A Buy Out Opportunity of a Chemical Manufacturing company with Marquee clients together with high value commercial real estate.

1. Project Chemic
Buyout Opportunity Presentation
March’ 2012
Strictly Private and Confidential 1

2. Presented by
Andal Equity Advisors
Contact
Syamala Prasad.O
osp@andalequity.com
+91 - 98491 07722
Strictly Private and Confidential 2

3. Company Overview
About the company
• Headquartered in Hyderabad, with three decades of history
• Manufactures a range of sodium and other fine chemicals
• Operates in three different manufacturing units comprising facilities ranging from gram level
to full fledged production
• In house R&D facility
• Widely spread Industrial Clientele
• Listed on both BSE and NSE
Management
• Managing Director - Graduation in Mechanical Engineering
Fellow member of a government institute, India
• Director / Chairman - Doctorate in Chemistry
Worked as head of Central govt. research Institute
“ The Company has Expertise in manufacturing, handling and producing products related to
sodium, and variant metal derivatives such as Amides, Azides & compounds etc”
Note: 1. Information from Annual Reports
Strictly Private and Confidential 3

4. Facilities Overview
Manufacturing Facilities
Built up area of more than 7000 sq meters for manufacturing wide rage of
Unit I Sodium and other fine chemicals, is located at a distance close to the
headquarters
An additional facility of more than 3000 sq meters built up area is
Unit II
operating for production of varieties of chemical compounds
Recently started facility with focus on carrying out specialized reactions
Unit III
such as Chlorination, Cyclisation, Nitration etc.
R&D Facilities
Lab I Around 10oo sq meters of lab for Operation & Research
Lab II Around 17oo – 2000 sq meters of lab for low quantity production
Around 2500 sq meters multi storey building for scaling up the products to
Lab III
commercial range usage
Note:
Strictly Private and Confidential 4

5. Business Overview
Production Information
Product I Details
Particulars 2008-09 2009-10 2010-11
Installed Capacity (In MT) 4400 4400 5000
Production (In MT) 1597 1803 1969
Sales (In MT) 1606 1793 1968
Utilization rate(%) 52% 56% 58%
Product II - Details
Particulars 2008-09 2009-10 2010-11
Production (In MT) 700 666 933
Sales (In MT) 700 666 933
Financials Segment Results
800
685.4 691.5 In Rs. Millions
700
600
604.1 580.5 Particulars 2009-2010 2010-2011
Unit 1 279 371
In Rs. Millions
500
Sales
400
300
Unit 2 296 283
200 130.0 121.7 80.8
Unit 3 - 3
100
0
87.8 65.4 31.2 -53.9
EBIT Unit 1 35 17
-100 2008-2009 2009-2010 2010-2011 2011-2012 Unit 2 68 54
-117.4
-200
Unit 3 - -17
Sales EBITDA PAT
Note: Utilization rate includes both the products’ Production Capacity
Strictly Private and Confidential 5

6. Customers
FY 11
Sales by top 10 Customers
(INR Mn)
Rallis India 58
Archimica SRL 41
Teva Plantex Chemical Industries 40
Chemsource SA 35
Allwin Asia 34
DKSH Japan KK 33
Hetero Labs Ltd 32
Aurobindo Pharma LTD 25
Aarti Drugs 24
Vivimed Labs Ltd 17
Top Customers Net 339
Total Revenues 657
Contribution by top customers 52%
Note: Financial Information from the Company’s 2010-2011 Annual Report
Strictly Private and Confidential 6

