Walchandnagar Industries Ltd.

(WIL) Corporate Presentation

January 2010

Disclaimer
This presentation has been prepared by Walchandnagar Limited (the Company) solely for providing information about the Company. This presentation is confidential and may not be copied or disseminated, in whole or part, in any manner. This presentation has not been approved and will not be reviewed or approved by any statutory or regulatory authority in India or by any Stock Exchange in India and may not comply with all the disclosure requirements prescribed thereof. 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 This presentation has been prepared by the Company based on information and data which the Company considers reliable. However, no representation or warranty, express or implied is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of such information or opinions contained herein. Neither the company nor any of its respective affiliates, advisers or representatives, shall have any liability whatsoever (in negligence or otherwise) for any loss howsoever arising from any use of this presentation or its contents or otherwise arising in connection with this presentation. The information contained in this presentation is only current as of its date. Certain statements made in this presentation may not be based on historical information or facts and may be forward-looking statements, including those relating to the Companys general business plans and strategy, its future financial condition and growth prospects, and future developments in its industry and its competitive and regulatory environment. Actual results may differ from these forward-looking statements due to a number of factors, including future changes or developments in the Companys business, its competitive environment, information technology and political, economic, legal and social conditions in India and worldwide. The Company undertakes no obligation to update forward looking statements to reflect events or circumstances after the date thereof. This presentation and any information presented herein are not intended to be and shall not be construed as an offer to sell or solicitation of or an offer to buy the Companys equity shares or any of its other securities and shall not constitute an offer, solicitation or sale in any jurisdiction in which such offer, solicitation or sale is unlawful. The Company may alter, modify or otherwise change in any manner the content of this presentation, without obligation to notify any person of such revision or changes.

Contents

WIL- An Overview

Key Highlights

Key Financial Information

Annexure - Select Turnkey EPC Projects Completed - Select Components Manufactured by SPD

Pedigree of Walchand Group

One of the renowned industrialist of pre-independence India, who promoted and established various business ventures in various sectors Ranging from automobile manufacturing, civil engineering, construction of dams, bridges, barrages and hume pipes, aircraft manufacturing, ship building, to maritime shipping

FounderHindustan Aircraft Company Pioneer in Aircraft Manufacturing

Founder Scindia Steam Navigation CompanyPioneer in Maritime Shipping

SETH WALCHAND HIRACHAND (1882 1953) Founder

FounderHindustan Shipyard Vizag Pioneer in Shipbuilding Industry

FounderWalchandnagar Industries Ltd (WIL)One of Indias leading heavy engineering and project execution company

Established many new ventures In various core sectors like Automobile Civil Engineering Construction of Dams, Bridges, Barrages & Hume Pipes`

Walchand Hirachand was a dreamer, a visionary, a great builder, a great leader of industry. Above all, he was a patriot, and in his own way, he was an inspiring leader of our struggle for freedom. I salute his memory. When we celebrate the life of an entrepreneur like Walchand Hirachand, we must draw the correct lessons from his life. The lesson I draw is that the ultimate spur to growth and development is individual creativity and enterprise Dr.Manmohan Singh, Prime Minister Of India
4

WILBuilding Engineering Excellence For Over 100 Years

A Snapshot
WIL is one of Indias leading heavy engineering and project execution company with a strong history Diversification across products, sectors and geographies through its business offerings Manufacturing and EPC- Focus on Energy, Mining & Minerals, Cement, Sugar etc. Special Products- Focus on Defense, Nuclear Power and Aerospace Engineering- Walchand Technology Group (WTG) Other Businesses- Foundry, Precision Instrumentation, Gears (for variety of applications) Continued strong engineering & project management capabilities, backed by its technological strength and an able work force Poised for strong growth in the years to come Professionally managed with growth oriented corporate structure Evolved into a multi divisional, multi location company Became among the first few Indian companies to manufacture critical components for a nuclear power project managed by BARC and to be associated with ISRO for Indias space research programme Commenced the heavy engineering & machinery manufacturing business in early 1960s Initial business of an integrated sugar manufacturing at Walchandnagar (near Pune) Changed its name to Walchandnagar Industries Ltd. in 1944 Incorporated in 1908 under the name Marsland and Price Company Ltd. Founded by the visionary industrialist, Seth Walchand Hirachand
5

Evolution of the Years

Shareholding Pattern (as on Dec 09)

Key Institutional Shareholders
Other Public 37.5% Promoter & Promoter Group 55%

Name LIC of India Oriental Insurance Company Ltd.

