Hindusthan National Glass & Industries Ltd.

Disclaimer
Certain statements in this communication may be forward looking statements within the meaning of applicable laws and regulations. These forward-looking statements involve a number of risks, uncertainties and other factors that could cause actual results to differ materially from those suggested by the forwardlooking statements. Important developments that could affect the Companys operations include changes in the industry structure, significant changes in political and economic environment in India and overseas, tax laws, import duties, litigation and labour relations. Hindusthan National Glass & Industries Limited will not be in any way responsible for any action taken based on such statements and undertakes no obligation to publicly update these forward-looking statements to reflect subsequent events or circumstances.

Table of Contents

Industry Snapshot Company Overview Business Overview Operating and Financial Performance Annexures

Global Packaging Industry

As per World Packaging Organization, the global packaging industry is expected to be USD 597 billion by 2014 with ten year historical growth at ~ 3.1% CAGR Projected to grow at ~ 3.5% CAGR in the medium term mainly driven by growth in emerging markets

(Asia Pacific region)

Geography
5% 27% 34%
Europe Asia, Oceana, Africa & ME

End-User
13% 9% 11% 52%
Liquor Beer Food Pharma Others

North America
South & Central America

15%

34%

Source: Owens-Illinois, Inc. - Investor presentation, March 2010

Packaging Industry in India

At USD14 bn, Indian packaging industry has been growing at ~ 15% over the last few years Expected to accelerate further with increasing urbanization, growing middle class and expansion of modern retail Indian glass container market is estimated to be around USD 1.1 bn and is growing at the rate of ~10% p.a. Entry barriers in Indian Container Glass industry is owing to capital intensive nature Top 3 players are HNG, HSIL and Piramal Glass Low per capita glass container consumption of 1.5 kg in India as compared to other countries (refer chart alongside). Strong economic drivers for end-user segments (liquor, beer, pharmaceuticals, food, cosmetics etc.) UK Spain France South Korea
(Kg)

Indonesia India Brazil China Japan Mexico USA

World glass container per capita consumption 1.2 1.5 4.8 5.9 10.2 19.5 27.5 27.5

50.3
63.9 89 0 50 100

End-User Industry Overview

Liquor
300 250 200 150 100 50 0 265 190 19,731 49 65 66,040

Soft Drinks

58,788

Food
93,703

Cases in Millions

2007 - 2008
HNG Supply

2010 - 2011
IMFL Industry Volumes

2007-2008

2010-2011

2007-2008

2010-2011

Figures in MT HNG

Figures in MT HNG

Beer
250
Cases in Millions

Liquor and beer industries are the main users

214

of glass containers with 65% share, followed by food 12%, pharmaceuticals 10%, carbonated drinks 8% and cosmetics & others account for the remaining

Pharmaceuticals
95,009

200
150 100 50 0 19

157

26

79,450

2007 - 2008
HNG Supply

2010 - 2011
IMFL Industry Volumes

Favourable disposable

demographics incomes driving

and

rising
2007-2008 2010-2011 *

consumption

across end-user industries in India

Figures in MT HNG

Company overview
Dominant position
Leader in the container glass segment Current Installed capacity in India is 4,395 TPD (including Naidupeta) and Germany 320 TPD; Planned capacity expansion to ~4,820 TPD in India by FY14

Consumption Ancillary

Diversified end-user segment including Liquor, Beer, Beverages, Food, Pharmaceuticals and others

Pan-India Presence

Manufacturing facilities in 6 locations across India, Facility at Naidupeta shall start by June 12 Additionally, International manufacturing footprint through 100% subsidiary HNG Global GmbH, Germany

Competent Management Well established customer relations

Strong Management with vast experience and huge domain knowledge Successful history of acquiring loss-making units and turning them around

Six decades of presence in the industry has enabled the Company to develop long standing customer relationships

Strong Financials

In a capital intensive industry, the Company has been able to maintain a robust Financials
9

Corporate Milestones
First 30 TPD plant commissioned in 1952 Second 90 TPD plant commissioned in 1964 Acquired 2 plants (Rishikesh & Pondicherry with total capacity 700 TPD) from Owens Brockway India Ltd, a subsidiary of Owens Illinois, USA. Renamed the company as Ace Glass Containers Ltd. Acquired assets of Agenda Glas AG in May 2011; 320 TPD facility at Gardelegen, Germany

Ace Glass Containers Ltd. merged with HNG

1952

2001
Capacities expanded to 1,100 TPD

2002

2005
Acquired 320 TPD loss making glass division from Larsen & Toubro at Nashik

2006

2007
Established float glass plant in Halol under HNG Float Glass Ltd. Acquired 180 TPD Neemrana unit of Haryana Sheet Glass

2011

2012
Commissioned 650 TPD furnace at Nashik on 28th February 2012.
Our 7th plant at Naidupeta (650 TPD) shall begin commercial production from June 2012

10

Corporate Structure
Hindusthan National Glass & Industries Ltd.
- Consolidated net revenues: Rs. 15,678 millions. - Standalone net revenues: Rs. 15,525 millions. 47.4%

100%

100%

100%

Glass Equipment (India) Ltd.

