January 04 , 201 3

KANSAI a NEROLAC PAINTS LTD BUY Recommendations <= 1 year 1 - 2 yrs 2 - 5 yrs Strong Buy Established way back in 1920, Kansai Nerolac Paints Ltd . (KNPL) is engaged in the Buy manufacturing of paints having products ranging across decorative paints, high performance Hold coatings, automotive coatings, general industrial coatings and specialty coatings. The Reduce company meets nearly 90% of OEM paint demand and is a key player in decorative paints. The Sell Strong Buy – Expected Returns > 20% p.a. company’s largest client for industrial paints demand is . Buy – Expected Returns from 10 to 20% p.a. Hold – Expected Returns from 0 % to 10% p.a. • With the easing of interest rate cycle, demand for automobiles are expected to ramp up Reduce – Expected Returns from 0 % to 10% p.a. with possible downside risk Sell – Returns < 0 % which will lead to increase in demand for paints. We expected top-line and bottom-line to grow at a healthy CAGR of 17.6% and 19.3% respectively over FY12 and FY14. • Demand for decorative paint is expected to increase in the upcoming years mainly from re- paint segment due to awareness of advantages of lead free paint and will be catered by KNPL. Improving economic conditions and revival in industrial growth backed by tamed inflation and expected decline in interest rates to further support increase in paint demand. STOCK DATA BSE / NSE Code 500165 / KANSAINER • KNPL always work in congruence to the customer needs. It has been coming out with new Bloomberg Code KNPL IN EQUITY range of products in order to meet customer demands in the Automotive, Auto Refinish and No. of Shares (Mn) 53.9 Sensex / Nifty 19,714.2 / 5,993.3 Performance Coatings segments of the markets. This is expected to help the company to PRICE DATA maintain its leadership position and retain its customers. CMP Rs (02nd Jan' 13) 1110 Beta • 0.16 The company’s margins were under pressure in the last few quarters due to higher raw- Market Cap (Rs mn) 59,821 material prices and as it failed to pass on the higher cost to the customers. However, with 52 Week High-low 1039.9 - 840.0 Average Daily Volume 2926 the correction of major raw materials corrected significantly (~15% correction in titanium STOCK RETURN (%) dioxide prices), we expect the margin to improve from the current levels. 30D 3M 6M 1Y KNPL 2.6% 19.2% 18.5% 30.3% • The market for the paints segment is expected to grow at 12-13% for the next five years i.e. Sensex 1.9% 4.7% 13.3% 27.0% at 1.5 to 2 times the real GDP. This indicates that there is growth opportunity for KNPL and Nifty 1.9% 4.8% 13.5% 29.3% SHARE HOLDING PATTERN (%) the company is well equipped for FY13. The industry size for paints is estimated at Rs 291bn Promoter 69.3 wherein the organized sector accounts for 65% while the remaining is with the unorganized Institution 12.4 Others 18.3 sector comprising of around two thousand small scale paint units. Total 100.0 Based on FY14 P/E multiple of 22.0x, the fair value for the company work out to 1 Year Price Performance (Rel. to Sensex) 138 Rs 1242.7 Sensex KNPL Financial Snapshot 126 Projections (Rs Mn) FY07A FY08A FY09A FY10A FY11A FY12A FY13E FY14E Revenue 12,875 14,041 14,705 18,220 22,555 27,312 32,326 37,754 Y-o-Y Growth % 9.1% 4.7% 23.9% 23.8% 21.1% 18.4% 16.8% 114 EBITDA 1,955 2,114 1,796 2,841 3,386 3,616 4,195 5,023 Y-o-Y Growth % 8.1% -15.0% 58.1% 19.2% 6.8% 16.0% 19.7% 102 Adj. PAT 1,036 1,102 961 1,626 1,865 2,086 2,425 2,966 Y-o-Y Growth % 6.3% -12.8% 69.2% 14.7% 11.8% 16.2% 22.4% EPS Rs 39.9 44.4 36.6 61.4 38.2 40.1 46.3 56.4 90 BVPS Rs 189.9 220.3 242.8 286.8 170.0 197.3 229.5 268.9 EBIDTA % 15.2% 15.1% 12.2% 15.6% 15.0% 13.2% 13.0% 13.3% NPM % 8.0% 7.8% 6.5% 8.9% 8.3% 7.6% 7.5% 7.9% ROE % 21.0% 20.2% 15.1% 21.4% 22.5% 20.3% 20.2% 21.0% PER x 23.9 19.7 P/B Ratio 4.8 4.1 www.fullertonsecurities.co.in Page | 1

