Indag Rubber Ltd. — Investor Presentation 2021

Feb 15, 2021

==> picture [453 x 112] intentionally omitted <==

February 15, 2021

BSE Limited

Phiroze Jeejeebhoy Towers, Dalal Street, Mumbai-400001

(Company code-1321) (Scrip code-509162)

Sub: Investor Presentation - Q3 & 9M FY21

Dear Sir,

Enclosed please find the Investor Presentation of Q3 & 9M FY21, for the information of the investors and public at large.

Thanking you.

Yours faithfully,

For Indag Rubber Limited

==> picture [136 x 60] intentionally omitted <==

Company Secretary

INDAG RUBBER LIMITED

The only alternative to new tyres….since 1978

Investor Presentation – Q3 & 9M FY21 February 2021

==> picture [482 x 40] intentionally omitted <==

----- Start of picture text -----

Safe Harbor
----- End of picture text -----

==> picture [60 x 40] intentionally omitted <==

==> picture [139 x 75] intentionally omitted <==

This presentation and the accompanying slides (the “Presentation”), which have been prepared by Indag Rubber 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.

==> picture [40 x 47] intentionally omitted <==

==> picture [262 x 106] intentionally omitted <==

==> picture [720 x 329] intentionally omitted <==

Q3 & 9M FY21 FINANCIAL HIGHLIGHTS

==> picture [482 x 40] intentionally omitted <==

----- Start of picture text -----

CEO’s Message
----- End of picture text -----

==> picture [60 x 40] intentionally omitted <==

==> picture [139 x 75] intentionally omitted <==

==> picture [155 x 176] intentionally omitted <==

Commenting on the Result, Mr. K. K. Kapur CEO, Indag Rubber Limited said,

“We are happy to report a strong recovery in our performance in Q3 FY21. We have recorded high quarterly revenue, with a sequential revenue growth of 11% QoQ and 3% YoY.

There has been a sharp improvement across all vehicle segments on the back of pent-up demand and buoyed further by the festive season. The M&HCV segment has seen an uptick, driven by higher demand from road construction, mining and e-commerce segments leading to improved utilisations of fleet operators. The momentum during the festive season appears to be sustaining, due to strong consumer sentiment and liquidity from rural and semi urban markets.

We have delivered a healthy performance this quarter. We expect the momentum to sustain going forward. Indag is persistently striving to create value for fleet owners and operators by reducing their cost per km, improving on-road reliability and safety – by delivering superior products, technical services and trained personnel to retreaders.“

==> picture [40 x 47] intentionally omitted <==

==> picture [482 x 40] intentionally omitted <==

----- Start of picture text -----

Q3 FY21 Financial Highlights
----- End of picture text -----

==> picture [60 x 40] intentionally omitted <==

==> picture [139 x 75] intentionally omitted <==

Revenue*

EBITDA*

Profit before Tax^

==> picture [684 x 132] intentionally omitted <==

----- Start of picture text -----

+3% +51% +64%
52.8 54.6 10.5 8.8
49.0
+11%
7.8 +35% 6.3 +40%
6.9
5.4
Q3 FY20 Q2 FY21 Q3 FY21 Q3 FY20 Q2 FY21 Q3 FY21 Q3 FY20 Q2 FY21 Q3 FY21^
----- End of picture text -----

EBITDA Margin* (%)

PBT Margin^ (%)

==> picture [255 x 129] intentionally omitted <==

----- Start of picture text -----

+600 bps
19.2%
15.8% +340 bps
13.2%
Q3 FY20 Q2 FY21 Q3 FY21
----- End of picture text -----

==> picture [232 x 119] intentionally omitted <==

----- Start of picture text -----

+600 bps
16.2%
12.9% +330 bps
10.2%
Q3 FY20 Q2 FY21 Q3 FY21^
----- End of picture text -----

==> picture [40 x 47] intentionally omitted <==

Strong Recovery in Performance; Sales momentum to Sustain Going Forward

*Note 1: Revenue and EBITDA are including other income ^Note2: PBT is excluding exceptional items (details on slide 6)

Note 3: All numbers are on consolidated basis (in Rs crore)

