Rajshree Polypack Limited — Investor Presentation 2020

Jul 31, 2020

RAJSHREE POLYPACK LIMITED

Regd Office:- Lodha Supremus, Unit No 503-504 5th Flr Road No. 22 Kishan Nagar, New Passport Office, Wagle Estate Thane West- 400604. India Tel. No:+91-22 25818200; Fax No:-+91-22 25818250 CIN:- L25209MH2011PLC223089

Date: July 31, 2020

To, National Stock Exchange of India Limited, Exchange Plaza, C-1, Block G, Bandra Kurla Complex, Bandra (E), Mumbai - 400051

Symbol: RPPL

Dear Sir/Madam,

Sub: Investor Presentation for financial year ended March 31, 2020

Pursuant to Regulation 30 of Securities Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, please find enclosed Investor Presentation dated July 31, 2020.

This is for your information and record.

Thanking you,

Yours truly, FOR RAJSHREE POLYPACK LIMITED

MITALI RAJENDRA SHAH Digitally signed by MITALI RAJENDRA SHAH DN: c=IN, o=Personal, postalCode=400067, st=MAHARASHTRA, serialNumber=ee1511ada0a9ad191bbbd4bd3ce40a27b52be93f ab6c8b55003bd7f2c1f9495d, cn=MITALI RAJENDRA SHAH Date: 2020.07.31 12:55:30 +05'30'

Mitali Rajendra Shah (Company Secretary & Compliance Officer)

Place: Thane Encl:- As above

Corporate Office:- Unit No 212, Lodha Supremus, Road No. 22, Near New Passport Office, Wagle Estate, Thane (W) -400604. India. E-mail id:- info@formpack.co.in **Website:-**www.rajshreepolypack.com Tel No:- +91-22 25818271

Unit I: Plot No. 32 & 33, Silver Industrial Estate, Bhimpore, Daman-396210 (U.T.) India Unit II: Plot No. 370/2(3), Village-Kachigam, Vapi-Daman Road, Daman-396210 (U.T.) India Unit III: Survey No. 184/1 (39), Panchal Udyog Nagar, Village- Bhimpore, Nani Daman-396210 (U.T.) India

RAJSHREE POLYPACK LIMITED

Investor Presentation FY 2019-20

SAFE HARBOR

This presentation and the accompanying slides (the "Presentation"), which have been prepared by Rajshree Polypack 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 whatsoever. 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.

This presentation contains certain forward looking statements concerning the Company's future business prospects and business profitability, which are subject to a number of risks and uncertainties and the actual results could materially differ from those in such forward looking statements. The risks and uncertainties relating to these statements include, but are not limited to, risks and uncertainties regarding fluctuations in earnings, our ability to manage growth, competition (both domestic and international), economic growth in India and abroad, ability to attract and retain highly skilled professionals, time and cost overruns on contracts, our ability to manage our international operations, government policies and actions regulations, interest and other fiscal costs generally prevailing in the economy. The Company does not undertake to make any announcement incase any of these forward looking statements become materially incorrect in future or update any forward looking statements made from time to time by or on behalf of the Company.

CONTENTS

• Company Overview
• Business Evolution
• Technology Upgradation
• Products
• Our Esteem Customers
• Covid and Lockdown Impact
• Financial Analysis
• Operational Analysis
• Latest Development
• Infrastructure
• Factory Units
• Growth Plans
• Factory Under Construction
• Board of Directors
• Management Organization Structure
• Our Strengths
• Industry Overview

Company Overview

Business Overview

With more than a decade of experience in operating in plastic packaging products industry, we are one of the leaders in manufacturing of rigid plastic sheets and thermoformed packaging products to the industry segment we cater to.

