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1 Slide No. 1 JBF Industries Limited July 2007 JBF Industries Limited JBF Industries Limited July 2007 Slide No. 2 JBF Industries Limited July 2007 Disclaimer Except for the historical information and discussions contained herein, statements included in this presentation may constitute "forward-looking statements." These statements involve a number of risks, uncertainties and other factors that could cause actual results to differ materially from those that may be projected by these forward looking statements. JBF Industries Limited undertakes no obligation to update forward-looking statements to reflect events or circumstances after the date thereof. JBF Industries Limited JBF Industries Limited
36

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Page 1: JBF Industries Limited Meet/114034_20070731.pdf · 1 Slide No. 1 JBF Industries Limited July 2007 JBF Industries Limited July 2007 Slide No. 2 JBF Industries Limited July 2007 Disclaimer

1

Slide No. 1JBF Industries Limited

July 2007

JBF Industries Limited JBF Industries Limited

July 2007

Slide No. 2JBF Industries Limited

July 2007

DisclaimerExcept for the historical information and discussions contained herein, statements included in this presentation may constitute "forward-looking statements." These statements involve a number of risks, uncertainties and other factors that could cause actual results to differ materially from those that may be projected by these forward looking statements. JBF Industries Limited undertakes no obligation to update forward-looking statements to reflect events or circumstances after the date thereof.

JBF Industries LimitedJBF Industries Limited

Page 2: JBF Industries Limited Meet/114034_20070731.pdf · 1 Slide No. 1 JBF Industries Limited July 2007 JBF Industries Limited July 2007 Slide No. 2 JBF Industries Limited July 2007 Disclaimer

2

Slide No. 3JBF Industries Limited

July 2007

JBF Product ProfileJBF Product Profile

• Manufacturer of:– Polyester POY / FDY / Micro Yarn– Polyester Chips– Polyester PET Chips *– Polyester Film*

• Ranks amongst the top 5 manufacturers of POY in the industry

• Ranks as the country’s largest supplier of Polyester Chips

*project under implementation at RAK

Slide No. 4JBF Industries Limited

July 2007

Board of DirectorsBoard of Directors

Nominee Director (ILFS)Mr. Sunil V. Diwakar

Nominee Director (LIC)Mr. S Panday

Nominee Director (CVCI)Mr. P.R. Srinivasan

Director (Non Executive)Mr. Prakash Mehta

Director (Non Executive)Mr. B.R.Gupta

Director (Non Executive)Mr. Kishen Dev

Director (Non Executive)Mrs. Veena Arya

Executive Director (Commercial)Mr. N.K.Shah

Executive Director (Finance)Mr. P.N. Thakore

Managing DirectorMr. Rakesh Gothi

ChairmanMr. B.C.Arya

DESIGNATIONNAME

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Slide No. 5JBF Industries Limited

July 2007

Shareholding PatternShareholding PatternListed on BSE, NSE

100.0075587500100.0070387500100.0054375000Grand Total

22.841726787024.53172678702.3112553702. FCCB -Conversion

17.231302419018.501302419023.9513024190Growth Partnership Mauritius Limited

1. Citigroup Venture Capital International

Foreign Company

14.381086973815.711105726920.3411057269Public

10.72810289011.56813895914.978138959Institutions

34.822632281229.692089921238.4420899212Promoters

PercentageNo. Of Shares

PercentageNo. Of Shares

PercentageNo. Of Shares

After Conversion of promoting warrant by

Jan 2009

After full FCCBs

Conversions

After Warrant Conversion

As on 31.03.2007

Slide No. 6JBF Industries Limited

July 2007

Process ChartProcess Chart

PTA MEG

Polyester Chips

POY

Texturised Yarn

Weaver

Processed

Garments

JBF’sOPERATIONS

FDY

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Slide No. 7JBF Industries Limited

July 2007

Product Profile Product Profile –– POY / FDYPOY / FDY

Expansion : New capacity of 90,000 TPA started from October 2006Expansion : New capacity of 90,000 TPA started from October 2006

• Partially Oriented Yarn Spinning (POY/ FDY)

Set up in 1996 at SilvassaSet up in 1996 at Silvassa

POY/FDY Range & Grades:

• Semi Dull , Full Dull and Bright

• Average Denier 126 ( range from 51-512)

• Filaments ranging from 14 to 108

POY/FDY Range & Grades:

• Semi Dull , Full Dull and Bright

• Average Denier 126 ( range from 51-512)