January 04, 201 3

BUSINESS PROFILE

KNPL is the second largest paint company in and market leader in industrial coatings. Its industrial coatings have a wide range of products in the Automotive, Powder, General Industrial and High performance Coatings space. The company is also an established brand in decorative paints. KNPL is the second largest paint company in India KNPL is a subsidiary of Japan based Company Limited, which is one of the top ten coating companies in the world. The technological edge of Kansai helps the company to constantly innovate and come up with

products that meet consumer need gaps. The company started its operation in the year 1920, as Gahagan Paints and Varnish Co. Ltd. in .

1957: Goodlass Wall Pvt. Ltd grew popular as Goodlass Nerolac Paints (Pvt) Ltd. Also, it went public in the

same year and established itself as Goodlass Nerolac Paints Ltd.

1976: Goodlass Nerolac Paints Ltd. became a part of the Tata Forbes Group on acquisition of a part of the

foreign shareholdings by Forbes Gokak.

1983: Goodlass Nerolac Paints Ltd. strengthened itself by entering in technical collaboration agreements with

Kansai Paint Co. Ltd, Japan and Nihon Tokushu Toryo Co. Ltd, Japan. 1999: Kansai Paint Co. Ltd, Japan took over the entire stake of Tata Forbes group and thus GNP became

wholly owned subsidiary of Kansai Paint Company Ltd. 2006: On the 11th of July, Goodlass Paints Ltd. name has been changed to Kansai Nerolac Paints Ltd. The company is a The company has its manufacturing facilities at Lote in Maharashtra, Bawal at Haryana, Jainpur in UP, Chennai subsidiary of Japan based and the latest state of the art plant at Hosur in Tamil Nadu. The geographical set up of the plants has been Kansai Paint Company Limited advantageous in providing high service levels and supply chain efficiency, thus leading to customer satisfaction. The company has pioneered the launch of eco friendly, zero VOC, low VOC, lead free (no lead added) range of products for

the decorative business. It has continued the focus on core brands with introduction of products like Lotus Touch and

Little Master series of emulsions. The market for the paints segment is expected to grow at 12-13% for the next five years i.e. at 1.5 to 2 times

the real GDP. This indicates that there is growth opportunity for KNPL and the company is well equipped for FY13. The industry size for paints is estimated at Rs 291bn, wherein the organized sector accounts for 65% while the remaining is

with the unorganized sector comprising of around two thousand small scale paint units. The decorative paints segment

accounts for Rs 225bn while industrial accounts for Rs 66bn of the total paint market.

Recognizing the long term growth potential of the industry due to a series of long term favorable economic and demographic criteria, the company has continued to make strategic investments, which will help to preserve its

leadership as well as ensure that its customers are served with the highest of standard. Manufacturing capacity expansions, reduction in carbon emissions, energy and water conservation, manage sustainability through The market for the paints segment is expected to environment friendly products, efficient supply chain, strong people processes and best in class IT systems are some of grow at 12-13% for the the long term strategic investments. However there remain few challenges that have to be met such as regulation of next five years environmental laws, market volatility, inflation, rising crude oil and other raw material prices, interest rates, political interruptions etc. However, KNPL is prepared to meet the challenges and sustain the leadership in the industrial segment and work towards creating leadership in the decorative business. www.fullertonsecurities.co.in Page | 2

January 04, 201 3

INVESTMENT RATIONALE • KNPL has made huge investments in Research & Development and always aimed at being one of the first in

introducing new environment friendly products. Breakthrough technology and high quality across product KNPL has made huge segments have been the forte of the function and will enable the company to keep ahead of the competition. investments in Research & • Development and always The economic pressures are likely to remain and the markets may be volatile. One of the most important risk factors aimed at being one of the is sustainability of the business and changing customer choices. The company is prepared to handle it through first in introducing new environment friendly environment friendly products, world class technological innovations, speed of response and operational products excellence which are important attributes for risk handling.

• Efficient manufacturing, strong supply chain, high quality raw materials, timely reach to the customers, working capital management, productivity enhancement, right inventory levels, talent retention, adherence to standard

operating procedures are the cutting edge to overcome the risks and face the competitive environment, which we

believe that the company is well equipped with to sustain its growth story. • The company has plans to expand its manufacturing capacity by ~10,000 tonne with an investment of Rs 13bn, from its current capacity of ~230,000 tonne. KNPL has further plans to invest ~Rs 6bn in the upcoming years to

expand its capacity in industrial as well as decorative segment.