7. Machinery Details
Machinery Unit I Unit II Unit III
Water Source (Cubic m/day) 150 150 350
Water Storage( Cu.m) 300 200 200
Power (KVA) 750 500 200
Standby Power (KVA) 1145 1255 750
Hot Oil System (K.Cal) 24 L 20 L 8L
Cooling Water 300TR 300TR 150TR
Steam (Kg/hr)Pressure 1T, 7kgs/cm 3T, 7kgs/cm 3T, 7kgs/cm 2
2 2
o
Refrigeration (-10 c) 80 TR 40 TR 100 TR
o
Refrigeration (-40 c) 2 TR - 100 TR
Bulk Liquid Storage 500 Cu.m 600 Cu.m 200 Cu.m
Plant Reactors 200 Cu.m 150 Cu.m 100 Cu.m
R&D Reactors 14 Cu.m 4 Cu.m -
Inert Gas 50 Cu.m/hr 70 Cu.m/hr 100 Cu.m/hr
Distillation Columns (No.s) 1 1 -
Mixers/Blenders 14 14 1
Dryer (No.s) 4 2 1
Centrifuges(No.s) 8 3 4
Incinerator (N0.s) 1 1 2
Note: Financial Information from the Company’s 2010-2011 Annual Report
Strictly Private and Confidential 7

8. Valuation Summary
As per books
Assets In Rs. Crs
Gross Block 65
Acc. Depreciation 16
Net Block 49
Networth In Rs. Crs
Share Capital 10
Reserves & Surplus 56
Total 66
As of 13-March-2012 In Rs. Crs
Book Value (in Rs) 66
Market Cap 40
Note: Financial Information from the Company’s 2010-2011 Annual Report
Strictly Private and Confidential 8

9. Valuation Summary (cont.)
Book Value Market Value
Particulars
In Rs. Crs In Rs.Crs
Land & Buildings 20.0 100.0
Plant & Machinery, Other Equipment 66.0 39.6
IT Refund (Due in the First quarter of FY 2012-2013 6.0
Debt outstanding -23 -23.0
63.0 122.6
Market Value
Land & Building details Description
In Rs.Crs
Unit I 5 Acres 60.0
Unit II 5 Acres 20.0
Unit III 15 Acres 20.0
Total 100.0
Note:
• Unit I Operations are Shutdown, except for R&D
• Workers’ Settlement is Completed
• Property good for any mixed used development
Note: Financial Information from the Company’s 2010-2011 Annual Report
Strictly Private and Confidential 9

10. Transaction Summary
Promoters’ seeks to sell 100% of their Shareholding to any Investor or group of Investors
for a minimum consideration of Rs. 100 Crores
Shareholding Pattern
30%
70%
Promoters' Retail Investors
Note: Financial Information from the Company’s 2010-2011 Annual Report
Strictly Private and Confidential 10

11. Disclaimer
This material was produced by Andal Equity Advisors (hereinafter referred to as “Andal”). The objective of this information
memorandum is to provide to Prospective Investors with information related to the Investment/Business Opportunity
This document is not for distribution and directed only to Prospective Investors that have been selected by Andal, in the capacity of
Independent Advisor, on private and exclusive basis and for the purpose of providing information of the project and investment
opportunity.
Information and opinions contained herein have been compiled or arrived by the Manufacturers and their Advisors from sources
believed to be reliable and submitted to Andal, but Andal has not independently verified the contents of such documents.
Accordingly, no representation or warranty, express or implied, is made as to and no reliance should be placed on the fairness,
accuracy, completeness or correctness of the information and opinions contained in this document. Andal accepts no liability for any
loss arising from the use of this document or its contents or otherwise arising in connection therewith. This document is not to be
relied upon or used in substitution for the exercise of independent judgment.
Andal shall have no responsibility or liability whatsoever in respect of any inaccuracy in or omission from this or any other document
prepared by Andal for, or sent by Andal to any person and any such person shall be responsible for conducting his own investigation
and analysis of the information contained or referred to in this document and of evaluating the merits and risks involved in the
project forming the subject matter of this or other such document.
Neither this report nor any copy hereof may be distributed. Persons who receive this presentation should make themselves aware of
and adhere to any such restrictions. By accepting this report you agree to be bound by the foregoing limitations.
Strictly Private and Confidential 11