% Holding 5.55 1.54

Institutional 7.5%

Organization Structure
Overall Management

Chakor L. Doshi Chairman

Mr. Chirag Doshi MD

Mr. J. L. Deshmukh MD & CEO

Business Offering

Manufacturing & EPC

Special Products Division (SPD)

Defense , Hydro carbons & Gear Vice Adm. (Retd) S.K Krishnan Aerospace & Nuclear power V.M Parthasarthy Defence P D Ganorkar

Engineering Excellence
WTG Vice Adm (Retd) N M Nadaph

Other Businesses

Key Corporate Functions

Finance & Audit V R Joshi M H Purwat Strategic Planning (SP) & Market Research (MR SS Gangavati Materials P K Mahadevan HR & Establishments J N Nandurkar Umesh Joshi Manufacturing V.G. Ratnaparkhi IT

Energy G.S.Prakash - Boiler Elias K Ponodath - Energy R. Kumar - Utility Boiler M.J. Devis - Turbines

Foundry Kushal Saha

Key Verticals & Personnel

Precision Instruments A.B Kamlapur Gears S.K.Dasgupta

Minerals & Mining Arvind Shore S.K. Gulati Cement P.C. Bhagwat Others: Dr. Janakiram Oil & Gas New Business Ventures L. Ranganathan G.S.Prakash Sugar & Centrifugal

Nuclear S S Mahabaleshwarkar Aerospace S V Shahade

S.R. Deshmukh

WIL has created sufficient management bandwidth to cater to all its business initiatives and growth plans
6

Manufacturing & EPC Business

Energy Minerals & Mining Cement Others

Manufacturing of industrial boilers and steam generators, Technology from Foster Wheeler USA Power plant projects on a turnkey basis Executed captive as well as independent power projects Currently has capacity to execute power projects upto 100 MW

Design, engineering, procurement and construction of mineral processing projects and bulk material handling Projects include calcination plants, plant and machinery for extraction of metals, mine backfill projects etc. MoU with Continental Conveyor Ltd. in mining & materials handling systems

Design, manufacturing and supply of complete cement projects up to a capacity of 1 MTPA on turnkey basis Executed over 70 cement plant projects at various domestic and international locations Tie up with ATEC Austria to enable in bidding for larger size projects and in new geographies Range of products include ball mills, slide shoe mills, kilns etc

Providing products and services for onshore and offshore oil and gas projects Involved in structural fabrication, design, manufacture and supply of equipment Conceptualizes, designs, implements and commissions turnkey sugar projects, batch and continuous centrifugal machines

Refer Annexure
7

Special Products Business

Defence Nuclear Aerospace

Associated with the Ministry of Defence, for more than 35 years

Accredited with pre-qualifications from the BARC and NPCIL for supplying nuclear components

Associated with ISRO since its inception, for manufacturing critical components for space research projects Company has manufactured and supplied booster motor casings and nozzles for the satellite launch vehicles, including the ASLV, PSLV and now GSLV Components produced have been used in the launching of satellites such as the INSAT series

Recently supplied critical core equipment for INS Arihant

Undertakes site installation and integration activities of nuclear power reactors

Major Equipments supplied for defense applications include combustion chambers, missile casings, air booster casing static and mobile launchers etc

Supplying major core equipment for various nuclear power plants for both 235 MWE and 500 MWE projects

Handles exotic materials such as maraging steel, cladded steel, inconel etc.

Refer Annexure
8

Engineering and Other Businesses

Walchand Technology Group (WTG) Foundry Precision Instruments

The group focuses on the research & development of engineering applications for the potential business opportunities being pursued by the Company

Operates a grey and ductile iron foundry with capability to handle highly intricate castings for specialized applications Key business focus on wind mill, industrial machinery, automotive and oil & gas sectors Range of products include casting in grey cast & ductile iron, castings for manufacture of automotive dies etc. Ability to handle single piece weight of 13 tonnes of grey cast iron and 8 tonnes of ductile iron

Manufacturer of precision instruments such as pressure gauges, temperature gauges, sector mechanisms etc.

Employs 70 professionals qualified engineers in several disciplines of engineering

Key industry focus on automotive, wide range of process industry, power projects etc.

Provides comprehensive Design and Engineering services several fields such as Nuclear Power, Aerospace, Thermal, Non-conventional Energy etc.

