JBF Industries LTD: Detailed Report

JBF Industries Ltd
Detailed Report
Enhancing investment decisions
Explanation of CRISIL Fundamental and Valuation (CFV) matrix

The CFV Matrix (CRISIL Fundamental and Valuation Matrix) addresses the two important analysis of an investment making process Analysis of Fundamentals (addressed through Fundamental Grade) and Analysis of Returns (Valuation Grade) The fundamental grade is assigned on a five-point scale from grade 5 (indicating Excellent fundamentals) to grade 1 (Poor fundamentals) The valuation grade is assigned on a five-point scale from grade 5 (indicating strong upside from the current market price (CMP)) to grade 1 (strong downside from the CMP).
CRISIL Fundamental Grade

5/5 4/5 3/5 2/5 1/5
Assessment
Excellent fundamentals Superior fundamentals Good fundamentals Moderate fundamentals Poor fundamentals
CRISIL Valuation Grade

5/5 4/5 3/5 2/5 1/5
Assessment
Strong upside (>25% from CMP) Upside (10-25% from CMP) Align (+-10% from CMP) Downside (negative 10-25% from CMP) Strong downside (<-25% from CMP)
Analyst Disclosure
Each member of the team involved in the preparation of the grading report, hereby affirms that there exists no conflict of interest that can bias the grading recommendation of the company.
Disclaimer:
This Company-commissioned Report (Report) is based on data publicly available or from sources considered reliable by CRISIL (Data). However, CRISIL does not guarantee the accuracy, adequacy or completeness of the Data / Report and is not responsible for any errors or omissions or for the results obtained from the use of Data / Report. The Data / Report are subject to change without any prior notice. Opinions expressed herein are our current opinions as on the date of this Report. Nothing in this Report constitutes investment, legal, accounting or tax advice or any solicitation, whatsoever. The Report is not a recommendation to buy / sell or hold any securities of the Company. CRISIL especially states that it has no financial liability, whatsoever, to the subscribers / users of this Report. This Report is for the personal information only of the authorized recipient in India only. This Report should not be reproduced or redistributed or communicated directly or indirectly in any form to any other person especially outside India or published or copied in whole or in part, for any purpose.
CRISIL Limited. All Rights Reserved.
Polaris Software Limited JBF Industries Ltd Business momentum remains intact
Going backward to move forward
Fundamental Grade Valuation Grade Industry 4/5 (Strong fundamentals) 3/5 (Good fundamentals) 5/5 (CMP has strong upside) Information technology Chemicals
July 11, 2011

Fair Value Rs 229 CMP Rs 162
CFV MATRIX
Excellent Fundamentals
Fundamental Grade
JBF Industries (JBF) is amongst the largest polyester chip manufacturers in the world with a capacity of around 1 million tonnes per annum, catering to polyester filament and bottle manufacturers. The location of its plants gives it easy access to raw material suppliers and end consumers, thereby making it cost competitive. We maintain our fundamental grade of 3/5, indicating that its fundamentals are good relative to other listed securities in India. After forward integration, JBF planning to go backward The company expanded its chip capacity in India to 550,800 tpa in FY09 from 216,000 tpa. As a de-risking strategy, the company has forward integrated into filament yarn manufacturing and is using its own chip capacity for the same. JBF is now planning to set up a purified terephthalic acid (PTA) plant of 1.12 mn tonnes per annum in Mangalore SEZ by mid 2014. PTA is one of the major raw materials for polyester chip manufacturing; by FY15, output from this plant will suffice JBFs requirement of around 1 mn tonnes of PTA and will lead to better margins. UAE subsidiary to become a significant contributor to revenues JBF RAK LLC, the 100% UAE-based subsidiary, has a 1,100 tonne per day (tpd) polymerisation plant that produces bottle-grade PET chips (900 tpd) and polyester films (200 tpd). Its share in consolidated revenues rose to 45% in FY11 from 20% in FY08 on account of capacity additions in the chips and film segments; it is expected to remain the major contributor going forward, supported by the fast-growing Middle East market. Polyester demand to grow at 8-9%, competition to remain intense We expect demand for polyester to grow at a CAGR of 8-9% from FY11 to FY16, on account of rising per capita consumption of textiles and better competitiveness of polyester filament as compared to cotton yarn. However, the polyester market will also continue to witness intense price competition. Key risk price volatility and execution of PTA plant Volatility in raw material prices, intense competition, JBFs exposure to foreign exchange risk, and project execution risks are some of the concerns facing the company. Revenues to grow at 10%; margins to decline We expect JBFs top line to grow at a CAGR of 10%, from Rs 64.7 bn in FY11 to Rs 79 bn in FY13E. EBITDA margin rose to historical highs on account of higher realisation in polyester films. Going forward, we believe film prices will decline, and we expect EBITDA margin to return to sub 12% in FY12 and FY13. Valuation: Current market price has strong upside We have used the discounted cash flow method to value JBF and arrived at a fair value of Rs 229. At this value, the implied P/E multiples are 5.5 FY12E and 4.5 FY13E earnings.
5 4 3 2 1
Poor Fundamentals
Valuation Grade
Strong Downside Strong Upside
KEY STOCK STATISTICS

NIFTY/SENSEX NSE/BSE ticker Face Value (Rs per share) Shares outstanding (mn) Market cap (Rs mn)/(US$ mn) 52-week range (Rs) (H/L) Beta Free float (%) Avg daily volumes (30-days) 5616 / 18721 JBFIND 10 71.5 11,651/ 263 201 / 152 1.14 58.8% 121,044
Enterprise value (Rs mn) /(US$ mn) 28,360 /640
SHAREHOLDING PATTERN
100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Jun-10 Promoter Sep-10 FII Dec-10 DII Mar-11 Others 47.5% 41.5% 41.3% 41.2% 5.7% 1.3% 13.0% 8.4% 18.5% 10.0% 17.9% 10.5% 45.5% 37.1% 30.3% 30.4%
KEY FORECAST
(Rs mn) Operating income EBITDA Adj Net income Adj EPS-Rs EPS growth (%) Dividend yield (%) RoCE(%) RoE(%) PE (x) P/BV (x) EV/EBITDA (x) FY09 43,119 5,316 2,202 35.4 67.3 4.4 22.1 21.7 3.7 0.7 3.7 FY10 49,369 4,721 1,346 21.6 (29.4) 3.0 14.3 11.5 10.8 1.2 5.7 FY11# 64,704 9,578 5,454 76.2 211.3 4.9 27.7 40.3 2.1 0.8 3.0 FY12E 71,290 7,829 2,983 41.7 (45.3) 4.9 17.2 18.7 3.9 0.7 4.0 FY13E 78,832 9,013 3,699 51.7 24.0 5.4 16.6 19.8 3.2 0.6 4.3
PERFORMANCE VIS--VIS MARKET