Net revenues: Rs. 299 millions. Capital Goods & Spares Supplier to Glass Industry

Quality Minerals Ltd.

Net revenues: Rs. 10 millions. Mineral Supplier to Glass Industry

HNG Global GmbH

HNG Float Glass Ltd. (HNGFL)

Net revenues: Rs. 2,948 millions.

Acquisition of assets of Agenda Glas AG

Manufacturer of Float & Processed Glass

Note: 1. All revenue figures are for FY 2011. HNG Global GmbH was acquired after March 31, 2011.

11

Pan India Presence

HNG, the largest container glass

manufacturer in India has a manufacturing

Bahadurgarh Neemrana Rishikesh
Delhi

capacity of 4,395 TPD (including 650 TPD of Naidupeta) Multi-locational

Kolkata

production

facilities

enable the Company to: Lower landed cost to customers Provide JIT supplies

Vadodara

Rishra

Nashik
Mumbai Hyderabad

GEIL

Cater to key customers across India

Float Glass Unit

Naidupeta Bengaluru Chennai

Container Glass Plant Locations Marketing Offices Upcoming Greenfield Mega Project Commenced Brownfield Mega Project (Nashik)

Puducherry

Note: The total capacity is expected to grow to ~4,820 TPD by FY14 in India. 12

Strong customer relationships

LIQUOR

BEER

FOOD

SOFT DRINKS

PHARMACEUTICALS

Caters to customers across segments

13

HNGs Share of Top 10 Customers

HNG's Share in the Total Requirement of Top 10 Customers in 2010-11 (%)
100 90 80 70 60 50 40 30 20 10 0 United Spirits Limited United Breweries Limited Pernod Ricard India SAB Miller Allied Coca Cola India Blenders & India Distillers Pepsico India Bajaj Corp Shiva John Limited Distilleries Distilleries Limited 65 95

80
70

80

60
55

60
50

40

14

15

15

Expanding Scale
Location
RSR Furnace 1 RSR Furnace 2 RSR Furnace 6 BGR Furnace 3 BGR Furnace 4 BGR Furnace 5 NMR Furnace RSK Furnace 1 RSK Furnace 2 PDY Furnace 1

Capacity as at March 2012

280 250 360 330 320 195 180 310 150 360

Expected Capacity as at March 2014

280 250 475 330 320 195 300 310 150 360

To be Commissioned in
2012-13 2012-13 -

New Furnace(N) / Rebuild (R)

R R -

NSK Furnace 1
NSK Furnace 2 Naidupeta Gardelegen TOTAL

360
650 320 4,065

550
650 650 320 5,140

2013-14
Started on 28th February, 12 2012-13 Acquired in May 2011

R
N N -

Present capacity of c. 4,000 TPD with proposed expansion to c. 5,100 TPD by FY14

16

HNG Global GmbH, Gardelegen, Germany

One of the most modern production facilities in Europe, with 320 tpd capacity. HNG Global GmbH, is located closed to the regional raw material suppliers with easy and economic

access to all key raw materials.

The Plant is ideally located for deliveries throughout Germany and to adjacent European Countries. Germany is the largest market for Container Glass in Europe, with a share of ~ 20%.

Companys technological edge is planned to be back pedaled in HNGs Indian operations, as Germany is
always considered ahead in terms of technology. The Finished-ware quality in Germany is of superior standards than in India and it will help us embark the upward quality journey in India.

17

Business Strategy
Capacity Expansion
Acquired and turned around four loss making units over the last nine years Planned expansions to take total capacity to ~ 4,820 TPD at Indian level by FY14

Expanding product portfolio

Presence across key user industries liquor, beer, pharmaceuticals and food Capitalizing on opportunities in the high growth float glass industry

Adapting new technology

Introduced Narrow Neck Press and Blow (NNPB) technology, first in India Sustained competitive advantage through product optimization and continuous innovation Increasing production of light weighted bottles to enhance margins

Backward integration

Captive power plant to improve cost efficiencies (at Bahadurgarh plant) Silica mining to support raw material supply chain (Proposed) Manufacturing of glass machines & spares in 100% subsidiary GEIL

International Footprint

Gained European presence, one of the largest markets for food and alco-bev industries Access to technological strength and production processes

18

19

Operational Overview
Production volume (MT)
8,29,374 800000 700000 600000 500000 400000 FY 2009 21000 20000 19000 18000 17,151 17000 16000 17,344 18,332 FY 2010 FY 2011 9-M FY 2012 7,67,258 7,85,300 6,92,161 800000 700000 600000 500000 400000 FY 2009 FY 2010 FY 2011 9-M FY 2012

