THE SANMAR GROUP

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THE SANMAR GROUP
Where Integrity Meets Excellence
April 2007
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Group Overview
3- 17
Business Overview
18 - 29
Contents
Corporate Social Responsibility
30 - 31
Strengths
32-33
Our Vision Combining integrity with excellence
to ensure prosperity to all stakeholders
on a continuous basis
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The Sanmar Group
Group Overview
Sanmar Engineering Corporation Ltd
Chemplast Sanmar LtdTrust Chemical Industries
Asco (India) LtdBSB Safety Systems (India)
LtdFisher Sanmar LtdFlowserve Sanmar LtdSanmar
Engineering Services LtdSanmar Foundries
LtdTyco Sanmar LtdVishay Sanmar LtdXomox
Sanmar Ltd
Sanmar Speciality Chemicals Ltd
Eisenwerk Erla GmbH
Performance Chemicals Intec Polymers ProCitius
Research Bangalore Genei
Sanmar Shipping Ltd
Cabot Sanmar Ltd
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The Sanmar Group
Group Overview
PVC Caustic Soda Chlorinated Solvents Chlorofluo
rocarbons Piping Systems
PVC Pipes Conduits
Chlorochemicals
Silicon Wafers
Fumed Silica
Advanced Organic Intermediates and
Phytochemicals Wire Enamels, Varnishes and
Related Chemicals Contract Research and Custom
Synthesis Biotechnology Products
Speciality Chemicals
Mechanical Seals Accessories Control
Valves Isolation valves Actuators Rupture Disks
Industrial Regulators Plug Valves Safety
Relief Valves Solenoid Valves Sand Investment
foundry Precision Load Cells Machine shop In
plant Maintenance Solutions
Engineering
Shipping
Product Tankers Chemical Tankers Panamax Bulk
Carrier
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Success Drivers
Group Overview

• Three philosophies that define the Groups
  fundamentals
• Management Philosophy
• Ethics Philosophy
• People Philosophy

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Management Philosophy
Group Overview

• Set of core values Drives all our actions and
  policies Followed at all times
• Binds us together as a Group
• Spirit more important than the letter of policies
• Easy to comprehend, flexible
• Influences people policies, decision-making,
  accountability, ethical values, communication
  process, etc.

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Management Philosophy
Group Overview

• Ownership and management separated
• Broad based Group Corporate Board to oversee all
  businesses at a strategic, policy-making level
• Businesses fully delegated to professional
  managing directors
• Financially well-structured, conservatively
  leveraged, no cross holdings

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Management Philosophy
Group Overview
Good Corporate Governance
Group Corporate Board Independent Group Corporate
Board, an apex body, comprising of internal and
external directors
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Management Philosophy
Group Overview
The Driving Force
K S Narayanan Chairman Emeritus
N Sankar Chairman
N Kumar Vice Chairman
Vijay Sankar Deputy Chairman
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Ethics Philosophy
Group Overview
Ethics Philosophy defined by ethical policies for
the entire organisation

• Ethics manual developed in consultation with the
  ethics practice of KPMG
• Reflects Sanmar culture in day-to-day operations
  How we do things here Why we do what we do
  What we do not do around here
• Ombudsman appointed as a reference point for
  ethical issues

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People Philosophy
Group Overview

• Fair, impartial, transparent policies
• Only performance, potential and criticality count
  No nepotismTotally cash based compensation, no
  hidden perks
• A culture of performance excellence
• Transparent Performance Management System that is
  wholly IT driven

Fair rating system based on Performance, Review
Dialogue
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People Philosophy
Group Overview

• Leading edge HR practices
• Many HR practices are ERP driven
• Ability to attract and retain best of talent
• Intellectual capital strength of about 1250
  professionals
• Total employee strength of about 2500
• Training employee engagement

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JV Philosophy
Group Overview
Over three decades of successful JV
relationships with world leaders

• Fair and consistent dealings with JV partners
• System based on trust and transparency
• Exemplary respect for Intellectual Property
  Rights (IPR)
• Clear agreement on the way the joint venture will
  be managed
• Over 250 man years of successful JV relationships
  with world leaders
• Global outlook and high level of cross-border
  transactions