Returns 1-m JBF NIFTY -3% 2% 3-m -10% -3% 6-m -12% -4% 12-m 15% 7%
ANALYTICAL CONTACT
Sudhir Nair (Head) Arun Vasu Vinay Chhawchharia snair@crisil.com avasu@crisil.com vchhawchharia@crisil.com
Client servicing desk +91 22 3342 3561 clientservicing@crisil.com
#- based on abridged financial Source: Company, CRISIL Equities estimate CRISIL Limited. All Rights Reserved.
CRISIL EQUITIES | 1
JBF Industries Ltd

Table 1: Overview of business segments
Bottle & Fibre grade chips Product / Segment Revenue contribution (FY11) Revenue contribution (FY13) Product / service offering The product range includes semi dull, bright, semi bright, and cationic dyeable chips. After captive consumption for POY, the remaining 35% is bottle grade and 65% is fibre grade chips JBF has flexibility to convert some portion of its fibre grade capacity into film grade capacity Geographic presence Bottle grade chips - domestic (50%) and export (50%) Fibre grade chips - domestic supplying to small players in and around Silvassa Majority of revenue comes from domestic market. Supply POY to texturiser in and around Silvassa and Surat region 70% is sold in the spot (Gulf Cooperation Council) countries. 30% sold on contract basis to established clients such as Coca- Cola, Pepsi, and Nestle, on a fixed-margin basis. Market position Largest player in fibre grade Ranks among the top chips in India five POY manufacturers Third largest player in bottle Also has marginal grade chips in India presence in value added products like FDY and dyed yarn Industry growth expectations Domestic bottle grade chips demand to grow at healthy rate over next 2-3 years. Polyester filament will be a leading demand driver for fibre grade chips Sales growth (FY09-FY11 2-yr CAGR) Sales forecast (FY11-FY13 2-yr CAGR) Demand drivers Demand for bottle grade chips Demand from RMG, to grow owing to growth in FMCG sector. Demand for POY will lead to demand for fibre grade chips Margin drivers Close to end user market of raw material Key competitors and global manufacturers of chips and films Source: Company, CRISIL Equities CRISIL Limited. All Rights Reserved. CRISIL EQUITIES | 2 home textile and technical textile in domestic as well as export markets The Middle East and Africa Volume growth in are fast- growing markets packaging industry for bottle-grade chips, where company has a presence Close to end user market Tax benefit 20% 7% 6% 4% 17% 24% CRISIL Equities expects POY demand to grow at a CAGR of 8-9% from FY11 to FY16 Global bottle grade chips demand to grow at 5-6% over next 2-3 years. Demand from Middle East and African countries to grow at faster pace. 3% One of the largest players JBF is a small player in the UAE market; however, in global context, JBF is a small player in bottle grade chips segment in the polyester film industry To add 36,000 tpa in this fiscal taking total capacity to 0.1 mn tonnes per annum Demand for polyester film to rise, as it finds application in newer areas like solar panel, LCD panel, flexible packaging 215% EU countries and market, mainly to the GCC Middle East 45% of the chips produced is used for captive consumption for producing POY. POY is supplied to small independent texturiser in and around Silvassa region Supply bottle-grade pet chips, which is mainly used for manufacturing packaged water and soft drinks bottles. Thick films and commodity film. Currently 70% of the revenue comes from commodity films 34% 24% 26% 16% India 29% POY - India 25% Bottle grade chips UAE 28% Polyester filmsUAE 18%
Close proximity to port, resulting in lower logistic cost Abundant raw material availability Reliance Industries, Indo Rama Synthetic Limited, Alok Industries, Dhunseri Petrochem and Tea Ltd
JBF Industries Ltd

Grading Rationale
One of the largest chip manufacturers
JBF Industries (JBF) is one of the largest polyester chip manufacturers with capacity of 955,300 tpa (India and UAE combined) in FY11. JBF manufactures different varieties of chips like textile, bottle, film and specialty grades. Of the total capacity, 60% is produced in India and the rest through its UAE subsidiary. JBFs revenue has grown at a three year CAGR of 32% from Rs. 29 bn in FY08 to Rs. 64.7 bn in FY11.
Figure 1: Segmental snapshot of JBF

JBF
India
UAE
Bottle Grade Chips(110,000 tonnes)
Polyester Grade Chips(455,300 tonnes)
Bottle Grade Chips(390,000 tonnes)
220,000 tonnes sold in external market
235,300 tonnes consumed internally for POY
324,000 tonnes sold in external market
66,000 tonnes consumed internally for films
Source: Company, CRISIL Equities
Figure 2: Revenue mix

100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% FY08 Polyester chips POY FY09 FY10 Bottle grade chips FY11 Polyester Film 12,751 14,349 16,029 19,623 11,058 11,359 17,077 10,353 5,860 17,961 1,176 4,579 11,700
17,905
18,925
CRISIL EQUITIES | 3
JBF Industries Ltd

JBF leads the domestic chip market with over 30% share
JBF is the leader in the domestic chip market, with over 30% market share by volume. JBF has expanded its chip capacity from 118,800 in FY05 to 334,800 tpa in FY08 to 565,300 tpa in FY11. Of the total capacity, around 80% is fibre grade chips and the remaining is bottle grade chips. JBF is carrying out debottlenecking of its continuous polymerisation plant, which is expected to increase capacity by around 60,000 tpa, taking total chip capacity to 626,000 tpa.
JBFs easy access to raw material and end consumers make it cost competitive
Figure 3: Trend in chip capacity and utilisation rates

(Tonnes) 600,000 500,000 73 400,000 300,000 200,000 334,800 100,000 0 FY07 Capacity FY08 FY09 FY10 FY11 334,800 73 102 86 78 (%) 110 100 90 80 70 60 550,800 550,800 565,300 50 40 30 20 10 0
Capacity Utilisation (RHS)
Source: Company, CRISIL Equities JBF is the largest manufacturer of textile (fibre) grade chips in India with a capacity of around 455,300 tpa. The company utilises a portion of fibre grade chips as raw material for its own POY production, and surplus chips are sold to small POY manufacturers. Out of the total fibre grade chips capacity, 235,320 tpa is used in-house for manufacturing partially oriented yarn (POY), fully drawn yarn (FDY) and other speciality yarn. The remaining is sold to small POY manufacturers, in and around Silvassa and Vapi, who buy chips to extrude filament (as a continuous polymerisation plant for manufacturing POY is very capital intensive). JBF also has the flexibility of switching between fibre and film grade chips manufacturing, depending upon the demand-supply of fibre and film grade chips.
Table 2: Domestic fibre chip players

