PNR Securties - BIOPAC INDIA CORPORATION LTD

Saturday, June 9, 2007

History BIOPAC India Corporation Limited, started as a division of Pushpa Impex Private Limited (PIPL). PIPL was incorporated in April 1987, for the purpose of carrying out indenting and trading business of plastic raw materials and petrochemicals. PIPL through its expertise in the plastics business and experience of its promoters in trading in these products in the international markets, particularly in the U.S.A., established BIOPAC India Corporation Ltd., as a division of PIPL to manufacture Polystyrene Foam Cups, Bowls, Plates, Lunch Boxes, Trays, etc., as superior packaging material for handling and storage of food products for retail and institutional business. In 1998 the company set up manufacturing facilities in Dockmardi, Silvassa to manufacture 120 MT p.a. of Polystyrene Foamed Sheets. Due to a major fire on 14th December 2004, the company lost its manufacturing facility at Dockmardi Plant in Silvassa. During FY06, the company fully reinstated the fixed assets lost at Dockmardi plant and went operational in October 2005 with expanded capacity at its newly commissioned Dapada factory. Company Overview Biopac India Corporation Limited, started its manufacturing business in the year 1998. The Company got listed on the Mumbai Stock Exchange in the year 2000 and has a Paid-up Equity Capital of Rs.160 million (approx. US$ 3.5 millions). A 30,000 sq.ft. ultra modern plant of the company is located at Silvassa which is approximately 170 kms. North West of Mumbai. The Company employs about 80 people who take care of various functions like Production, Sales, Logistics, Finance, Accounts and Administration. The company produces world class Foam Polystyrene products and plans to be a global player in this business. Almost 35% of companys turnover comes from exports primarily to USA, UAE and UK. Management Mr. Harish B. Doshi (Chairman) - aged 46 years an NRI, based in Los Angeles, California, USA since 1981. He has 23 years of experience in Plastic and chemical trading business in USA. He is the founder Chairman and CEO of Pushpa America Corporation, USA a company, engaged in the business of trading and distribution of plastics and chemicals for the last 15 years. Mr. Pankaj B Doshi - aged 45 years, an NRI based in Los Angeles, California, USA since 1980 is a Intermediate and Vice Chairman and Managing Director of Biopac India Corporation Pvt. Ltd. He has 21 years of experience in marketing and material management in India and abroad. Future Plans Until 2006 companys main business came from serving the food service catering segment with products such as plates, bowls, serving trays and take away containers. Biopac has now developed products to serve the Food Packaging industry. Such products are various sizes and colors of Supermarket Trays that are used in Organized Retail to serve fresh

processed food such as cut fruits and vegetables, poultry, meat, dry fruits, dates and various fresh snacks and other food products. The company has already tied up with Reliance Retail and the Birla Group (Trinethra and MORE) to supply packaging material for their supermarket stores. Supermarket Sunrise Industry With the rising per capita income, convenience has become a higher priority for the customers. A growing number of these dualincome families prefer to pay the premium for ease. According to reports, customers like the supermarkets such as Reliance Retail because the produce is generally fresh, the shops are air-conditioned and the prices are much lower than those of open-air markets or mobile vendors. According to a recent report on India Retail Sector Analysis by RNCOS: Organized retail in India will form 10% (currently 5%) of total retailing by the end of this decade (2010). From 2006 to 2010, the organized sector will grow at the CAGR of around 49.53% per annum. Hypermarket is emerging as the most favorable format for the time being in India. Currently a number of supermarket brands have made headway in the food-retailing sector, namely the Reliance Retail, Nilgiris, Food world, Apna Bazaar, Sabka Bazaar, Spencers and Big Bazaar. Reliance Industries has announced to invest Rs. 250 billion in its retail business over the next five years to open 4000 stores. Between last November and June, Reliance Fresh, a subsidiary of Reliance Industries launched 157 outlets in 18 states. Reliance is on the vanguard of this transformation. But Wal-Mart/Bharti is coming soon, and two other supermarket chains Britains Tesco, and Carrefour of France are itching to enter the Indian market. Joining the Reliance Group, the Aditya Vikram Birla Group has announced its entry into the domestic organized retail market with an investment of up to Rs 9,000 crore over three years. The group recently acquired a 172 store supermarket retail chain operating under the brand name of Trinethra in South India. The Birla group also opened its first supermarket store MORE in Pune with a target to open 1,000 in three years. Products Consumer Products Dinnerware Plates, Soup Bowls, Serving Bowls, Serving Trays, Cups etc. Take Out Food Containers Flat-Type Containers/Serving Bowls, Cup-type Containers, Box-type (hinged) & Tray Containers etc. Industrial Products Readymade conveyance and packaging for poultry products (like egg trays, frozen chicken packing), orchard products (like apples, mangoes, oranges and strawberries), seafood export, icecream, yoghurt, and shrikhand cups, instant noodle packs, soup containers, Pre-cast moulds for PCC tiles. Customised Products (Biofoam Sheets) - Rigid polystyrene foam sheets manufactured by continuous extrusion process creating rigid closed cell structure containing CFC-free gas. The process permits accurate control of thermal and mechanical properties producing very consistent quality sheets which exhibit excellent Thermal Insualtion, Moisture Resistance, Excellent Surface finish (coated sheets) and high strength and find use in various applications.