• Quarterly performance of the third quarter is expected to improve due to increase in demand from both industrial

and decorative segments, on account of the festival season. • The paint industry is estimated to be around Rs 290bn and KNPL is the largest player in the industrial coating Quarterly performance of segment. Now the company has also begun increasing the focus on the decorative coating part of the business. the third quarter is KNPL envisages an even bigger opportunity in decorative segment (55% of its revenues) which offers both pricing expected to improve due to increase in demand power and better margins and turns aggressive in innovating and launching new eco-friendly, lead-free, zero VOC from both industrial and and series of affordable emulsion paints. decorative segments

• The reversal of the interest rate cycle is expected to help the company as demand for industrial paint is expected to increase with the increase in demand for automobiles. Maruti being the largest consumer for the company is

expected to post increase in sales volume, which is expected to help in the top-line performance of the company. • Demand for decorative paint is expected to increase in the upcoming years mainly from re-paint segment due to

awareness of advantage of lead free paint and will be catered by KNPL. Improving economic conditions and revival in industrial growth backed by tamed inflation and expected decline in interest rates to further support increase in

paint demand.

• KNPL always work in congruence to the customer needs. It has been coming out with new range of products in

order to meet customer demands in the Automotive, Auto Refinish and Performance Coatings segments of the markets. This is expected to help the company to maintain its leadership position and retain its customers. KNPL always work in • The market for the paints segment is expected to grow at 12-13% for the next five years i.e. at 1.5 to 2 times the real congruence to the customer needs GDP. This indicates that there is growth opportunity for KNPL and the company is well equipped for the FY13. The

industry size for paints is estimated at Rs 291bn wherein the organized sector accounts for 65% while the remaining is with the unorganized sector comprising of around two thousand small scale paint units. www.fullertonsecurities.co.in Page | 3

January 04, 201 3

BUSINESS PERFORMANCE AND PEER COMPARISON

KNPL registered lower than expected 11% Y-o-Y sales growth in Q2FY13 on the back of muted volume growth of ~5%. Sales were primarily affected in company's industrial paints business (~50% of sales) owing to sluggish macro- KNPL registered lower than expected 11% Y- environment. Although, sales are expected to pick-up with the onset of festive season but we expect overall sales to o-Y sales growth in remain lackluster in the current year compared to last year. Q2FY13

EBIDTA margin dropped sharply by 328bps Y-o-Y to 11.56%, on the back of KNPL’s inability to pass on increase

in RM cost to its institutional clients who are already reeling under the pressure of slowing sales growth and reducing

margins. The company took price hikes of ~5% in decorative and ~3-4% in industrial paints segment YTD. Industrial segment would continue to put pressure on company's overall margins in current FY as it would find it difficult to

increase prices amid tough business environment for OEMs. EBIDTA margin is expected to pick up in FY14 on the back of expected improvement in economic environment and lower inflationary pressure.

The company has a dominant share of ~60% in auto paints industry which is the largest segment of industrial paints in India. The fortunes of the company, therefore, are highly dependent on the performance of auto paints

industry which is undergoing difficult times due to falling sales growth and margin pressure. We expect the situation to improve with the reversal of interest rate cycle. Moreover, the decorative segment demand is also expected to improve

due to awareness of the advantages of lead free paint due to ad-campaigns and due to increase in demand during the festive season. The company has a dominant share of 80.0% ~60% in auto paints 40000 Revenue, Operating and PAT Margin 23.0% Revenue & PAT Growth industry which is the 21.0% 60.0% largest segment of 30000 19.0% industrial paints in 40.0% India 17.0% 20000 15.0% 20.0%

10000 13.0%

11.0% 0.0% FY08 FY09 FY10 FY11 FY12 FY13E FY14E 0 9.0% FY07 FY08 FY09 FY10 FY11 FY12 FY13EFY14E -20.0%

Revenue (Rs Mn) EBITDA Margin PAT Margin Revenue Growth PAT Growth

Peer Comparison We are comparing KNPL with Berger Paints which also operates in the Indian paint industry. Unlike KNPL, Berger is only present mainly in decorative paint segment whereas Berger Paint is a leading player in the industrial

segment where demand is expected to rise more than that of real GDP growth. This provides cushion to the company against any competition. Moreover, KNPL has taken various measures to tackle any adverse scenarios such as raw

material price fluctuation, market volatility, inflation etc and to work towards top line and bottom line growth without We are comparing compromising in the quality, which we believe will help the company to sustain its growth story. KNPL with Berger Paints Peer Group Comparison Revenue EBIDTA PAT Margin ROE P/E P/B CMP FV Companies (Rs. mn) Margin (%) (%) (%) (x) (x) (Rs.) (Rs.) KNPL 27,312 13% 8% 20% 27.7 5.6 1110 10.0 Berger Paints 29,477 11% 6% 22% 31.4 6.9 157 2.0 www.fullertonsecurities.co.in Page | 4