5

==> picture [482 x 40] intentionally omitted <==

----- Start of picture text -----

Consolidated Financials – Q3 & 9M FY21
----- End of picture text -----

==> picture [60 x 40] intentionally omitted <==

==> picture [139 x 75] intentionally omitted <==

Particulars (Rs. In Crs.)	Q3 FY21	Q3 FY20	Y-o-Y	Q2 FY21	Q-o-Q	9M FY21*	9M FY20	Y-o-Y
Total Revenue from Operations Other Income	53.6 1.1	52.2 0.6		46.8 2.3		127.0 4.0	154.4 3.2
Total Revenue (incl. Other Income)	54.6	52.8	3%	49.0	11%	131.0	157.6	-17%
Raw Material	30.9	33.0		28.5		77.8	99.8
Gross Profit	23.7	19.8	20%	20.5	15%	53.2	57.8	-8%
Gross Profit %	43.4%	37.4%		41.9%		40.6%	36.7%
Employee Expenses Other Expenses	5.4 7.8	5.3 7.5		5.6 7.1		15.4 18.6	15.6 22.9
EBITDA	10.5	6.9	51%	7.8	35%	19.1	19.3	-1%
EBITDA %	19.2%	13.2%		15.8%		14.6%	12.3%
Depreciation	1.1	1.1		1.0		3.0	3.4
EBIT	9.4	5.8	62%	6.7	40%	16.1	15.9	1%
EBIT %	17.3%	11.0%		13.7%		12.3%	10.1%
Finance Cost Share of loss of joint venture	0.4 0.2	0.4 0.1		0.4 0.1		1.1 0.4	1.2 0.1
Profit before exceptional item & Tax	8.8	5.4	64%	6.3	40%	14.6	14.7	-1%
Exceptional Items Profit before Tax Tax	13.2^ -4.4 -1.1	0.0 5.4 1.3	-	0.0 6.3 1.6	-	13.2^ 1.4 0.3	0.0 14.7 3.2	-91%
Profit after Tax	-3.3	4.1	-	4.7	-	1.1	11.6	-90%
PAT %	-6.0%	7.8%		9.7%		0.9%	7.3%
EPS	-1.27	1.55		1.8		0.36	4.37

==> picture [40 x 47] intentionally omitted <==

^ Exceptional Item of Rs 13.24 cr as the Company opted for the Himachal Pradesh {Legacy Cases Resolution) Scheme, 2019 on January 21, 2021 for settlement of Entry Tax matter of earlier years which was pending decision before Honorable High Court of Himachal Pradesh. Accordingly, an amount of Rs.12.45 cr which was treated as a contingent liability till the quarter and six months ended 30[th] September 2020 and settlement fee of Rs.0.79 cr has been charged off as expense and treated Rs. 13.24 cr as exceptional item in Q3 & 9M FY21 Results

6

• Q1 FY21 performance impacted on account of shutdown of operations due to CoVID-19

==> picture [482 x 40] intentionally omitted <==

----- Start of picture text -----

Consolidated Balance Sheet
----- End of picture text -----

==> picture [60 x 40] intentionally omitted <==

==> picture [139 x 75] intentionally omitted <==

Liabilities (Rs. In Crs.)	Sep-20	Mar-20
Equity Share Capital Other Equity Equity attributable to the shareholders of the Company Non-ControllingInterest	5.3 189.9 195.2 3.5	5.3 182.0 187.3 3.4
Total Equity	198.7	190.6
Non Current Liabilities Financial Liabilities Borrowings Provisions Deferred Tax Liabilities (Net)	9.4 0.8 2.1	9.9 0.7 2.5
Total Non Current Liabilities	12.4	13.1
Current Liabilities Financial Liabilities Borrowings Trade Payables Other Financial Liabilities Provisions Current Income Tax Liabilities(Net) Other Current Liabilities	0.0 16.0 4.7 0.3 0.0 2.6	0.0 15.8 4.1 0.3 0.0 1.9
Total Current Liabilities	23.5	22.0
Total Equity and Liabilities	234.5	225.8