• Filaments ranging from 14 to 108

Present capacity 1,50,000 TPA

• FDY 25,000 TPA *

• Micro 25,000 TPA *

• POY 1,00,000 TPA *

Present capacity 1,50,000 TPA

• FDY 25,000 TPA *

• Micro 25,000 TPA *

• POY 1,00,000 TPA *

* depending * depending

onon

Denier & Denier & product mixproduct mix

Slide No. 8JBF Industries Limited

July 2007

Product Profile Product Profile -- ChipsChips

• Polyester Chips

Backward Integration - Set up in 2001 at Silvassa

New Capacity - Set up in 2006 at Sarigam

Backward Integration - Set up in 2001 at Silvassa

New Capacity - Set up in 2006 at Sarigam

Key raw material for POY/ FilmKey raw material for POY/ Film

Grades of Chips offered: • Textile Grade: Semi Dull, Bright, Semi Bright, Cationic Dyeable

• Film Grade: Super Bright, Silica Grade

Grades of Chips offered: • Textile Grade: Semi Dull, Bright, Semi Bright, Cationic Dyeable

• Film Grade: Super Bright, Silica Grade

Capacity: Textile Grade 2,16,000 TPA at Sarigam, Gujarat

key raw material for POY (New Capacity)

Specialty/Textile 1,20,000 TPA at Silvassa

Total Capacity 3,36,000 TPA

Capacity: Textile Grade 2,16,000 TPA at Sarigam, Gujarat

key raw material for POY (New Capacity)

Specialty/Textile 1,20,000 TPA at Silvassa

Total Capacity 3,36,000 TPA

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Slide No. 9JBF Industries Limited

July 2007

Revenue break upRevenue break up

100%

839

4%

29

51%

431

45%

379

2005-06

100%

1612

0%

2

38%

612

62%

998

2006-07

100%100%

894662Total

5%6%

4343Others

56%66%

499436POY

39%28%

352183Chips

2004-052003-04

Rs in crores

Slide No. 10JBF Industries Limited

July 2007

Partially Oriented Yarn (POY)Partially Oriented Yarn (POY)

POY Range & Grades :

•Semi Dull

•Full Dull

•Bright

Deniersranging from 51 to 512Filamentsranging from 14 to 108

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Slide No. 11JBF Industries Limited

July 2007

Grades of Chips offeredGrades of Chips offered

SEMI DULL

CHIPS

BRIGHT

CHIPS

Textile Grade:

• Semi Dull,

• Bright,

• Semi Bright

• Cationic

• Dyeable

Film Grade:•Super Bright•Silica Grade

Slide No. 12JBF Industries Limited

July 2007

POY PlantPOY Plant-- SilvassaSilvassa

SilvassaSilvassa

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Slide No. 13JBF Industries Limited

July 2007

POY WindersPOY Winders-- Silvassa PlantSilvassa Plant

SilvassaSilvassa

Slide No. 14JBF Industries Limited

July 2007

Sarigam Chips plant overviewSarigam Chips plant overview

SarigamSarigam

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Slide No. 15JBF Industries Limited

July 2007

Sarigam Chips plant overviewSarigam Chips plant overview

SarigamSarigam

Slide No. 16JBF Industries Limited

July 2007

CertificationsCertifications

JBF IS ISO 9001-2000 QUALITY MANAGEMENT SYSTEM

JBF IS ISO 9001-2000 QUALITY MANAGEMENT SYSTEM

JBF HAS RECEIVED

ISO 14001:1996

ENVIRONMENTAL AUDIT CERTIFICATION

JBF HAS RECEIVED

ISO 14001:1996

ENVIRONMENTAL AUDIT CERTIFICATION

JBF HAS RECEIVED

18001 HEALTH AND SAFETY MANAGEMENT SYSTEM

JBF HAS RECEIVED

18001 HEALTH AND SAFETY MANAGEMENT SYSTEM

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Slide No. 17JBF Industries Limited

July 2007

Our Recent Financial Our Recent Financial

PerformancePerformance

Slide No. 18JBF Industries Limited

July 2007

Performance for period ended June 30, 2007Performance for period ended June 30, 2007

Particulars Quarter ended % VAR

30.06.2007 30.06.2006 31.03.2007 31.03.2006 Y To Y

Audited Audited

Net Turnover 494.38 287.63 1,479.58 722.35 104.83%

Other Income 1.00 2.25 8.75 3.27 167.58%

Total Income 495.38 289.88 1,488.33 725.62 105.11%

Total Expenditure :a) Purchases 0.08 0.04 0.36 0.65 -44.62%

b) (Increase) /Decrease in

Stock 4.91 7.92 (37.65) 0.31 -12245.16%

c) Consumption of Raw

Material 391.58 219.20 1,213.81 562.33 115.85%

d) Excise Duty (0.23) (1.55) 2.48 0.16 1450.00%

e) Power & Fuel 18.14 12.65 59.75 34.00 75.74%

f) Staff Expenditure 4.61 2.73 12.72 8.36 52.15%

g) Exchange Difference

(net) (2.41) 3.77 (2.61) (2.14) 21.96%

h) Other Expenses 17.98 10.15 55.47 28.26 96.28%

Total Expenditure 434.66 254.91 1,304.33 631.93 106.40%

Profit before

interest,Depreciation &

Tax 60.72 34.97 184.00 93.69 96.39%Interest & Finance

Charges 10.65 5.23 26.88 10.95 145.48%

Depreciation 10.78 7.66 36.56 22.77 60.56%

Profit before Tax 39.29 22.08 120.56 59.97 101.03%

Provision for Taxation 10.78 2.43 39.97 17.27 131.44%

Net Profit 26.47 16.54 80.59 42.70 88.74%

Year ended

RsIn

Crores

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Slide No. 19JBF Industries Limited

