Presentation to Investors

June 22
nd
2012
This presentation and the accompanying slides( the Presentation),which have been prepared by
Gulf Oil Corporation Limited.(the Company), have been prepared solely for in formation purposes and do
not constitute any offer, recommendation or invitation to purchase or subscribe for any securities, and shall
not form the basis or be relied on in connection with any contract or binding commitment whatsoever. No
offering of securities of the Company will be made except by means of a statutory offering document
containing detailed information about the Company.
This Presentation has been prepared by the Company based on information and data which the Company
considers reliable, but the Company makes no representation or warranty, express or
implied, whatsoever, and no reliance shall be placed on, the truth, accuracy, completeness, fairness and
reasonableness of the contents of this Presentation. 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.
Certain matters discussed in this Presentation may contain statements regarding the Companys market
Disclaimer
Certain matters discussed in this Presentation may contain statements regarding the Companys market
opportunity and business prospects that are individually and collectively forward-looking statements. Such
forward-looking statements are not guarantees of future performance and are subject to known and unknown
risks, uncertainties and assumptions that are difficult to predict. These risks and uncertainties include, but are
not limited to, the performance of the Indian economy and of the economies of various international
markets, the performance of the industry in India and world-wide, competition, the companys ability to
successfully implement its strategy, the Companys future levels of growth and expansion, technological
implementation, changes and advancements, changes in revenue, income or cash flows, the Companys
market preferences and its exposure to market risks, as well as other risks. The Companys actual
results, levels of activity, performance or achievements could differ materially and adversely from results
expressed in or implied by this Presentation. The Company assumes no obligation to update any forward-
looking information contained in this Presentation. Any forward-looking statements and projections made by
third parties included in this Presentation are not adopted by the Company and the Company is not
responsible for such third party statements and projections.
The Hinduja Group - Introduction
One of Indias premier transnational
conglomerates headquartered in London
Been in existence for over 90 years
Present in 10 business sectors
3
Present in 10 business sectors
Present in 35 countries
Employs over 50,000 personnel
Many Listed Companies in the Group
Turnover of the Group is several billion
dollars
www.hindujagroup.com
Hinduja Group - Worldwide
Global Investment
Banking &
Financial Services
International
Trading
Philanthropic
Activities
Automotive
Oil & Gas
Power
IT / ITES
Media
Real Estate
Healthcare
Project Development
Wealth Management
Trade Finance
Corporate Advisory
Services
Consumer Banking
Corporate & Commercial
Banking
Consumer Finance
Transaction Banking
Investment Banking
Product Sourcing and
Marketing
Arrange and Advise on:
Buy Backs
Counter Trade
Debt clearing
Trade Finance
Healthcare
Education
Social Welfare
Arts and culture
Sports
Investment Banking
Asset Leasing
Hinduja Group Investments in India
Gulf oil is arguably one of the most
famous brands in the oil and lubricants
industry. In India it aslo has diversified
into Explosives, mining & Infrastructure &
Realty
HGS
The indusind Bank in India ofers a
range of servces to its ever-growing
client base
A brief about Gulf Oil Corporation
We are a multi division enterprise with business interest in
Lubricants, Industrial Explosives, Mining & Infrastructure and
Realty
Lubricants
One of the major lubricants
manufacturer in private sector
in India. On high Growth path
Explosive
Accessories
Countrys largest manufacturer &
in India. On high Growth path
with CAGR Revenue growth of
30% in last 3 years
exporter of Detonators. Has high
capacity plant at Hyderabad
sprawling over 800 acres
Mining &
Infrastructure
Operating in the focused
sectors of Infrastructure and
Mining . Has an excellent
track record in the past
Realty
Company has a substantial land
bank. Currently developing a
large project in Bangalore
GOCL - Structure
Public Promoters Institutions
Gulf Oil Corporation Limited
49.96% 5.67% 44.37%
Gulf Oil Corporation Limited
( Listed in BSE & NSE)
Industrial
Explosives
REAL
ESTATE
Lubricants
Mining &
Infrastructure
Financials
Key Financials - 5 years
Income & Dividends
2011-12 2010-11 2009-10 2008-09 2007-08
Turnover 1076 1003 1066 839 702
EBIDTA 107 105 97 78 67
Gulf Oil Corporation Limited
Rs. In Crore
PAT 62 54 45 29 25
EPS (Rs.) 6.26 6.11 6.06 3.91 3.42
Dividend 110%* 100% 90% 85% 75%
Dividend
Payout
41% 43% 35% 51% 52%
* Proposed
88
51
Segment Revenue
Lubes
Explosives
Rs. In crore
10
822
Explosives
Consult
Capital Employed
2011-12 2010-11 2009-10 2008-09 2007-08
Net fixed
Assets
1019 430 581 607 2004
Net
Rs. In Crore
Key Financials - 5 years
Gulf Oil Corporation Limited
Net
Working
Capital
149 102 114 178 226
Other
Assets
61 88 32 36 70
Total
Capital
Employed
1229 620 727 821 2300
Networth & Loans
2011-12 2010-11 2009-10 2008-09 2007-08
Capital 19.83 19.83 14.87 14.87 14.87
Reserves* 1083 423 408 398 2039
Key Financials - 5 years
Gulf Oil Corporation Limited
Rs. In Crore
Reserves* 1083 423 408 398 2039
Secured
Loans
85 102 170 171 135
Unsecured
Loans
181** 75 133 237 112
DE Ratio 0.24 0.40 0.72 0.99 0.12
*including Revaluation reserve
** Cash and Cash equivalent as on 31-03-2012 Rs.187.89 crores (Prevoius year Rs.64.3 crores)
Number of Shareholders
Share Holding Pattern
(%)
60000
65000
70000
59476
61276
66661
65289
49.96
44.37
50000
55000
60000
2007-08 2008-09 2009-10 2010-11 2011-12
56218
5.67
Promoters
Institutions
Public
As on 31
st
March of each year
As on 31
st
March 2012
Divisions Overview
Lubricant Division Lubricant Division
15
The year 2011 The year 2011- -12 12 The year 2011 The year 2011- -12 12
16
Business Performance Lubricant Division
Sales Revenues
497
598
822
500
750
1000
R
s