Assets (Rs. In Crs.)	Sep-20	Mar-20
Non Current assets Property, Plant and Equipments Capital Work-In-Progress Goodwill Other Intangible Assets Financial Assets Investments Loans Other Financial Assets Income Tax Assets (net) Other Non-Current Assets	41.5 13.1 0.4 0.1 77.0 0.0 0.5 0.2 2.4	40.8 10.1 0.4 0.2 73.9 0.0 0.6 0.8 2.1
Total Non Current Assets	135.2	129.0
Current Assets Inventories Financial Assets Investments Trade Receivables Cash and Cash Equivalents Other Bank Balances Loans Other Financial Assets Income Tax Assets (net) Other Current Assets	27.1 20.2 34.0 3.0 4.2 0.2 5.7 0.0 5.0	36.9 5.3 37.6 1.3 3.5 0.2 5.4 0.0 6.4
Total Current Assets	99.3	96.7
Total Assets	234.5	225.8

==> picture [40 x 47] intentionally omitted <==

7

On Consolidated Basis

==> picture [482 x 40] intentionally omitted <==

----- Start of picture text -----

Consolidated Cashflow Statement
----- End of picture text -----

==> picture [60 x 40] intentionally omitted <==

==> picture [139 x 75] intentionally omitted <==

Particulars (Rs. In Crs.)	Sep-20	Sep-19
Net Profit Before Tax	5.8	9.3
Adjustments for: Non Cash / Other Items	0.3	0.7
Operating profit before working capital changes	6.0	10.0
Changes in working capital	15.8	-1.8
Cash generated from operations	21.8	8.2
Direct taxes paid	-1.2	-1.9
Net Cash from Operating Activities	20.7	6.3
Net Cash from Investing Activities	-17.8	-0.7
Net Cash from Financing Activities	-1.2	-6.2
Net Decrease in cash and cash equivalents	1.7	-0.6
Add: Cash & Cash equivalents at the beginning of the period	1.3	3.0
Cash & Cash equivalents at the end of the period	3.0	2.4

==> picture [40 x 47] intentionally omitted <==

8

==> picture [482 x 40] intentionally omitted <==

----- Start of picture text -----

Consistent Dividend Pay-out
----- End of picture text -----

==> picture [60 x 40] intentionally omitted <==

==> picture [139 x 75] intentionally omitted <==

==> picture [691 x 321] intentionally omitted <==

----- Start of picture text -----

Dividend
19% 15% 17% 19% 19% 20% 29% 40% 59% 18%
Pay-Out
12.6
12.2
10.7
9.5
8.4
8.0
6.0
5.1
4.2 4.1
2.4 2.4 2.4 2.4 2.4
2.0
1.6
1.2
0.8 0.9
FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20
EPS DPS
----- End of picture text -----

The Board has approved Interim Dividend for the Financial Year 2020-2021 of Rs. 0.90/- per equity share of Rs. 2/- each (45 % of FV)

==> picture [40 x 47] intentionally omitted <==

9

Adjusted EPS & DPS for the split

==> picture [482 x 40] intentionally omitted <==

----- Start of picture text -----

Indag Disinvests in Solar Business
----- End of picture text -----

==> picture [60 x 40] intentionally omitted <==

==> picture [139 x 75] intentionally omitted <==

Indag Rubber Limited has announced the disinvestment/sale of 100% shareholding in its step-down subsidiary, Samyama Jyothi Solar Energy Private Limited by SUN-AMP Solar India Private Limited (subsidiary) to NextPower III Singapore Holdco. Pte. Ltd., for a consideration of US$ 1,012,000

SUN-AMP Solar India Private Limited (SUN-AMP) is a non-material subsidiary of Indag Rubber Limited (INDAG), in which INDAG holds 51% shareholding

INDAG would receive ~Rs. 4.49 crore (amount invested Rs. 2.95 crore) at the time of distribution of funds to shareholders by SUN-AMP Solar India Private Limited, irrespective of its 51% stake in the subsidiary company

‐ ‐ Consequent to the above transaction, SAMYAMA shall cease to be a subsidiary of SUN AMP and step down subsidiary of INDAG. SUN‐AMP shall continue to remain a non-material subsidiary of INDAG . Announcement done as on 27[th] October, 2020