Used in variety of industrial applications such as CNG kits, refineries, air-conditioning, refrigeration equipment etc

Office and Plant Locations

Details of offices and plant locations Registered Office- Mumbai Oil and Gas Division- Navi Mumbai Regional Offices- Delhi, Kolkata, Hyderabad and Chennai Precision Instruments Division- Dharwad Foundry- Satara Marketing & Projects Office- Pune Walchand Technology Group- Pune Heavy Engineering Manufacturing Plant- Walchandnagar
Karnataka Maharashtra Andhra Pradesh West Bengal Delhi

Tamil Nadu

WILs manufacturing facilities are based out of Mahrashtra and Karnataka... Presence in key cities through its regional and marketing offices
10

Select Facilities at Walchandnagar Plant

Key Highlights
Area under crane: 56,000 sq mtr Fully equipped with modern manufacturing facilities- CNC horizontal and vertical boring machines with multi axis control, lathes, milling machines, gear cutting & grinding machines etc Sophisticated Automatic Welding Systems capable of precision welding of exotic materials Dust Free Halls for critical assembly and precision welding related to Aerospace, Defence and Nuclear equipment Large sized Furnaces with Data Acquisition Systems Optical tooling & measuring instruments for precision measurements Material handling capacity upto 150 tonnes
Large capacity turning facility Heavy machine shop area

Birds eye view of Walchandnagar Plant

Select facilities

Heavy equipment fabrication area

Heavy duty vertical boring machine

11

Select Business Achievements of WIL

Independent power project based on municipal solid waste in India Amongst the first few exporters of a complete cement plant Indigenously built sugar project in India way back in 1960s Amongst the first few exporters of sugar machinery and complete turnkey project from India

Manufacturer of
Critical components for nuclear reactor Main gear boxes for Indian built navy frigates Components for satellite launch vehicle for ISRO Critical components for 235MWE and 500 MWE nuclear power project One of the largest optical telescope in India Major critical components for Indias first mission to moon CHANDRAYAAN Critical core components for INS ARIHANT Indias first nuclear submarine

12

Recognition and Accreditations

Technology Absorption Award From Govt. of India

Indian Nuclear Society Industrial Excellence Award for the year 2006

Best Performance In Exports on Number of Occasions

Excellent Employee Relation Award from Govt. of Maharashtra

13

Corporate Social Responsibility (CSR) Practices by WIL

CSR activities practiced by WIL way back since 1934
The Walchandnagar Township Named after the founder, Walchandnagar is a well designed township having all civic amenities Spread over 157 acres of land which includes 50 acres of factory area A cosmopolitan set-up with a population of approx. 15,000 Well established infrastructure Runs primary schools in each Agriculture Estate and a high school established in Walchandnagar A 70 bedded modern hospital Sports facilities Senior citizen park, children play park Banks/ATM centers etc.

WIL has initiated, implemented and actively practices many welfare activities for the society

14

Contents

WIL- An Overview

Key Highlights

Key Financial Information

Annexure - Select Turnkey EPC Projects Completed - Select Components Manufactured by SPD

WIL- Key Highlights

1 An end to end turnkey solutions providerability to provide manufacturing, engineering and construction services

2 Successful track record in Indian nuclear, defense and aerospacearea witnessing huge traction

Benefits of experienced management team

4 Execution strength & capabilities backed by marquee partnerships

3 Strong order book increased visibility and momentum for the future

16

1. An End to End Turnkey Solutions Provider

From Manufacturing From Manufacturing
Offers state of the art manufacturing facilities Ability to manufactures diverse range of products Industrial boilers, material handling equipments, critical and core equipment for aerospace, defense and nuclear power business, core equipment for cement plant,gear boxes etc. Total manpower of 1,866 managerial and skilled workers

To Design & Engineering To Design & Engineering

Offers complete in-house basic, manufacturing & detail engineering services Ability to provide process system design, plant layout design, analytical studies and system integration Over 370 qualified and experienced engineers

To Execution To Execution
Offer turnkey projects for independent power projects & cement plants sugar plants boilers and steam generating plants EPC projects for mining, bulk material handling, mineral processing, oil & gas sector Significant number of turnkey/semi turnkey/EPC projects completed

WILs presence in diversified yet synergistic businesses makes it a successful integrated turn key solutions provider

17

2. Successful Track Record in Indian Nuclear, Defense & Aerospace

Defense
Associated with the Ministry of Defense (GoI) for more than 35 years Major equipments include combustion chambers, missile casings, air booster casing static and mobile launchers, Karthik bridges etc. Supplied critical equipment for INS Arihant Indias 1st ever indigenously built nuclear submarine

Nuclear
Associated with the Department of Atomic Energy (GoI) for over four decades now Pioneer in the private sector to manufacture dump tanks, fuel magazines and moderator heat exchangers Supplies core equipment such as calendria, end shield, heat exchangers etc. for various nuclear power plants for 235 MWE and 500 MWE projects Recently awarded a EPC piping contract for a 700 MW power project by NPCIL

.....

