Registered Office 133, Jehangir Building, 2nd Floor, M.G. Road, Fort, Mumbai 400 001, India. T +91-22-66556000 / 43214000 F +91-22-66556099 E oa@orientalaromatics.com CIN L17299MH1972PLC285731 www.orientalaromatics.com Ref: OAL/BSE/NSE/53/2021-22 16 th September, 2021 To To The Manager The Manager Department of Corporate Services, Listing Department, BSE Limited, National Stock Exchange of India Limited Phiroz Jeejeebhoy Towers Exchange Plaza, Bandra Kurla Complex Dalal Street, Mumbai- 400 001 Bandra (East), Mumbai - 400 051 Scrip ID : OAL Symbol: OAL Scrip Code: 500078 Series : EQ Sub: Disclosure under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 Dear Sir/Ma’am, This is to inform you that pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (the “Listing Regulations"), read with Part A of Schedule III of the Listing Regulations, we hereby enclose the Investor Presentation for the month of September, 2021. Pursuant to Regulation 46(2) (0) of the Listing Regulations, the aforesaid Investor Presentation is also uploaded on the website of the Company i.e.www.orientalaromatics.com. Kindly take the same on your record. Thanking you. For Oriental Aromatics Limited Kiranpreet Gill Company Secretary & Compliance Officer
Overview• Oriental Aromatics Ltd. is one of the largest Indian manufacturers of a variety of Aroma
Chemicals, Camphor, Fragrances and Flavours.• The company is one of the privileged few integrated manufacturers of fragrances and flavours
as well as aroma chemicals globally.• The Company aspires to become a global player in the specialty aroma chemicals and use
these synergies to become one of the most prominent fragrance and flavour companies.• The company is listed on both NSE and BSE with an approximate Market Capitalisation of
more than INR 25,000 Mn as on June 30, 2021.
Executive Summary
Business Mix • Aroma Chemicals and Camphor - Ranging from Pinene
derivatives, to petrochem derivatives, and even musk and sandalwood derivatives, OAL delivers quality aroma chemicals to clients across the world.
• Flavours and Fragrances – OAL delivers innovative flavours and fragrance raw materials to marquee FMCG companies.
Flavours and Fragrances:• Ambernath, Maharashtra - 6,000 MTPA
Op. IncomeINR 7,088 Mn
EBITDAINR 1,551 Mn
EBITDA Margin21.88%
Net ProfitINR 1,019 Mn
PBTINR 1,370 Mn
EPSINR 30.29
ROCE25.46%
ROE18.29%
R&D Facilities • Centre for Innovation at
Mumbai • Process re-engineering
lab at Vadodara
Company Overview
3
4
Domestic 71%
International29%
FY21 Geographical Sales (%)
Company Overview
• The Fragrance and Flavours business of Oriental Aromatics was founded by Mr.Keshavlal Bodani in 1955 and has been nurtured and handed down to threegenerations of the Bodani’s.
• In August 2008, Oriental Aromatics’ promoters acquired a controlling stake of57.66% in the listed entity of Camphor & Allied Products Ltd.(CAPL), a key supplierof Camphor and other specialty aroma chemicals. Furthermore in April,2017,Oriental Aromatics was fully amalgamated into the listed entity andthereafter, the name of CAPL was changed to Oriental Aromatics Limited (OAL).
• Today, The Company is one of the largest manufacturers of variety of specialtybased aroma chemicals, and camphor, with a vast product range includingSynthetic Camphor, Terpineols, Pine Oils, Astromusk, several other specialty aromachemicals finding applications in a wide array of industries ranging from Cosmetics,Soaps, Pharmaceuticals and many more.
• OAL’s custom designed fragrances are found in fine fragrances, incense sticks,candles, and various FMCG products like soaps, shampoos, hair oils, detergents,etc. and it also provides flavours for ice-creams, bakeries, confectionaries,beverages, chewing gums, chocolates etc.
• The Company has evolved into a one stop solution provider for the flavour andfragrance industry.