Indag will continue to focus on its core business of manufacturing of Precured Tread Rubber

==> picture [40 x 47] intentionally omitted <==

==> picture [482 x 40] intentionally omitted <==

----- Start of picture text -----

Who we are…
----- End of picture text -----

==> picture [60 x 40] intentionally omitted <==

India’s Most Trusted Tread Manufacturing Company

Pioneered Cold Retreading Technology in India

Best Quality with Reasonable Pricing

==> picture [139 x 75] intentionally omitted <==

==> picture [46 x 22] intentionally omitted <==

1,500+ Retreaders

==> picture [32 x 22] intentionally omitted <==

40+

Presence in All types of Commercial Vehicle Tyre Segments

“Lowest Cost Per Kilometre”

Years in Business

==> picture [44 x 27] intentionally omitted <==

18+

VISION & MISSION

To be No.1 company in every market served, by offering best- in- class tyre Retreading products and services through largest network of trained Channel partners committed to offer most reliable, economical and sustainable tyre solutions for commercial transport industry.

==> picture [40 x 47] intentionally omitted <==

VALUES

Excellence Customer Satisfaction Commitment Social Responsiveness Creativity Openness and Diversity

Depots across India

==> picture [26 x 26] intentionally omitted <==

1,00,000+ Satisfied Customers

==> picture [262 x 106] intentionally omitted <==

==> picture [720 x 329] intentionally omitted <==

ABOUT RETREADING

==> picture [482 x 40] intentionally omitted <==

----- Start of picture text -----

What is Retreading
----- End of picture text -----

==> picture [60 x 40] intentionally omitted <==

==> picture [139 x 75] intentionally omitted <==

==> picture [694 x 393] intentionally omitted <==

----- Start of picture text -----

COLD PROCESS HOT PROCESS
• Uncured rubber is added to a
• Precured rubber of high density &
available in various tread designs Retreading is a technology buffed casing & cured in the
is lined with cushion gum before where the old tyres are made serviceable by removing mouldapproximately 150at temperatures ° C-160 ° C of
applying to a buffed casing
worn out and damaged • This temperature allows uncured
• Curing is done in a pressure treads and replacing it with
rubber to flow in the matrix
chamber at low temperature new treads
100 ° C & pressure forming the tread design during
vulcanization
COLD Retreading
Industry – 67% 20% - 25%
Orgainsed, share
50%
HOT Retreading
Industry – 33%
Un-organised,
50%
----- End of picture text -----

==> picture [40 x 47] intentionally omitted <==

==> picture [720 x 540] intentionally omitted <==

----- Start of picture text -----

Retreading Process
Final
Enveloping & Rim Mounting
Inspection &
Building
Painting Curing by Tread Buffing
Chamber
Rubber
Initial Inspection
Cementing and Filling
Repairs & Skiving
Collection of Casings
----- End of picture text -----

==> picture [482 x 40] intentionally omitted <==

----- Start of picture text -----

Benefits of Retreading
----- End of picture text -----

==> picture [60 x 40] intentionally omitted <==

==> picture [139 x 75] intentionally omitted <==

Saves Money

30%-50% of the price of New tyre with life nearly the same as New tyre

Durable

Appropriate tread can last nearly the same as new tyre

01 02

Safety

06 Benefits of Retreading 05 04

Environment Friendly

Requires ~7 gallons of crude oil to produce a retread as opposed to 22 gallons of oil to manufacture a new tyre

Recycle

Extends the life of used tyres thus saving even more energy, CO2 and raw materials with each

==> picture [40 x 47] intentionally omitted <==

product cycle

03

Tested to same stringent performance criteria as new tyre

Low Cost Production

In retread tyre only 25% Natural rubber is used whereas; in new tyre around 80% of Natural rubber is required

