G G Engineering Limited · This presentation has been prepared by G G Engineering Limited (the “Company”)solely for information purposes and does not constitute any offer, recommendation

G G Engineering Limited

Investor PresentationH2 & FY19

This presentation has been prepared by G G Engineering Limited (the “Company”) solely for information purposes and does not constitute any offer, recommendation or

invitation to purchase or subscribe for any securities, and shall not form the basis or be relied on in connection with any contract or binding commitment what so ever. No

offering of securities of the Company will be made except by means of a statutory offering document containing detailed information about the Company.

This Presentation has been prepared by the Company based on information and data which the Company considers reliable, but the Company makes no representation or

warranty, express or implied, whatsoever, and no reliance shall be placed on, the truth, accuracy, completeness, fairness and reasonableness of the contents of this

Presentation. This Presentation may not be all inclusive and may not contain all of the information that you may consider material. Any liability in respect of the contents

of, or any omission from, this Presentation is expressly excluded.

Certain matters discussed in this Presentation may contain statements regarding the Company’s market opportunity and business prospects that are individually and

collectively forward-looking statements. Such forward-looking statements are not guarantees of future performance and are subject to known and unknown risks,

uncertainties and assumptions that are difficult to predict. These risks and uncertainties include, but are not limited to, the performance of the Indian economy and of the

economies of various international markets, the performance of the industry in India and world-wide, competition, the company’s ability to successfully implement its

strategy, the Company’s future levels of growth and expansion, technological implementation, changes and advancements, changes in revenue, income or cash flows, the

Company’s market preferences and its exposure to market risks, as well as other risks. The Company’s actual results, levels of activity, performance or achievements could

differ materially and adversely from results expressed in or implied by this Presentation. The Company assumes no obligation to update any forward-looking information

contained in this Presentation. Any forward-looking statements and projections made by third parties included in this Presentation are not adopted by the Company and

the Company is not responsible for such third party statements and projections.

Disclaimer

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Company Overview

Who we are

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Strategically located state of art Manufacturing Unit ▪ 40,000 sq. ft. plant with latest CAD technology in

Bharuch, Gujarat ▪ Undertakes range of activities like punching, forming,

shearing, bending, fabrication, welding and assembly▪ Annual capacity of 1,800 units of Gensets and 3,300

units of RVMs▪ In-house R&D and product innovation

Wide Distribution Network in Western India▪ Six distributors each in Gujarat and Maharashtra▪ Six agencies in both states to service customers

Among well established players in Gensets & RVM industry▪ Formed in 2006, specializing in industrial and marine engines, and diesel

generators▪ 2016 - Added new and specialized product – Reverse Vending Machine (RVM)▪ Went public in April 2017

Customizable Product Portfolio▪ RVMs (plastic bottle crushing machines) –

Own brand ‘PETWASTE’✓ Wall mounted & hand press✓ Heavier machines with wheels

▪ Diesel Generators▪ Industrial engines▪ Marine engines

Strong Clientele▪ Tata Motors – approved generator and industrial/marine

engine OEM genset manufacturer▪ For RVMs - Wild West Media Pvt. Ltd., Reliance Life

Sciences, Ganesha Ecosphere Ltd etc.

Management Team

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Vinod BeriwalPromoter & Managing Director

▪ MBA from Welingkar Institute, Mumbai▪ Over 20 years of experience in industrial

operations and management

Uttam TiwariChief Financial Officer

Kamal BeriwalPromoter and Whole Time Director

▪ Bachelor’s degree in Commerce▪ More than 20 years of experience in

industrial operations and management▪ Heads business development and

commercial functions of the company

Rashi GuptaDirector

▪ Over 10 years of experience in businessdevelopment and sales

▪ Heads business development at Delhi branch

Sangeeta BeriwalDirector

▪ Graduate in Commerce▪ Over 12 years of experience in

accounting & finance

Poonam GuptaCompany Secretary

▪ Qualified Company Secretary, maintaining high standards of corporate governance and ensuring compliance with standard legal and financial practices.