4Flavours CamphorFragrances Aroma Chemicals
4,5775,060
7,547 7,5997,088
279 250 571 862 1,019
12.41% 12.79%15.20%
16.74% 21.88%
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
0
1000
2000
3000
4000
5000
6000
7000
8000
FY17 FY18 FY19 FY20 FY21
Operational Revenue, PAT & EBITDA Margin (INR)
Operational Revenue PAT EBITDA Margin (%)
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Value Chain
Applications
Aroma Ingredients
Speciality Aroma Chemicals
Pine Oil
Terpene based aroma chemicals
Others
Synthetic Camphor
Sources of Raw Materials
Raw Materials Products/Blends
Alpha Pinene
Pine Tree
Petroleum
Petro Chemicals Hair Oils, Shampoos, Soaps etc.Aleuritic Acid
(Shellac Powder)
Fragrance and Flavour Products
Industrial Fragrance Compounds
Flavour Compounds
Customized Fragrance Compounds
Incense Sticks
Air Fresheners
Cosmetics
Detergents
Balms
Prayer Rituals
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Mr. Ranjit A. Puranik - Non-Executive & Independent Director• Managing Director of Shree Dhootapapeshwar Ltd., a family led enterprise involved in
manufacturing of Ayurveda healthcare formulations.• President of an Ayurveda college and is Advisor to the Herbal and Ayush Panel at
pharmexcil. He has represented the AYUSH Industry cause for the past 16 years inforums related to Ayurveda, medicinal plants and regulatory reforms.
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Promoter Background and Board of Directors
Mr. Dharmil A. Bodani - Managing Director• A dynamic personality with vast experience of more than 3 decades in fragrance,
flavours and chemical industry.• Has specialized training on perfumery in Grasse, France and been instrumental in the
formation and implementation of the overall strategy and vision of the group. He hasbeen playing an important role in product selection on the chemicals side.
Mr. Shyamal A. Bodani - Executive Director• Started his career in the year 2003 and currently he undertakes local as well as
overseas marketing sales and export promotion etc.• Plays a key role in the formation and implementation of strategy of the chemicals
division (especially from the sales and marketing perspective).
Mr. Harshvardhan A. Piramal - Non-Executive & Independent Director• Holds a Bachelor of Science (Physics) degree from Kings College London and a MBA
(specializing in Finance and Strategy) from the London Business School.• He is the Vice Chairman of Morarjee Textiles, and Piramal Renewable Energy, all part
of Ashok Piramal Group.• Passionately involved in tiger conservation and is a trustee of Conservation Wildlands
Trust.
Mr. Prakash V. Mehta - Non-Executive & Independent Director• Graduated in law from the Bombay University in 1963 and qualified as a Solicitor in
1966. Appointed as Notary in 1996. Member of Maharashtra & Goa Bar Associationand also a Member of the Managing Committee of the Bombay Incorporated LawSociety.
• Presently holds directorship in various public and private limited companies.
Mr. Satish Kumar Ray- Executive Director- Operations• Serves as Whole Time Director designated as Executive Director Operations in Oriental
Aromatics Limited.• Has 21 years of experience in different fields like Policy Formulation, Advisory,
Planning, and Executive Task related to HR, Commercial, Purchase, Store, Sales, SupplyChain, Indirect Taxation, Custom, DGFT, GST, Insurance and claim management, etc.
Ms. Amruda V. Nair - Non-Executive & Independent Director• Has experience in leading international hospitality brands. Graduate in Economics,
holds degree in Hospitality Management from Netherlands and Masters from Cornell,NY .
• Ms. Nair is responsible for designing the brand‘s signature programming andspearheading overall business development to create a unique proposition of smarthospitality.