==> picture [482 x 40] intentionally omitted <==

----- Start of picture text -----

Flow of Business
----- End of picture text -----

==> picture [60 x 40] intentionally omitted <==

==> picture [139 x 75] intentionally omitted <==

==> picture [406 x 194] intentionally omitted <==

----- Start of picture text -----

Treads wear out
Fleet Owners
after certain
Run the Vehicles
usage
Retread the same
Buy new Tire
Old Tire
----- End of picture text -----

==> picture [170 x 92] intentionally omitted <==

==> picture [169 x 92] intentionally omitted <==

==> picture [368 x 115] intentionally omitted <==

----- Start of picture text -----

If Cost of
New Tyre
is Savings Cost of
Rs. 100 50-70% Retreaded Tyre
Rs. 30-50
----- End of picture text -----

==> picture [40 x 47] intentionally omitted <==

==> picture [229 x 93] intentionally omitted <==

Indag manufactures and supplies Best Quality retreading products to the retreaders at a Reasonable Price

==> picture [262 x 106] intentionally omitted <==

==> picture [720 x 329] intentionally omitted <==

BUSINESS OVERVIEW

==> picture [482 x 40] intentionally omitted <==

----- Start of picture text -----

Our Journey
----- End of picture text -----

==> picture [60 x 40] intentionally omitted <==

==> picture [139 x 75] intentionally omitted <==

==> picture [311 x 153] intentionally omitted <==

JV was terminated with Bandag

1978 - Incorporated as JV between

Khemka Group took over 38.3% share

Khemka Group & M/s Bandag Inc, (USA)

Set up plant at Nalagarh (Himachal Pradesh)

1979 - Set up plant at Bhiwadi (Rajasthan)

==> picture [66 x 66] intentionally omitted <==

----- Start of picture text -----

2006
----- End of picture text -----

1984 - Listed on BSE

==> picture [54 x 54] intentionally omitted <==

----- Start of picture text -----

1978
----- End of picture text -----

==> picture [40 x 47] intentionally omitted <==

Included as one of the best “Under 1Bn” company by Forbes Asia

Certificate of Excellence from Inc 500 in 2012 & 2013

==> picture [77 x 77] intentionally omitted <==

----- Start of picture text -----

2015
----- End of picture text -----

==> picture [65 x 66] intentionally omitted <==

----- Start of picture text -----

2012
----- End of picture text -----

Increased capacity at Nalagarh plant from 6,000 MT to 13,800 MT

Foray into Foreign market with launch of “Zoma” Brand

==> picture [77 x 77] intentionally omitted <==

----- Start of picture text -----

2016
----- End of picture text -----

Expanded Capacity from 13,800 MT to 20,000 MT

==> picture [482 x 40] intentionally omitted <==

----- Start of picture text -----

Our Products
----- End of picture text -----

==> picture [60 x 40] intentionally omitted <==

==> picture [139 x 75] intentionally omitted <==

==> picture [156 x 182] intentionally omitted <==

==> picture [156 x 181] intentionally omitted <==

==> picture [156 x 182] intentionally omitted <==

==> picture [156 x 182] intentionally omitted <==

• UN – VUNCUNIZED UNIVERSAL SPRAY

• PRECURED TREAD TYRE ENVELOPES RUBBER CEMENT

• RUBBER STRIP GUM •

• • Capacity of 1,800 KL Capacity of 20,000 MT

• • • Capacity of 1,800MT • Solution available in Various allied products and Radial and Bias Range • Bonding gum for spare tools used in

• • Ready to use and Thick Range from Passenger curing process retreading units/shops forms

• to Truck/Bus Tyre • Specifically

• • OTR & Tractor manufactured to provide longer shelf life

==> picture [40 x 47] intentionally omitted <==

==> picture [482 x 40] intentionally omitted <==

----- Start of picture text -----

Superior Technology
----- End of picture text -----

==> picture [60 x 40] intentionally omitted <==

==> picture [139 x 75] intentionally omitted <==

==> picture [335 x 175] intentionally omitted <==

==> picture [341 x 175] intentionally omitted <==

Indag uses advanced technology in terms of machinery, equipment and raw materials

Our products give mileage that result in LOWEST COST PER KILOMETER

Our processes have been certified as ISO 9001:2015 compliant

Continuously engaged in R&D to develop and deliver superior compounds that give higher mileage to our customers Constant engaging in testing of compounds in the field, to ensure that our customers get a product that gives superior performance