C
r
s
37%
20%
(Rs. In Crores)
17
497
0
250
500
2009-10 2010-11 2011-12
R
s

C
r
s
Business Performance Lubricant Division
EBIDTA
71
90
50
75
100
R
s

C
r
s
27%
87%
(Rs. In Crores)
18
38
0
25
50
2009-10 2010-11 2011-12
R
s

C
r
s
42932
51106
60344
40000
60000
80000
19%
18%
Business Performance Lubricant Division
Domestic Volumes in kl
19
0
20000
40000
2009-10 2010-11 2011-12
Comparison: Business Performance
598
867
3206
822
1004
3528
0
500
1000
1500
2000
2500
3000
3500
4000
Gulf Veedol Castrol*
R
s
.

i
n

C
r
o
r
e
s
Sales Revenue
2010-11 2011-12
* Calendar Year
37%
28%
16%
10%
10%
20%
30%
40%
50%
% Change Over Previous Year
(Rs. In Crores)
20
69
94
738
88
77
716
0
100
200
300
400
500
600
700
800
900
Gulf Veedol Castrol*
R
s
.

i
n

C
r
o
r
e
s
PBT
2010-11 2011-12 * Calendar Year
-19%
-3%
-30%
-20%
-10%
0%
10%
Revenue PBT
Gulf Veedol Castrol*
* Calendar Year
Comparison: Sales Performance
205
219
209
150
200
250
300
Q
t
y