Mr. Bhadreshkumar A. Pandiya- Executive Director- Operations• Has 24 years of rich experience in Chemical Manufacturing industries in Specialty
Mr. KeshavlalBodani founded Oriental Aromatics (Fragrances and Flavours business)
Since commencement, the company has focused on in-house research & development. The Malti-ChemResearch Centre was established to carry out extensive work on Terpene chemistry
Setting up of the Export-oriented facility for fragrances
In August 2008, controlling stake of 57.66% was bought over by the promoters, Oriental Aromatics Limited; a key customer of Camphor & Allied Products and a creator and manufacturer of flavours and fragrances located in Mumbai, India
Commissioned Speciality Chemicals Plant at Vadodara
The company acquired business of two Indian aroma chemical manufacturers- Arofine Chemical Industries and VaishnaviChemicals Private Limited
In April the equity shareholders of CAPL and OAL approved a scheme of arrangement for amalgamation of OAL with CAPL to create a larger forward integrated company. The Scheme was approved by Honourable National Company Law Tribunal on November 16, 2017
Commissioned Speciality Chemical Division Multipurpose Plant at Vadodara
The first Synthetic Camphor plant with technology from DuPont of USA was established in Bareilly, Uttar Pradesh
Establishment of the Flavour Division
State-of-the-art manufacturing facility, established at Nandesari, Vadodara for Speciality Chemicals
PT Oriental Aromatics was incorporated in Indonesia as the overseas subsidiary
Manufacturing and R&D facility was established in Ambernath, Maharashtra for Flavours and Fragrances
Set up a one-of-its-kind R&D Centre in Mumbai with focus on synthesising speciality & generic aroma chemicals
The name of the company changed from CAPL to OAL, under the Scheme of Amalgamation as approved by Honourable NCLT and Certificate of Incorporation dated February 26, 2018, issued by the Registrar of Companies, pursuant to the change of name
Listing of Equity shares on National Stock Exchange of India Limited. (NSE)
19
55
19
74
19
95
20
08
20
13
20
15
20
17
20
18
19
64
19
91
19
99
20
12
20
14
20
16
20
18
20
19
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Ambernath, Maharashtra
Vadodara, Gujarat
• The-state-of-the-art manufacturing aroma chemicals facility was set up at Vadodara, Gujarat in 1999 anda new multi purpose plant facility added in 2018, with an end product capacity of ~6,200 MTPA.
• Products manufactured at this plant are of international standards and 75% of the annual production isexported all over the world.
• The plant produces wide range of generic speciality aroma ingredients from Pinene, Petrochem and otherraw material sources.
• Chemical operations handled at this plant include epoxidation, peroxidation, hydrogenation, aldolcondensation, cyclization, esterification, bromination, etc.
• First Synthetic Camphor plant in India with technology from DuPont of USA in 1964.• This plant produces more than ~7,200 MTPA of pine based chemicals and other end products.• The plant has the ability to handle chemical operations such as fractionation, esterification,
saponification, hydrogenation, dehydrogenation, oxidation, peroxidation, pyrolysis, etc.• The plant is accredited as Pharma Grade with WHO-GMP and USFDA certifications.• The plant mainly manufactures camphor and speciality aroma ingredients based on Alpha Pinene.
• This state-of-the-art manufacturing facility has capacity of ~6,000 MTPA of fragrance and flavourwhich started operations in 2014.
• It is a very versatile manufacturing facility capable of producing fragrances as well as flavors.• This facility also has a state of the art and modern R&D / QA infrastructure.
Manufacturing Facilities
Bareilly, Uttar Pradesh
10
The company has a planned capital expenditure of ~INR 3,500- INR 4,000 Mn for the next 3-5 years.