JBF Industries Chip Chip capacity Chip production Capacity utilisation Tonnes Tonnes % 455,300 378,400 86 416,000 358,758 56 87,500 10,745 12 Garden Silk Mills Indo Rama Synthetics
Note: Numbers for JBF are adjusted for bottle grade chips JBF, IRSL numbers are for FY11 and Garden Silk is for FY10. Source: Company, CRISIL Equities estimate CRISIL Limited. All Rights Reserved. CRISIL EQUITIES | 4
JBF Industries Ltd

Forward integration into POY reduces dependence on chips market
In FY08, JBF sold 60% of its chips to the external market; however, with forward integration into POY and other yarn segments, it now sells less than 45% to the external market. Most standalone POY texturiser players around Silvassa and Vapi, having backward integrated from texturising into chip-based polyester making facilities, offer a ready consumer market to JBF to sell its textile-grade polyester chips. But in the past three-four years, bigger consumers like Alok Industries, Sumeet Industries, Bhilosa Industries, etc. have backward integrated into POY
Forward integration will increase internal consumption of chips, reducing dependence on the chip market
production through the continuous polymerisation method. JBFs major polyester chip clients, who accounted for 20-25% of the demand, have backward integrated, resulting in a contraction in polyester chips demand. However, in the past two years, JBF has also forward integrated to expand its POY capacity by 72,000 tpa. This forward integration thus largely de-risks it from depending on the external market. Further, JBFs flexibility to convert fibre grade chips to film grade chips, and export the same to its UAE facility for film production fortifies JBF against any risky exposure to the domestic chips market.
Bottle grade chips India

JBF is the third largest domestic player in bottle grade chip manufacturing with capacity of 110,000 tpa. The domestic and the export markets contribute equally to JBFs total revenue from bottle grade chips.
What is PET?
Figure 4: 3rd largest in domestic PET market

JBF 18%
PET (polyethylene terephthalate) is a clear, strong and lightweight engineering plastic belonging to the polyester family. PET has become the worlds packaging choice for many foods and beverages because of its distinct characteristics - hygienic, lightweight, unbreakable, non-reactive, economical and freshness-retentive.
Dhunseri 33% Reliance 49%
Source: Industry, CRISIL Equities
CRISIL EQUITIES | 5
JBF Industries Ltd

Robust domestic demand to drive growth
On the back of strong growth in end-user industries, especially the FMCG sector, and a preference for polyethylene terephthalate (PET) as packaging material has PET demand has increased by nearly 35% during FY05-FY10E. Indian packaging market is of about Rs 775 bn as of FY10; up uniformly by ~15% yoy in the past five years. Despite a steep rise in consumption, Indias per capita PET consumption is very low at 0.3 kg compared to the global average of ~2 kg, which leaves tremendous room for further growth.
Figure 5: Packaging industry drive PET demand

(000 mt) 300 250 200 150 30% 100 24% 50 61 FY05 FY06 FY07 FY08 FY09 FY10E 99 123 20% 147 221 24% 274 0% 20% 10% 62% 50% 50% 40% 70% 60%
Figure 6: Market segments for PET chips in India

Others, 9% Personnel Care, 5% Liquor, 20%
Pesticide, 7%
FMCG, 26%
Pharma, 20%
Domestic demand
Growth y-o-y% (RHS)
Edible Oil, 13%
MT: Metric tonnes Source: Industry, CRISIL Equities Source: Industry, CRISIL Equities
Partially oriented yarn close to consuming market

JBF expanded its POY capacity from 163,200 in FY08 to 235,320 tpa in FY11. Production from this capacity is sold to texturisers who convert them into texturised yarn (DTY). This yarn is largely used in shirts, suits, saris, womens dress materials and knitwear. The texturising industry is fragmented, with Bhiwandi, Silvassa, Daman and Surat being the major texturising centres. Silvassa has a large number of texturising units, since the government had offered a 15-year sales tax holiday and cash subsidies for units set up in this region during 1984-1998. Thus, JBF benefits from its presence in the Silvassa region. The POY segment is dominated by Reliance Industries Ltd with 40% of the domestic installed capacity, followed by Indo Rama Synthetics. JBF is among the top five players with 8% of the market share in terms of capacity (235,320 tpa in FY11).
JBFs presence in Silvassa makes it readily accessible to the POY market
CRISIL EQUITIES | 6
JBF Industries Ltd

Figure 7: 3rd largest player in POY (by Capacity)
Reliance Industries Indo Rama Synthetics 822.725
Figure 8: Trend in POY capacity and utilisation rates

(Tonnes)
250,000 92% 79% 80% 93% 93% 95% 99% 120% 100%
259
200,000
JBF Industries
235.32
150,000 60% 100,000 40%
Alok Industries
200
150,000
163,200
163,200
201,200
235,320
50,000 Garden Silk Mills 162.45 0 0 200 400 600 800 1,000
235,320
20% 0%
FY07
FY08
FY09
FY10
FY11
FY12P
(000' tonnes)
Capacity
JBF also has a presence in the fully-drawn yarn segment (FDY) following its acquisition of Microsynth Fabrics (India) Ltd and speciality yarn; however, this segment contributes less than 3% to revenue.
Polyester demand domestic market
to
accelerate,
mainly
supported
by
Growth in POY demand will be mainly supported by the domestic market. CRISIL Equities expects POY demand (domestic and derived) will grow at a CAGR of 8-9% from FY11 to FY16, higher than previous five years CAGR of 5.2% (FY06 to FY11), mainly driven by:
Price competitiveness as compared to spun yarn Overall growth in domestic textile consumption
The delta between cotton yarn and polyester yarn increased from Rs 25 per kg in FY05 to Rs 60 per kg in FY10 and then to Rs 90 per kg in FY11. We expect this gap to remain in FY12 and FY13. This gap between polyester and cotton yarn prices will enhance the price competitiveness of polyester, leading to better growth of the same. CRISIL Equities expects the domestic textile (readymade garments and home textile) market to grow at a CAGR of 7-8% in the next two years (FY11 to FY13). Within the domestic market, growth will be led by rural markets. The growth in rural markets can be primarily attributed to rising rural incomes, and preference for cheaper fabric (100% non cotton fabric). This will support the demand for POY and fibre grade chips.
CRISIL EQUITIES | 7
JBF Industries Ltd