▪ Bachelor’s degree in Commerce▪ Over 17 years of experience in finance▪ Responsible for all finance functions –

accounting, taxation & statutory compliance

Key Strengths

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Strategically located Manufacturing Plant

▪ State-of-the-art equipment and CAD technology▪ Robust manufacturing capabilities (annual capacity

of 1,800 units of Gensets and 3,300 units of RVMs)▪ Near major cities like Vadodara, Ahmedabad,

Mumbai and Surat - ease in transport across India at an effective cost

In house R&D Center

▪ Continuous product innovation leading to cost-effective, high quality, portable and user-friendly products available to customers

Customizable Product Portfolio

▪ Offers gensets and RVMs in varying capacities and specifications

▪ Can tailor & customize solutions as per customer requirements

Strong & Experienced Management Team

▪ Significant experience in engineering and diesel gensets sector

▪ Management team has long-term vision and proven its ability to achieve long-term growth of Company

Long term relationship with customers

▪ Tata Motors – approved generator and industrial/marine engine OEM genset manufacturer

▪ For RVMs - Wild West Media Pvt. Ltd., Reliance Life Sciences, Ganesha Ecosphere Ltd etc.

Wide distribution network in Western India

▪ Six distributors each in Gujarat and Maharashtra▪ Six agencies in both states to service customers

Business Overview

Product Portfolio - Gensets

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▪ Market is forecast to grow to $1.24 billion by 2022 and reach $1.5 billion by 2024

in India, according to TechSci Research

▪ As per IBEF, India’s retail sector is expected to grow at CAGR of 16.7% from $600

bn in 2015 to $1,300 bn by 2020; while FMCG sector would grow at CAGR of

20.6% during 2016–20, reaching $103.7 bn by 2020 - growth in such end use

sectors would spur demand for diesel gensets in India

▪ Marquee client - Tata Motors Ltd. (from 2017)

▪ DG Sets in range of 15 to 125 KVA

▪ Undertakes servicing and AMC

▪ Used as prime source of power in remote locations with no/limited access

to electricity grid, and in diverse commercial sectors - IT/ITeS, mining or

quarrying, oil and gas, etc.

Product Portfolio – RVM

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• Global plastic consumption is estimated at 300 mn tons per annum; Indiacontributes around 16 mn tons – as per 2018 report in Down to Earth thatcites PlastIndia Foundation

• GGEL aims to offer solutions by collecting pre-consumer and post-consumerpackaging scrap

• The company collects plastic items and recycles them into consumer productslike bags, t-shirts, furniture, soft-toys, etc.

• Machines for deposition of PET bottles can collect around 500 PET bottles perday

• Launched RVMs under own brand PETWASTE™

• Automated waste collection solution, providing sustainable way to recycleplastic bottles and tin cans. Offers credit, typically in the form of coupons orother products, in exchange for returning used plastic bottles

• Broad product portfolio in various configurations (wall-mounted and hand-press) and capacities (higher capacity machines for NGOs, government &corporations, and smaller capacity machines for individual and householdusage)

• Renowned clientele – Wild West Media, Reliance Life Sciences, GaneshaEcosphere etc.

State of art Manufacturing Facility

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▪ 40,000 sq.ft. manufacturing capacity in Bharuch,Gujarat (covered area 20,000 sq.ft.)

▪ Aggregate annual capacity of 1,800 units ofgensets and 3,300 units of RVMs

▪ In house R&D centre - Continuous productinnovation leading to cost-effective, high quality,portable and user-friendly products available tocustomers

▪ Strategically located

▪ Near major cities such as Vadodara,Ahmedabad, Mumbai and Surat - ease intransport across India at an effective cost

▪ Helps reduce transportation and rawmaterial cost competitively

Financial Highlights

Management Comment

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“I am pleased to share with you that we have achieved a revenue growth of over 265%at Rs. 82.05 crore in FY19, with EBITDA and PAT at Rs. 3.66 crore and Rs. 2.26 crore,respectively which has been in line with our expectations. Being an approved OEM forTATAMotors for gensets, we are witnessing good growth opportunity in this segment.

In line with our strategy to focus on building & growing our RVM business, we havelaunched a range of RVM machines under our own brand – ‘PETWASTE’. We expect asignificant growth in these machines with increasing environmental awareness amongpeople combined with support from the government.

