Corporate Presentation

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Except for the historical information contained herein, statements in this presentation and the

subsequent discussions, which include words or phrases such as “will”, “aim”, “will likely result”,

“would”, “believe”, “may”, “expect”, “will continue”, “anticipate”, “estimate”, “intend”, “plan”,

“contemplate”, “seek to”, “future”, “objective”, “goal”, “likely”, “project”, “should”, “potential”,

“will pursue” and similar expressions or variations of such expressions may constitute "forward-looking

statements“ not limited to expected future business and financial performance of MIL. These forward-

looking statements are based on Managements current expectations and are inherently subject to

uncertainties & changes in circumstances and involve a number of risks, uncertainties and other

factors that could cause actual results to differ materially from those suggested by the forward-looking

statements. These risks and uncertainties include, but are not limited to our ability to successfully

implement our strategy, our growth and expansion plans, our provisioning policies, technological

changes, investment and business income, cash flow projections, our exposure to market risks as well

as other risks. Investors are advised to form their own judgments and conclusions before any

investment related decision. MIL does not undertake any obligation to update forward-looking

statements to reflect actual results or any change in events, conditions, assumptions or other factors.`

Disclaimer

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Journey Towards Excellence

1. Promoters & Management

2. Inks and Market

3. Micro Inks – Making a Mark on the World

4. Financial Performance

5. Vision, Strategy & Outlook

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Promoters & ManagementPromoters & Management

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MR. ZAKIR BILAKHIADrives Research, Technology and Product Strategy

MR. ANJUM BILAKHIAManaging Director Member of the Board of Bilag.Drives Execution, Projects and Operations.

MR. YUNUS BILAKHIAChairman & Founder. Chairman of Bilag- a JV with Bayer, Bilakhia HoldingsDrives Vision and Strategy for the Group.

ABOUT THE PROMOTERS…

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Bilakhia Holdings Pvt. Ltd.USD 304 MIL

Micro Inks LimitedUSD 215 MIL

Mitsu Ltd USD 9 MIL

Bilag Industries Pvt. Ltd JV-Bayer Bilakhias

USD 80 MIL

BILAKHIA GROUP

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BHPL holds less than 20% in Bilag presently

BILAG TODAY IS….Largest generic pyrethroid player in the world.v Global market share exceeding 25% on active ingredient basis.v Manufacturer & largest exporter of agrochemicals.v Most profitable unlisted company in India (Source ET – “15/07/2002 “).v international revenues contribute > 80% to sales.v Present in more than 70 countries including market leadership in china.

BILAGv Bilakhias entered AG.Chem business under the name Mitsu.

v Progressed from simple one step process to complex Chiral chemistry.

v Specialised in Pyrethroid chemistry and setup global scale mega plants with cost leadership and full vertical integration.

v Moved up the value chain from $1 per Kg product to $400 per Kg.

v Introduced two new products every year.

v Recipient of national R&D and safety awards for several years.

v Entered into a JV with Agrevo (is now Bayer) to form Bilag

v One of the most successful JVs of India.

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Inks and MarketsInks and Markets

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Some of Our esteemed End-Users : Vote of Quality

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Some of Our esteemed End-Users : Vote of Quality

Offset Inks

Flexo & Gravure Inks

Adhesive

Screen Inks

Metal Decorating Inks & Coating

Special Range

Web Offset Inks

Sheet fed

Water Based

Solvent Based

Solvent Based

Water Based

Various Substrate

UV Inks

Acquas & UV Coating

Light Fast Process

Security Inks

Digital Inks

Coldset Inks

Heatset Inks

Commercial Appl

Packaging Appl

PU Lamination

Flexible Packing

Surface Printing

Product Portfolio

Magazines & Books, News Papers, Yellow Pages,

Brochures, Calendars

Printing FMCG & Industrial Pkg on Substrates like

Bottles, Cans, Wrappers, LDP, BOPP & Flexible Pkg

Visiting Cards, Letter Heads, HDPE/PP bottles

Substrates like, Metal, Aluminum Foils etc

CD, DVD, Currency, Credit Card, Digital Printing, etc

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Chemical Products/

Intermediates

Pigments ResinsSolvents

/ Oils Additives

VarnishesFlushes

PrinterSubstrate/ Packing Materials

SubstratesØBOPPØPolyestersØBonded PaperØCoated PaperØCorrugated boxØCDS ØHDPE,LDPE

4B,Bon Acid,Carbon Black,CPC, Soya Oil, Linseed , Aniline, Phenol, ONCB,More than 500 Raw Materials

NaturalProducts

Rosins, Oil & Petrochemicals, Sulphur, Salts, Copper, Linseed/Soya etc..