July 2007

Performance for period ended June 30, 2007Performance for period ended June 30, 2007

(1US$ = Rs. 43.47)

Fig in US Mn $

Particulars % VAR

31.03.2007 31.03.2006 31.03.2007 31.03.2006 Y To Y

Audited AuditedNet Turnover 214.91 125.03 340.37 166.17 104.83%Other Income 0.43 0.98 2.01 0.75 167.58%Total Income 215.34 126.01 342.38 166.92 105.11%Total Expenditure : 0.00 0.00

a) Purchases 0.03 0.02 0.08 0.15 -44.62%b) (Increase) /Decrease in Stock 2.13 3.44 (8.66) 0.07 -12245.16%c) Consumption of Raw Material 170.22 95.29 279.23 129.36 115.85%d) Excise Duty -0.10 -0.67 0.57 0.04 1450.00%e) Power & Fuel 7.89 5.50 13.75 7.82 75.74%f) Staff Expenditure 2.00 1.19 2.93 1.92 52.15%g) Exchange Difference (net) -1.05 1.64 (0.60) (0.49) 21.96%h) Other Expenses 7.82 4.41 12.76 6.50 96.28%Total Expenditure 188.95 110.81 300.06 145.37 106.40%Profit before interest,Depreciation & Tax 26.39 15.20 42.32 21.55 96.39%Interest & Finance Charges 4.63 2.27 6.18 2.52 145.48%Depreciation 4.69 3.33 8.41 5.24 60.56%Profit before Tax 17.08 9.60 27.73 13.79 101.03%Provision for Taxation 4.69 1.06 9.19 3.97 131.44%Net Profit 11.51 7.19 18.54 9.82 88.74%

Year endedQuarter ended

Slide No. 20JBF Industries Limited

July 2007

Key Financial IndicatorsKey Financial IndicatorsParticular Unit Year 2004-05 Year 2005-06 Year 2006-07

(Audited) (Audited) (Audited)

Net Sales Rs. Cr 740 722 1480

EBIDTA % 12.57 12.97 12.44

PBT % 6.81 8.30 8.15

Net Profit % 3.95 5.94 5.45

EPS Rs. 9.43 9.84 15.61

CEPS Rs. 22.87 18.71 27.96

RONW % 15.74 17.34 23.43

ROCE % 18.13 17.15 20.65

Secured Term Loan Rs. Cr 95 219 288

Net Worth Rs. Cr 195 300 388

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Slide No. 21JBF Industries Limited

July 2007

StrengthsStrengths

• Amongst the top 5 players in POY Industry with a market share of nearly 7%

• Largest supplier of Chips with 55% market share

• Amongst the top 5 players in POY Industry with a market share of nearly 7%

• Largest supplier of Chips with 55% market share

Advantage of Location :

– All key customers around Plant

– Key suppliers near plant

Advantage of Location :

– All key customers around Plant

– Key suppliers near plant

Customer Centric Manufacturer

– Extending technical support to customers

– Ability to provide Special Denier

Customer Centric Manufacturer

– Extending technical support to customers

– Ability to provide Special Denier

Slide No. 22JBF Industries Limited

July 2007

StrengthsStrengths

Both Batch and Continuous Process : Flexibility to manufacture specialty chips and Cost effective manufacturing of commodity chips

Both Batch and Continuous Process : Flexibility to manufacture specialty chips and Cost effective manufacturing of commodity chips

Process R&D - In-house innovations have increased productionProcess R&D - In-house innovations have increased production

Large capacities enable better negotiating power for raw materialsLarge capacities enable better negotiating power for raw materials

Low cost Producer, effective working capital management—leading to impressive ROCELow cost Producer, effective working capital management—leading to impressive ROCE

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Slide No. 23JBF Industries Limited

July 2007

SYNTHETICS SYNTHETICS

IN THE IN THE

INDIAN TEXTILE INDUSTRYINDIAN TEXTILE INDUSTRY

Slide No. 24JBF Industries Limited

July 2007

The Indian Textile Industry.. A synopsisThe Indian Textile Industry.. A synopsis

2nd largest textile producer after China2nd largest textile producer after China

3rd largest producer of cotton in the world

– annual production over 3 Mn Tonnes

3rd largest producer of cotton in the world

– annual production over 3 Mn Tonnes

In the Man Made Fiber sector, World’s 5th

largest producer of Polyester, and 3rd largest for Viscose

In the Man Made Fiber sector, World’s 5th

largest producer of Polyester, and 3rd largest for Viscose

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Slide No. 25JBF Industries Limited