Future CapEx
CapEx Detail Location Product Expected Investment Expected year of Commissioning
Brownfield Expansion of the MPP Vadodara Aroma Chemicals ~INR 100 Mn Completed in December 2020
Process re-engineering lab at Vadodara • DSIR approved lab
• Successfully developed several new products of Turpentinechemicals
• Well Equipped pilot Plant
• Facility to carry out high pressure reactions and various lab scalefractionating columns for separation
Centre for Innovation at Mumbai• State of the art synthesis lab
• DSIR approved lab
• Dedicated to research on generic speciality aroma ingredients in asustainable way
• Between 20-25 research associates
• Head-space GC-MS, Flash chromatography, UV along with regularanalytical set-up, Well equipped bench scale laboratories to carryout various organic reactions like Aldol condensation, Oxidation,Reduction, hydrogenation, hydration, Acetylation, Esterification,Isomerization
• Fully Operational environmental lab for carrying out sustainabilitystudies
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Key StrengthsIn
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• Adopted a sustainable sourcing policy for key elements such as Turpentine Oil and Alpha-Pinene, which areessential raw materials for the products
• One of the few manufacturers who can use turpentine oil that has been derived from all sources in the world
• Sustainable processes ensuring high quality which minimises the quantities required and cut back on wastes
• Fosters excellence through innovation and gives utmost important to R&D
• Integrated and fully automated DCS controlled chemical manufacturing facilities
• Capable of producing fragrances as well as flavours and speciality chemicals
• First synthetic Camphor plant in India backed by technology from Dupont.
• The company’s vast product range finds applications in array of industries ranging from F&F, Pharmaceuticals,Soaps & Cosmetics, Rubber & Tyre, Paints & Varnishes, etc.
• 6 decades of experience in Aroma Chemicals and 7 decades of experience in Fragrances and Flavours
• Evolved as a one stop shop solution provider for the F&F Industry
• Strong Raw Material sourcing capability
• Pioneer in the field of Terpene Chemistry in India
• One of the few companies globally who are fully integrated in the space of Fragrances and Flavours
• The global market for aroma chemicals is estimated at USD 4,727 Mn in 2018, and is forecast togrow at a CAGR of 5.3% to reach USD 6,126 Mn by 2023.
• In FY18 Aroma chemicals contributed 16% in the F&F Industry and the major driver was due togrowth in middle class consumption in the emerging economies.
• Terpenoids represent the largest product category, with a share of 31%, closely followed byBenzenoids with 29%.
• The global aroma chemicals market is highly consolidated among key market players. The topfour players account for ~ 55% share of the global market.
• In terms of source, the synthetic segment dominates the global aroma chemicals market due toits characteristics to replicate any natural aroma, and also ease of availability.
• China is a key exporter of specialty chemicals, including aroma chemicals, to various countries inEurope and Asia Pacific.
Growth Drivers:
• Increasing demand for cosmetics and homecare products
• The growing retail sector in emerging economies of the region has made the availability easierof products, such as cosmetics, fragrance, soap, and detergents, which is further surging themarket growth .
Applications:
• Can be found in food, wine, spices, essential oils, perfumes and fragrance oils. Thesecompounds have a considerable role in the manufacturing of flavours and fragrance.
Source: IAL Consultants, BCC Research, Nielsen Market Study on Fragrances and Flavours, March 2015
Aroma Chemicals Industry Overview
1.4
0
1.5
4 1.7
9
1.6
5 1.9
3
2.5
4
EMEA Americas Asia Pacific
Global Market for Aroma Chemicals, 2018-2023 (USD Bn)
2018 2023
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Aroma Chemicals
• Every aroma has a specific need and a unique characteristic. Whether it’s going to be used to mask, mimic ormaximise a taste or smell, is key.
• Each aroma molecule can be adapted to suit a variety of products and offer their own signature fragrance. After all,an aroma of a product is it’s essence.
• OAL has the ability to manufacture aroma ingredients from bulk to specialty grade at its manufacturing facility in Bareilly and Vadodara.
• OAL has had a longstanding relationship to supply a broad spectrum of aroma chemicals that are used in flavours and fragrances to globalmajors like IFF, Givaudan, Symrise etc.
Generics offered by Specialty Chemicals Division• Esters of Allyl alcohol • Esters of Geraneol & Citronellol• Esters of Phenyl Acetic acid, Cinnamic acid • Esters of Cinnamic alcohol & Cyclohexanol• Esters of Para cresol & Phenyl Ethyl alcohol • Aromatics ethers like Nerolin crist, etc. • Phenoxyethyl Isobutyrate• Nitriles of various Aldehydes Like c12 Lauric,
c10, Citronellyl Nitrile
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Religious purposesMedicinal Purpose
Camphor Benefits• Relieves Skin Itching And Irritation• Alleviates Pain• Soothes Burns• Cures Acne• Strengthens Hair Root• Antioxidant Properties• Work As An Insecticide• Used In Aromatherapy
• OAL is one of the prominent manufacturers of Camphor in India
• Camphor is a waxy, flammable, white or transparent solid with a strong aroma.