Press/EndCustomer

ParametersØ dispersionØ viscosityØ strengthØ glossØ press stabilityØ rub resistanceØflow

Printing Inks …….Ø Is a Performance chemical ; requires

total solution support.

Ø Has a long product life cycle.

Ø Is The Most visible part of end product. No branding or differentiation is possible without inks.

Ø Cost driver since it determines press performance, consumption of paper, fountain solution, rollers, etc.

Key success factors.

Ø Continuous product development and design.

Ø Accuracy & high quality.

Ø Reach and distribution.

Ø Real time- 24x7 - technical service & support.

Ø Productivity.

Ø Relationship driven.

Ø cost

Ink cost

< 5-7 % of

Printing

Cost

Parameters

ØCustomer requests.

ØType of Machine.

ØClimatic conditions

ØMechanical Speed

Inks Business

More than 50 14

Approx. Market

Share (%)

Sales US$ Mio

CompanyRank

1.5171Micro Inks 15

2333Inctec inc.10

3490Siegwerk9

3503Tokyo printing ink.8

4570Huber group7

5740SICPA6

5746BASF 5

5821Sakata inx4

71120Toyo ink3

101450Flint Ink2

324780DIC / SUN1

Source : Ink World Magazine Nov 2004

The Global Market

Ø Growth at 2 – 3 % in last decadeØ Eight countries – US, Japan, Germany, UK, France, Italy, Spain and china account for 80% of global

market.

Global Market – USD 15 bnNorth America- USD 5 bnIndian Market – USD 200 mn.

Ø Diffused & skewed structure. Several players are regional or single line focused.

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North America

34%

Latin America

3%

Middle East1%Asia Pacific

14%

Europe34%

Japan14%

Making our Mark on the World

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Ø 15th Largest ink company in the World; 11th Largest in USA - total revenues USD 171 Mio .

Ø International revenues exceeds 57% spread over 60 countries .

Ø One of the fastest growing Ink cos. in the World.

Ø Among the fastest growing cos in India – CAGR of sales exceeds 45% in 10 years.

Ø Strong R&D, process Chemistry and Technology. Wide product portfolio and Quality and cost leadership.

Ø Biggest and only fully backward integrated , seamless ink manufacturing plant in the World.

Ø Company has crossed inflexion point. Significant scope for margin expansion, leverage on cost and capacity utilization.

Ø Promoters and management have built market leadership in inks and have created global power house in Agro Chemical, the most profitable unlisted Company.

MIL Key Highlights

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Ø Strong technical expertise, long experience & wide knowledge base ,Process Chemistry and R&D technology.

Ø Innovation, focus on new products and application and unique process flow.

Ø Different business model, central bulk manufacturing (Mother Plant).

Ø Full Vertical Integration and Seamless Process. Only fully integrated plant in world.

ü Full control on critical parameters and unmatched product quality.

ü High level of customization to meet varying needs of clients.

ü Rapid turn around time. Faster than normal acquisition.

ü Provides cost leadership

Competitive Advantages at Micro Inks

P

P

P

P

P

Flush Pigments/Pigment

P

P

Alkali -Blue

P

Resins AdditivesCompanyRank

PMicro Inks 15

Tokyo Printing Ink7

Sicpa4

Sakata3

Flint Ink2

DIC1

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Our Presence Across the Globe

Latin America 2%

Present Across 60 Countries In The World in FY04 19

Asia Pacific 6%

Africa & Middle East 2%

USA 37%

Europe 10%

India 43%

Our Presence in USA

Micro Inks (HQ+Fact)Ware HouseSales RepresentativesTSR

Long Term Supply Contracts with 8 Large Customers

162MICRO INKS CORPORATION (USA) 11

2110Sicpa5

2125Color Converting4

5250INX International3

18900Flint Ink2

552750Sun Chemicals1

Apprx Market Share (%)

Sales US$ MnCompanyRank

Ø Growing at 3 – 4% during the last

decade.

Ø Volume declined in last two

years; market leaders have

witnessed negative growth.

Ø Top 10 companies account for

75% of the market.