Figure 9: Demand for PFY to grow at healthy rate
(Mn Kg)
1,600 1,400 1,200 1,000
Figure 10: Trend in POY capacity and utilisation

(Mn.Kg)
2,600 2,400 2,200 67 70 76 77 73
(%)
80 75 70 65 60 55 50
1,342
1,281
1,327
1,377
1,456
800
1,560
2,000 1,800 1,600 1,400
400 200 0
1,041
600
1,073
1,162
2,029
1,350
2,058
1,435
2,058
1,564
2,225
1,689
2,572
1,824
1,200
45 40
FY-05
FY-06
FY-07
FY-08
FY-09
FY-10
FY-11
FY-12
FY-13
1,000 FY09 Capacity FY10 FY11 Production FY12 FY13 Op.rate (RHS)
Domestic & derived demand
Utilisation rates to remain stable in FY12

Utilisation rates of POY producers declined from 72% in FY08 for two consecutive years, before reviving to 76% in FY11. Improvement in utilisation rate was largely due to no capacity addition and healthy demand for polyester in the domestic market. Going forward, CRISIL Equities expects utilisation rate to improve marginally from FY11 levels, as no major capacity addition is expected and demand is expected to grow by 7-8%. Utilisation levels will fall to 73% in FY13 as capacity of around 350 mn kg is expected and demand grows by around 7-8%. However, JBF will continue to operate at a healthy rate of above 85% in FY12 and FY13 owing to close proximity to the end user market.
UAE subsidiary a key revenue contributor

The UAE subsidiary contributed nearly 45% to total revenues in FY11, and the trend is expected to continue. Around 60% of the total UAE revenue comes from bottle grade PET chips and the remaining from polyester films. We expect UAE operations will continue to be the key revenue contributor, and its share in total revenue will continue to remain over 40%. Within the UAE operation, bottle-grade chips will continue to dominate the revenue mix, while polyester films will see its share in the pie increasing. Share of films has grown from 6% in FY09 to 38% in FY11. At UAE, JBF has a bottle grade chips manufacturing capacity of 390,000 tpa and 66,240 tpa of polyester film capacity. JBF is planning to increase the capacity of bottle grade chips to 430,000 tpa and of polyester films to 102,200 tpa by FY12.
Table 3: Healthy utilisation rates in both segments

FY09 Bottle grade chips Capacity (tonnes) Utilisation rate Polyester films Capacity (tonnes) Utilisation rate Source: Company, CRISIL Equities 324,000 95.3% 60000 23% FY10 360,000 100.1% 66000 83% FY11 390,000 86.9% 66240 114%
CRISIL EQUITIES | 8
JBF Industries Ltd

JBFs enhanced focus on the Middle East market to boost bottle-grade chip volumes
JBFs UAE operation mainly focuses on bottle-grade chips. The demand for bottle- grade PET chips is mainly dependent on the demand for packaged water, soft drinks and other beverages. JBF is enhancing its capacity in this segment by 40,000 tpa in FY12 to reach 430,000 tpa. Around 30% of companys PET chip sales are on contract basis with established clients like Coca- Cola, Pepsi, Nestle, San Benedetto, Masafi, Al-Ain, etc. This is on a fixed-margin basis -- that is, the delta between the raw material price and the final product price is fixed. This allows the company to maintain its tolling margins; however, its bargaining power with clients is limited. The remaining 70% of PET chips are sold in the spot market, mainly to the GCC (Gulf Cooperation Council) countries, where the company has better pricing flexibility and hence, higher margins. In future, the company will focus on increasing the share of GCC in the sales mix, as it is a growing market and offers better pricing flexibility. The Middle East and Africa are fast-growing markets for bottle-grade chips, and are expected to grow at a CAGR of 10-12% from 2010 to 2015.
Middle East is a fast-growing market for bottle-grade PET chips
Figure 11: Operating rates to be firm post 2011

(MMT) 25 20 15 10 5 14 0 16 18 19 18 20 21 22 22 22 23 73% 82% 81% 79% 78% 75% 78% 76% 77% 77% 82% 84% 82% 80% 78% 76% 74% 72% 70% 68%
Figure 12: Global demand mix of bottle grade chips

North America 26% European Union 22%
Middle East/Africa 8%
2010E
2011E
2012E
2013E
2014E
2015E
2005
2006
2007
2008
2009
Global Capacity
Operating Rate (RHS)
Asia 29%
Central Europe 7%
South America 8%
Source: Industry
Source: Industry
PET is one of the fastest growing polyester applications, having logged a CAGR of 6% in the past five years. This holds out bright prospects for the PET resin industry catalysed by population growth, widening applications and the replacement of container/glass bottles. The long-term prospects of the PET resin industry appear upbeat owing to product convenience and characteristics. Over the next five years, global operating rates are expected to improve from an estimated 77% in 2010 to around 82% in 2015 though intermittent periods could see some excess supply.
CRISIL EQUITIES | 9
JBF Industries Ltd

Figure 13: PET chips capacity and utilisation
(Tonnes) 450,000 400,000 350,000 300,000 250,000 200,000 150,000 100,000 50,000 0 FY09 Capacity FY10 FY11 Capacity Utilisation (RHS) 324,000 360,000 390,000 95 100 87 (%) 100 90 80 70 60 50 40 30 20 10 0 Food containers, 28% Non-Food containers, 29%
Figure 14: Global end-user industry for PET

Other drinks, 24% Carbonated soft drinks, 19%
Source: Company, CRISIL Equities Estimate
Source: Industry
JBF has been operating at a healthy rate of above 95% for the past two years; however, this year, despite healthy demand, JBFs operating rates declined, owing to supply constraint in PTA - one of the major raw materials for manufacturing chips.
Polyester film finding wider applications

JBF started its UAE operation in FY09, with 60,000 MTPA of polyester films. Contribution from this segment has increased from 6% in FY09 to 38% in FY11. Demand for polyester films, largely due to their use for LCD panel and photovoltaic cells, was robust during the year, which resulted in operating rates improving from 83% in FY10 to 114% in FY11. Profit from this segment was also at its peak as prices of films surged to US$4000 per tonne.
Polyester films - application
Figure 15: Trend in film capacity and utilisation