July 2007

Fabric ProductionFabric Production

Non Cotton Production Growing Fastest Source: ASFI

0

5000

10000

15000

20000

25000

1997-

1998

1999-

2000

2001-

2002

2003-

2004

2005-

2006

Year

Other

Blended

Non Cotton

Cotton

2006-

2007

Mn. Sq. Mtrs

Slide No. 26JBF Industries Limited

July 2007

Yarn ProductionYarn Production

Cotton Dominates But Growth Slowing Down Source: ASFI

0

500

1000

1500

2000

2500

3000

3500

4000

4500

1997-

1998

1998-

1999

1999-

2000

2000-

2001

2001-

2002

2002-

2003

2003-

2004

2004-

2005

2005-

2006

2006-

2007

100 % Cotton

Non Cotton

Blended

MnMTA

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Slide No. 27JBF Industries Limited

July 2007

India: Fibre Share India: Fibre Share -- ProjectionsProjections

Cotton, 4.0Cotton, 2.7Cotton, 2.3 Cotton, 3.2

Cellulosic, 0.5

Cellulosic, 0.3Cellulosic, 0.2

Cellulosic, 0.2

Synthetics, 7.7

Synthetics, 1.0

Synthetics, 1.8Synthetics, 1.9

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

1995-96 2000-01 2005-06 (est) 2010-11

MnTA

Source: ASFI

Slide No. 28JBF Industries Limited

July 2007

Per capita availability of all fibersPer capita availability of all fibers

INDIA, 4.5

CHINA, 12.5

USA, 24

WORLD, 9

0 10 20 30

Source: ASFI

KGSKGS

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Slide No. 29JBF Industries Limited

July 2007

2004-05 2010-11

Textile TargetTextile Target

26

13

45

40$39bn

$85bn

Exports

Domestic

Exports to grow faster than domestic consumptionSource: ASFI

Slide No. 30JBF Industries Limited

July 2007

Fibre ShareFibre Share

3.1

2.5

4.0

Mn Tonnes

Cotton

Non Cotton

Non cotton to lead future growthSource: ASFI

0

2.5

5

7.5

10

12.5

2004-05 2010-11

2.5

3.1Cotton

Non Cotton8.2

4.0

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Slide No. 31JBF Industries Limited

July 2007

Advantage IndiaAdvantage India

Excellent Raw Material baseExcellent Raw Material base

Low Labour costsLow Labour costs

Can undertake any stage of textile production process with quality

Can undertake any stage of textile production process with quality

India to be a hub for Textile productionIndia to be a hub for Textile production

Synthetics – Finished goods and Raw Materials given tax concession in the latest Government Budget

Synthetics – Finished goods and Raw Materials given tax concession in the latest Government Budget

Increased Capital allocation for development of Integrated Textile parks

Increased Capital allocation for development of Integrated Textile parks

Higher allocation of funds for upgradation of Machinery for the Textile sector

Higher allocation of funds for upgradation of Machinery for the Textile sector

Slide No. 32JBF Industries Limited

July 2007

Overview

Of

Polyester

Filament Yarn industry

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Slide No. 33JBF Industries Limited

July 2007

KGS

WORLD, 3.1

USA, 8

INDONESIA,

5.1

CHINA, 6.1

PAKISTAN,

3.1

INDIA, 1.6

0 2 4 6 8 10Source: ASFI

Per capita availability of polyesterPer capita availability of polyester

Slide No. 34JBF Industries Limited

July 2007

Growth of Cotton and Chemical Fibres Growth of Cotton and Chemical Fibres

in Indiain India

2584

29423402

243 308

353 487

691

1049

745

964

1334

105 108113

292522

1725 38

0

500

1000

1500

2000

2500

3000

3500

Cotton VSF+VFY PSF PFY Acrylics Nylon Other Man

Made

1997 - 1998

2002 - 2003

2006 - 2007

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Slide No. 35JBF Industries Limited

July 2007

Indian Synthetic Fibre IndustryIndian Synthetic Fibre Industry

Source: ASFI

Cotton, 2584, 61%

VSF+VFY, 243, 6%

PSF, 487, 12%

PFY, 745, 18%Nylon, 29, 1%

Other Man Made,

17, 0%

Acrylics, 105, 2%

Slide No. 36JBF Industries Limited

July 2007

The Major Players : POYThe Major Players : POY-- IndiaIndia

Others

27%

Indorama

11%JBF Ind

7%

Garden Silk Mills

7%

Century Enka

4%

NovaPetrochem

2%

Reliance Ind.