January 04, 201 3

VALUATION

We expect KNPL’s revenues to grow at a CAGR of 17.6% over FY12-14 to Rs 37.8bn and PAT to grow at a CAGR of 19.3% over the same period to Rs 3.0bn. The company was trading at an average one year forward P/E multiple We expect KNPL’s of 18.7x over the last three years. revenues to grow at a We believe that going forward the company will continue its growth story aided by its dominant market CAGR of 17.6% over FY12-14 to Rs 37.8bn position in the organized paint industry, rising demand for lead free decorative paint and industrial paint due to improving economic scenario, capacity addition and fall in raw material prices . Taking into consideration all the points

we believe that the company will reach one year forward P/E multiple of 22.0x in FY14. So based on FY14 P/E multiple of 22.0x, the fair value for the company works out to be Rs 1242.7. We

recommend a ‘ BUY ’ rating on the stock.

Financial Analysis and Projections

Particulars (Rs Mn) FY07A FY08A FY09A FY10A FY11A FY12A FY13E FY14E

Net Revenue 12,875 14,041 14,705 18,220 22,555 27,312 32,326 37,754 Other Income 241 249 222 204 611 373 659 770 Total Income 13,174 14,232 14,986 18,824 23,793 28,168 33,287 38,898 Operating Expenditure 11,219 12,118 13,189 15,983 20,407 24,552 29,092 33,875 Depreciation 336 396 376 443 494 564 647 707 EBIT 1,619 1,718 1,420 2,398 2,893 3,052 3,548 4,317 We believe that going EBIT Margin (%) 12.6% 12.2% 9.7% 13.2% 12.8% 11.2% 11.0% 11.4% forward the company will Interest 10 14 18 12 1 1 1 2 continue its growth story Profit Before Tax 1,610 1,704 1,402 2,386 2,891 3,051 3,547 4,315 Less: Tax 533 506 416 731 832 892 1,049 1,275 Adj. Profit After Tax 1,036 1,102 961 1,626 1,865 2,086 2,425 2,966

PAT Margin (%) 8.0% 7.8% 6.5% 8.9% 8.3% 7.6% 7.5% 7.9% ROE (%) 21.0% 20.2% 15.1% 21.4% 22.5% 20.3% 20.2% 21.0% EPS (Rs) 39.9 44.4 36.6 61.4 38.2 40.1 46.3 56.4 BVPS (Rs) 189.9 220.3 242.8 286.8 170.0 197.3 229.5 268.9 Valuation Ratios (x) FY13E FY14E P/E 23.9 19.7 P/B 4.8 4.1

Ratio Analysis Ratios (x) FY07A FY08A FY09A FY10A FY11A FY12A FY13E FY14E Based on FY14 P/E multiple of 22.0x, the fair Current Ratio 2.3 1.9 1.5 1.4 1.6 1.7 1.9 2.1 value for the company Cash Ratio 0.1 0.1 0.2 0.1 0.1 0.1 0.4 0.5 works out to be Rs 1242.7 Debt-Equity 0.2 0.2 0.1 0.1 0.1 0.1 0.1 0.1 Debt-Capital 0.2 0.1 0.1 0.1 0.1 0.1 0.1 0.1 Sales / Assets 2.1 2.1 2.0 2.1 2.2 2.3 2.4 2.4 Assets / Equity 1.2 1.1 1.1 1.1 1.1 1.1 1.1 1.1 Interest Coverage Ratio 168.7 121.8 77.2 199.8 2,066.2 3,391.3 2,454.3 2,715.5 www.fullertonsecurities.co.in Page | 5

January 04, 201 3

Balance Sheet Particulars (Rs Mn) FY07A FY08A FY09A FY10A FY11A FY12A FY13E FY14E Sources of Funds 6,152 6,813 7,375 8,713 10,281 11,707 13,693 16,016 Equity Capital 270 270 270 270 539 539 539 539 Reserves & Surplus 4,848 5,667 6,275 7,459 8,623 10,093 11,828 13,951 Shareholders funds 5,117 5,937 6,545 7,728 9,162 10,632 12,367 14,490 Loan funds 1,100 980 936 1,100 825 746 996 1,196 Net DTL -65 -104 -106 -115 -134 -102 -102 -102 Other Liabilities 0 0 0 0 428 432 432 432