• ❖ Started our business in the year 2004, presently we are operating out of 3 manufacturing facilities in Daman
• ❖ Our manufacturing facilities at Daman are equipped with state-of-the-art machinery with annual extrusion capacity of over 10,200 MT and thermoforming capacity of over 5,220 MT with more than 100 products
• ❖ Manufacture customized packaging products which are tailored to client's requirements
• ❖ Products range includes packaging for dairy industry, food and beverages, bakery and confectionaries, trays for sweet and snacks, punnets for fruits and vegetables, electronic packaging, etc.
• Our business and products ❖ Strive to ensure excellent shelf visibility with various decorations/design options like printing and sleeving.
• ❖ Also produce rigid plastic sheets of PP/APET/GPET, HIPS, which are sold for 'form filled sealed' (FFS) application, for box making & vacuum forming applications
• ❖ BRC certified for Global Standardsfor Packaging and packaging Materials

						(₹ Lakhs)
Fiscals	2020	2019	2018	2017	2016	2015
Turnover	12,571.98	12,501.37	11,232.73	9,506.03	9,503.14	6,484.38
CAGR (%)	14.16%
EBITDA	1,996.82	2,116.99	2,119.00	2,145.59	2,010.26	889.58
CAGR (%)	17.55%
PAT	926.00	1,050.93	955.77	826.4	794.13	67.58
CAGR (%)	68.79%

Financial Snapshot

Installed capacity
Fiscals	2020	2019	2018	2017
Extrusion (in MT)	10,200	10,200	10,200	10,200
Thermoforming (inMT)	5,220	4,320	4,320	4,320
Printing (pieces inLakhs)	6,200	6,200	5,148	5,148
Sleeving (pieces inLakhs)	1,275	1,275	1,275	825

Business Evolution

Technology Upgradation

		Oneoftheearlyonestointroducefully	Oneoftheearlyonestointroduce	earlyonestointroducefullyautomated8-colourprintingmachineindryoffset		2014	2016•One of the
	Oneofthefirstonesto	automated6-colourprintingmachinein	alternatedecorationtechnologyofshrink	with Swisstechnology inthe Indianmarket	2013•Introducehigh	Oneoftheearlyonestointroduce	early onesintroduce fullyautomatedsleevingmachine with
Oneoftheearlyonesto	introducefullyautomated	dryoffsetwith Swisstechnology in	sleevingoncontainers	2012	techextrusionmachinesforplasticrigidsheets	threestationfullyautomated	indigenous•TechnologyintroducedPP
introduce6-colour	thermoformingmachines	the Indianmarket	2011		withanItaliantechnology•Oneoftheearly	vacuumformingmachine	barrierpackagingforenhanced
printingindryoffsetin	withGermantechnology	2010			onestohavecompleteintegrated	with Germantechnology	shelflifeofthefoodproduct.
Indianmarket	2009				solutionunderoneroof	for punnets,trays, hinged
2004					•Extrusion,Forming,Printing,sleeving	containers,lids etc

One of the

2020

2019

•Order Placed for Rigid

which is first of its kind in India

CIPET approval

Barrier Extrusion technology machine

•Obtained

for Bio-Degradable PLA Products •Obtained License from CPCB for production of compostable Products • Set up Solar panels at Unit 2 with installed capacity of 135 KW

Products

Our business and products

Packaging is a vital communicator with the customer/consumer, it plays a major role in giving a distinctive look and preserving the flavours and hygiene of the products which also protects the contents

• o Rigid plastic packaging products (along with lids) in various shapes and sizes.
• o Diversified range of products that cater to the dairy, beverages, food, FMCG, QSR, retail, pharmaceuticals and the electronics sector
• o We produce rigid plastic sheets of PP / APET / GPET and HIPS, which are sold for 'form filled sealed' (FFS) application, for box making and for vacuum forming applications

	PACKAGING PRODUCTS FOR	PLASTIC RIGID SHEETS
oo	Dairy	FFSPackaging
o	Yoghurt,Icecream,Spreads,Butteretc.JuiceandBeveragepacking	Tube Laminates
oo	ReadytoeatmealsSweetsandsnackspacking	Fabricationand Boxes for Display
o	Bakery,Chocolatesandconfectionaries
o	Barriertraysandcontainersforshelflifeenhancement	IndustrialPackaging

Our Esteem Customers

Covid and Lockdown Impact

Short Term

• All manufacturing units and head office were non-operational from 24th March 2020 due to nation-wide lockdown
• Operations partially resumed in 2 nd week of April 2020 with 35-40% utilization; Production has been growing consistently with current operations at ~80% capacity
• Implementation delay in Unit 4 by ~8 weeks as per current estimates

