Life in Plastics

Induction of Mr Hans-Dieter von Meibom, as Independent, Non-Executive Director

To help Company avail expertise and experience in general management, business development and international opportunities at the Board level, Company has inducted Mr. Hans-Dieter Von Meibom, Managing Director, One Equity Partners Europe GmbH ( Private Equity arm of JP Morgan Chase ) as an Additional Director (Non Executive, Independent) with immediate effect. Mr. Von Meibom has kindly consented to join the Board and the Board of Directors is pleased to confirm his induction in the Board Meeting held on 31st July 2008.

Time Technoplast Ltd assigned 'P1+' Ratings by CRISIL, Mumbai 15th March, 2008.

Time Technoplast Ltd (TTL) today announced that it has been assigned a rating of 'P1+' by CRISIL for its Rs. 300 Mn Short Term Debt Programme. The rating indicates that the degree of safety with regard to timely payment of interest and principal on the instrument is 'Very Strong'.

The rating confirms TTL's sound business profile driven by focus on technology, a diversifying product range and client profile, increasing economies of scale, established market leadership and comfortable financial risk profile. It also confirms that TTL with its consolidated technology platform will continue to maintain healthy operating margins of 18-20%, higher than other polymer processing players.

The Economic Times, Mumbai 5th February, 2008.

Time Technoplast (TTL) is one of India's leading producers of plastic products with an annual turnover of Rs 500 crore and a market capitalisation of Rs 1,650 crore. The company focuses only on niche, technologically superior plastic products.

It came out with its initial public offer (IPO) in mid-'07 to fund its expansion plans. Considering its upcoming capacities, recent acquisitions and a strong product pipeline, the scrip is expected to generate substantial returns for investors over the next 12 months.

Business

TTL has a 75% market share in the domestic industrial packaging segment. It has a technology tie-up with German major Mauser since 1993. The company's product portfolio includes industrial packaging products such as drums and containers for chemicals producers, lifestyle products like matting and turfs, auto components such as radiators and anti-spray rain flaps, healthcare products that include auto-disable syringes and products for infrastructure such as safety nets and reinforcement for road surfacing.

TTL's production is spread across six locations in the country, giving the company a wide reach and logistical advantage. In October '07, the company added another vertical to its business by acquiring NED Energy, which supplies batteries to the telecom sector. In FY07, NED Energy earned a net profit of Rs 3.3 crore on sales of Rs 45.1 crore.

Growth drivers

The company started FY08 with a plastic processing capacity of around 50,000 tonnes per annum (tpa) and plans to double this figure by the year end. Within the next two years, it aims to become the largest plastic processor in the country. It is also setting up plants abroad. Its industrial packaging facility at Sharjah was commissioned in October '07, while its auto components plant in Poland started functioning in January '08.

To augment NED Energy's battery manufacturing capacities of 100 million ampere hours (Ah), it acquired Bahrain-based Gulf Powerbeat with an installed capacity of 150 million Ah. It plans to add fresh capacities of another 200 million Ah by September '08. The battery business alone can contribute Rs 160 crore to the company's turnover in FY09.

The company has several new products in its pipeline. These include 'green batteries', which reduce the quantity of lead and acid, lightweight batteries, gel batteries and others. TTL is also working on new products such as plastic fuel tanks for automobiles, glass reinforced polymer cylinders for LPG and CNG and high-pressure polyethylene pipes, among others.

Most of these products, which will be rolled out over the next few quarters, have huge growth potential in domestic and exports markets. The company is also trying to develop the first commercially usable fuel cell. It has signed an exclusive agreement with Council of Scientific and Industrial Research (CSIR) for transfer of fuel cells technology. In coming months, the environment for domestic plastic producers is expected to improve, which will benefit TTL.

It is expected that excise duty on plastic products will be slashed in the forthcoming Budget, that will improve polymer consumption in the country. Moreover, with the addition of several new polymer capacities, the global polymer market is expected to face a glut from the end of '08, which will put pressure on polymer prices.

Financials

TTL's net sales witnessed a compound annual growth rate (CAGR) of 47.5% from Rs 124.4 crore in FY04 to Rs 399 crore in FY07. PAT during the same period saw a substantially higher CAGR of 102.8% to Rs 41.1 crore. During the nine-month period ended December '07, it reported a net profit of Rs 64.7 crore, which included extraordinary gains of Rs 13.4 crore. Net sales stood at Rs 458.4 crore, with operating margin of 21.4%. Since the last quarter of the year generates maximum sales and profits, the company may post a net profit of Rs 90 crore for the whole of FY08.

Valuations

TTL's current market price of Rs 792 discounts the projected EPS for FY08 by 18.4x. We expect the company to continue its high-paced growth in future, thanks to its expansion plans and products in the pipeline. High-performance products will enable it to maintain its market leadership, thus resulting in higher operating margins in future. We expect the scrip to generate healthy returns over the next 12 months.

Investors may contact our Compliance Officer Mr. Atul Gupta, VP Finance and Company Secretary at our Corporate Office address given below for all grievances etc.

Time Technoplast Limited
102, Todi Complex 35, Saki Vihar Road,
Andheri (East), Mumbai - 400 072.

Registrars & Share Transfer Agents

Link Intime India Private Limited
C-13, Pannalal Silk Mills Compound,
LBS Marg, Bhandup (West),
Mumbai – 400 078.