Application of funds 6,152 6,813 7,375 8,713 10,281 11,707 13,693 16,016 Net Block 1,898 2,072 2,374 2,893 2,782 3,963 4,124 4,267 Capital WIP 176 266 356 164 752 1,615 1,615 1,615 Investments 1,548 2,321 2,944 4,015 3,718 1,835 1,835 1,835 Current Assets 4,493 4,679 4,981 5,620 6,833 9,029 11,838 15,014 Inventories 1,804 1,734 1,706 2,474 3,541 4,537 4,976 5,977 Debtors 1,947 2,129 2,096 2,324 2,603 3,588 3,989 4,658 Cash & bank balances 215 334 762 411 396 592 2,489 3,898 Loans & advances 527 481 417 411 293 311 385 481 Current Liabilities & Provisions 1,964 2,526 3,281 3,980 4,338 5,172 6,157 7,152 Net Current Assets 2,530 2,153 1,700 1,640 2,494 3,857 5,682 7,862 Other Assets 0 0 0 0 535 437 437 437

Cash Flow Statement Particulars (Rs Mn) FY07A FY08A FY09A FY10A FY11A FY12A FY13E FY14E Cash Flow from Operations 1,099 1,501 2,046 1,505 1,300 1,023 2,559 2,207 Net Profit before tax & extraordinary items 1,610 1,704 1,402 2,386 2,891 3,051 3,547 4,315 Adjustments for non-cash & non-operating items 192 184 201 255 25 334 -11 -61 Adjustments for WC changes -151 163 861 -366 -820 -1,512 72 -771 Cash Taxes -552 -550 -419 -770 -796 -851 -1,049 -1,275

Cash Flow from Investing -231 -1,225 -1,178 -1,629 -564 -122 -141 -80 Net Investment in GFA -611 -684 -747 -757 -1,266 -2,231 -800 -850 Net Investment 277 -634 -586 -1,029 573 1,982 0 0 Investment income 104 93 155 157 129 128 659 770

Cash Flow from Financing -812 -157 -441 -227 -748 -706 -515 -718 Net proceeds from debt -96 -121 -43 164 -275 -79 250 200 Net proceeds from equity 0 0 0 0 0 0 0 0 Dividend paid -617 -22 -324 -323 -404 -539 -689 -843 Interest paid -10 -14 -18 -12 -1 -1 -1 -2 Others -89 0 -55 -55 -67 -87 -75 -73

Beginning Cash & Cash Equivalents 158 215 334 762 411 399 593 2,496 Net inc / (dec) in cash 57 119 428 -351 -12 195 1,903 1,409 Ending Cash & Cash Equivalents 215 334 762 411 399 593 2,496 3,905

www.fullertonsecurities.co.in Page | 6

January 04, 201 3

Board of Directors Director Name Current Position Description

Dr. Jamshed J. Irani, Ph.D., is an Independent Non-Executive Chairman of the Board of Kansai Nerolac Paints Limited. He obtained a B.Sc. from Science College, Nagpur with a Gold Medal in Geology and a M.Sc. (Geology) from the Nagpur University, both with a first class first, M. Met and Ph. D from the University of Sheffield, U.K., with a Gold Medal for the Ph.D. thesis. Dr. Irani, honoured with a Independent Non- Padma Bhushan by the Government of India in 2007, is a recipient of numerous awards from reputed institutions in India and abroad Jamshed Irani Executive Chairman for his contributions made to the metallurgical profession and industry, for forecasting harmonious employee-management relations in industry and for entrepreneurial success and corporate leadership. Dr. Irani is Chairman/member of the Board of Directors/ Committees of the following Companies (excluding private companies, foreign companies and companies registered under Section 25 of the Companies Act, 1956): Electrosteel Castings Limited, Repro India Limited, Housing Development Finance Corporation Limited.