We continue to build on our capabilities that will not only enable us to cater to thegrowing demand in our gensets business but also help us penetrate deeper into themarkets.

I would like to thank the entire team of ‘G G Engineering’ for their untiring efforts, hardwork, sincerity and dedication. I would also like to thank our valued shareholders, whosesupport and faith in our Company gives us the determination and ambition to set andachieve higher benchmarks.”

Commenting on results, Mr. Vinod Beriwal,Managing Director said :

Financials Highlights – YoY

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Revenue from OperationsRs. 43.14 Crore

133%EBITDARs. 2.48 crore

121%PATRs. 1.55 crore

102%

Significant growth mainly driven by genset manufacturing and also an uptick in demand for RVMs

Revenue from OperationsRs. 82.05 Crore

269%EBITDARs. 3.66 crore

130%PATRs. 2.26 crore

122%

FY19 vs FY18

H2 FY19 vs H2 FY18

Financial Highlights – H2 FY19

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Rs. Cr H2 FY19 H2 FY18 Y-o-Y(%) H1 FY19 H-o-H(%)

Income from Operations 43.14 18.51 38.91

Excise Duty 0.00 0.00 0.00

Revenue from Operations 43.14 18.51 133.07% 38.91 10.88%

Cost of Material Consumed 3.33 1.62 2.42

Purchase of Traded goods 36.83 14.62 33.16

Changes in Inventories (0.31) 0.11 1.51

Raw Material Expense 39.85 16.35 37.09

Employee Expenses 0.30 0.28 0.22

Other Expenses 0.52 0.76 0.42

Total Expenditure 40.66 17.39 37.73

EBITDA 2.48 1.12 120.57% 1.18 109.68%

EBITDA Margin 5.75% 6.08% 3.04%

Other Income 0.17 0.21 0.00

Depreciation 0.13 0.05 0.06

Interest / Finance Cost 0.22 0.18 0.13

PBT 2.29 1.10 0.99

Tax 0.75 0.33 0.27

PAT 1.55 0.77 101.60% 0.72 114.98%

PAT Margin 3.58% 4.14% 1.85%

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Financial Highlights - Annual

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Rs. Cr FY16 FY17 FY18 FY19

Income from Operations 5.08 7.26 22.22 82.05

Excise Duty 0.00 0.00 0.00 0.00

Revenue from Operations 5.08 7.26 22.22 82.05

Cost of Material Consumed 4.61 5.77 4.00 5.76

Purchase of Traded goods 0.00 0.00 14.69 69.99

Changes in Inventories (0.95) (0.11) 0.11 1.20

Raw Material Expenses 3.66 5.67 18.80 76.94

Employee Expenses 0.48 0.53 0.53 0.51

Other Expenses 0.65 0.76 1.29 0.94

Total Expenditure 4.79 6.97 20.62 78.39

EBITDA 0.29 0.29 1.59 3.66

EBITDA Margin 5.72% 3.99% 7.17% 4.46%

Other Income 0.12 0.13 0.21 0.17

Depreciation 0.20 0.09 0.10 0.19

Interest / Finance Cost 0.18 0.27 0.27 0.35

Exceptional Item (Gain) / Loss 0.00 0.12 0.00 0.00

PBT 0.03 0.17 1.44 3.28

Tax 0.01 0.01 0.42 1.02

PAT 0.02 0.17 1.02 2.26

PAT Margin 0.40% 2.32% 4.59% 2.76%

Financials Highlights

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0.29 0.29

1.59

3.66

0

1

1

2

2

3

3

4

4

FY16 FY17 FY18 FY19

5.08 7.26

22.22

82.05

FY16 FY17 FY18 FY19

Revenue from Operations (Rs. Cr)

PAT (Rs. Cr) / Margin (%)EBITDA excluding Other Income (Rs. Cr) / Margin (%)

0.020.17

1.02

2.26

0

1

1

2

2

3

FY16 FY17 FY18 FY19

Balance Sheet Highlights

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ROA (%) RoCE (%)