Salient Features Light Weight: Its light weight saves cost of handling and transportation. Aesthetics: It improves the appearance of the packed product. Also due to its fluorescent finish, it enhances the market appeal of the pack. Flexible: Because of its softness and flexibility Biopac PSP wraps around the products and offers protection at points other material cannot reach. Excellent Cushioning: Closed cell structure imparts higher mechanical strength to Biopac PSP making it highly shock-absorbent and durable for all applications. Scratch-proof: Biopac PSP's soft surface protects, preventing any scratches to delicate products. Moisture-resistant: Moisture absorption and transmission rates of Biopac PSP are practically zero. Dust-proof: Biopac PSP is dust-proof and so it is used in packing of electronic items. Thermal Insulation: Extremely low thermal conductivity and low moisture absorption and transmission rates make Biopac PSP the perfect insulating material, particularly for low temperature applications. Microbe-free and Non-toxic: Biopac PSP resists fungi and mould growth. It is non-toxic and is an ideal product for food packaging. Easy to handle and fabricate: It can be easily fabricated in any shape, size and structure without any special equipment or tools. Wide Range: Biopac PSP is available in wide range of rolls and sheets to suit individual requirements. Scrap: Biopac scrap is used for packing crockery and other valuable items. Applications Packaging - Designer boxes for packing pizzas, sweets, mithai and confectionery, Packing of sea food, Buffers, Wrapping of premium furniture, Dust covers, Cushioning material for Glass, Ceramics, Handicrafts and other value-added products, Vials for pharmaceutical products, Floor underlays, Packaging for electronic components and machinery. Civil & Construction - Water Proofing, Heat Insulation, Air-conditioning, Toilet underlays, Concrete curing, Mount boards for architects, Particles boards. Advertising & Communication - Point of purchase material, Danglers, Invitation cards, Greeting cards, Film sets, Display boards. Insulation - Industrial refrigeration, Cold storage, Air handling units, A/C ducting, Cold water pipes, Precooling plants and refrigerated containers, Heat insulation. Automotive Roof panels, Noise dampening. Architects Scale models, False ceilings. Miscellaneous - Festive decoration, Caps, spectacles and fancy items. Key Developments Recent Bulk deals of Biopac Deal Date Client Name Deal Type Quantity Price 1/6/2007 AAP INVESTMENTS Sell 350000 18.4 24/5/2007 BILKIS ZUBAIR HAWA Buy 114467 13 24/5/2007 AAP INVESTMENTS Buy 500000 13.8 24/5/2007 PRASHANT DESAI Buy 80042 13.8 24/5/2007 ALCHEMY EQUITY RES AND SEC P LTD* Buy 750000 13 *Rakesh Jhunjhunwala Company

BIOPAC

INDIA

CORPORATION

LTD