Mr. Devendra M. Kothari is an Independent Non-Executive Vice Chairman of Kansai Nerolac Paints Ltd., since My 1990. He is a qualified Chartered Accountant by profession and is an authority on the Indian Paints Industry. Mr. Kothari had been in the whole-time employment of the Company for a period of 29 years, till his retirement on 30th April, 1990. During his employment with the Company, Mr. Kothari had an tenure as the Managing Director of the Company for a period of 15 years, from 1st April,1975 to 30th April, 1990, that witnessed the spectacular growth in turnover of the Company by over ten times from about Rs. 14 crores in 1975 to Rs. 147 crores in 1990. During his tenure as the Managing Director, the Company entered into technical and financial collaboration with Independent Non- Devendra Kothari Kansai Paint Co. Ltd., Japan, which laid the foundation for the Company to be the undisputed leader in the industrial paints business Executive Vice Chairman and paved the way for the Company to attaining greater heights. Subsequent to his retirement as the Managing Director, Mr. Kothari was appointed as a Non-Executive Director designated as the Vice- Chairman of the Company from 1st May, 1990, which position he continues to hold on the Board of Directors of the Company. Mr. Kothari has also been the President/member of several trade Associations such as the Indian Paint Association, The Chemicals & Allied Products Export Promotion Council (CAPEXIL), The Indian Chemical Manufacturers Association (ICMA), The Bombay Chamber of Commerce and Industry (BCCI) and The Federation of Indian Export Organisation (FIEO).

Mr. Harishchandra M. Bharuka is Managing Director, Executive Director of Kansai Nerolac Paints Ltd. Mr. Bharuka, with a varied Managing Director, Harishchandra Bharuka experience joined the Company on 1st October, 1985. Mr. Bharuka was appointed on the Board of Directors on 1st April, 1999, and was Executive Director Deputy Managing Director, prior to his appointment as the Managing Director from April 1, 2001.

Mr. Pravin D. Chaudhari is Wholetime Director of Kansai Nerolac Paints Limited since May 1, 2008. Mr. Chaudhari is B.E. (Production), Mr. Pravin D. Chaudhari Wholetime Director MMS and was Director- Supply Chain prior to his appointment on the Board.

Mr. Hiroshi Ishino is Non-Executive Director - Nominee of Kansai Paint Co. Ltd., of Kansai Nerolac Paints Ltd., since January 2005. Mr. Non-Executive Director - Hiroshi Ishino Ishino is a Graduate of the Faculty of Law, Tokyo University and MBA of the Wharton School of University of Pennsylvania, USA. Mr. Nominee Ishino is having knowledge in the field of Marketing. Mr. Ishino is a Senior Managing Director of Kansai Paint Co, Ltd.,Japan.

Mr. Mr. H. Nishibayashi is a Non-Executive Director of Kansai Nerolac Paints Ltd., Nominee of Kansai Paint Co. Ltd. since July 30, 2010. He is a graduate from Osaka University of Foreign Studies and has experience in the field of Automotive Coatings Business Marketing. H. Nishibayashi Non-Executive Director Mr. Nishibayashi has had a varied experience working abroad in a number of countries. He joined Kansai Paint Co. Ltd., Japan in April 1987 and is General Manager at their International Business Division.

Mr. Y. Takahashi is Non-Executive Director of Kansai Nerolac Paints Ltd, Nominee of Kansai Paint Co. Ltd., since March 2010. He is a graduate from Hitotsubashi University and has in the field of Automotive Business Marketing, Dealer Development, Logistics, Y. Takahashi Non-Executive Director Corporate Strategy and Planning and General Administration. Mr. Takahashi has had a varied experience working abroad in a number of countries. He joined Kansai Paint Co. Ltd., Japan at the Osaka Head Office in February, 2009 and is Senior Manager at their International Business Division.

Mr. Noel Naval Tata is an Independent Non-Executive Director of Kansai Nerolac Paints Limited. Mr. Tata is a graduate of Sussex University (UK) and INSEAD. He served as the Managing Director of Tata International Limited and director of various Tata companies. He is a member of the Board of Governance of IIM Ahmedabad. Mr. Tata served as the member of the Board of Directors of the Independent Non- following Companies (excluding private companies, foreign companies and companies registered under Section 25 of the Companies Noel Tata Executive Director Act, 1956): Trent Limited, Landmark Limited, Titan Industries Limited, Voltas Limited, Tata Investment Corporation Limited, Trent Hypermarket Limited, Tata International Limited and Drive India Enterprise Solutions Limited. Mr. Tata is a member of the following Board Committees (other than Kansai Nerolac Paints Limited) as required for the purposes of the Listing Agreement: Audit Committee of Trent Limited and Trent Hypermarket Limited.

www.fullertonsecurities.co.in Page | 7