In order to produce tread rubber, Indag blends the ingredients, and then extrude the mixture long slabs. The rubber slabs are placed in to mould that apply heat at very high pressure on rubber slab in mould. This will result in to extremely dense, pre-cured tread rubber, specially different to other tread manufacturer

==> picture [40 x 47] intentionally omitted <==

==> picture [482 x 40] intentionally omitted <==

----- Start of picture text -----

State of Art Manufacturing Facilities
----- End of picture text -----

==> picture [60 x 40] intentionally omitted <==

==> picture [139 x 75] intentionally omitted <==

State of the art manufacturing unit Located at Nalagarh Industrial Estate in Himachal Pradesh

Advanced Technology in terms of machinery and equipment

Modern Retreading Cum-Training centre to impart high quality of training

Only company who uses curing temperature of 99°C than others who cure at higher temperature of 125 - 150°C

Brand – Indag & Zoma use superior raw material and pressed at a high pressure that gives high performance product both in term of mileage and tread life

==> picture [227 x 186] intentionally omitted <==

==> picture [227 x 186] intentionally omitted <==

==> picture [226 x 186] intentionally omitted <==

==> picture [40 x 47] intentionally omitted <==

==> picture [482 x 40] intentionally omitted <==

----- Start of picture text -----

Focused Management
----- End of picture text -----

==> picture [60 x 40] intentionally omitted <==

==> picture [148 x 147] intentionally omitted <==

==> picture [149 x 147] intentionally omitted <==

==> picture [132 x 131] intentionally omitted <==

Mr. Nand Khemka

Mr. Uday Khemka

Mr. K K Kapur

Chairman & Managing Director

CEO & Whole Time Director

Director

• Son of Mr. Nand Khemka having more than 24 years of Investment Banking & Entrepreneurial experience in Emerging markets

• M.S. in Foreign Trade & MBA in Production Management from the Columbia University, New York, U.S.A.

• With the company since 2001, served as the CMD of GAIL & MD of Enron India (NG) until 1998

• Over 40 years of experience in

• promoting and running successfully various organizations

• Post-graduate in Mathematics Member of the Institute of Cost and Works Accountants of India with over 47 years of experience

• Vice-Chairman of the SUN Group of companies

==> picture [139 x 75] intentionally omitted <==

==> picture [148 x 147] intentionally omitted <==

Mr. Shiv Khemka

Director

• Vice Chairman of SUN Group, founded in the early 90’s

• Educated at Eton College, Brown University, and the Lauder program at The Wharton School, University of Pennsylvania

==> picture [40 x 47] intentionally omitted <==

==> picture [482 x 40] intentionally omitted <==

----- Start of picture text -----

Focused Management
----- End of picture text -----

==> picture [60 x 40] intentionally omitted <==

==> picture [139 x 75] intentionally omitted <==

==> picture [109 x 117] intentionally omitted <==

==> picture [109 x 117] intentionally omitted <==

==> picture [109 x 117] intentionally omitted <==

Ms. Bindu Saxena Non-Executive Director (Independent)

Mr. P R Khanna Non-Executive Director (Independent)

Mr. R Parameswar Non-Executive Director (Independent)

==> picture [120 x 127] intentionally omitted <==

==> picture [131 x 131] intentionally omitted <==

==> picture [109 x 116] intentionally omitted <==

==> picture [40 x 47] intentionally omitted <==

Mr. Harjiv Singh Non-Executive Director (Independent)

Mr. Vijay Shrinivas Chief Commercial Officer

Mrs. Manali D Bijlani Company Secretary

==> picture [262 x 106] intentionally omitted <==

==> picture [720 x 329] intentionally omitted <==

KEY STRENGTHS

==> picture [482 x 40] intentionally omitted <==

----- Start of picture text -----

Our Key Strengths
----- End of picture text -----

==> picture [60 x 40] intentionally omitted <==

==> picture [139 x 75] intentionally omitted <==

STRONG DISTRIBUTION

TRAINING IMPARTED

INNOVATION

NETWORK

We have a PAN India Presence with over 18 depots

Training imparted by Engineers who has unique qualifications of Retreading to achieve Highest standards of Quality while re-treading

