Investor Presentation| September 2019 Executive Summary 2 Overvie - PowerPoint PPT Presentation

Investor Presentation| September 2019

Executive Summary 2 Overvie iew • Incorporated in 1999, Par Drugs and Chemicals Ltd. (PDCL) is engaged in the development and manufacture of Active Pharma Ingredients (“APIs”) and Fine Chemicals for the domestic market as well as for exports to international markets. • The company currently produces the entire range of Antacid Molecules and the product portfolio presently comprises 16 APIs and 7 Fine Chemicals. • The company operates a manufacturing facilities at Bhavnagar in Gujarat. • The company supplies products to approximately 16 countries, including both direct and indirect exports. • As on March 31, 2019, PDCL caters to more than 200 customers through dealers / agents worldwide. Bus usiness Mix Financia ials ls FY1 Y19 • API (66 66%): The APIs manufactured are purchased by pharmaceutical companies which Inc ncom ome – INR NR 46 463 3 MN convert the APIs into various forms of formulations such as tablets and liquid form for final sale, used as an API in Antacid Formulation. EB EBITDA – INR NR 83 83 MN EB EBITDA - 17 17.93% • Fine Chemic Fin icals ls (34 34%): The company offers Fine Chemicals used as an Antacid Raw material in a specific antacid formulations, ceramics, suspending agent, thickening agent, PAT – INR NR 24 24 MN MN Pesticides & detergents, special low moisture grade, free flow salt & anticaking agent for PAT - 5. 5.18 18% agriculture and paints space etc.

Company Overview

About the Company 4 Operati tional Re Revenues (INR Mn Mn) • Promoted by Mr. Falgun Savani and Mr. Jignesh Savini, Par Drugs and Chemicals Ltd. (PDCL) was founded in 1982 and is engaged in the development and 199 164 134 manufacturing of APIs. • The Company today manufacturers more than 23 different products and all the 299 289 290 requisite grades as available in market. The product portfolio presently comprises of 16 APIs and 7 Fine Chemicals which are marketed domestically and exported. • Currently, the company owns and operates a manufacturing facility at Bhavnagar FY17 FY18 FY19 in Gujarat with an annual capacity of 8,300 MT. API Fine Chemicals • The company is the largest manufacturer of Magnesium Hydroxide, Sucralfate and Magnesium Trisilate in India. Bus usiness Mix (FY FY19) • Company’s key customers include Essential Drugs Company Ltd., Pfizer Ltd., International Sales United Phosphorus Ltd., Cipla Ltd., etc. 11% • PDCL exports its products to approximately 16 countries, including Germany, Fine United Kingdom, Bangladesh, Iran, and U.A.E etc. Chemicals 34% • APIs, also known as "bulk drugs" or "bulk actives" are the principal ingredient used API, 66% Domestic Sales in making finished dosages in the form of capsules, tablets, liquid, or other forms 88% of dosage, with the addition of other APIs or inactive ingredients.

5 Board of Directors Falgun Va Vallabhbhai Sa Savani Pravin Manji Pr jibhai Bha hayani Ma Managing Di Direct ctor Ind ndependent t Di Direct ctor • Holds Bachelor’s degree in Pharmacy from B. K. Modi Government Pharmacy Collage, Rajkot affiliated with Saurashtra University. • Has 18 years of experience in API Industry and is playing vital role in formulating Kaja jal Chintanbhai Va Vagh ghani business strategies and effective implementation of the same. Ind ndependent t Di Direct ctor • Responsible for expansion and overall management of the business of our Company and his leadership abilities have been instrumental in leading the core team. Ji Jign gnesh Va Vallabhbhai Savani Kris rishna Mit Mitulbhai Shah hah Execu Ex cuti tive Di Director & CEO O Ind ndependent t Di Direct ctor • Has completed Matriculation education from Gujarat Secondary Education Board. • Has 17 years of experience in the API Industry and has been actively involved in the day-to-day operations of the Company and looks after the sales, administration and finance department. Shil hilpa Falgunbhai Savani Non on- Ex Execu cuti tive Di Director Ghan hanshayambhai Bhagvanbhai Savani Whole-Time Di Who Director • Has 28 years of experience in the API Industry and his expertise and business Nayna Ji Jign gnesh Savani acumen helped in sustainable growth. Non - Ex Non Executive Di Direct ctor • Actively engaged in the production activity of the Company.