• It can be produced from alpha-pinene, which is abundant in the oils of coniferous trees and can bedistilled from turpentine produced as a side product of chemical pulping.
• It is primarily used in India for religious purposes, but also finds usage in fragrances, cooking, andpharmaceutical industry.
Camphor
Features• Natural Ingredient
• Good for blemish free skin
• Flammable
• Not so expensive
• Easily Available
Applications
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Facts of Fragrances and Flavours
A study indicates that 80% of the flavours we taste come from what we smell(which is why foods can become flavourless when we have a blocked nose)
The sense of smell is the first of all our senses to develop. Even before we are born, our sense of smell is fully formed and functioning.
Studies show that 75% of emotions are triggered by smell which is linked topleasure, well-being, emotion and memory – handy when you want people tobuy your products.
Smell is the most sensitive of the senses. People can remember smells with 65%accuracy after a year, while visual recall is about 50% after three months.
Scents can have positive effects on mood, stress reduction, sleep enhancement,self-confidence, and physical and cognitive performance.
The human brain can process roughly 10,000 smells in an area the size of apostage stamp, each triggering a neural response.
Your sense of smell accounts for 75-95% of the impact a flavour has.
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• The global flavour and fragrance (F&F) market is valued at USD 21 Bn in 2018 and isprojected to reach USD 35 Bn by 2028 growing at a CAGR of 5.1%.
• Of the main global regions, the flavours and fragrances market is largest in the Asia-Pacific region, followed by North America and Western Europe.
• The Indian Flavour & Fragrance (F&F) market in 2018 is INR 6,000 Cr and is primarilydominated by global MNC’s while local players are fragmented and smaller in size,mostly catering to the unorganized market.
• In India, the top 6 F&F Players contribute 72% of the total market while the balance 28%is held with the smaller players.
• The Fragrance Segment is more consolidated, though, relative to the Flavours with top 5players constituting 85% of the fragrance segment relative to 58% for the latter.
• Organized F&F industry is growing at 12% CAGR expected to track growth in consumerstaples.
• Growth is likely to come from consumer ‘upgrading’ in mature product categories. Indiahas a growing population of working women, which is expected to emerge as a largeconsumer of FMCG products.
Source: IAL Consultants, BCC Research, Nielsen Market Study on Fragrances and Flavours, March 2015
Flavours & Fragrance Industry Overview
Country2017(USD
Bn)2022(USD
Bn)% Growth
p.a
Africa and Middle-East 1.5 1.9 5.0%Asia 11.6 15.8 6.4%Central and North America 6.7 7.9 3.4%Central and Eastern Europe 1.7 2.1 4.6%South America 2.1 2.6 4.5%Western Europe 4.6 5.5 3.5%Global Total 28.2 35.9 4.9%
0.4
0.8
1.5
2010 2015 2020
Indian F&F Market (USD Bn)
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• A Fragrance compound, also known as an odorant, aroma, is a chemical compound that has a smellor odour.
• Perfume is described as having three sets of notes, making the harmonious scent accord. The notes unfoldover time, with the immediate impression of the top note leading to the deeper middle notes, and thebase notes gradually appearing as the final stage.
• OAL delivers innovative fragrance formulations to a wide set of customers. The Company continuallystrives to find the best balance between creativity and functional needs to develop fragrances with thehighest acceptance and the best release performance in the final product.
Fragrance Compounds
Applications
Soap and Detergent FragrancesFine FragrancesFragrances for Cosmetics and
ToiletriesFragrances for Incense Sticks
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• Flavour is the sensory impression of food or other substance, and is determined primarily by thechemical senses of taste and smell.