36%

Sanghi Poly

3%

Modern Syntex

3%

Source: JBF Internal Research

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Slide No. 37JBF Industries Limited

July 2007

Polyester Filament YarnPolyester Filament Yarn

The PFY industry has shown a growth of 9.81% The PFY industry has shown a growth of 9.81%

The industry has nearly 40 active players with a built in production capacity of nearly 2.0 Mn Tonnes per annum

The industry has nearly 40 active players with a built in production capacity of nearly 2.0 Mn Tonnes per annum

Cotton alone cannot fulfill the demand obligations of the country due to restrictions on the arable land and compulsion of usage of land for other agricultural products

Cotton alone cannot fulfill the demand obligations of the country due to restrictions on the arable land and compulsion of usage of land for other agricultural products

Polyester becoming increasingly uncompetitive in Taiwan and Korea and major capacities shifting to China and India in the quota free regime

Polyester becoming increasingly uncompetitive in Taiwan and Korea and major capacities shifting to China and India in the quota free regime

Slide No. 38JBF Industries Limited

July 2007

Why Polyester industry should grow in IndiaWhy Polyester industry should grow in India

Polyester competitively produced in India because

• Adequate availability of raw materials—PX,PTA,MEG

• World scale and world class production facilities

• Competitive conversion costs

Polyester competitively produced in India because

• Adequate availability of raw materials—PX,PTA,MEG

• World scale and world class production facilities

• Competitive conversion costs

Favorable Demand drivers:

• Consistent GDP growth

• Value added and new product developments

• Technological developments

Favorable Demand drivers:

• Consistent GDP growth

• Value added and new product developments

• Technological developments

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Slide No. 39JBF Industries Limited

July 2007

Why Polyester industry should grow in IndiaWhy Polyester industry should grow in India

Cotton alone cannot fulfill the demand obligations of the country due to restrictions on the arable land and compulsion of usage of land for other agricultural products

Cotton alone cannot fulfill the demand obligations of the country due to restrictions on the arable land and compulsion of usage of land for other agricultural products

Polyester becoming increasingly uncompetitive in Taiwan and Korea and major capacities shifting to China and India in the quota free regime

Polyester becoming increasingly uncompetitive in Taiwan and Korea and major capacities shifting to China and India in the quota free regime

Slide No. 40JBF Industries Limited

July 2007

Source: JBF Internal Research

Capacity Build UpCapacity Build Up---- Polyester YarnPolyester Yarn

72 4 8 0 0

2 2 2 0 0 0

16 8 0 0 0

13 6 8 0 0

9 12 0 054 0 0 054 0 0 050 4 0 0

4 4 4 6 0 0

0

500000

1000000

1500000

2000000

2500000

After Expansion

Chips Based

Producers

Nova Petrochem

Sanghi Polyster

Modern Syntex

Century Enka

Garden Silk Mills

JBF Industries

Ltd.

Indo Rama

Synthetics

Reliance

Industries Group

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Slide No. 41JBF Industries Limited

July 2007

Technical TextilesTechnical Textiles: : A MAJOR OPPORTUNITYA MAJOR OPPORTUNITY

World Average 19%

An index of opportunity for growth in technical textiles

%

3931

10

1

0

20

40

Europe Americas China India

Source: ASFI

Slide No. 42JBF Industries Limited

July 2007

POLYESTER CHIPS POLYESTER CHIPS

MARKETMARKET

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Slide No. 43JBF Industries Limited

July 2007

Source: JBF Internal

Research

Chips SupplyChips Supply--Demand dataDemand data

186660

118575

304560

370440

469440

371565

417195446220

504810

556697

610564642820

564840564840

211860204120

0

100000

200000

300000

400000

500000

600000

700000

2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11

Total Supply Total Demand Linear (Total Supply)

Slide No. 44JBF Industries Limited

July 2007

Source: JBF Internal

Research

Chips Saleable Capacity 2007 ProjectedChips Saleable Capacity 2007 Projected

JBF Industries Ltd,

210000

Garden Silk Mills

90000

Agarwal, 36000

Modern Sanghi,12000

Century Enka, 9600

0

50000

100000

150000

200000

250000

300000

350000

400000

After Expansion

Tonnes per annum

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Slide No. 45JBF Industries Limited

July 2007

Major Players: Polyester Chips (Textile Grade) Major Players: Polyester Chips (Textile Grade) ––