Geographical Presence 6 Cana nada Un United ed German Ge any Ki Kingdo dom Iran an Hong ng Ko Kong Japa pan Banglad ades esh Indi dia UAE UAE Thai ailan and Colom ombi bia 40+ 40+ 13+ 13+ Ma Manu nufacturing ng Facility Bhavnagar, Gujarat having a capacity of 8,300 MTPA. Agents Globally Dealers in India

7 Key Milestones Mr. V. J. J. Savani establis lished in n the he ye year ar 19 1982 82 in n the he nam name of f Par ar Ino norganic ics, later Par ar Drugs and nd Che hemic icals was as inc ncorporated in n the he ye year ar 19 1999 99. • Established 2 nd manufacturing • Had addition of one • facility in Asia's Received GMP Conversion from API product named - biggest chemicals Certification from WHO Private Limited to 2002 2002 2009 2009 2012 2012 2017 2017 Sucralfate - the only corridor, GIDC for the Bhavnagar Limited on 5 th manufacturer in India Ankleshwer manufacturing facility November 2018 • • • Drying Fuel Technology Installed 120 kw • Established 2 new Technology modification Solar Power manufacturing blocks 2005 2005 2010 2010 2015 2015 2018 2018 Upgradation changeover from Generation Plant in Bhavnagar, one (spin flash dryer) furnace oil to Coal in the premises block is specially for in India, which Fired Hot Air and reduced fine chemicals was for the first Generator, which has 1,54,000 kgs p.a. Second block is time in the improved cost of carbon dedicated to only one product segment effectiveness emission product magnesium tremendously hydroxide • Ankleshwer plant was upgraded with spray dryer system

8 Research & Development • Company’s focus is on developing non-infringing processes and achieving process improvements and production cost efficiencies. • The main focus will be to expand the ability to penetrate different applications of current molecules with modified physical and chemical structures. • The laboratory at Chitra, Bhavnagar, is equipped with modern equipments including electronic balances, KF apparatus, ovens, stability chambers, computers, HPLC with IR Detector, Particle Size Analyser, Surface Area Analyser. We also have a dedicated Microbiological Laboratory to perform microbiological tests. The primary responsibilities of the R&D team includes:- • New products development • Development of customized products catering to specific requirement of customers • Scale up and Optimization of new technologies • To render assistance to production and quality assurance for quality improvement, troubleshooting in existing process and products • Value engineering and development of cost effective process

9 Manufacturing Facility Man anufacturing Fac acili ility - Chitra, Bhavnagar, Gujarat There are three Manufacturing Blocks are for different products having a capacity of 8,300 MTPA. Unit nit 1 – APIs PIs Unit it 2 - Mag agnesiu ium Hyd Hydroxid ide Unit nit 3 - Fine Chemic icals ls

10 Manufacturing Process Procurement of Raw Quality Control and Packaging Reaction Filtration Drying Material Sampling Procurement of Chemical reaction After the reaction, Excess water from The sampling is The material is sent magnesium takes place in a the slurry has to be the product is done for the final to the packaging chloride, caustic controlled washed to remove evaporated at a product as per the department where soda lye, soda ash, environment impurities. Washing controlled system and norms it is packed in LDPE Aluminium chloride between the raw process is carried temperature and already defined and and HDPE etc. All incoming materials. The out until the getting the final then these samples containers and raw materials are quantity or raw product comply product in powder are sent to the QC supplied to various tested as per material and with prescribed limit form. for testing as per parties. specifications. addition of the as per specification. the pharmacopoeia. same depends on It is a controlled the final product to process and be manufactured. sulphates and chlorides are washed off with treated water.