(Tonnes) 74,000 70,000 114 (%) 120 100 80 60 40 20 60,000 50,000 FY09 Capacity FY10 FY11 Capacity Utilisation (RHS) 66,000 66,240 0
83
Polyester film is manufactured from polyethylene terephthalate chips. Film grade PET chips are used for printing and lamination, metallization, embossing, holograms, thermal lamination, etc.
66,000 62,000 58,000 54,000
23
JBF is expanding its film capacity by another 36,000 tpa in FY12. Current mix of commodity film and specialty film is 70:30; post expansion it will move towards 50:50, enabling improvement in margin. Production from this additional capacity is expected from December, 2011.
CRISIL EQUITIES | 10
JBF Industries Ltd

Global demand for films is expected to grow at 7-8% CAGR during 2010-15; also, the operating rates are expected to strengthen as capacity addition lags demand growth; utilisation rates are expected to remain over 90% post 2011.
Key developments
PTA plant JBF, as part of its backward integration plan, is setting up a PTA plant at Mangalore (SEZ), whose 1.12 million tonnes of PTA will be used for captive consumption. The project will entail a capex of Rs 30 bn, with debt equity mix of 70:30. The company has already finalised the land and applied for necessary environmental clearances. Production from this unit is expected to start in mid 2014. In FY10, JBF had planned that it would set up a PTA plant in Oman, with 30% equity from the Oman group and 70% from JBF. JBF has scrapped its project at Oman and shifted the location to Mangalore; with 100% JBF equity, project specification and technology partners remain the same. The PTA plant will ensure raw material supply for both the Indian and the UAE operations, and thus boost operating margins. For the Mangalore SEZ plant, JBF is planning to source paraxylene (PX) from ONGC Mangalore Petrochemicals Ltd. However, in case of any delay in supply from the ONGC plant, the company is also open to importing PX as the SEZ is very close to port. Belgium PET plant The company is planning to set up 390,000 tpa PET plant in Belgium at the British Petroleum (BP) compound. This project will require capex of around Rs 7 bn with debt-equity mix of 70:30. PTA will be procured from the adjacent BP plant. However, this project has been on the anvil for the past three years; so we have not considered this project in our projections.
JBF Industries Ltd

Key Risks
Availability of raw material
In FY11, the company faced difficulties in procuring raw material, especially PTA, which resulted in lower operating rates for the chip division. Going forward, we expect tightness in PTA supply on the back of capacities being commissioned in China; however, any delay in new PTA capacities will strain supply and impact production of polyester products.
Timely execution of proposed expansions

JBFs planned 1.12-MTPA PTA plant at Mangalore SEZ is expected to start production in FY15. As this is not only a large capacity expansion but also a new area of operation for the company, execution remains a key challenge.
Volatility in crude oil prices

The company manufactures fibre, bottle and film grade chips, for which the major raw material are PTA and MEG. These two key raw materials account for ~80% of the total operating costs. Historically, PTA and MEG prices have remained volatile and are currently on an upward trend following a rise in crude oil prices (PTA and MEG are crude oil derivatives). PTA prices are directly linked to naphtha prices, while MEG prices are linked to ethylene prices, both of which are volatile in nature. Hence, the companys EBITDA margins are sensitive to the movement in raw material prices especially in a down cycle.
Forex fluctuations
In order to hedge against foreign currency fluctuations (UAE subsidiary and raw material and finished goods prices), the company has entered into derivative contracts. The company has witnessed forex losses of Rs 633.7 mn and Rs 1446.3 mn in FY10 and FY11, respectively, which it had not accounted for. These losses were around 25% of its PBT in each of these two years. JBF has recognised forex loss of around Rs 840.1 mn in FY11 on one of the derivative contracts, which expired in FY11. Hence, any wide fluctuations in forex rates will continue to adversely affect JBFs net margins. We have considered the same in our projections for FY12 and FY13. Going forward, net profit will continue to remain highly vulnerable to foreign exchange fluctuations.
JBF Industries Ltd

Financial Outlook
Revenues to grow at a 2-year CAGR of 10%
We expect JBFs total revenues to grow at a two-year CAGR of 10% to Rs 79 bn in FY13 from Rs 67 bn in FY11 driven by expansion at the UAE subsidiary and debottlenecking of its India-based chip capacity. On the domestic front, JBF added 72,000 tpa of extrusion capacity over the past two years, and also expanded its chip capacity by 14,500 tpa in FY11. Going forward, JBF will increase its polyester films (36,000 tpa FY12) and PET chips (40,000 tpa FY12 UAE) capacities; debottlenecking of the Indian chip operation will increase capacity by around 60,000 tpa. The UAE units share in JBFs total revenue has risen from 20% in FY08 to 45% in FY11, and we expect its share to remain over 40% till FY13.
Revenues to grow at a 2-year CAGR of 10% to reach Rs 79 bn by FY13
Figure 16: Revenue and revenue growth

(Rs bn) 90 80 70 60 50 40 30 20 10 0 FY09 FY10 Revenues FY11E FY12E FY13E 43 49 65 14% 10% 11% 10% 71 79 0% 31% 54% (%) 60% 50% 40% 30% 20%
Figure 17: EBITDA trend

(Rs bn) 12 10 8 6 4 2 5.3 0 FY09 FY10 EBITDA FY11E FY12E FY13E 4.7 9.6 7.8 9.0 12.3% 11.0% 9.6% 14.8% (%) 16% 14% 11.4% 12% 10% 8% 6% 4% 2% 0%
Growth (RHS)
EBITDA Margin (RHS)
Source: CRISIL Equities Estimates
EBITDA margin to decline from current levels

The companys cost structure is dominated by raw material costs (PTA and MEG) as they account for more than 80% of revenues. We expect prices of both PTA and MEG to increase in FY12 leading to higher input cost for polyester. However, the rise in feed stock prices will be partially passed on to consumers because of softening cotton and cotton yarn prices. However, utilisation rates in the industry are at healthy levels, thereby limiting the downside. Also JBFs operating margins were higher in FY11 on account of higher margins from its polyester film business. Going forward we expect polyester film prices to come down - already visible from Apr-June 2011 price trend; therefore we expect EBITDA margin to decline in FY12 by 350 bps to 11.3% and remain at the same level in FY13.
Operating margins to decline on account of vulnerability to raw material prices
JBF Industries Ltd