2007 Projected2007 Projected

Century Enka,

9600, 3%

Indo Rama, 18000,

5%

Modern, 12000, 3%

Aggarwal, 36000,

9%

JBF, 210000, 55%

Garden, 90000,

24%

Ril, 3600, 1%

Source: JBF Internal

Research

3.12%

Slide No. 46JBF Industries Limited

July 2007

Polyester Chips as Raw Materials Polyester Chips as Raw Materials -- an an

indicative listindicative list

MICROSYNTH

EMMTEX

RAJ RAYON

WELLKNOWNPOLYESTER

BHILOSA

SUMIT

SHUBHALAXMI

RAMAKRISHNA

GOKULANAND

NAKODA

MOHAN GUPTA

PARAS

ALOK

FILATEX

WELSPUN

RAJVEE PETROCHEM

SHABNAM

SHREE SYNTHETICS

ORANGE PETRO

HIM CHEM , NALAGARH

SARAWGI,NASIK

BEEKAYLON

ARFEES

SANATAN POLYESTER

MODIPON

PAMIS

RAWALWASIA

Source: JBF Internal

Research

ROYAL FILAMENTS

YOGI POLYESTER

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24

Slide No. 47JBF Industries Limited

July 2007

Prices of Raw Materials, Chips and Prices of Raw Materials, Chips and

POYPOY

Source: JBF Internal Research

0

5

10

15

20

25

30

35

40

45

50

55

60

65

70

75

80

Jan-02

Apr-02

Jul-02

Oct-02

Jan-03

Apr-03

Jul-03

Oct-03

Jan-04

Apr-04

Jul-04

Oct-04

Jan-05

Apr-05

Jul-05

Oct-05

Jan-06

Apr-06

Jul-06

Oct-06

Jan-07

Apr-07

Jul-07

POY Raw Material Chips Prices

Slide No. 48JBF Industries Limited

July 2007

Business Scenario Business Scenario –– Raw Material PricesRaw Material Prices

After a steep rise, prices of Raw Material can decline, due to:

Slowdown in Polyester Industry in China

Anti trust moves by EU and US on Exports of textiles from China

Banking regulations stricter in China in view of foreseen NPA’s

Major new capacities coming in the world for PTA and MEG

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25

Slide No. 49JBF Industries Limited

July 2007

Business Scenario Business Scenario –– Existing Raw MaterialExisting Raw Material

PTA: RIL 1900

IOC,Panipat 550

MCPI 470

MEG:RIL Group 960

India Gly 93

Capacities in India

Source: JBF Internal

Research

UNIT: 000’ Tonnes

Slide No. 50JBF Industries Limited

July 2007

Business Scenario Business Scenario –– Raw Material PricesRaw Material Prices

825

New Projects Country Capacity Effective Capacity Start up Process

THAI OLEFIN THAILAND 100 50 2008 MID DEBOTTLE

YANSAB SAUDI ARABIA 2008 Q3 SD

SHARQ 4 AL-JUBAIL, SAUDI ARABIA 2008 Q3 SD

RABIGH SAUDI ARABIA 2008 Q3 SHELL-OMEGA

EQUATE 2 SHUAIBA, KUWAIT 600 300 2008 Q3 DOW

2700 1200

Year 2008

Capacity carry over from last year

2000 850

360

New Projects Country Capacity Effective Capacity Start up Process

NPC 7 MARUN IRAN 400 300 2007 Q1 SHELL

NANYA EG-4 TAIWAN 720 360 2007 JULY SD

LIAYONG LIAYONG, CHINA 2007 JUN HULS

SHANGHAI PET JINSHAN, CHINA 2007 Q2 SD

NPC 10 FARSA, IRAN 400 200 2007 Q3 SHELL

Year 2007

Capacity carry over from last year

500 335

MEG New capacity build ups outside India

Source: JBF Internal Research

UNIT: 000’ Tonnes

1500New Projects Country Capacity Effective Capacity Start up Process

LOTTE DAESAN KOREA 300 300 2009 Q1 SHELL- OMEGA

IOC INDIA 300 300 2009 Q1 SD

KAYAN SAUDI ARABIA 700 265 2009 SD

SINOPEC CHINA 2009 DOW

ZHENHAI CHINA 2009

SHELL SINGAPORE 750 0 2009 END

3120 2775

Year 2009

Capacity carry over from last year

1070 410

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26

Slide No. 51JBF Industries Limited

July 2007

Business Scenario Business Scenario –– Raw Material PricesRaw Material Prices

PTA New capacity build ups outside India

Source: JBF Internal

Research

UNIT: 000’ Tonnes

3625

New Projects Country Capacity Effective Capacity Start Up

FCFC1 Ningbo, China 2007 Q1

Liaoyangii Liaoing, China 2007 Q1

Voridian Columbia, USA 250 190 2007 Q1

Petrocel, Temex Al Tamira, Mexico 450 338 2007 Q2

BPII Zhuhai, China 900 75 2007 Q4

BPII Geel, Belgium 300 20 2007 Q4

3100 5348

Year - 2007

Capacity Carry over From Last Year

1200 1100

1377

New Projects Country Capacity Effective Capacity Start Up

FCFC IPA / PTA ILAN, Taiwan 150 150 2008 Q1Taekwang Ulsan, Korea 500 290 2008 Q2MCPI Haldia, India 900 330 2008 Q3