Innovations & Invention of Different Recipes & Patterns

STRONG FINANCIALS

We have a Strong Balance Sheet with zero Debt

COST EFFICIENCIES

Cost Efficiencies have been maintained throughout thereby improving our Margins

AFTER SALES SERVICES

Retreaders get after-sales and support services with regards to retreading process and machinery issues. We also provide Logistic & warehouse support

==> picture [40 x 47] intentionally omitted <==

==> picture [482 x 40] intentionally omitted <==

----- Start of picture text -----

Strong Distribution Network
----- End of picture text -----

==> picture [60 x 40] intentionally omitted <==

==> picture [139 x 75] intentionally omitted <==

PAN India Presence

1,500+ Retreaders

200+ Dealers

18+ Depots across India

==> picture [40 x 47] intentionally omitted <==

50+ Sales Team

Map not to scale. All data, information and maps are provided “as is” without warranty or any representation of accuracy, timeliness or completeness.

==> picture [482 x 40] intentionally omitted <==

----- Start of picture text -----

Training Retreaders
----- End of picture text -----

==> picture [60 x 40] intentionally omitted <==

==> picture [139 x 75] intentionally omitted <==

Training imparted by Engineers who have long experience of retreading under experts Safety in all areas & High Standard Products & Service Delivery

==> picture [296 x 225] intentionally omitted <==

----- Start of picture text -----

To achieve Highest standards
of Quality while re-treading
Marketing the Product &
Differentiating from
Others
----- End of picture text -----

==> picture [85 x 12] intentionally omitted <==

----- Start of picture text -----

Training Centre
----- End of picture text -----

Consultancy Services to our Retreaders:

• Retreading process consultancy

• Retreading machinery consultancy

==> picture [40 x 47] intentionally omitted <==

==> picture [482 x 40] intentionally omitted <==

----- Start of picture text -----

What our Clients say
----- End of picture text -----

==> picture [60 x 40] intentionally omitted <==

==> picture [139 x 75] intentionally omitted <==

“Strongly recommend Indag's retreads as they perform exceptionally well, upto 85% of new tyre mileage. Extremely satisfied with Indag's ZZYL 240 RRR tread for tubeless Radial tyres.”

Bhagwati Air Express Pvt. Ltd., Delhi ( Fleet Owner )

“Upon using 80+ tyres of Indag ZZYL and ZZE2 Treads, we found that the Average wear rate to be 9000 km/mm; providing a 32% additional mileage perfomance compared to competitor. Thus, we are grateful to the Indag team for their recommendations and support; and are very much satisfied with Indag's offerings.”

R R Logistics, Rajasthan ( Fleet Owner )

“Indag Rubber is made of passionate and hardworking people who provide excellent Sales and Technical Support along wIth Marketing collaterals. This has resulted in superior quality of the product which is at par with any brand of new tyres in terms of Road Handling, Cornering Stability. Mileage Perfomance and High Cut-Chip Resistance; all leading to the successful fulfillment of Indag's promise of Lowest Cost/KM.”

Sanjay Tyres , Madhya Pradesh ( Retreader )

“Indag's premium quality and best-in-class retreading process has fulfilled our expectations. ZZE2 (ICON) offering is specially designed for good traction and lower resistance enabling me to achieve an extremely high mileage of 1.25 lac KM, providing the lowest cost/km in the industry.”