PAT margins to remain subdued
We expect JBFs PAT margins to decline significantly, on account of lower EBITDA margin and derivative losses that the company will incur in FY12 and FY13 as the contract matures. We have added Rs 800 mn to FY12 and FY13 interest costs to reflect those losses. As a result, PAT margin will fall to 4.5% in FY12 and improve to 4.8% in FY13; current PAT margins are 8.4%
Figure 18: PAT margin trend

(Rs bn) 6 5 4 3 3% 2 1 2.2 0 FY09 FY10 PAT FY11E FY12E FY13E 1.3 5.5 3.0 3.7 5% 4% 5% 8% (%) 9% 8% 7% 6% 5% 4% 3% 2% 1% 0%
Figure 19: EPS and ROE

80 70 60 50 40 30 20 11.5% 10 FY09 FY10E EPS FY11E FY12E FY13E 35.4 21.6 20.2% 19.4% 41.7 76.2 40.1% 51.7 21.7% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0%
PAT Margin (RHS)
RoE (RHS)
We expect JBFs EPS to be Rs 41.7 in FY12 and Rs 51.7 in FY13, down from Rs 76.2 in FY11. Also, we expect its RoE to dip to 40% in FY11 from 19% in FY11, and stabilise at 19-21% going forward.
JBF Industries Ltd

Management Evaluation
CRISIL's fundamental grading methodology includes a broad assessment of management quality, apart from other key factors such as industry and business prospects, and financial performance. Overall, we believe that the management has an established track record with moderate appetite for risk.
JBF Industries management has an established track record and three decades of experience in the textile industry
Good experience and established track record

JBFs management, led by Mr. Bhagirath C. Arya, brings to the table sound business knowledge and leadership, as well as long years of relevant
experience. He started his career in the textile industry and has more than three decades of experience in various segments of the textile sector. Mr Arya has been instrumental in setting up the UAE subsidiary. Mr Rakesh Gothi, managing director and CEO, is responsible for the domestic operations and has been with the company since 1997. Mr. Gothi is a technocrat with 30 years of experience in the industry, having earlier worked as vice-president with J.K. Synthetics and as general manager with Nirlon.
Moderate risk appetite

Over the years, JBFs management has exhibited moderate risk-taking appetite with increased focus on growth through the inorganic route. Its risk-taking ability is reflected from its acquisitions of Microsynth Fabrics India Ltd in FY08 as well as its investment in the UAE subsidiary. The management has funded JBFs expansion plans both through internal accruals and debt.
JBF Industries Ltd

Corporate Governance
CRISIL Equities fundamental grading methodology includes a broad assessment of corporate governance and management quality, apart from other key factors such as industry and business prospects, and financial performance. In this context, CRISIL Equities analyses the shareholding structure, board
JBF follows fairly good corporate governance practices
composition, typical board processes, disclosure standards and related-party transactions. Any qualifications by regulators or auditors also serve as useful inputs while assessing a companys corporate governance. Overall, JBFs board represents a fair mix of experienced directors who have experience in various fields of business and are well qualified. The board processes and structures broadly conform to the minimum standards. CRISIL Equities has assessed the companys disclosure levels, based on balance sheet and profit and loss account disclosures, etc, and is of the opinion that the corporate governance of the company conforms to minimum disclosure requirements. However, the website of the company has not been updated with the latest information. Board composition: JBFs board comprises eleven members, six of whom are independent directors. This is in line with the minimum stipulated requirements in the SEBI listing guidelines. Board processes: Based on the disclosures, the processes appear to be well structured, and audit committees and other committees like grievance
committee are in place. The audit committee is chaired by an independent director, Mr B. R. Gupta. Further, the position of chairman is independent from that of the managing director/CEO. The board comprises people with varied experience and professional diversity. The processes of the board meet the minimum acceptance level. The disclosure level of the company is sufficient to gauge many aspects of the business.
JBF Industries Ltd

Valuation Grading Grade: 5/5
We have used DCF (discounted cash flow) to value the consolidated cash flows of JBFs India and UAE operations. Based on our DCF approach, we have arrived at the value of Rs 229 per share. Our fair value of Rs 229 per share imply a valuation grade of 5/5 that the CMP (Rs 162 as on July 11, 2011) has strong upside from the current levels. The implied PE multiples at our fair value is 41.7 FY12E EPS and 51.7 FY13E EPS.
Key DCF assumptions

We have considered the discounted value of the firms estimated free cash flow from FY13 to FY20. We have assumed maintenance capex of Rs 3,500 mn in the terminal year. The company incurred a mark-to-market loss of Rs 1,446 million in FY11; we have accounted for the same in our projections and spread it over FY12 and FY13.
We have added foreign currency risk premium of 50 bps in our cost of equity, as over 40% of revenue will be contributed by the UAE subsidiary.
WACC computation
FY13-22 Cost of equity Cost of debt (post tax) WACC Terminal growth rate 18.5% 8.0% 13.0% Terminal value 18.5% 8.0% 13.3% 3.00%
Terminal growth rate Terminal WACC 1.0% 11.5% 12.5% 13.3% 14.5% 15.5% 260 200 162 111 78 2.0% 307 236 192 134 96 3.0% 364 280 229 161 118 4.0% 437 334 273 193 143 5.0% 533 402 327 231 173
JBF Industries Ltd
One-year forward P/E band

(Rs) 400 350 300 250 200 150 100 50 0
One-year forward EV/EBITDA band

(Rs) 400 350 300 250 200 150 100 50 0
May-05 May-08 Feb-08
May-05
May-08
Mar-07
Dec-05
Mar-10
Sep-08
Dec-09
Mar-07
Mar-10
Dec-05
Dec-09
Sep-08
Aug-05
Nov-06
Aug-09
Nov-10 Nov-10
Feb-11
Feb-08
Feb-11
Jul-06
Jan-09
Apr-06
Jan-09
Jun-07
Apr-09
Jul-10
Jul-06
Jul-10
Aug-05
Nov-06
Aug-09
Nov-10
JBF
2.0x
3.0x
4.0x
5.0x
JBF
2.0x
3.0x
4.0x
5.0x
Source: NSE, Company, CRISIL Equities
P/E premium / discount to NIFTY