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JV Philosophy
Group Overview
Chairman N Sankar on joint venture relationships
Both partners should appreciate the need for the
joint venture They must accept that their gains
will flow only from the gains of the joint
venture The partners should clearly agree on
the way the joint venture will be managed Both
of them must work towards a system based on trust
and transparency
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JV Philosophy
Group Overview
Over three decades of successful JV relationships
with world leaders
Products/ Services
JV Partners
No.
Solenoid valves
Automatic Switch Co., USA (Subsidiary of Emerson)
1.
BSB Safety Systems LLC, USA
2.
Rupture disks
Fumed silica
Cabot Corporation, USA
3.
4.
Control valves Regulators
Fisher Controls International LLC, USA
(Subsidiary of Emerson)
Mechanical seals
5.
Flowserve Corporation, USA
Safety relief valves
6.
Tyco International Ltd., USA
Precision load cells
Vishay Transducers Ltd., USA
7.
Valves and actuators
Xomox Corporation, USA (Subsidiary of Crane Co.)
8.
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Financial Outlook
Group Overview
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Financial Outlook
Group Overview
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Turnover Rs. 6995 million(US 157 m)
Chemplast Sanmar Ltd
Group Overview
Products
Resin Suspension, Paste grade, Battery separator
Copolymer
PVC
Trubore Pipes Conduits
Pipes
Caustic chlor Caustic soda, chlorine Metkem
Silicon Silicon Wafers Mettron Refrigerant
Gases Solvents Chloroform, TCE
Chlorochemicals
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Chemplast Sanmar Ltd
PVC Division Highly Flexible Production Process
Business Overview
Sugar
PVC
Purchased Alcohol
Imported Ethylene
Industrial Alcohol unit
Molasses
Ethyl
Ethylene unit
Ethylene
Chlorine/HCL
Imported EDC
Imported VCM
Direct chlorination unit
PVC Resin
EDC
VCM
Oxy chlorination unit
Advantage for Chemplast Feedstock flexibility
and synergy
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Chemplast Sanmar Ltd
Chlorochemicals Highly Integrated Production
Process
Business Overview
Salt
Silicon
Methanol
Chloromethanes
AHF
Refrigerant gases
MG Silicon
Calcium Carbide
Trichloroethylene
Silicon Tetra Chloride
Division
Alcohol
Chlorine
Ethyl Silicate
Solvents
Mettron
Metkem Silicon
Extensive Feedstock Integration- Salt, Power
Chlorine
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Trust Chemical Industries, Egypt
Business Overview
Products
VCM
Chlorochemicals
PVC
EDC
Overseas acquisition for vertical integration and
scale up of operations Strategic location giving
easy access to Asia, Africa and Europe EDC, VCM
and PVC manufacturing facility
under implementation Makes the Groups
PVC business fully
integrated, cost-competitive and positioned
within the worlds top 20

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Turnover Rs 5076
m(US 114 m)
Sanmar Engineering Corporation Ltd
Business Overview
A SANMAR CONSTITUENT
Constituents
Product Range
Applications
A synergistically integrated group of
engineering companies
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Sanmar Engineering Corporation Ltd
Business Overview
A SANMAR CONSTITUENT
JVs
Niche markets for critical process equipment and
systems and value added services Strategic
player in the global supply chain of JV
partners Focus on operational excellence
initiatives such as 5S, LEAN SIX SIGMA
Backward integration through an in-house
foundry Strong presence in national and
international markets High level of employee and
customer engagement
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Turnover Rs 4332
m(US 96 m)
Eisenwerk Erla GmbH, Germany
Business Overview
A SANMAR CONSTITUENT
Acquired modern foundry in Germany Products
High-end alloy castings used in the manufacture
of turbo charger housing and integrated manifold
castings Application Automobile ancillary and
refrigeration and air-conditioning
equipment Customer Base Borg Warner, IHI,
Audi/VW Group, BMW, Daimler Chrysler, Honeywell,
MAN, MTU, Liebherr, Luk Advantage R D base,
abundant technological skills, customer proximity
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Turnover Rs. 1190 m(US 27 m)
Sanmar Speciality Chemicals Ltd
Business Overview
A SANMAR CONSTITUENT

• Certifications across divisions
• Conformation to cGMP stds
• ISO 9001-2000
• ISO 14001 for EMS
• OSHAS Certification

• State of the art facilities
• Qualified talent pool

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Sanmar Speciality Chemicals Ltd
Business Overview
A SANMAR CONSTITUENT
Intec Polymers
Wire enamels impregnating varnishes chemicals
Polyvinyl formal polymers, Polyisocyanates,
Organic titanates
ProCitius Research
Contract Research Services Custom Synthesis
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Sanmar Speciality Chemicals Ltd
Business Overview
A SANMAR CONSTITUENT
Bangalore Genei
Performance Chemicals
Custom Services Tools for Proteomic
Research Biotech Research Instruments Biotech
Educational Products Reagents for DNA
Diagnosis Tools for Genomic Research
Chemicals for flavours and fragrances Resins,
polymers and elastomers Intermediates for
pharmaceuticals Phytochemical products
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Turnover Rs. 275 million(US 6 m)
Cabot Sanmar Ltd
Business Overview
A SANMAR JV

• A JV between Cabot Corporation of USA and the
  Sanmar Group
• Manufactures and markets Fumed Silica under the
  brand name of Cab-O-Sil
• First only manufacturer of the product outside
  USA, UK, Germany and Japan

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Turnover Rs 1377 m(US 31 m)
Sanmar Shipping Ltd
Business Overview
A SANMAR CONSTITUENT

• Strategic focus on clean product tanker segment
• The only operator in the chemical tanker segment
  in India
• Modern fleet of 2 MR tankers, a chemical tanker
  and a Panamax bulk carrier
• Associated shipping pool - TORM and Torvald
  Klaveness groups Baumarine pool
• Clientele - Exxon, Mobil, Shell, Chevron-Texaco,
  Total, Indian Oil, Reliance Petroleum, BP and
  others

• Quality and Safety Standards
• Compliance to ISM standards for safety, quality
  and ISPS
• ISO 9000, 18000, OSHAS, TMSA certifications
  underway

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The Sanmar Group
Corporate Social Responsibility
30
31
The Sanmar Group
Corporate Social Responsibility
31
32
The Sanmar Group
Strengths
32
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The Sanmar Group
Strengths
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The Sanmar Group
Where Integrity Meets Excellence
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