i
n

K
T
Total Sales Volume
16%
21%
19%
5%
7%
18%
3% 5%
10%
15%
20%
25%
% Change over Previous Year
21
43
66
51
69
60
72
0
50
100
Gulf Veedol Castrol*
2009-10 2010-11 2011-12
* Calendar Year
-5%
3%
-5%
-10%
-5%
0%
5%
Gulf Veedol Castrol*
2009-10 2010-11 2011-12
* Calendar Year
Strengths: Product & Technology
22
Leveraging our Technological Prowess, Yr. 2006 Gulf Oil
redefines the standard for Indias Commercial Engine Oils
Yr. 2007 Gulf Oil redefines the standard for Indias Motor
Cycle Engine Oils Drain Interval
Yr. 2010 Gulf Oil adds another milestones in Commercial
Vehicles Segment
Yr. 2010 Introduction of MX4 Technology in
Passenger Car Segment
26
Yr. 2011 Creating another Landmark in
Passenger Vehicle Car Segment
Gulf in continuous pursuit to Redefine Limits
28
Yr. 2011 Redefining Limits in Commercial Segment
29
Capturing Gulfs Nonstop Quest for Excellence
30
Gulf Oil Global Operations OEM Approvals
OEM Tie-Ups: India
Ashok Leyland
Volvo Penta Greaves Cotton L&T Scania Mahindra &
Mahindra
32
Leyland Nissan Leyland Deere MAN Mahindra Navistar L&T Komatsu
Sustained Growth: Evolving a Stronger Market Model
33
Primary Sales (sales to
distributors) Focus has
always been strong for
Gulf in India)
2008 onwards:
Enhanced planning &
Focus on Secondary
Sales (sales from
distributors to retailers)
initiatives
2010 onwards:
Enhanced Tertiary Sales
(sales from retailers to
mechanics & users)
Support initiatives
Product Mix
PCMO, 6%
MCO, 16%
Others, 14%
2010-11
PCMO, 8%
Others, 15
%
2011-12
DEO, 63%
MCO, 20%
DEO, 58%
Strengths: Strong Brand
35
Gulf & IPL
Kings XI & Chennai Super Kings- 2011
Gulf was one of the earliest brands to be associated with the Indian Premier League
We continued with Kings XI & with Chennai Super Kings, IPLs most successful franchise
36
Outdoor, Stadium Branding & Press
37
Care, Courage, Endurance, Inspiration
& Youth are Gulfs Five Core Brand
Values
Mahendra Singh Dhoni, Indias Cricket
World Cup winning captain personifies
M.S Dhoni as the New Face of Gulf Oil in India
World Cup winning captain personifies
these qualities and was signed on in
2011 as our brand ambassador to
communicate the Gulf brand
proposition.
Theme ad campaign Launched in
January 2012 on TV.
38
Ad-Campaign: Truck South 2011-12
Communicating our USP of 40,000 kms
39
Ad-Campaign: Bike All India Targeted Youth
Communicating ZNS & USP of 10,000 kms
40
Ad-Campaign: Brand Ad
41
Car Segment Gulf Max Supreme & Gulf Mahindra
co-brand X-10 ( USP 10,000 kms drain Interval)
42
Press Conference with Chairman and MSD May12
43
Media Coverage for Press Conference: Print & Online
44
Special Signage & Shop Branding Delhi
Special Branding IPL- Chennai Chepauk Stadium
Extensive Segmentwise Below-the-Line Activities:
A Key Success Factor
BTL: Activities
Lubricants Division - Outlook for FY 12-13
Continue growth momentum of 2-3 times industry growth rate
Continue investments in brand, people & current focus segment strategies
( core products)
Retain Market Share in New Generation DEO & 4T ( motorcycle segment).
Higher growth in Car Segment- PCMO
Increase Distribution Width & Depth ( focus on higher reach in metros &
rural)
49
Increase B2B (Industrial sales) share in volumes
Strengthen Channel Capability Gulf Excellence Mantra GEM
Increase OEM tie-ups ( leveraging our long drain & technical prowess)
Reduce distribution & manufacturing costs ( CAPEX in current & new plant
in South)
Retain Profitability Levels to the extent possible
Explosives Division
and
Mining & Infrastructure Division Mining & Infrastructure Division
Explosives & Mining Services business
depends heavily on the Mining scenario
IIP Mining Index
YOY Growth of Mining & Quarrying Index
-2
0
2
4
6
8
10
F06 F07 F08 F09 F10 F11 F12
-4
-2
F06 F07 F08 F09 F10 F11 F12
YOY Growth 3 yr Avg growth
The mining industry has been growing at a steady rate of 3 to 4%, but suffered a setback in
F12 recording a negative growth of 2%
Coal Indias Coal production has been stagnant at 430 mn MT in F10 and F11
In F12 a small growth of 1% was recorded taking production to 435 MT.
The demand for coal is increasing, but the output from Coal India, due to various reasons, is
not recording the required growth
IIP Mining Index
(Base F 2004-05=100)
120
130
140
150
160
100
110
120
Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar
F08 F09 F10 F11 F12
Mining is a seasonal activity and the current year trends are in line with past trends
Explosives
Accessories
OVER VIEW
First in India to manufacture various types of detonators and
slurry explosives for commercial use.
Set up its detonator factory in 1967 at Hyderabad, Andhra
Pradesh, India with technical assistance of internationally
famous Hungarian and Yugoslavian manufacturers.
Manufactures detonators of different types, detonating cords
and other accessories.
Today, GOCL is the one of the largest detonator
manufacturer in the world.
Application
Explosives
Booster Detonator
Detonator is the most complex to make and is very critical in application
Explosives
The Energy
Our Products
Instantaneous
Detonating Fuse Detonators
Delay
Non Electric
Instantaneous
Delay
Non Electric
Plain Electric
CDD/SDD/LDD,
EDN / EDG
Raydets /
e-DET
Dcord / cord
OD /
SOD
Production Performances
0.000
20.000
40.000
60.000
80.000
100.000
120.000
140.000
F 06 F 07 F 08 F 09 F 10 F 11 F12
M
.
N
O
S
DETONATORS
PERFORMANCE DETONATORS
0.00
1.00
2.00
3.00
4.00
5.00
F 06 F 07 F 08 F 09 F 10 F 11 F12
M
.
N
O
S
NON ELECTRIC DETONATORS
0.000
5.000
10.000
15.000
20.000
25.000
30.000
F 06 F 07 F 08 F 09 F 10 F 11 F12
M
.
M
T
R
S
DETONATING FUSE
Domestic
Export
Market Share - Accessories
Detonators
22.73%
17.01%
Accessories
19%
Detfuse
6.03%
Raydet
GOCL Others
Internal Estimates
8.25%
Market Share : e ee e-DET
GOCL
Others
Internal Estimates
Product Certifications
The Division products are certified for European
markets
CE marking & certification extended to the entire
range of Explosives, Detonators and Detonating Cord range of Explosives, Detonators and Detonating Cord
products.
Only manufacturer in India to have such extensive
coverage
Division has implemented Integrated Management System
( IMS )
- ISO 9001:2000 Quality Management System
Plant Certifications
- ISO 14001-2004 Environmental Management System
- BS OHSAS 18001-2007 Occupational Health & Safety
Management System
We are the only Company in the industry to have IMS certifications
Per workman Earning improved by more than 100%
in last 5 year
40
50
60
70
80
90
100
73.64
81.02
87.23
79.02
91.85
Revenue
400
500
600
700
639
496
404
374
336
Manpower
Rs. In Crores
Nos
0
10
20
30
40
2008 2009 2010 2011 2012
0
100
200
300
2008 2009 2010 2011 2012
Year
Year
Year 2008 Year 2012
Per workman Earning Rs. 11.5 lakhs Rs. 27.3 lakh
Outlook : Explosives Accessories
Mineral and Infrastructure sectors to grow multi-fold
20% average growth p.a. expected for mineral industry over the long term
KEY STRATEGIES KEY STRATEGIES
Focus on Non-electric Detonators sales and distribution
Focus on electronic detonator sales.
Increased Trade Business and exports.
IDLconsult
( MINING & INFRASTRUCTURE DIVISION )
IDLconsult the mining Contracting arm of GOCL
Started in 2001. Incubated as the Mining contract Arm of Gulf Oil IDL.
We knew every mine in the country for decades and had the best talent pool.
One of the few Professionally managed and Listed Company offering a comprehensive
mining solutions in India. Also, the only Integrated Explosives and Mining player
Reached a peak revenue of Rs. 210 crores with EBDITA of Rs.33 crores in 2008-09.
Mining projects are at standstill for last 2 years, affecting revenues adversely.
Key Drivers
67
Key Drivers
Growth of GDP - Government policy on Mining & Infrastructure
Government owned coal companies Contracting out Over Burden removal.
Private Metal mines Need for improved productivity and efficiencies.
Mining Growth Rates moving up
Private Coal mines and Mine Development & Operations contracts opening up
Mine owners stick to their core business - while we do the mining.
Full Value chain
Equipment & Capacity
Equipment Fleet
185 Tipper Trucks
(Benz/Volvo/Scania)
27 Excavators
52 other equipment related to mining
Batching plant and Transit mixers
Concrete boom placer
Capacity: (with current equipment)
>25 Million m3 of OB Removal per
year year
>6 Million MT of Ore handling per
year.
Typical Contract Duration: 3 years.
Experienced with:
Coal
Iron Ore
Manganese
Uranium
Lime stone
Services Coal Mining
Allotment
Mine Design
(Haul Road, Benches
And OB Dump Area)
Blast Hole Drilling
Blasting
Construction of Infrastructure
at coalmine
(Roads, Bridges, Building)
Excavation
Loading
Transport And
Dumping