-20% -30% -40% -50% -60% -70% -80% -90% -100%
Jan-09 Jun-07 May-05 Nov-06 May-08 Nov-10 Mar-07 Feb-08 Mar-10 Dec-05 Sep-08 Aug-05 Aug-09 Dec-09 Feb-11 Oct-07 Apr-06 Apr-09 Jun-11 Jul-06 Jul-10
P/E movement
(Times) 14 12 10 8 6 4 2 0
May-05 May-08 Feb-08 Mar-07 Dec-05 Sep-08 Mar-10 Dec-09 Aug-05 Nov-06 Aug-09 Feb-11 Jul-06 Jan-09 Apr-06 Apr-09 Jul-10 Jun-07 Jun-11 Oct-07
+1 std dev
-1 std dev
Premium/Discount to NIFTY
Median
1yr Fwd PE (x)
Median PE
Jun-11
Jun-07
Apr-09
Jun-11
Oct-07
Oct-07
Apr-06
JBF Industries Ltd
Company Overview
JBF is one of the key players in the polyester segment
JBF is one of the key players in the polyester segment. JBF has since its inception, focused on the polyester part of the textile value chain. The company is present in polyester chips and polyester partially-oriented yarn segments, and is now increasing its presence in the processed yarn space by forward integrating in the domestic market. Also, it has ventured into related businesses - bottle-grade PET chips and polyester film through its UAE subsidiary, JBF RAK LLC. JBF forward integrated into processed yarn with the acquisition of Microsynth Fabrics (India) Ltd, a manufacturer of speciality yarns, in FY08. JBF is now planning to backward integrate by setting up a PTA plant in Mangalore. JBF entered into a joint venture with the RAK Investment Authority, UAE in September 2005 with the ownership ratio of 60:40 to set up a plant in the Ras Al Khaimah zone, UAE. In 2007-08, the ownership of the JV was transferred to its 67.4% subsidiary, JBF Global PTE, Singapore. During 2008-09, JBF Global PTE raised its stake in the company to 100%, taking full ownership of JBF RAK L.L.C. Later JBF Industries raised its stake in JBF Global PTE to 100% by buying 32.6% from CVCIGPII Client Rosehill Ltd and CVCIGPII Employee Rosehill Ltd (CVCIGPII) for a consideration of US$104 mn.
JBF, a key player in the polyester segment, has also expanded into related businesses of bottle-grade PET chips and polyester films
JBF Industries company structure

JBF Industries (India)
100 %
JBF Global PTE

100 %
JBF RAK L.L.C.

Source: Company
JBF Industries Ltd

Table 4: Key Milestones
1982 1985 1986 1987 1989 1993 1996 2001 2004 2005 2007 2008 2009 JBF Industries Ltd began operations as a private limited company with the objective to manufacture synthetic textiles. The company commenced production of dyed yarn and fabrics. It became a public limited company under the name JBF Synthetics Ltd. The texturising facilities of the company began production. The company changed its name to the present one JBF Industries Ltd. The company sold its dyes and dye intermediate business. Set up partially - oriented yarn spinning at Silvassa. The company backward integrated into polyester chips and the plant was set up at Silvassa. It obtained certification under Environment Management System, which fulfils the requirements of standard ISO 14001:1996. The company entered into a joint venture with RAK Investment authority, UAE to set up a bottle-grade PET chips plant. The UAE subsidiary started its commercial production. The company acquired Microsynth Fabrics (India) Ltd. The scheme of amalgamation of Microsynth Fabrics (India) Ltd into JBF Industries was completed. The company completed the deal of buy back and cancellation of Foreign Currency Convertible Bonds (FCCBs) of US$14.3 million, out of the outstanding FCCBs of US$ 21.3 million at a discount of 32.3% face value. 2011 Acquired 100% holding in JBF Global PTE
Source: Company
JBF Industries Ltd
Annexure: Financials
Income statement (Rs mn) Operating income EBITDA EBITDA margin Depreciation EBIT Interest Operating PBT Other income Exceptional inc/(exp) PBT Tax provision Minority interest PAT (Reported) Less: Exceptionals Adjusted PAT Ratios FY09 Growth Operating income (%) EBITDA (%) Adj PAT (%) Adj EPS (%) Profitability EBITDA margin (%) Adj PAT Margin (%) RoE (%) RoC E (%) RoIC (%) Valuations Price-earnings (x) Price-book (x) EV/EBITDA (x) EV/Sales (x) Dividend payout ratio (%) Dividend yield (%) B/S ratios Inventory days Creditors days Debtor days Working capital days Gross asset turnover (x) Net asset turnover (x) Sales/operating assets (x) Current ratio (x) Debt-equity (x) Net debt/equity (x) Interest coverage Per share FY09 Adj EPS (Rs) CEPS Book value Dividend (Rs) Actual o/s shares (mn) 35.4 47.9 179.4 5.8 62.2 FY10 21.6 40.5 198.2 7.0 62.2 FY11# 76.2 94.5 206.2 8.0 71.6 FY12E 41.7 63.6 239.9 7.9 71.6 FY13E 51.7 74.5 282.8 8.8 71.6 40 60 31 16 2.6 3.2 2.5 1.5 1.1 1.0 2.7 44 64 33 24 2.2 2.6 2.4 1.6 1.11 1.0 3.1 49 73 37 27 2.4 3.0 2.9 1.6 1.3 1.1 3.5 45 63 38 34 2.2 2.8 2.7 1.8 1.27 1.1 2.4 47 63 38 37 2.2 2.9 2.4 1.8 1.47 1.4 2.6 Quarterly financials (Rs mn) Net Sales C hange (q-o-q) EBITDA C hange (q-o-q) EBITDA margin PAT Adj PAT C hange (q-o-q) Adj PAT margin Adj EPS Q4FY10 13,010 9% 1,651 59% 12.7% 761 761 171% 5.9% 12.2 Q1FY11 14,145 8.7% 1,558 -6% 11.0% 549 549 -27.9% 3.9% 7.7 Q2FY11 14,116 0% 2,261 45% 16.0% 1,020 1,020 86% 7.2% 14.2 Q3FY11 17,117 21.3% 3,033 34% 17.7% 1,856 1,856 82.0% 10.8% 25.9 Q4FY11 19,333 13% 2,732 -10% 14.1% 1,636 1,636 -11.8% 8.5% 22.8 3.7 0.7 3.7 0.5 16.9 4.4 10.8 1.2 5.7 0.5 28.7 3.0 2.1 0.8 3.0 0.4 10.5 4.9 3.9 0.7 4.0 0.4 19.0 4.9 3.2 0.6 4.3 0.5 17.0 5.4 12.3 5.1 21.7 22.1 23.3 9.6 2.7 11.5 14.3 13.3 14.8 8.4 40.3 27.7 29.6 11.0 4.2 18.7 17.2 17.4 11.4 4.7 19.8 16.6 16.3 Cash flow (Rs mn) Pre-tax profit Total tax paid Depreciation Working capital changes Net cash from operations Cash from investments C apital expenditure Investments and others Net cash from investments Cash from financing Equity raised/(repaid) Debt raised/(repaid) Dividend (incl. tax) Others (incl extraordinaries) Net cash from financing C hange in cash position C losing cash (34) 4,049 (364) 44 3,695 (2,454) 899 79 1,229 (437) (370) 502 100 999 1,181 5,204 (573) (3,637) 2,176 1,140 2,139 3,000 (567) 2,433 310 2,449 8,000 (629) 7,371 (41) 2,408 (8,255) 234 (8,021) (1,500) (949) (2,449) (5,916) 31 (5,885) (5,250) (5,250) (11,560) (11,560) FY09 2,882 (212) 779 (1,577) 1,873 FY10 2,439 (429) 1,173 (1,134) 2,048 FY11# 6,056 (509) 1,314 (2,012) 4,850 FY12E 3,729 (646) 1,571 (1,528) 3,126 FY13E 4,624 (825) 1,632 (1,283) 4,148 54.3 95.9 68.9 68.4 14.5 (11.2) (38.9) (38.9) 31.1 102.9 305.3 252.3 10.2 (18.3) (45.3) (45.3) 10.6 15.1 24.0 24.0 FY10 FY11# FY12E FY13E FY09 43,119 5,316 12.3% 779 4,536 1,702 2,834 48 (45) 2,837 456 224 2,157 (45) 2,202 FY10 49,369 4,721 9.6% 1,173 3,548 1,138 2,410 28 177 2,616 540 553.00 1,523 177 1,346 FY11# 64,704 9,578 14.8% 1,314 8,263 2,366 5,897 159 6,056 602 5,454 5,454 3,729 746 2,983 2,983 FY12E 71,290 7,829 11.0% 1,571 6,258 2,614 3,643 86 4,624 925 3,699 3,699 FY13E 78,832 9,013 11.4% 1,632 7,380 2,854 4,526 98 Balance Sheet (Rs mn) Liabilities Equity share capital Reserves Minorities Net worth C onvertible debt Other debt Total debt Deferred tax liability (net) Total liabilities Assets Net fixed assets C apital WIP Total fixed assets Investments Current assets Inventory Sundry debtors Loans and advances C ash & bank balance Marketable securities Total current assets Total current liabilities Net current assets Intangibles/Misc. expenditure Total assets 3,966 3,735 1,886 899 10,485 6,876 3,609 213 24,806 5,132 4,674 2,596 999 13,401 8,557 4,843 277 27,317 7,445 6,914 3,882 2,139 20,380 12,385 7,996 1,268 35,040 7,813 7,813 4,277 2,449 22,351 12,518 9,833 1,268 40,557 9,071 8,639 4,730 2,408 24,848 13,773 11,075 1,268 51,727 17,475 3,149 20,624 361 19,807 1,081 20,888 1,310 22,917 1,581 24,498 1,279 27,596 581 28,177 1,279 27,324 10,781 38,105 1,279 622 10,543 11,166 12,414 12,414 1,226 24,806 622 11,714 12,337 13,644 13,644 1,337 27,317 716 14,046 14,762 18,848 18,848 1,430 35,040 716 16,463 17,178 21,848 21,848 1,530 40,557 716 19,533 20,249 29,848 29,848 1,630 51,727 FY09 FY10 FY11# FY12E FY13E
#FY11- based on abridged financial Source: CRISIL Equities estimates
JBF Industries Ltd
Focus Charts
Revenue mix
100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% FY08 Polyester chips POY FY09 FY10 Bottle grade chips FY11 Polyester Film 12,751 14,349 16,029 19,623
100,000 0 FY07 Capacity FY08 FY09 FY10 FY11
Trend in chip capacity and utilisation rates