Long Term

• Plastic have regained its importance due to Covid; Going forward we see rise in use of plastic in food packaging
• Global product companies with manufacturing set up in China now looking to diversify their production facility to other South Asian countries; RPPL, being well-established player, is best positioned to make most out of the available opportunity
• More demand for organized players as compared to pre-covid scenario

Financial Analysis

Profit & Loss Statement (₹ Lakhs)

Fiscals	H2FY20	H2FY19	H2FY20 vs.H2FY19	H1FY20	H1FY20 vs.H2FY20	FY20	FY19	Y-o-Y
Revenuefromoperations	5,799.67	5,789.15	0.18%	6,772.31	-14.36%	12,571.98	12,501.36	0.56%
OperatingProfit	1,237.53	1,325.69	-6.65%	1,538.23	-19.55%	2,775.76	2,831.98	-1.99%
OperatingProfitMargin%	21.34%	22.90%		22.71%		22.08%	22.65%
EBIDTA	798.04	1,006.38	-20.70%	1,198.78	-33.43%	1,996.82	2,116.97	-5.68%
EBIDTAMargin%	13.76%	17.38%		17.70%		15.88%	16.93%
PAT	359.41	534.05	-32.70%	566.59	-36.57%	926.00	1,050.93	-11.89%
PATMargin%	6.20%	9.23%		8.37%		7.37%	8.41%
EarningPerShares(EPS)(₹)	3.20	5.50	-41.86%	5.04	-36.57%	8.24	10.83	-23.92%

Financial Analysis

Balance Sheet (₹ Lakhs)

Fiscals	FY20	FY19	FY18
Shareholders' Funds	10,044.42	9,186.14	4,698.44
Long-term borrowings	194.54	730.81	1,384.88
Non-current Liabilities	467.80	1,091.87	1,820.60
Fixed Assets (Gross)	8,231.24	7,395.67	6,868.24
Fixed Assets (Net)	4,566.17	4,436.70	4,462.81
Other Non-current Assets	208.90	213.16	395.97
Operational Working Capital	2,650.14	2,408.91	2,021.14
Net working capital(Withoutcash and bank balance)	2,658.98	2,113.19	1,331.00
Cash and Bank Balance	2,680.34	3,496.69	329.26

Shareholding Pattern – 31st March 2020

Operational Analysis

Fiscals	FY20	FY19	FY18
Debtors Turnover (Days)	66.22	60.65	66.44
Creditors Turnover (Days)	43.29	43.92	58.48
Fixed Assets To Turnover (X)	2.75	2.82	2.52
Inventory Turnover (Days)	60.77	60.47	57.11
Debt Equity Ratio	0.08	0.16	0.44
Debt EBITDA Ratio	0.42	0.71	0.97
Interest Coverage Ratio	9.19	7.62	6.64

60.61% 63.30% 65.10%

FY 18 FY 19 FY 20

Thermoformed products Plastic Rigid Sheet Others

Amount In Lakhs

Amount In Lakhs

• 2,000 4,000 6,000 8,000

Operational Analysis

Capacity Utilization

Latest Developments

Green Initiative

• Obtained license from CPCB for manufacturing compostable products
• Installed solar panels at Unit 2 with 135 KW capacity

Systems

• Implementation of SAP S4 Hana

Business Development

• Started Marketing office in Bengaluru
• Started Importing barrier sheets and have started marketing barrier products

Talent Acquisition

• Hired services of Industry Veteran with 35+ years of experience for technology development and output maximization
• Hired services of marketing professional with 20+ years of experience in packaging with MNCs at Bengaluru office
• Hired services of marketing professional with 15+ years of experience in packaging with MNCs at Mumbai office

Infrastructure

EXTRUSION

Extrusion is initial and a vital process, since it helps us in producing sheets of various materials, sizes and colors. Our manufacturing facilities are equipped with series of extruders, indigenous & imported. Total extrusion capacity is over 10,000 MT p.a.

THERMOFORMING

We have series of thermoforming machines indigenous & imported. Our facilities are equipped with moulds that can manufacture products in various shapes and sizes with ability to process PS, PP & PET materials

PRINTING

We are equipped with series of printing machines, indigenous & Swiss, which can print up to 8 colors. Some features of machines include 'no cup no print system', auto-loading & auto stacking of cups, preregistered metal-based printing plates & temperature controlled ink stations.