1550 2147

Year 2008

Capacity Carry over From Last Year

Slide No. 52JBF Industries Limited

July 2007

Business Scenario Business Scenario –– Raw Material PricesRaw Material Prices

PTA New capacity build ups outside India

Source: JBF Internal

Research

UNIT: 000’ Tonnes

780

New Projects Country Capacity Effective Capacity Start Up

Voridian Kingsport, USA 700 550 2009 Q1

M&G Pemambuc, Brazil 750 500 2009 Q2

Unspecified China 640 320 2009 Q2

2090 2150

720

Estimated 2000 1000

200 1720

Capacity Carry over From Last Year

Year 2009

Capacity Carry over From Last Year

Year 2010

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27

Slide No. 53JBF Industries Limited

July 2007 PTA oversupply to remain – India would be a net exporter of PTA

Source: JBF Internal

Research

PTA PTA -- Demand supply scenarioDemand supply scenario

16701691

2299

2487

2950 2911

3342

2955

3734

3091

3734

3091

0

500

1000

1500

2000

2500

3000

3500

4000

2005 2006 2007 2008 2009 2010

Production

Demand

UNIT: 000’ Tonnes

Slide No. 54JBF Industries Limited

July 2007

MEG Supply – demand seem to balance, imports may upset this equation

Source: JBF Internal

Research

MEG Capacity supply scenarioMEG Capacity supply scenario

884831

883

1039

883

1237

883

1235

1369

1235

1411

1235

0

200

400

600

800

1000

1200

1400

1600

2005 2006 2007 2008 2009 2010

Production

Demand

UNIT: 000’ Tonnes

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28

Slide No. 55JBF Industries Limited

July 2007

ExpansionsExpansions

Slide No. 56JBF Industries Limited

July 2007

Update Update –– July 2007 July 2007

• The" JBF RAK FZ LLC " at Emirates of Ras al Khaimah, A Subsidairy of our Company, has successfully started production of PET Grade Chips under 1st Phase. The Company has polymerisation capacity of 900 TPD. In the 2nd Phase " JBF RAK FZ LLC, expect to start production of Polyester Film (BOPET) by quarter ending 31st December 2007.

• The Company has entered into MOU with CVCIGP II Client RosehillLimited,Mauritius and their afflitiates ( which are within the structure of Citigroup Venture Capital International Growth Funds, managedby Citigroup) whereby they would invest a sum of USD 118 million into JBF Global Pte Ltd., Singapore, subsidiary of our Company by way of fully convertible securities. These funds are meant to be used

for international operations of the Company.

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29

Slide No. 57JBF Industries Limited

July 2007

Expansion in 2007Expansion in 20071. POLYESTER CHIPS PROJECT

216,000 MT PER ANNUM

EXPECTED TO BE COMPLETED BYSeptember 2008

Slide No. 58JBF Industries Limited

July 2007

Expansion in 2006Expansion in 20061. POLYESTER CHIPS PROJECT

216,000 MT PER ANNUM

COMPLETED MARCH 2006

2. POY EXPANSION

90,000 MT PER ANNUM

Commissioned in September 2006

3. POLYMERIZATION PROJECT---RAK

324,000 MT PER ANNUM

First Phase Started in July 07Second Phase expected by last quarter FY 2007

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Slide No. 59JBF Industries Limited

July 2007

Polyester Chips projectPolyester Chips project

600 Tonnes per day ---216,000 TPA continuous polymerization plant600 Tonnes per day ---216,000 TPA continuous polymerization plant

Set up at Sarigam in Gujarat, closer to the source of its raw materialsSet up at Sarigam in Gujarat, closer to the source of its raw materials

Suppliers have committed to supply additional requirements of raw materialsSuppliers have committed to supply additional requirements of raw materials

Slide No. 60JBF Industries Limited

July 2007

Polyester Chips Polyester Chips –– Sarigam Plant Sarigam Plant

NewNew plant is running at 100% plant is running at 100% utilisationutilisation since Jan 2007 since Jan 2007

CapacitiesCapacities 2,16,000 TPA

LocationLocation Sarigam, Gujarat. Sarigam, Gujarat. 1818--acre land acre land (Just 20 kms away from existing plant)(Just 20 kms away from existing plant)

Cost Cost Rs 170 crores

Finance Finance Rs 70 crores Equity ( Citigroup + IL&FS)Rs 70 crores Equity ( Citigroup + IL&FS)Rs 100 crores DebtRs 100 crores Debt

Date Date

of Commencementof Commencement April 2006April 2006

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Slide No. 61JBF Industries Limited

July 2007

Chips CapacityChips Capacity

Chips

Total Capacity :

Captive Consumption :

Available for

3,50,000 TPA

1,40,000 TPA

2,10,000 TPASale

Slide No. 62JBF Industries Limited

July 2007

POY Expansion POY Expansion

To produce 90,000 MT per annum of POYTo produce 90,000 MT per annum of POY

Plant location at same site as existing Plant at SilvassaPlant location at same site as existing Plant at Silvassa