1,176
(Tonnes) (%) 102 86 73 400,000 73 78 110 100 90 80 70 60 550,800 550,800 565,300 50 40 334,800 334,800 30 20 10 0
4,579
5,860 17,961 10,353
11,700
600,000 500,000
17,905
18,925
11,058
11,359
17,077
300,000 200,000
3rd largest in domestic PET market

JBF 18%
3rd largest player in POY

Reliance Industries Indo Rama Synthetics 822.725
259
JBF Industries
235.32
Reliance 49%
Alok Industries
200
Garden Silk Mills Dhunseri 33%
162.45
200
400
600
800
1,000
(000' to nnes)
PAT margin trend

(Rs bn) 6 5 4 3 3% 2 1 2.2 0 FY09 FY10 PAT FY11E FY12E FY13E 1.3 5.5 3.0 3.7 5% 4% 5% 8% (%) 9% 8% 7% 6% 5% 4% 3% 2% 1% 0%
Shareholding pattern over the quarters

100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Jun-10 Promoter Sep-10 FII Dec-10 DII Mar-11 Others 47.5% 41.5% 41.3% 41.2% 5.7% 1.3% 13.0% 8.4% 18.5% 17.9% 10.5% 45.5% 37.1% 30.3% 30.4%
10.0%
PAT Margin (RHS)
CRISIL Equities Team

Senior Director
Mukesh Agarwal +91 (22) 3342 3035 magarwal@crisil.com
Analytical Contacts
Tarun Bhatia Prasad Koparkar Chetan Majithia Sudhir Nair Jiju Vidyadharan Ajay D'Souza Ajay Srinivasan Sridhar C Manoj Mohta Director, Capital Markets Head, Industry & Customised Research Head, Equities Head, Equities Head, Funds & Fixed Income Research Head, Industry Research Head, Industry Research Head, Industry Research Head, Customised Research +91 (22) 3342 3226 +91 (22) 3342 3137 +91 (22) 3342 4148 +91 (22) 3342 3526 +91 (22) 3342 8091 +91 (22) 3342 3567 +91 (22) 3342 3530 +91 (22) 3342 3546 +91 (22) 3342 3554 tbhatia@crisil.com pkoparkar@crisil.com chetanmajithia@crisil.com snair@crisil.com jvidyadharan@crisil.com adsouza@crisil.com ajsrinivasan@crisil.com sridharc@crisil.com mmohta@crisil.com
Business Development
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July 11, 2011

KEY STOCK STATISTICS

Enterprise value (Rs mn) /(US$ mn) 28,360 /640

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