Source : Ink World Magazine April 200420

Indian Market

Top 10 Customers 14 %Top 25 Customers 24%Top 50 Customers 34%

Direct Customers – 75%Distributor – 25%

Corporate HQ

HSales Offices/ Warehouses

HH

H H

H

H

HH

H

48%

33%

6%

Ø Total Indian market size valued at Rs.10000 Mio(75000 MT).

Ø Growing more than 12 % YOY.

13%

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Production Capacities

40000Pigments & Flushed Colors

11890Fine Chemicals & Others

Resins

Printing Inks

CLASS OF GOODS

45000

182280

M.T. Per Annum

M.T. Per Annum

CLASS OF GOODS

65000 Finishing Plant for paste inks

U. S. A.INDIA

Ø 4 sites in India located at Vapi (2), Silvassa , Daman Ø All units certified ISO 14001 with full safety and pollution control facilities.Ø All units integrated with SAP system. High degree of control on quality with

new emphasis of Six Sigma implementation.Ø Consolidated fixed cost including interest, depr.Apx. Rs. 1604 Mio(FY 2004)

Current capacity utilization at 45%

At full capacity potential turnover at $ 450 Mio.

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Financial PerformanceFinancial Performance

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Net Operating Revenues & Margin

Consolidated Financial Performance

3000

5000

7000

10000Rs mn

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CAGR 42%

n FY05 Net revenues at Rs.9473 mn up by 22% over FY04

n FY05 Non US Export market registered a 62% growth at Rs.2580 mn over FY04

n FY05 sales in US at USD 68 mn up 11% in dollar terms over FY04

0

00-0

1

01-0

2

02-0

3

03-0

47796

4760

2781

6469

6%

7%

10%

12%

9473

04-0

5

15%

1968

3572

4474

5630

0

2000

4000

6000

2002 2003 2004 2005

Trend exports - Rs mn

Quarterly Net Sales

Key Highlights.

Sales touch $ 68 mn FY2005, growth of 11 %.Q4FY05 sales at USD 17.4 mn grew 2% in dollar terms over Q4FY04.Sheetfed and Raw material segment grew by 42% in dollar terms compared to FY04.

Key Highlights. Revenues from non–US markets touched Rs. 2580 mn across 60 countries a growth of 62% YoY in FY05Revenues from non-US export markets in Q4FY05 at Rs 842 mn, grew 58% over Q4FY04.Top 10 countries contributed Rs 1677 mn constituting 65% of non-US revenues in FY05.

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Revenues USA - $mn Revenues – Non US Rs mn

13.815.4

16.4 16.2 15.817.5 17.8 17.4

0

5

10

15

20

Q104 Q204 Q304 Q404 Q105 Q205 Q305 Q405

273352

434534 540 577 622

842

-

300

600

900

Q104 Q204 Q304 Q404 Q105 Q205 Q305 Q405

Consolidated Revenue by Geography

Domestic Market

Revenues during FY05 stood at Rs. 3844 mn up 16% compared to FY04.

Q4FY05 revenues at Rs. 1033 million up 24% over Q4FY04.

Increased volumes in Publication inks, adhesives & wire enamel were the prime drivers during the year. Sales for the year in General inks up 15% in Liquid inks 19%, Resins up 53% and wire enamel up 74% compared to FY04.

Spread across Geographies

International revenues moved up by 26% at Rs 5630 mn , accounted for 59% of total consolidated net revenues in FY05.

Presence in more than 60 countries & revenues cross $125 million.

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Domestic Non USA sales USA sales

Domestic Sales

806872

811 833

960885

9651,033

-

500

1,000

Q104 Q204 Q304 Q404 Q105 Q205 Q305 Q405

5845 43 41

411 20 27

38 44 37 32

-

50

100

FY02 FY03 FY04 FY05

EBIDTA

Ø75% growth in Cash Profit from Rs. 591 million to Rs. 1036 million YOY in FY05.

ØConsolidated EBITDA FY05 stood at Rs 1419 mn up 54% YoY.

Consolidated EBITDA & PAT

PAT

ØMIL standalone PAT stood at Rs 1076 mn as against Rs 732 mn a growth of 47%

ØConsolidated Earnings per share up 146% YoY, at Rs 26.05 as against Rs 10.58 per share in FY04. MIL standalone EPS up 17% compared to PY.

