2006

1. Polyolefin Markets in India Ujjal De Vice President Head – Marketing & Business Development Haldia Petrochemicals Limited, India Indian Petrochem – 2006, Mumbai, India

3. PO Global Demand Supply - 2005 Million MT Source – Nexant 105 mmtpa … Demand Supply Net Trade

4. Indian PO Industry Structure – Capacity 2006 PE - 1975 KT PP - 1895 KT PO - 3870 KT 3.4 % of Global Capacity

5. PO Demand Supply – India, KTA Transformed to net exporter … Source – CPMA & Industry PE PP PO

6. Capacity Additions - India

7. Capacity Additions - India 5.3 mmtpa addition in next 5 yrs Fig in KTA 360 ONGC 60 GAIL 460 360 600 900 75 Total PP PO PP PE 1000 1020 650 0 250 Total PE 400 75 HPL 900 RIL Gp. 600 IOC 1250 650 2009 1380 1020 2010 ONGC 200 100 GAIL 325 150 2007 2011 2008 900 1460 800 Total IOC HPL

8. Source – Industry Est PE 4290 KTA PP 137 % capacity addition, 5.3 mmtpa , in next 5 yrs Projected Capacity – India, KTA 146 % 4895 KTA 126 %

9. PE PP Net export surplus – 2.9 mmtpa … significant player Source – Industry Est India’s Likely Trade – 2011, KTA Growth rate @ 10 % YOY Growth rate @ 12 % YOY 1685 1230

10. Growth Drivers - India

12. PLASTICS Packaging Doors Panels Component / Battery Plasticulture Packaging Pipes Films Food Processing Consumerism Lifestyles Infrastructure Automobile Agriculture Housing Roads Cement Consumer goods TV / Fridge Mobile/ Washing Machine Retailing Economic Growth Demography

13. Growth Drivers – Major Sectors

14. Growth Drivers - PP Volume Share - % CAGR - % Raffia PPCP BOPP Fibre & Filament IM - HP IPP Source – CrisInfac & Industry Est < 10 10 - 20 > 20 < 8 8 - 12 > 12

15. Growth Drivers - HDPE Volume Share - % Inj Molding Wire & Cables RAFFIA Blow Molding HM Film Pipe CAGR - % Source – CrisInfac & Industry Est < 10 10 - 20 > 20 < 8 8 - 12 > 12

16. Growth Drivers – LLDPE Roto Molding Butene Film Film – Oct / Metallocene Volume Share - % CAGR - % < 10 10 - 20 > 20 < 8 8 - 12 > 12 LL Injection &Master batch Source – CrisInfac & Industry Est

17. Prices and Margins -

18. Feedstock rise > Polymer … Squeezed Margins Naphtha HD Film PP Inj Pricing – SE Asia, $/MT Source – Platts, Naphtha – FOB AG & Polymer – CFR SEA 2006 – Upto October 27.8% 26.6% 2004 2005 2006 2004 2005 2006 2004 2005 2006 13.4% 12% 8.4% 18.5%

19. Less Increase in India … Import Duty in 2005 Pricing – SEA vs. India Source – Platts & Dom Industry, SEA Prices - $/MT CFR India Polymer – NOM Landed Mumbai @ 54 MT Slab 2006 – Upto October SE Asia PP Inj HD Film India PP Inj HD Film 2004 2005 2006 2004 2005 2006 11.3% 4.8% 3.4% 18 % 2004 2005 2006 2004 2005 2006 13.4% 12% 8.4% 18.5%

21. Challenges – Indian PO Industry

23. Processed Plastic Exports – Snapshot Despite steady growth, long way to go … 2005 - mmtpa Source – Plexconcil India Indian Exports - Billion USD China S Korea Thailand Malaysia India

24. Potential – US Market Huge potential … 1.2 mmtpa of PE Resin

25. Potential – Europe Market Huge market …

26. Success Stories – Processing & Machinery Sector

33. Future Outlook - India

35. Conclusion

37. Ujjal De Vice President Head – Marketing & Business Development 1, Auckland Place, Haldia Petrochemicals Limited Kolkata – 700 017, India Phone – Direct +91-33-22831653 Cell No +91-9831090327 Thanks

38. Import Duty - % India is amongst lowest in Asia 15 Philippines 8.75 Thailand 5 India 10 Indonesia % Country ~ 9 30 China Malaysia

39. Tax on Plastic Products – % of product value Source – CPMA India - incl ED @ 16% & VAT @ 4-12.5% 17 China 10 Vietnam / Malaysia / Philippines / Indonesia / S Korea 21 – 30.86 India 5 Taiwan / Japan / Singapore Excise & ST, % Country 7 Thailand

40. India’s PO Import Duty - NOM Steep reduction …

41. Feedstock Cost Advantage – Middle East Cheapest & subsidised feedstock … 1.15 UAE (Abu Dhabi) 2.0 Bahrain 1.7 - 2.0 Qatar 1.0 - 2.0 Kuwait 0.80 Oman 0.75 Saudi Arabia Feedstock Ethane Cost USD/ mmBTU Country

42. CAGR ( FY06 - FY11) - 17.5 % Source: CrisInfac & Industry Info BOPP

43. CAGR ( FY06 - FY11) - 15 % Source: CrisInfac and Industry Info Raffia

44. CAGR ( FY06 - FY11) – 9.1 % Source: CrisInfac and Industry Info PPCP

45. CAGR ( FY06 - FY11) – 6.3 % Source: CrisInfac and Industry Info IM - HP

46. CAGR ( FY06 - FY11) – 11.3 % Source: CrisInfac and Industry Info IPP

47. CAGR ( FY06 - FY11) – 12.1 % Source: CrisInfac and Industry Info Fibre & Filament

48. Source: CrisInfac & Industry Info CAGR ( FY06 - FY11) - 6.3 % BLOW MOLDING

49. Source: CrisInfac & Industry Info CAGR ( FY06 - FY11) - 15.3 % PIPE

50. CAGR ( FY06 - FY11) - 16.9 % Source: CrisInfac and Industry Info HM Film

51. CAGR ( FY06 - FY11) - 9.4 % Source: CrisInfac and Industry Info Inj Molding

52. CAGR ( FY06 - FY11) - 5.3 % Source: CrisInfac and Industry Info RAFFIA

53. CAGR ( 06- 11) =13.6 % Source: CrisInfac & Industry Info Butene Film

54. CAGR ( FY06 - FY11) - 6.4 % Source: CrisInfac and Industry Info Wire & Cables

55. CAGR ( FY06 - FY11) - 11 % Roto Molding Source: CrisInfac and Industry Info

56. CAGR ( 06- 11) = 7.3 % Source: CrisInfac & Industry Info LL Injection & Master batch

57. CAGR ( 06- 11) = 16.4 % Source: CrisInfac & Industry Info Film – Oct / Metallocene