Weighing
Crushing
Screening And
Sizing
Mining Services provided by Consult Division for Coal Mines
20-25 Million m3 Over Burden Removal / year
Typically 10 Million m3 / yr per contract
Koyagudem, AP Best Mine at Singareni
Coal Mines
70
Best Dumpyard at Singareni
Metal sector : Services Provided
Allotment
Mine Design
(Haul Road, Benches
And OB Storage Area)
Blast Hole Drilling
Blasting
Construction of Infrastructure
at metal mine
(Roads, Bridges, Building)
Excavation
Loading
Transport And
Dumping
Weighing
Crushing
Screening And
Sizing
Current metal Mines:
6 Iron ore mines
1 Manganese mine
1 Uranium mine
Completed metal mines:
1 silica sand mine
5 iron ore mines
7 stone quarries (road
projects); dolomite
Mining Services provided by Consult Division for Metal Mines
Iron Ore Mines.
Iron ore mines, Kasia, Orissa
Kasia Iron ore mine
The Model Mine
4 million MT iron ore annually
The Model Mine
3 D Scan of Kasia
Infrastructure
Delhi Metro Rail 20 Shafts and 2 km tunnel
Infrastructure Projects
Value of projects executed : Rs ~150 crores approx.
Projects covers
Roads, bridges, culverts
Tunnel
Residential colonies
Irrigation canal
74
Key Drivers :
One stop solution for a mining owner; including mining infrastructure development
200 private mining blocks to emerge with requirement of pre mining Infrastructural works
Project management skills /online performance monitoring
Vast experience in handling local social issues
Opportunity to participate in road and Infra over next 5 years
Move to General Infrastructure
Certification
Triple Certification for Quality, Environment & Safety Management
Systems
ISO 9001:2008
Certificate No: 12 100 39323
TMS
75
TMS
ISO 14001:2004
Certificate No: EMS 570382
BS OHSAS 18001:2007
Certificate No:OHS 570384
150
200
250
141.31
211.14
195.65
128.89
Revenue
Mining & Infrastructure - Financials
Rs. In Crores
-50
0
50
100
2006 2007 2008 2009 2010 2011 2012
72.01
64.44
50.91
10.98
17.5
31.81 33.1
10.65
-18.67
-21.16
Revenue
EBITA
EBIDTA
Factors leading to the dip for past 2 years
Statutory (Environment / forest etc) clearances for mining activities
Karnataka effect
The mining contracts in the Iron ore block of Orissa were affected due to the
statutory restrictions from the State and Central Government on account of
The overall Mining scenario in the country was negative
statutory restrictions from the State and Central Government on account of
lease areas allowed for mining and environmental exigencies.
Uranium ore mining project for Uranium Corporation of India under the
Department of Atomic Energy suffered due to issues with locals regarding
mine displaced people as the mine is located in a tribal area.
Market Scenario
At 6.1%, economic growth hits 3 year low
Manufacturing and Mining sector drag - Business line 1 March 2012
The mining sector recorded a contraction of 3.1 per cent in Oct-Dec 2011 compared
to 6.1 per cent growth in same previous period.
This is the second consecutive quarter the sector recorded a contraction
GDP growth in % Terms
Q1
2011-12
Q2
2011-12
Q3
2011-12
Q3
2010-11
Mining &
Quarrying
1.8 -2.9 -3.1 6.1
Manufacturing 7.2 2.7 0.4 7.8
Outlook : Mining & Infrastructure
Encouraged by the government policies, Private sector share in mining is growing
Many new mines to open up in coal and metal sectors. New and greater
opportunities for mining services
KEY STRATEGIES KEY STRATEGIES
Focus to build capability to operate large mines and reinforce our position as a
professional mining contractor. Our track record of handling cumulatively 120 million
cubic metres puts us in the top list of the Indian mining contractors
To optimise the strengths and capabilities of the division in other infrastructure Area
Discussions in advanced stages with several infrastructure and mining projects for
undertaking large scale assignments to be finalised for a healthy pipeline / order position
The Master List released by Cabinet Committee on
Infrastructure - The Financial Express, 7
th
March 2012
Things to change .
Mining sector to be back on track
New opportunities in Infrastructure sector
Realty
Property Development
Bengaluru Property
Development at Bengaluru
Layout Plan
Development at Bengaluru
1800
Development at Bengaluru
SEZ : IT / ITES Park
( 38.23 lakh SFT )
Non SEZ : Commercial Offices
( 4.32 lakh SFT )
P
i
c
t
o
r
i
a
l