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CONSOLIDATED PAT

410

162

331

663

924

1419

0

500

1000

1500

FY00 FY01 FY02 FY03 FY04 FY05

260

662

191142

FY04 FY05 Q404 Q405

CONSOLIDATED EBITDA

Sales Vs Capital Employed

Sales to capital employed improved to 1.07 times from 0.98 times PY on increased revenues. Net working capital cycle improved to 2.0 times.

GDR issue of USD 40 mn fully subscribed from global high quality institutional investors and proceeds utilized to prepay /repay debts of Rs 1759.3 mn.

Capital base strengthened, debt Equity ratio improves, stood at 0.54 as at 31.3.05 against 1.39 for the previous year.

Net worth of the company Increased to Rs 5745 mn as against Rs 3335mn PY on increased profitability and issue of capital through GDR.

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0

3000

6000

9000

12000

2004 7985 4649 4144

2005 8876 3131 4742

Capital employed

Debt. NWC

4 0 0 0

7 0 0 0

1 0 0 0 0

2002

2003

2004

Q10

5

Q20

5

Q30

5

Q40

5

c a p i t a l

s a l e sc o n s o l

Summary of Key Financials for FY05

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R S M N

Consolidated financials FY05 FY04 % Chg Q4FY05 Q4FY04 % Chg

Revenues 9473 7796 22% 2654 2077 28%Domestic 3844 3322 16% 1034 832 24%

Exports 5629 4474 26% 1620 1245 30%EBITDA 1419 924 54% 324 215 51%EBITDA (%) 15% 12% 12% 10%PAT 662 260 155% 191 142 35%PAT % 7% 3% 7% 7%Cash Profit 1036 591 75% 249 219 14%

Key RatiosOperating profit ratio (%) 15% 12%

Return on Net worth (%) 12% 8%Debt to Net worth (times) 0.54 1.39Return on cap.Emplyd (%) 12% 8%Sales to cap. Emplyd.(times) 1.07 0.98Consolidated EPS (Rs) 26.05 10.58

Standalone EPS (Rs) 44.00 37.62

FY2005 FY2004

“Reach Top 5 in the world within next 5 years.”

ü Increase presence significantly across geographies.

ü Become the fastest growing and most profitable company in the world in printing inks.

ü Differentiate products and quality.

ü Build image and increase reach and distribution.

ü Use acquisitions/JVs to fuel growth.

ü Focus on R&D ,Technology and Product Development.

- New Technologies

- Colorants

- Digital Inks.

VISION & STRATEGY

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ChallengesImage and Acceptability / Reach & Distribution

- Initially less known in the international markets

- Over coming Customer Bias towards – India, Quality Issue, Distance issues etc.

- Service customers across the world.

+ Increasing corporate brand awareness

+ Tying up with local distributors and companies.

+ Private label sales/ OEM strategy

+ Create superior product performance.

Logistics

- Matching quality and delivery parameters of customers

+ Front-end model in US - to extend this model on a smaller scale to other countries.

+ Tying up with local companies and distributors.

+ Utilise information technology.

Increase people depth

- People strength and depth to service customers

+ CEO, marketing head and a marketing team of 40+ to service US. Further key

recruitments to increase penetration.

+ IBD team expanded from 2 to 12.

+ Continuous strengthening R&D and product chemistry related skills.

+ High focus on Training and HR. 31

POther Inks

PPPackaging

2004P2004PNews Color/Black

PUV/EB Inks/Coatings

PPPPPSheetfed Inks

2004PP2004PHeat Set Inks

EuropeLatin Amer

North America

AsiaIndia

Global InitiativesKey InitiativesNew market initiatives

Wholly owned foreign companies established in china and HongKong, to be operational by Q4FY05.

Initiatives to have local presence in Italy and Australia under progress.

New Recruitments

Appointed Mr. James Mahony, erstwhile president and CEO of Flint Inks Europe, as a global president.

3 key recruitments at USA in sales.

Further Recruitments & Alliance discussions in Key Markets.

Product Developments

New Concept in Liquid Inks and Pub. Gravure Inks.

Press chemicals Introduced in Domestic Market.

