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Welcome

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Goodlass Nerolac Paints Ltd

Analyst Meet3rdMay 2005

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Company Snapshot

Head Office Lower Parel, Mumbai

Founded in 1920

No. of Branches 66

ManufacturingLocations

Lote, Chennai, Ahm., Jainpur, &

Bawal (Commissioned on 18/3)

Customer Base Over 11500

Employees 1959 (Including Group Cos.)

FY 05 Group

Revenue

1163 Cr

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Group Companies

Goodlass Nerolac PaintsLtd. Mumbai

Industrial, Automotive &Architectural Coatings

Nipa Chemicals Ltd.Chennai

Pre-Treatment Chemicals

Chemguard Coatings Ltd.Chennai

High Performance Coatings

Polycoat Powders Ltd.Mumbai

Powder Coatings

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Presentation Sequence Performance

Financials

Road Ahead

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Performance

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Paint Industry Growth expected to be 14% with

Industry size of Rs7750Cr.

Organized sector doing better with 15%growth and market size of Rs5400Cr.

Architectural business benefited by high

growth in housing sector Industrial business riding high on

growth in Automobile business

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Revenue Growth-GNP

684 708791

925

1069

0

200

400

600

8001000

1200

2000-01 2001-02 2002-03 2003-04 2004-05

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Industrial Business InitiativesAcrylic CED lines

Export of Acrylic CED

New Business

Value Engineering

Color Centre Marketing Cell

Focus on Job Coating Business for PC

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Decorative Business Initiatives Project Disha- Strategy building exercise Focus on Key Segments

House Hold

Auto Refinishes Wood Finishes

Large Commercial

Brand building New Advertising films

Consumer scheme-HDD

Contractors CRM program

Making channel responsive

Profitable Mix/ New products

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Manufacturing Excellence Started in August 2003 at Lote & extended to Jainpur &

Chennai in 2004 to set in process of continualimprovement in:

Manufacturing standards Employee involvement

Skill sets of employees

Using Tools like Six Sigma & TPM Resulting into reduction in Factory level losses

6000 New ideas implemented OEE (Overall Equipment Efficiency) introduced to

measure asset utilization led to: Reduction in breakdowns by 25%

Improvement in OEE by 33%

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Manufacturing CapacityLocation

STATE

Lote

MAH

Jainpur

UP

Vatva

GUJ

Chennai

TN

Bawal

HARY

Products Decorative

Industrial

Decorative

Industrial

Industrial Decorative

Industrial

Industrial

PC, PTC

Annual

Capacity

31000

MT

61000

MT

9000

MT

17000

MT

20400

MT

Certification QS- 9000

ISO- 14000

OHSAS-

18001

QS- 9000

ISO- 14000

OHSAS-

18001

QS-

9000

ISO-

9002

-

Total Installed Capacity 138400 MT

Capacity utilization 03-04 65%

Capacity utilization 05-06 56%( 65% without Bawal)

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Awards & RecognitionsAward Location AreaGreentech Foundation Award- Gold/ Silver Jainpur/ Lote Safety

NITIE Lakshay 2004- Bronze Supply Chain SCM

DSIR National Award R&D ACED

Best Vendor Awards from:

Gabriel, MUL, HMSI, Eicher Motors

IndustrialMarketing

Consumables

Toyota Motors Nipa Chemicals/GNP

Quality & Cost

Association of Business Communicators of India(ABCI)

Web Site &EnvironmentReport

Certificate of Merit/Commendation

Desh Bandh Paper (Maya Ram Surjan Trust) Best Visual Impact Goody VisionInternal Magazine

Indias Best Managed Company-

Business Today/ A.T. Kearney

Corporate Best Managed

Company

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Financials

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Highlights Turnover of over Rs1069Cr., up by 16%

PBT at Rs. 137Cr., up by 55%

Net Profit at Rs. 92Cr, through improvedperformance in all businesses (59%)

EBIDT of 14.9%, up by 42%

EPS high at Rs36.05, up by 59% (Effective

increase after Bonus) Market Cap of Rs.1350, almost doubled

Dividend rate 115%

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Market Cap

138 184

237

678

1350

0

200

400

600

800

1000

1200

1400

'00-01 '01-02 '02-03 '03-04 '04-05

(Fig. In Rs. Crores)

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Demonstrated Impressive Position

(Creating Value for Stakeholders)Customers

Employees

Shareholders

Society

Technologically superior coatingsServiceValue Engineering

Individual Development- DC/ Trg.Creating a positive climate

Following standards of CGConsistent returns

CSR activities in select areasCSR & Environment Reports

Suppliers Joint development/ Research

Reliability Program

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Road Ahead

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Road Ahead En cash on housing growth

Retain leadership in Industrial & PC

Enhance Brand visibility

Reach to Media

Reach to Analysts

Reach to customers

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Growth Drivers New Products in Architectural coatings