Plant to produce specialty deniers and FDYPlant to produce specialty deniers and FDY

Will have synergy and overhead cost sharing with the existing plantWill have synergy and overhead cost sharing with the existing plant

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Slide No. 63JBF Industries Limited

July 2007

POY Expansion POY Expansion …… Contd Contd

CapacitiesCapacities 90,000 TPA 90,000 TPA

LocationLocationSilvassa, in existing plant premisesSilvassa, in existing plant premises

Cost Cost Rs 150 croresRs 150 crores

Finance Finance

Date Date

of Commencementof Commencement Commissioned in September 2006Commissioned in September 2006

25,000 TPA for FDY65,000 TPA for Specialty Yarns/POY

25,000 TPA for FDY65,000 TPA for Specialty Yarns/POY

Rs 60 crores (FCCB/Equity)Rs 90 crores Debt

Rs 60 crores (FCCB/Equity)Rs 90 crores Debt

Plant is running over 95 % capacity

Slide No. 64JBF Industries Limited

July 2007

Overseas polymerization projectOverseas polymerization project

INVESTMENT IN EMIRATES INVESTMENT IN EMIRATES

SSP -BOTTLE GRADE CHIPS 216,000 TPASSP -BOTTLE GRADE CHIPS 216,000 TPA

POLYESTER FILM 108,000 TPAPOLYESTER FILM 108,000 TPA

PLANT SIZE 324,000 TPAPLANT SIZE 324,000 TPA

Status :

Production started July 2007. Customer Tied up for long term supplyProduction started July 2007. Customer Tied up for long term supply

Second phase expected by Oct- Dec 2007Second phase expected by Oct- Dec 2007

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33

Slide No. 65JBF Industries Limited

July 2007

Process ChartProcess Chart

PTA MEG

PET Chip PET Film

PREFORES

Packaging

BOTTLING

14m TonnsWorldwide

3m TonnsWorldwide

Slide No. 66JBF Industries Limited

July 2007

Global PET Resin Demand By Global PET Resin Demand By RegionRegion

1997

46%

22%32%64

2002

34% 24%

42%

2007

39%

36%25%

America

Asia

Europe, MDE & Africa

Tot Dem: 4.6Mil tons Tot Dem: 8.6Mil tons Tot Dem: 13.6Mil tons

Average Annual Growth

1997 – 2002 13.2%

2002 – 2007 9.7%

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Slide No. 67JBF Industries Limited

July 2007

LocationLocation

Slide No. 68JBF Industries Limited

July 2007

Location AdvantagesLocation Advantages

RAK is a tax friendly country and Prince of RAK is a equity partnerRAK is a tax friendly country and Prince of RAK is a equity partner

Abundant gas availability at very attractive rates --- confirmed at US $ 2.5 /mbtuAbundant gas availability at very attractive rates --- confirmed at US $ 2.5 /mbtu

Abundance of Raw material – PTA and MEG and SABIC Saudi Arabia and MEGlobal Kuwait are other optionsAbundance of Raw material – PTA and MEG and SABIC Saudi Arabia and MEGlobal Kuwait are other options

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Slide No. 69JBF Industries Limited

July 2007

Other Benefits for JBFOther Benefits for JBF

JBF would benefit from economies of scale for Raw Material purchasesJBF would benefit from economies of scale for Raw Material purchases

JBF in India can show improved financial performanceJBF in India can show improved financial performance

JBF will have substantial benefits in terms of perception in terms of “GOING GLOBAL”JBF will have substantial benefits in terms of perception in terms of “GOING GLOBAL”

Slide No. 70JBF Industries Limited

July 2007

Project Economics &Key FinancialsProject Economics &Key Financials

Total Investment $ 90 million$ 90 million

Funding

Equity

JBF

$ 30 million$ 30 million

$ 18 million$ 18 million

RAK $ 12 million$ 12 million

Loan/DebtInstruments

$ 60 million$ 60 million

Debt: Equity 2:12:1

Working Capital $ 35 million$ 35 million

Turnover estimated at US $ 350 Mn. in first full year of operation

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Slide No. 71JBF Industries Limited

July 2007

RecapitulateRecapitulate……

Textile Sector poised for growthTextile Sector poised for growth

Growth in Polyester inevitableGrowth in Polyester inevitable

Consumption set to grow in double digitsConsumption set to grow in double digits

Availability of Raw Material to increase and trend indicates softening of prices of intermediaries Availability of Raw Material to increase and trend indicates softening of prices of intermediaries

JBF poised to capture global growth opportunities. Foundations for growth in placeJBF poised to capture global growth opportunities. Foundations for growth in place

New plant can potentially double the turnover on stable operating matrix New plant can potentially double the turnover on stable operating matrix

Slide No. 72JBF Industries Limited

July 2007

Thank YouThank You