAL

• Cost-saving compared with virgin rubber

• Reduced Energy Consumption

• Alternative to hazardous landfills

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

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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

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PROCESSING

• Faster Mixing Cycle

• Improved extrusion rate

• Retention of good ageing properties

• Reduced splicing defects

• Controlled die swell

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Reclaim Rubber – Cost Effective Alternative

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▪ Tyres

▪ Tubes

▪ Belts

PRODUCT OFFERING

NATURAL RUBBER RECLAIM

• Whole Tyre Reclaim

• Ultra High & High Tensile Reclaim

• Natural Tube Reclaim

SYNTHETIC RUBBER RECLAIM

• Butyl & Chlorobutyl Reclaim

• EPDM Reclaim

SPECIALITY RUBBER RECLAIM

• NBR Polycoat

APPLICATIONS

▪ Waterproofing & Matting ▪ Adhesives

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Tyre Industry - Largest Consumer of Rubber

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Industrial Polymer – Valuable Engineering Plastic

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INDUSTRY LEADING TECHNOLOGY

TARGET MARKET & APPLICATIONS

Fasteners, Clips, Bushes, Plugs, 1st Indian company to commercialize the concept of Cable Ties, Sleeves, Main fold recovery and reuse of polyamide from end-of-life AUTOMOTIVE Developed in-house process to recover nylon fiber from tyres end of life tyres Washers, Spacers, Industrial Invested substantially in the R&D to recover nylon Bobbins, Conveying Trays, Gears Nylon fiber embedded with rubber is subjected to series (polyamide) a valuable engineering plastic out of the INDUSTRIAL of mechanical operations to separate rubber and nylon waste tyres Furniture Components, Couplers, Domestic Gas Accessories Purified nylon fiber then converted to granules by Has a state-of-the art compounding facility in CONSUMER GOODS Extrusion process Solapur which supplies a range of cost-effective and sustainable solutions 01 02 Computer Peripherals, Fuse Box, Switch Housing Separation of Recovered Polyamide is Patent pending products supported by well ELECTRICAL polyamide from scrap a useful raw material as equipped testing laboratory tyre results in “Pure an Engineering Plastic . Rubber” which in turn It has a market which is can be a useful raw Window Door Components well established and material to make a profitable Industrial polymer is (GRP - IP) is an ISO 9001:2008 CONSTRUCTION Better Quality Reclaim certified thermoplastic compounding business

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Custom Die Forms – Diverse Product Portfolio

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• 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

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▪ Link Mats

▪ Door Mats

▪ Industrial Mats

▪ Dock Bumpers

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Retreading - Marangoni Joint Venture

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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

Portfolio of Products = Ringtread + Unitread + Classico

MARKET OPPORTUNITY

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

• 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

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…Retreading across Segments

Industry Leading Range

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Premium, Spice-less Retread

Premium, Flat Tread

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This line features tread design suited for radial tyre application to deliver premium performance on Indian roads

Original Retread

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This line features popular tried and tested patterns designed for customers who pay particular attention to the quality-price ratio.

BENEFIT TO RETREADERS

Less Time: Faster cycle time

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

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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

BENEFIT TO FLEET HOLDERS

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

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Polymer Composite

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Additive
Plastics
Rubber
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Polymer Composite Products

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Products Range
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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
IMPREVIOUS TO FLUIDS	✓	
EXCELLENT GRIP	✓	
U V RESISTANT	✓	
COST EFFECTIVE	✓	
DURABLE, LONG-LASTING, LIGHT WEIGHT	✓	
WILL NOT ROT, CRACK, OR SPLINTER	✓	

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Growth Drivers

We have built Sustainable Business

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Brand GRP carries with it Trust of 4 Decades

Upgradation of Process and Products through innovation

Cost Effective by replacing Virgin Rubber Polymer

8 Manufacturing Units, 20 Distributors and 200 Vendors

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In-house Manufacturing
Cost
Brand GRP
&
Technology Effective
Distribution
Customized High Value
Strong Quality Product Environment
Relationships Products Opportunity Friendly
Over 300 Customers High Quality, Made-to- Multiple products with the Lower C02 emissions, more
across 60 Countries Spec Products potential to deliver its recycling of end of life tyres
and other rubbers
maximum value
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Usage of Reclaimed Rubber on a Growth Path

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• Reclaimed Rubber Demand (Kilo Tonnes) ▪ Growing awareness regarding COST - EFFECTIVE and ECO - FRIENDLY alternatives for virgin rubber

• 7,729 ▪ Owing to its versatility, durability, reduced pollution and low processing

• 10.3% costs, WTR is expected to witness growth ▪ APAC to drive growth due to huge domestic market, availability of cheap and skilled workforce and rapid industrial development

• 2,900 ▪ Favourable regulations promoting sustainable and eco-friendly materials as substitutes for conventional virgin rubber is driving product demand

• 2015 2025

Global Reclaimed Rubber Demand

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

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Source: Grand View Research. Inc., December 2016

With strategic shift towards increasing Reclaimed Rubber

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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

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Source: Bridgestone Corporate Site

By major tyre manufacturing companies

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“ 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.

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

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Break-Up of Recycled Raw Materials by Type - FY17
%
%
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Source: Apollo Sustainability report 15-16, Pirelli Sustainability plan 2017-2020, Continental Sustainability report 2016, Michelin Annual & Sustainable Development report 2016

Contact Us

Company : CIN: L25191GJ1974PLC002555 Mr. Ganesh Ghangurde Chief Compliance Officer ganesh.ghangurde@grpweb.com www.grpweb.com

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Investor Relations Advisors : CIN: U74140MH2010PTC204285 Mr. Sagar Shroff / Mr. Shrenik Shah sagar.shroff@sgapl.net / shrenik.shah@sgapl.net +91 98205 19303 / +91 9664764465 www.sgapl.net

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