Wood finishes business

Alternate channel for rural marketing Brand building

Influencers management & Demand generation activities

Increase Service Efforts in Industrial business

Technology leadership Ride on ancillary export business

New lines

Powder coating business in white goods industry

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ConcernsVolatile Growth pattern of Automobile

business

Rising pressures on pricing from Industrialcustomers

Rising Raw Material prices

Inflation affecting interest rates

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Outlook Industry growth of 10-11%

Inflationary trends in raw material

prices (R/M)

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Decorative PaintsWalls

Interior

Exterior

Woods

Metals

Industrial Paints

Automotive Coatings

General IndustrialCoatings

High PerformanceCoatings

Powder Coating

http://www.nerolac.com/index.jsp?page=products/deco/wallshttp://www.nerolac.com/index.jsp?page=products/deco/wallshttp://www.nerolac.com/index.jsp?page=products/deco/wallshttp://www.nerolac.com/index.jsp?page=products/deco/wood&t=1http://www.nerolac.com/index.jsp?page=products/deco/metal&t=0http://www.nerolac.com/index.jsp?page=products/ind/auto&sec=indhttp://www.nerolac.com/index.jsp?page=products/ind/indcoat&sec=indhttp://www.nerolac.com/index.jsp?page=products/ind/indcoat&sec=indhttp://www.nerolac.com/index.jsp?page=products/ind/highperf&sec=indhttp://www.nerolac.com/index.jsp?page=products/ind/highperf&sec=indhttp://www.nerolac.com/index.jsp?page=products/ind/powdercoat&sec=indhttp://www.nerolac.com/index.jsp?page=products/ind/powdercoat&sec=indhttp://www.nerolac.com/index.jsp?page=products/ind/highperf&sec=indhttp://www.nerolac.com/index.jsp?page=products/ind/highperf&sec=indhttp://www.nerolac.com/index.jsp?page=products/ind/indcoat&sec=indhttp://www.nerolac.com/index.jsp?page=products/ind/indcoat&sec=indhttp://www.nerolac.com/index.jsp?page=products/ind/auto&sec=indhttp://www.nerolac.com/index.jsp?page=products/ind/auto&sec=indhttp://www.nerolac.com/index.jsp?page=products/ind/auto&sec=indhttp://www.nerolac.com/index.jsp?page=products/deco/metal&t=0http://www.nerolac.com/index.jsp?page=products/deco/wood&t=1http://www.nerolac.com/index.jsp?page=products/deco/wallshttp://www.nerolac.com/index.jsp?page=products/deco/wallshttp://www.nerolac.com/index.jsp?page=products/deco/walls

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Nerolac Paints comes to your doorstepthrough Nerolac Home Stylers. WithNerolac Home Stylers you can rest

assured that the painting of your homewill be a hassle free experience.

Nerolac Home Stylers providesprofessional help in providing productconsultancy and color consultancy. It

delivers a high quality job through itstrained and experienced painters underthe supervision of Nerolac supervisors.Also Home Stylers gives a 1 yearwarranty on the job executed by us.

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How Does it Work: Contact Nerolac Home Stylers by

calling at toll free number

He will guide you on the available product range and also suggest a product suitingyour requirements.He will be equipped with professional color tool that will help you make a correctcolor choice.He will suggest the correct painting system to ensure durability of paint.

He will give you an estimate for the entire painting job and also indicate thetimelines for completing the job.He will get the trained and experienced painters to execute the job.He will supervise the job from time to time to ensure quality service.

On completion of the job he will hand over the warranty certificate to you

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Future Prospects.

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Case Facts : The Indian Paints industry Rs.6600

crores.

Asian PaintsMarket Leader( 44%Share)

Wood Finishes market Rs.300 crores1. Solvent-based and Water-based

2. Matt and Gloss

3. Spray-on and Brushable

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Types of Wood Finishes and

their Market Share in IndiaWood Finish Market in India

10%

30%

12%

48%

PU

Melamine

Alkyd

Lacquers &Speciality

Products

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Water Based PU Wood

FinishesAdvantages :

Environmentally safe

Brushable Extra training not

essential

No odour (associated

with Solvent ) Not hazardous to health

Does not yellow over

time

Disadvantages :

Not as durable as

Solvent

More Expensive

Less protection from

moisture

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Current and Potential

Competition

Current Competition:

Sheenlac ,Pidilite , Sirca , Linea

Coats, ICA, MRF Tyres

Potential Competition:

Goodlass Nerolac, ICI Paints, Berger

Paints

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Pricing:Type of Wood Finish Cost to the customer

(Labour+Material)

1) French polish Rs. 10 per square feet

2) Alkyd Rs. 15 per square feet

3) Melamine Rs. 30-40 per square feet

4) PU (solvent based) Rs. 80-120 per square feet

5) PU (water based) Rs. 120-150 per square

feet

6) Polyester Rs. 200 per square feet

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Thank You