Aerospace
Associated with ISRO for over three decades now Supplied certain critical components for ISROs Polar Sattellite Launch Vehicle and the 2008 Chandrayaan Mission, Indias maiden moon mission

Indian nuclear, defense & aerospace is witnessing huge tractionWIL plans to strengthen its position in the above high potential areas
18

3. Strong Order BookVisibility and Momentum for the Future

Growth in Order Book (INR mn) over the years
CAGR (05-09): ~34%
12,195 10,000 9,687

Sept 09- Order Book Break Up (INR 14,632 mn)

14,632

Other Businesses 10%

SPD 27% Mfg. & EPC 63%

4,500

Sep-05

Sep-06

Sep-07

Sep-08

Sep-09

WILs execution strength and capabilities have resulted in continued growth in order book Consistency in providing quality outputvalidated by zero cancellations of orders in the last two years Focus on strengthening its ability to bid for larger sized power and cement projects Focus on garnering larger market share in defense, nuclear and aerospace segmentspotential high growth areas

WILs strong order book with a average tenure of 18-20 months...an assuarnace for future revenue growth

19

4. Strong Execution Capabilities Backed by Marquee Partnerships

Engineering Capabilities Ability to provide designing, detail engineering to system integration variety of design softwares available Over 370 experienced engineers and technical staff Manufacturing Capabilities Fully equipped modern manufacturing facilities at Walchandnagarability to manufacture diverse range of products, handle variety of raw material and capability in precision welding, fabrication and machining Boilers, material handling equipments, gear boxes, core & critical equipments for special products and cement businesses Project Management Capabilities Project manager for every project Well versed in modern project management tools Large support base of prequalified partners Construction Management Capabilities Dedicated separate in-house construction management team qualified engineers in the field of mechanical, electrical, instrumentation Completed large number of projects on turnkey/ semi turn key / EPC basis Foster Wheeler North America Corporation Technology relating to manufacture of high pressure steam boilers Continental Crushing and Conveying Inc Technical assistance in mining and bulk crushing related activities

Select Technology Partnerships...

A-Tec Production Services GmBH Products and services relating to the cement industry

Magotteaux International Technical assistance mining, cement and other related engineering activities

WIL leverages its inhouse core skill sets and competencies, supported by marquee global partnerships, to address a wider section of industry and end applications
20

5. Key Management Team - Strengths and Accomplishments

Holds M.S. in Operations research & Industrial Engineering from U.S.A

Chakor L. Doshi Chairman

Renders valuable advise to the company in the matters of strategic planning, organisation building, new business initiatives etc. Holds the position of chairman since 1998 before that he has served as MD of the company for 10 years. Holds board position in other Indian public limited companies and private limited companies Holds B.A (Economics) from University of Michigan, USA and M.B.A. from INSEAD Institute Paris

Chirag C. Doshi Managing Director

Managing Director of WIL since November 25,2007. Extensively worked on various growth initiatives, business development and exploring new business ventures for WIL Holds a bachelor of Engineering (Mechanical) Joined WIL in 2004 as executive director and currently serves as MD & CEO of the company. Worked for more than 30 years at Cummins India Ltd, with long stint on various board positions including Managing Director Qualifications include BCom and CA

J. L. Deshmukh Managing Director & CEO

V. R. Joshi Chief Financial Officer

Worked in several companies such as Bharat Forge Ltd., DGP Hinoday Industries Ltd. Track record of raising significant funds through domestic & international sources, Mergers & Acquisitions, Investments & Foreign Exchange risk management

The Corporate management is supported by a strong team involving professionals with long standing experience in several fields
21

Strategy Going forward

Leverage core strength to address wider cross section of industry and end application

Focus on attaining prominence in EPC

Continuous up gradation in skill sets in technology, project management and people capability Move up the value chain in offering: High pressure boilers and large turnkey plants Large capacity cement plants

WIL is already a recognized supplier of core nuclear power equipment

Deeper engagement in Nuclear Power Business

Nuclear power segment has significant potential growth opportunities India is expected to increase nuclear energy collaboration with US and other countries Leverage the present position to strengthen future growth

Building Engineering Excellence

Establishment of WTG, a dedicated engineering centre with 70 qualified engineers in diverse applications Focus on research in engineering field for existing and potential business areas being pursued by the company

22

Contents

WIL- An Overview

Key Highlights

Key Financial Information

Annexure - Select Turnkey EPC Projects Completed - Select Components Manufactured by SPD

Financial Performance Over The Years

Total Income (INR mn) EBITDA (INR mn) & EBITDA Margins (%)
EBITDA % Growth

CAGR (FY05-09): ~19%

6,374

7,002 5,249

CAGR (FY05-09): ~35%

722 634 529

3,601 2,615
6.0%

7.6%

273

9.9%

10.3%

10.1%

157

Sep-05

Sep-06

Sep-07

Sep-08

Sep-09

Sep-05

Sep-06

Sep-07
(1)