0.36%2.43%

7.14%

10.07%

FY16 FY17 FY18 FY19

4.53%6.92%

21.81%25.21%

FY16 FY17 FY18 FY19

0.66%

5.15%

13.31%

17.17%

FY16 FY17 FY18 FY19

RoE (%)

RoE = Net Profit/Net Worth ; RoA = Net Profit/Total Assets ; RoCE = EBIT/(Total Assets – Current Liabilities)

Balance Sheet Highlights - Annual

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Rs. Cr Mar-16 Mar-17 Mar-18 Mar-19

Shareholders Funds 3.09 3.26 7.66 13.18

Share Capital 3.06 3.06 4.19 6.19

R&S 0.03 0.20 2.34 7.00

Money recd. against warrant 1.14 0.00

Non Current Liabilities 0.27 0.35 0.15 1.23

Financial Liabilities

Borrowing 0.27 0.35 0.04 0.90

Other Financial Liabilities 0.00 0.00 0.00 0.00

Deferred Tax Liabilities(Net) 0.00 0.00 0.12 0.33

Other Current Liabilities 0.00 0.00 0.00 0.00

Current Liabilities 2.23 3.32 6.45 8.05

Financial Liabilities

Borrowing 1.26 1.17 1.93 2.90

Trade Payables 0.74 1.34 3.93 3.86

Other Current Liabilities 0.23 0.81 0.59 1.29

Total Equities & Liabilities 5.60 6.93 14.27 22.47

Rs. Cr Mar-16 Mar-17 Mar-18 Mar-19

Non-current Assets 2.89 2.49 3.55 8.42

Property, Plant and Equipment 1.94 1.97 3.09 3.33

Deferred tax assets 0.01 0.00 0.00 0.00

Financial Assets

Investments 0.01 0.05 0.00 4.91

Long term loan & advances 0.94 0.47 0.17 0.13

Other Non-Current Assets 0.30 0.05

Current Assets 2.70 4.44 10.72 14.06

Inventories 1.83 2.51 3.28 1.95

Financial Assets

Investments 0.00 0.00 0.00 0.00

Trade Receivables 0.58 1.58 6.79 9.43

Cash & Cash Equivalent 0.14 0.07 0.15 1.15

Other Financial Assets 0.00 0.00 0.00 0.00

Short term loans and advances

0.00 0.00 0.00 1.46

other Current Assets 0.15 0.28 0.50 0.08

Total Assets 5.60 6.93 14.27 22.47

Way Ahead

RVMs - Future Growth Drivers

01With increase in population and spending capacity per consumer - use ofplastic bottles growing tremendously - leading to high waste generation -43 million tons of waste is still not collected in India

02‘Swachh Bharat Mission’ opened up huge market for RVMs

across India – government and various organizations are taking

initiatives to install such machines to recycle PET bottles

03RVMs are being installed across residential societies, mallsand other public areas. Our machines would enablepeople to contribute towards environment and preventlittering and illegal recycling of bottles

04 Availability of multiple configurations andcapacities enables adoptability

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Way Ahead

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01 Optimal Manufacturing Utilization

▪ Focus on optimum utilization of manufacturing facilities to curb cost without compromising product quality

02 Focusing on Increasing Capacity

▪ Expand & upgrade manufacturing capacity – bringing in economies of scale

▪ Higher volumes enables to negotiate raw material purchases, allowing Company to be more price competitive

03 Investment in Technology

▪ Continue upgrading machineries & equipment that is procured globally

04 Client Relationships

▪ Build on existing relationships and focus on bringing more clients into our portfolio

05 Strategic Acquisitions

▪ Looking at acquisition and joint venture opportunities – to enter into new locations, add products, access to new technology etc.

06 Geographical Expansion

▪ Increase geographical footprint in India

▪ Foray in international markets

07 Building Brand

▪ Investing in increasing brand recognition through communication and promotional initiatives such as exhibitions fairs, electronic media, organizing events, industry events, PR etc.

08 R&D and Innovation

▪ Continue to focus on in-house R&D initiatives and product innovation, especially in own brand of RVMs products

For further information, please contact:

Company :

G G Engineering Limited

Ms. Trupti [email protected]

[email protected]

www.ggengg.in

Thank You

540614 GGEN.BOGGENG.IN