SLEEVING

Sleeving technology is used for better aesthetics and for shorter run products. Our sleeving machines are custom designed and are equipped with auto loading of cup, auto sleeve application, auto stacking and counting of cups.

Factory Units

Growth Plans

Expansion Project

(₹ Lakhs)

• o New manufacturing facility to focus on manufacturing of barrier rigid sheets & packaging products with latest technology
• o Obtained land on long term lease of 16.9 years for constructing & setting up Factory Unit 4
• o Already Installed one Thermoforming machine
• o Plant & Machinery almost ready at the supplier end and will be dispatched by mid September -20
• o Construction of Building & civil works Production floor is ~90% ready and storage floor is ~60% ready

UtilizationofPreIPOandIPOproceeds
Particulars	Estimated cost	Actual cost up to31stMarch 2020
CapitalExpenditureforSettingupofFactory(Unit4atDaman)	3,624.04	1,245.80
GeneralCorporatepurpose	64.05	64.05
Issuerelatedexpenses	221.44	221.44
Total	3,909.53	1,531.29

Factory Under Construction

Mr. Ramswaroop Thard - Promoter, Chairman & MD

• Bachelors degree of Engineering-Pune University having experience of 22 years in plastic industry
• Plays pivotal role in business development, sales, administration & finance

Mr. Naresh Thard – Promoter & Joint MD

• B.com from Mumbai University having experience of 21 years in plastic industry with strong technical strength in packaging domain
• Instrumental in growth of the Company since inception

Mr. Sajjankumar Rungta – Non-Executive Director

• Another Promoter Director of our Company
• Experience of 37 years in textile and transportation industry

Mr. Praveen Bhatia - Non-Executive, Nominee Director

• Chartered Accountant with experience of 25 years in issue management, merger & amalgamations, foreign collaborations, project consultation, loan syndication, audit, taxation, investment advisory

Mr. Alain Berset - Non-Executive, Nominee Director

• Mechanical Engineer from E'ole d'ingénieurs de Fribourg, MBA from Haute Ecole de Gestion de Fribourg & Bern having experience of 22 years

Mr. Rajesh Murarka - Non-Executive, Independent Director

• Chartered Accountant with experience of 22 years in debt syndication, debt structuring/ re-structuring and debt advisory services

Mr. Pradeep Kumar Gupta- Non-Executive, Independent Director

• Mechanical Engineer & PGD- Industrial Management, Operations Research having 38 years of experience in Plant Operations, Business & Market Development and Client Relationship Management

Mrs. Sangeeta Sarin - Non-Executive, Independent Director

• MBA, Y.W.C.A-Delhi; PGD in Insurance Management, Pondicherry University; Diploma in Scientific Vaastu Consultancy, Design Gurukul – Delhi. Has 20 years of experience

Our Strengths

• Global Rigid Packaging Market size was valued at $496.72 billion in 2016. The rigid packaging market is projected to grow at a CAGR of 5.8% and is forecast to reach $729.14 billion by 2023.
• Food & beverage segment dominated the market in 2016 and is expected to grow at a CAGR of 5.4% and is forecast to reach $439.49 billion by 2023. Rigid packaging plays a key role in food and beverage industry as these packaging materials provide longer shelf life to the food items.
• Market size of the country's packaging industry is expected to touch USD 72.6 billion by FY20 on account of rising population and income levels.
• India rigid plastic packaging market stood at around $ 7.7 billion in 2018 and is projected to grow at CAGR of 10.8% to reach $ 14.4 billion by 2024
• Sub segments of the food industry- dairy, bakery & confectionery, and ready to meals are expected to develop in market size at an impressive growth rate.

Contact Info

Rajshree Polypack Limited

Registered Address:

#503-504, Lodha Supremus, Building No.1 5th Floor, Road No. 22, Near New Passport Office, Wagle Estate, Thane (W) – 400 604. India

Corporate Address:

#212, Lodha Supremus, Building No.1 2 nd Floor, Road No. 22, Near New Passport Office, Wagle Estate, Thane (W) – 400 604. India

Board: +91-22 2581 8200 Fax: +91-22 2581 8250 Email: info@formpack.co.in marketing@formpack.co.in