==> picture [40 x 47] intentionally omitted <==

Chartered Speed Ltd. , Madhya Pradesh ( Fleet Owner )

==> picture [482 x 40] intentionally omitted <==

----- Start of picture text -----

Opportunities
----- End of picture text -----

==> picture [60 x 40] intentionally omitted <==

==> picture [139 x 75] intentionally omitted <==

Increase in Commercial Vehicle Sales especially the MHCV segment Improving roads and support infrastructure

Implementation of GST has narrowed the pricing difference between the organised and the un-organised

==> picture [534 x 214] intentionally omitted <==

----- Start of picture text -----

01 03
02 04
Increase in Radialisation in
CV segment
----- End of picture text -----

Reduction in influx/dumping of tyres in India after demonetization and imposition of Anti-Dumping Duty

==> picture [40 x 47] intentionally omitted <==

Currently, all types of tyres are banned for imports to boost local industry

==> picture [482 x 40] intentionally omitted <==

----- Start of picture text -----

CV Sale Trends
----- End of picture text -----

==> picture [60 x 40] intentionally omitted <==

==> picture [139 x 75] intentionally omitted <==

CV Production Trends

==> picture [318 x 150] intentionally omitted <==

----- Start of picture text -----

11,12,405
8,95,448
8,32,649 7,86,692 [8,10,253]
7,52,022
6,99,035 6,98,298
FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20
----- End of picture text -----

As Industrial Activity Picks up – More Demand for Commercial Vehicles for Movement of Goods – More Tires worn out – Retreading done on Tires

IIP Growth Rate

==> picture [291 x 74] intentionally omitted <==

----- Start of picture text -----

4.6% 4.3%
4.6%
3.3%
4.0%
2.8%
-0.1%
----- End of picture text -----

CV Domestic Sales Trends

==> picture [318 x 134] intentionally omitted <==

----- Start of picture text -----

10,07,311
8,56,916
7,93,211
[7,14,082] 7,17,688
6,32,851 6,14,948 [6,85,704]
FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20
----- End of picture text -----

FY14 FY15 FY16 FY17 FY18 FY19 FY20 *FY20 – From April 2019 – Feb 2020

Retreading Industry Picks up with Lag effect

Large Opportunities for Retreading Business in coming years

==> picture [40 x 47] intentionally omitted <==

Source: SIAM

==> picture [482 x 40] intentionally omitted <==

----- Start of picture text -----

Increase in Radialisation
----- End of picture text -----

==> picture [60 x 40] intentionally omitted <==

==> picture [139 x 75] intentionally omitted <==

Radialisation in Truck & Bus

==> picture [655 x 206] intentionally omitted <==

----- Start of picture text -----

48% 49%
50
44%
45
38%
40 36%
33%
35
30 26%
25 21%
18%
20
15
10
5
0
FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20
Source: ATMA
----- End of picture text -----

Better Road Conditions

Radialisation Requires

Better Road conditions, No overloading & Proper Maintenance of Vehicles

Faster vehicles, running on radials will consume tyres more frequently, narrowing the gap in retreading time by covering larger distances in shorter durations

No Overloading & Proper Maintenance of Vehicles Will help to reduce Casing Failure , which is precondition for Tire Retreading

==> picture [40 x 47] intentionally omitted <==

==> picture [482 x 40] intentionally omitted <==

----- Start of picture text -----

GST - A Game Changer
----- End of picture text -----

==> picture [60 x 40] intentionally omitted <==

==> picture [139 x 75] intentionally omitted <==

Retreading was dominated by Unorganised Players There has been a Slow Shift towards Organised Players

==> picture [236 x 51] intentionally omitted <==

• Difference in Pricing between Organised and • Quality Precured Tread

• Unorganised is mainly due – Longer Life of Tire

• to taxes • As Radial Tires are Quality

• •

• Pricing GST implementation has Expensive – Demand for led to removal of different Quality Product is on taxes and resulted into level rise

• playing field for both the players

==> picture [141 x 34] intentionally omitted <==

==> picture [40 x 47] intentionally omitted <==

Company Offers - Best Quality with Reasonable Pricing

==> picture [262 x 106] intentionally omitted <==

For further information, please contact

Company : Investor Relations Advisors : Indag Rubber Ltd Strategic Growth Advisors Pvt. Ltd. CIN: L74899DL1978PLC009038 CIN: U74140MH2010PTC204285 Mr. Anil Bhardwaj, G.M. (Finance) Mr. Varun Divadkar / Ms. Khushbu Shah anil@indagrubber.com varun.divadkar@sgapl.net / khushbu.shah@sgapl.net +91 9763702204/ +91 9820601181 www.indagrubber.com www.sgapl.net