Sales Volume (MT)

7,65,459 7,82,584

8,42,246

6,64,794

Realization (Rs. / MT)

20,482

Key Highlights
Firm domestic demand driven by growth in end-user industries - liquor, beer, pharmaceuticals, foods and carbonated drinks Manufacturing facilities located across India provide an edge over peers who have only regional presence Pan-India distribution network Implementation of advanced technology enables improved cost efficiencies

15000
FY 2009 FY 2010 FY 2011 9-M FY 2012

20

Volume Mix -FY11

End-user segment
13% 9% 11% 15% 52%
Liqour Beer Food Pharma Others

Geographical distribution of Sales Volume

4%

13% 19%

43%

South North East

21%

West

Export

Geographical distribution of capacities (Post commissioning of Naidupeta)

20% 34%
North West

23% 23%

South East

1 Others include soft drinks

21

Financial Performance (All figures stated in Rs. millions on a standalone basis)

16000 15000 14000 13000 12000 11000 10000 9000 8000 0 10% FY2009 FY2010 EBITDA FY2011 Margins 9-M FY 2012 1000 2000 13,110 13,599 13,616

Net Turnover 15,434

EBIDTA
4000 3163 25%

3000
2359

23.3%

2705 17.5% 2275 20%

18.0% 16.7% 15%

FY2009
2000

FY2010
PAT 1552

FY2011

9-M FY 2012

17% 20 15 11.4% 864 603 5.6% 4.4% 7% 5 2% 12% 10

EPS (Rs. / share)

17.77

1500 1077 1000 8.2% 500 12.34 9.9

6.9

0 FY2009 FY2010 PAT FY2011 Margins 9-M FY 2012

0
FY2009 FY2010 FY2011 9-M FY 2012

22

Balance Sheet (All figures stated in Rs. millions on a standalone basis)

Particulars (Rs. million)
Share Holders Funds Loan Funds Deferred Tax Liabilities TOTAL LIABILITIES Net Block + Capital Work-inprogress Investments Net Current Assets TOTAL ASSETS Nine months ended December, 2011 12,275 16,302 712 29,289 Year ended March, 2011 11,661 6,395 712 18,769 Year ended March, 2010 10,428 5,657 697 16,782

23,233
2,281

13,845
1,775

11,438
1,471

3,775
29,289

3,149
18,769

3,873
16,782

23

9 Months FY 2012 - Financial Highlights

(All figures stated in Rs. millions on a standalone basis)

Profit & Loss Statement Snapshot

Particulars (Rs. million) Total Income EBIDTA Margins Depreciation Interest 9-M FY2012 13,670 2,275 16.6% 852 664 9-M FY2011 11,389 2,263 19.9% 740 370 15.1% 79.5% Shift (%) 20.0% 0.5%

Profit Before Tax

Margins Tax expense

758
5.5% 155

1153
10.1% 252

(34.3%)
(38.5%)

Profit After Tax

Margins EPS (in Rs.)

603
4.4% 6.90

901
7.9% 10.31

(33.1%)

(33.1%)

24

25

Shareholding Pattern
Particulars
Promoters Public Shareholding Insurance Companies Bodies Corporate Financial Institutional Investors 0.31 3.93 7.28 % Shareholding (as on December, 2011) 69.98 30.02

Individuals & Others* Total

* Includes 16.76% held as Treasury Shares in the Company Total 87.3 million shares Listed at: National Stock Exchange (NSE) - HINDNATGLS Bombay Stock Exchange (BSE) - 515145 Calcutta Stock Exchange (CSE)
26

18.50 100.00

Ratings, Rankings & Accreditations

Business Today Ranking (Out of 500 top listed corporates, as of October, 2011)
In terms of Average Market Capitalization 368th

Rating by CARE (Credit Analysis & Research Ltd.)

Long Term credit rating of AA+(implying high safety for timely servicing of debt obligations and carrying very low credit risk). Short Term credit rating of PR1(+), being the highest grade (implying the lowest credit risk).

Rated as the best Indian Company in the Glass & Ceramics category by Dun & Bradstreet in years 2009 and 2010 Accredited with ISO 9001:2008 certification, ensuring stringent quality standards and ISO 22000 for food and safety Rated at No.35, out of the best 500 companies by Inc.India (Comprehensive ranking of Indias best performing mid-sized companies) in their Sep-Oct, 2010 issue.

27

Hindusthan National Glass & Industries Ltd. (HNG)

For further information please log on to www.hngindia.com or contact: Laxmi Narayan Mandhana (CFO) HNG Tel: 033-2254-3100 Email: investor.relations@hngil.com
28

Anoop Poojari / Dipti Yadava Citigate Dewe Rogerson Tel: +91 22 6645 1211 / 1218 Email: anoop@cdr-india.com / dipti@cdr-india.com