r
e
p
r
e
s
e
n
t
a
t
i
o
n

o
n
l
y
Non SEZ : Retail Malls
( 4.50 lakh SFT )
Non SEZ : Hotels
( 3.50 lakh SFT )
Project Consultants
RSP Architects, Planners & Engineers (India) Pvt. Ltd. are the architects and
MEP design consultants for the Project
Sterling Engineering and Consultancy Services Pvt. Ltd. are the Structural
Consultants for the Project
CBRE - Project Management Consultants (PMC)
JMC Projects (India) Ltd. appointed as main Civil & Structural contractors
for Phase-I
Category
Construction
Area
(lakh sq. ft.)
Revenue
Area
(lakh sq. ft.)
IT / ITES 18.95 11.47
IT / ITES SEZ Park at Bengaluru
Commercial
Space
1.94 1.30
Retail 2.03 1.35
Hotel 1.58 1.05
Total 24.50 15.17
Lease Revenue Plan for Bengaluru Project
50
60
70
80
48.22
61.41
74.19
Rs. In Crores
0
10
20
30
40
50
2014 2015 2016 2017 2018
14.07
32.69
(Excludes security deposits from lessees)
Sales Plan for non-SEZ area
in Bengaluru Project
80
100
120
119.91
Rs. In Crores
Commercial
Office
0
20
40
60
2016 2017 2018
35.91
41.26 38.33
44.03
Retail
Hotel
Lubricants Industrial Explosives Mining & Infrastructure Realty
Major Road work by GHMC to connect NH9 ( Mumbai - Hyderabad National
Highway ) started. GOCL has also surrendered a portion of its land towards
this, for which it is entitled to certain waiver in Impact Fees, which the
development partner will pass on to GOCL as and when received by them in
addition to revenue sharing ratio.
Town Planning of the property is being fine tuned in line with the connector
roads
Development at Hyderabad
GHMC approvals for segregation of Factory premises from property under
development and security issues received.
JDA in final stages with Revenue Sharing Ratio of 35:65 with 35% to GOCL.
In total, 10.50 ml sq. ft of salable space is planned to be developed in phases.
Construction is planned to start by Dec.2012
Thank you