Project Blue Nile – Company Overview

COMPANY OVERVIEW FINANCIAL OVERVIEW (INR MN)

!  Blue Nile is an integrated membrane manufacturer with presence across the 2,397
2,500
membrane filtration value chain from manufacturing the membranes through to
undertaking EPC contracts in the filtration space 1,918
2,000
Revenue CAGR (FY08 – 13) – 76.1%
!  The company has in-house capabilities in membrane and system R&D, design, 1,442
manufacturing and installation capability for all types of membranes and related 1,500
EBITDA CAGR (FY08 – 13) – 87.9%
applications 962
1,000 PAT CAGR (FY08 – 13) – 96.3%
!  Blue Nile is active mainly in following businesses :
392
!  Membranes (manufactures & supplies microfiltration and nanofiltration 500
166 166 142
membranes to domestic & overseas customers)
!  Applications related to membranes (designs and commissions separation -
systems, waste water treatment plants and water treatment plants) FY06 FY07 FY08 FY09E FY10E FY11E FY12E FY13E
Net Sales 166 166 142 392 962 1,442 1,918 2,397
EBITDA 25.7% 21.0% 12.4% 18.0% 17.8% 16.2% 17.1% 17.2%

SALES BREAKUP BY SEGMENT (FY 2008) •  Net sales of the company is expected to grow by 177% to INR 392 Mn in FY 2009
with an expected EBITDA of INR 70 Mn, a growth of 300% from the previous year.
•  Projected (FY08 – FY13) 5-year revenue CAGR of ~76% and projected PAT CAGR
of ~ 96%
•  Sales of FY09 and FY10 are backed by a high degree of visibility through confirmed
orders and RFQs.

(In INR Millions) FY07 FY08 FY09E FY10E FY11E FY12E

Sales 166 142 392 962 1,442 1,918

YoY Growth - - 177% 146% 50% 33%

EBITDA 35 18 70 172 233 328

EBITDA Margin 21.0% 12.4% 18.0% 17.9% 16.2% 17.1%

Today, Blue Nile is a market and technology leader in this space, and is PAT 20 9 42 107 145 205

currently the only independent membrane manufacturer in India Net Margin 12.2% 6.3% 10.8% 11.1% 10.1% 10.7%

Private & Confidential

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Project Blue Nile – Key Investment Highlights

•  Blue Nile is the only company in India to have the ability of designing and
ONLY MEMBRANE MANUFACTURER IN INDIA manufacturing membranes used in various systems . This puts the company in a
unique position to customize their systems according to their client’s needs

•  Being the only membrane manufacturer in the country makes Blue Nile the only
completely vertically integrated company in India across the membrane filtration
PRESENCE ACROSS THE MEMBRANE FILTRATION VALUE
value chain. This helps the Company in customising solutions for its clients and
CHAIN
enables it to get higher margins. The company is also able to pre - commission
its systems on its own site which helps get to the near zero failure rate

•  Several firsts to its name in membrane filtration technology, leader in

STRONG R&D CAPABILITY (LEADING INNOVATOR IN
EMERGING AREAS)
development of membranes & systems for gas separation (already operational
pilot plant). The R&D team is lead by a Bhatnagar Award scientist

•  Blue Nile’s customers are witnessing strong growth on the back of increased
STRONG GROWTH IN END USER INDUSTRIES consumer demand especially in the food & dairy industry for the process
segment and the growing awareness of the requirement of effluent treatment

•  A diversified customer base across industries and systems gives stability to Blue
CATERS TO A WIDE RANGE OF INDUSTRIES
Niles’ revenues, guarding against any cyclicality

•  Membrane separation systems by Blue Nile have 60% cost advantage over
PRODUCTS WITH SIGNIFICANTLY LOWER OPERATION traditional systems
COSTS •  This can potentially generate huge sales for the company with a larger sales &
marketing infrastructure

Private & Confidential

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