Sep-08

Sep-09

PAT (INR mn) & PAT Margins (%)

PAT % Growth 398

Networth (INR mn) & D/E (x)

Networth

D/E (x) 2,100 2,291

CAGR (FY05-09): ~32%

356

2.9%

3.7%

5.6%

5.7%

234
4.4%

803 921
0.3

1,292
0.4 0.2

0.5

133

77

0.4

Sep-05

Sep-06

Sep-07

Sep-08

Sep-09

Sep-05

Sep-06

Sep-07

Sep-08

Sep-09

(1) Networth excluding revaluation reserve at the end of each year; D/E ratio calculated from the networth excluding revaluation reserve

Note: WIL follows September year end

24

Financial Year 2009 in Retrospect

Sept 09 A mixed bag for WIL
First half affected by global recessionary pressures Challenges faced by WIL owing to tough macro-economic situation, Slow inflow of new orders Delays in technical clearances from the customers Delays in commercial clearances from the customers As a result, the company witnessed contraction in sales & profitability compared to the previous year
1,009
8.9% 3.3%

Focus on improving quarterly performance

Total Income (INR mn) EBITDA (%) 1,612 1,188
10.1% 4.0% 9.4% 4.7% 11.6%

PAT (%)

1,451

5.3%

Yet a year of strong order book for WIL Second half did set out signs of gradual recovery and positive outlook WIL managed to leverage upon the same and therefore secured some marquee and significant orders Won the 1st EPC contract in the prestigious petrochemical sector with the oil PSU Won the 1st high tech piping contract for the Nuclear Power Sector on EPC basis Overall order flow from Aerospace, Defense, and Nuclear Power segment remained strong In spite of the delays in the commencement of the project there were no cancellations, leading to a healthier order book for FY10

Q1 Dec 08

Q2 Mar 09

Q3 Jun 09

Q4 Sept 09

Action Steps to Mitigate Risk & Improve Performance

Focus on building a diversified yet synergistic business profile by leveraging core strength of WIL

Increase portfolio of offerings by entering into technical collaborations which enable offering larger capacity projects

Constant up-gradation of essential skill sets such as technology, manufacturing capability, Project Management capability

25

5 Year Financial Summary

Key P&L Items (INR mn)
Particulars Total Income EBITDA % to sales Interest Depreciation PBT % to sales PAT % to sales Sept 05 2,615 157 6.0% 18 29 110 4.2% 77 2.9% Sept 06 3,601 273 7.6% 22 38 213 5.9% 133 3.7% Sept 07 6,374 634 9.9% 30 55 549 8.6% 356 5.6% Sept 08 7,002 722 10.3% 46 71 605 8.6% 398 5.7% Sept 09 5,249 529 10.1% 70 105 354 6.7% 234 4.4%

Key Balance Sheet Items (INR mn)

Particulars Liabilities Networth Networth excl. revaluation reserve Total Debt Assets Net Fixed Assets* Cash & Bank Balances
* Including capital WIP

Sept 05

Sept 06

Sept 07

Sept 08

Sept 09

1,960 803 363

1,983 921 296

2,279 1,292 260

4,219 2,100 883

4,272 2,291 1,250

1,495 117

1,580 479

1,738 276

3,196 105

3,431 415
26

Contents

WIL- An Overview

Key Highlights

Key Financial Information

Annexure - Select Turnkey EPC Projects Completed - Select Components Manufactured by SPD

Select Turnkey EPC Projects completed by WIL

Kager Sugar Ltd Tanzania- Sugar Plant Meghalaya Cements- Cement Plant

(1/2)

Vedanta Group- Zinc Roaster Plant

Gem Sugars- 5000 TPD Cane Sugar Plant

28

Select Turnkey EPC Projects completed by WIL

15 MW Cogen Plant 6.6 MW Municipal Waste Power Plant

(2/2)

Waste Heat Recovery Boilers

25 MW Biomass Power Plant

Back
29

Select Equipments Manufactured by SPD

Gearbox for Corvettes Gearbox for LST (L)

(1/2)
Core Support Structure for 500MWe PFBR

Nuclear Fabrication- End Shield

Calandria for 500MWe projects

Intermediate Heat Exchanger

30

Select Equipments Manufactured by SPD

Manufacture of space launch vehicle support material by WIL..

(2/2)

SLV-3

PSLV-C2: End segment and nozzle manufactured

Back
31

Thank You !