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MR. YUNUS BILAKHIA, MR. YUNUS BILAKHIA, CHAIRMANCHAIRMANMR. ANJUM BILAKHIA, MR. ANJUM BILAKHIA, MANAGING DIRECTOR.MANAGING DIRECTOR.MR. SHIVRAM ANGNE, MR. SHIVRAM ANGNE, WHOLETIME DIRECTORWHOLETIME DIRECTORMR.PRASHANT DESAI MR.PRASHANT DESAI INTERNATIONAL BUSINESS STRATEGISTINTERNATIONAL BUSINESS STRATEGISTMR. M.L.BHAKTA MR. M.L.BHAKTA SR. PARTNER OF KANGA & CO.SR. PARTNER OF KANGA & CO.-- SOLICITORSSOLICITORSMR. K.K.UNNI MR. K.K.UNNI EXEX--VICE CHAIRMAN OF AVENTIS CROPSCIENCE, INDIAVICE CHAIRMAN OF AVENTIS CROPSCIENCE, INDIAMR. HASMUKH SHAH MR. HASMUKH SHAH CHAIRMAN OF GUJARAT GAS LTD CHAIRMAN OF GUJARAT GAS LTD EX CHAIRMAN OF IPCLEX CHAIRMAN OF IPCLEXEX--VICE CHAIRMAN OF GE CAPITAL, INDIA VICE CHAIRMAN OF GE CAPITAL, INDIA EXEX--JOINT SECRETARY TO THE PRIME MINISTERJOINT SECRETARY TO THE PRIME MINISTERPROF. PRADIP KHANDWALLAMEMBER OF THE BOARD OF GUJARAT GAS CO. LTD.MEMBER OF THE BOARD OF GUJARAT GAS CO. LTD.MEMBER OF THE BOARD OF BANK OF BARODAMEMBER OF THE BOARD OF BANK OF BARODAEX.PROFESSOR OF IIM EX.PROFESSOR OF IIM –– AHMEDABADAHMEDABADMR. VINAY PANDYADIRECTORDIRECTOR

MR. ANJUM BILAKHIAMR. ANJUM BILAKHIA

MANAGING DIRECTORMANAGING DIRECTOR

MR ASHWANI BHARDWAJMR ASHWANI BHARDWAJ

CHIEF OPERATING OFFICERCHIEF OPERATING OFFICER

MR. SHIVRAM ANGNEMR. SHIVRAM ANGNE

DIRECTOR DIRECTOR –– QUALITY, SYSTEMS & HR.QUALITY, SYSTEMS & HR.

MR. SANJAY SHAH MR. SANJAY SHAH

DIRECTOR DIRECTOR –– SUPPLY CHAINSUPPLY CHAIN

MR. RAMAKRISHNA KAMAT MR. RAMAKRISHNA KAMAT

DIRECTOR DIRECTOR -- DOMESTIC SALESDOMESTIC SALES

MR. RAM MOHAN CHARI MR. RAM MOHAN CHARI

DIRECTOR DIRECTOR –– FINANCEFINANCE

MR. SNEHAL SHAH MR. SNEHAL SHAH

DIRECTOR DIRECTOR –– INTERNATIONAL BUSINESS INTERNATIONAL BUSINESS DEVLOPMENTDEVLOPMENT

MR. R.G. VYAS MR. R.G. VYAS

DIRECTOR DIRECTOR –– MANUFACTURINGMANUFACTURING

Board Of Directors Executive Board

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KEY TAKEWAYS

ü Strong emerging force in Global Ink business – a specialty chemicals business.

ü Global presence & spread. $100 Mill over 60 countries in 3 yrs.

ü Demonstrated high growth and one of the Most profitable

Ink companies in the World.

ü Leverage on Costs & Capacity utilization.

ü Competitive edge, backed with R&D , Product Innovations .

ü Cost leadership in the world.

ü Strong & proven management capabilities.

ü Amongst the top wealth creators in India.

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1986 Ink operations begin as small family unit.Initial capital employed Rs.200,000.

1992 Initial success in Inks Business.Maiden IPO of Rs.20 Mio.

1994 Diversifies into General inks.Daman plant commences operation.

1996 MIL becomes National Company.

1998 Develops Pigments and Flush Technology.Ink sales cross Rs.1000 Mio.

1999 Emerges as Market Leader in India.

MIL Milestones ..…

2000 Launches Micro Inks, USA. Recruits key people.Completes Silvassa project.Becomes only the third in the world to produce Alkali Blue.

2001 Micro inks gets initial success. Monthly sales cross $2 Mio.Commissions fully integrated single stream seamless plant – the biggest and only one of its kind in the World.

2002 Micro bags a major contract, enters into long term supply contract in the USA. Ink Exports cross Rs.2000 Mio.

2003 Micro Inks becomes 11th biggest company in USA. Successful entry in around 50+ countries spread across all Continents.

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