• Smell is the main determinant of a food item's flavour.• While only five basic tastes - sweet, sour, bitter, salty and umami (savoury) are universally recognized, the
number of food smells is unbounded.• A "flavourant" is defined as a substance that gives another substance flavour, altering the characteristics
of the solute, causing it to become sweet, sour, tangy, etc.• These mixtures are formulated by OAL to give a food product a unique flavour and to maintain flavour
consistency between different product batches or after recipe changes.
Applications
Food Flavours
Flavour Compounds
Fine Pharma FlavoursFinal Food Flavours Solid Flavours Liquid Flavours
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Strategic Overview
Committed to be a global player in the
specialty aroma chemical space
Increased focus on high value – low volume products
Liabilities (INR Mn) FY20 FY21 Assets (INR Mn) FY20 FY21Shareholders Fund AssetsShare Capital 168 168 Non-Current Assets
Other Equity 4,470 5,406 Property, Plant and Equipment 1,814 1,846Intangible Asset 24 2
Capital WIP 17 125
Non-Current Liabilities Right of use- Lease 74 67Financial Liabilities Goodwill on amalgamation 450 450i) Long-Term Borrowings 15 - Financial Assets
ii) Other Financial Liabilities 8 2 Investment in Subsidiaries 60 96Deferred Tax Liabilities (Net) 261 267 Other financial assets 37 40Long-Term Provisions 18 25 Income Tax Assets (Net) 32 74
Other non-Current assets 6 6
Current Assets
Current Liabilities Inventories 1,623 2,276Financial Liabilities Financial Assets
i) Short-Term Borrowings 431 779 Trade and other Receivable 1,524 1,891ii) Trade Payables 566 713 Cash & Cash Equivalents 131 151iii) Other financial Liabilities 114 58 Bank Balance other than above 18 20Short-Term Provisions 17 14 Other Current Financial Assets 8 10Other Current liabilities 21 24 Other Current Assets 270 401
Non-Current Assets classified as held for Sale 1 1
TOTAL EQUITY AND LIABILITIES 6,089 7,456 TOTAL ASSETS 6,089 7,456
Oriental Aromatics Ltd. Disclaimer: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 the information or opinionscontained in this presentation. Such information and opinions are in all events not current after the date of this presentation. Certain statements made in this presentation may not bebased on historical information or facts and may be "forward looking statements" based on the currently held beliefs and assumptions of the management of Oriental Aromatics Limited.,which are expressed in good faith and in their opinion reasonable, including those relating to the Company’s general business plans and strategy, its future financial condition and growthprospects and future developments in its industry and its competitive and regulatory environment.
Forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results, financial condition, performance or achievements ofthe Company or industry results to differ materially from the results, financial condition, performance or achievements expressed or implied by such forward-looking statements, includingfuture changes or developments in the Company’s business, its competitive environment and political, economic, legal and social conditions. Further, past performance is not necessarilyindicative of future results. Given these risks, uncertainties and other factors, viewers of this presentation are cautioned not to place undue reliance on these forward-looking statements.The Company disclaims any obligation to update these forward-looking statements to reflect future events or developments.
This presentation is for general information purposes only, without regard to any specific objectives, financial situations or informational needs of any particular person. This presentationdoes not constitute an offer or invitation to purchase or subscribe for any securities in any jurisdiction, including the United States. No part of it should form the basis of or be relied uponin connection with any investment decision or any contract or commitment to purchase or subscribe for any securities. None of our securities may be offered or sold in the United States,without registration under the U.S. Securities Act of 1933, as amended, or pursuant to an exemption from registration there from.
This presentation is confidential and may not be copied or disseminated, in whole or in part, and in any manner.
Valorem Advisors Disclaimer:
Valorem Advisors is an Independent Investor Relations Management Service company. This Presentation has been prepared by Valorem Advisors based on information and data which theCompany considers reliable, but Valorem Advisors and 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 youmay consider material. Any liability in respect of the contents of, or any omission from, this Presentation is expressly excluded. Valorem Advisors also hereby certifies that the directors oremployees of Valorem Advisors do not own any stock in personal or company capacity of the Company under review.
