CastorOilDeriva.vesReaching the Next Orbit

Presentedat:OFIIndia

By:NarasimhanSanthanam,Founder,CastorOil.inMumbai,19thMay2017www.castoroil.in

CastorOilhaslessthan0.5%shareoftheglobalvegetableoilsmarket

Butitisuniqueamongvegetableoils

Howcanitadduniquevaluetomoremarketsandproducts?

AboutCastorOil.in• Marketresearchandconsul.ngteamforcastoroil&deriva.ves• Assistedcompanies,organiza.onsandgovernmentsinmakingstrategicdecisionsoncastorderiva.ves

• Publishacclaimedreportsandwhitepapers

• www.castoroil.inisapopularwebdes.na.onfortheindustry•  TeambasedoutofChennai,India

Presenta.onTopics• CurrentStatusofCastorOilDeriva.ves• WhereCanItReach?• ReachingNewHeights

CURRENTSTATUS

MarketSize(2016)• Globalmarketsize

• $2.3Billion• BasicgradesandGenIderiva)ves

• $1.3billion(0.6-0.75milliontonsofoilperyear)

• GenIIderiva)ves• $600million

• GenIIIderiva)ves• $400million

CastorOil

MainGrades

CommercialFSG,BSS

FirstPressedDegummed

PharmaGrade

BlownCastorOil

PalePressedGrade

Genera.onI

DCO

Ethoxylated

HCO

12-HSA

TRO

Genera.onII

SebacicAcid

Heptaldehyde

UndecylenicAcid

Polyols

RicinoleicAcid

OtherDimerAcids

UndecylenicAldehydes

2-Heptanol

2-Octanol

Genera.onIII

ZincRicinoleate

ZincUndecylenate

Methyl12-HSA

MethylRicinoleate

MethylUndecylenate

CalciumUndecylenate

Others?

Characteris.csofDeriva.vesProductCategory TypeofProduct Margins

Basicgrades Commodity Vlow(<5%)

GenIderiva.ves ValueAddedChemical Low(5-10%)

GenIIderiva.ves ValueAddedChemical Medium(10-20%)

GenIIIderiva.ves SpecialtyChemical Medium-High(%squitevariable,authen)cdatanotavailable)

MarketSegmentsforCastorDeriva.ves

Segmentswithsignificantshortandmediumtermpoten.al•  Biopolymers•  PersonalCareandCosme.cs•  Lubricants&Greases•  Tex.les•  Paints,Inks&Coa.ngsOtherSegments•  Pharmaceu)cals,Health&wellness•  Detergents•  Food•  Plas)cs&Rubber•  OtherSpecialtyOleochemicals

WHERECANITREACH?

“New”Poten.alforCastorOilDeriva.ves

NEWPoten)alfor

CastorDeriva)ves

NewGEOsNewUSES

GrowthofKeyEndUserSegmentsIndustry GlobalMarketSize %Growth(CAGR)

Bioplas)cs 4.2milliontons(2016)–75%durablebio-plas)cs

10%(2016-2020)

Biolubricants $1.9billion(2015) 5.3%(2016-22)

OrganicPersonalCareProducts

$10.2billion(2015) 13%(2016-21)

OrganicSurfactants 0.36milliontons(2015) 5%(2015-23)

Greencoa)ngs $61billion(2012),est$86B(2018) 6%(2012-18)

Emerging&NewUsesManyniche,emerginguses

Segment Details

Biopolymers DiverseendusesforPAandPURin•  Autocomponents•  Apparel&Accessories(shoesforinstance)•  Electronics•  Consumerproductssuchastoothbrushes•  Solar

PersonalCare •  Naturalexfolia.on(HCObeads)incosme.csasalterna)vestoplas)cmicropar)cles(PEandPP)

•  Premiumdeodorants,lips)cks,sunscreenlo)ons

Health&Pharma •  Neuro-protec.veingredients

Others •  Flameretardants•  Tex)leaccessories•  Sub-componentsinsolarpanelsandwindturbines•  Op.cs

Emerging/NewGeographies

•  Thetop3marketsforcastoroilandderiva)veconsump)onhavebeenChina,EU&USA(IndiaconsumesmostlybasicgradesandgenIderiva)ves)

• USA,alreadyasignificantconsumer,couldconsumesignificantlyhigherquan))esinnearfutureforsomederiva)ves

• Poten)alcanincreasesignificantlyinAsianmarketssuchasJapanandSKoreaandselectSAmericanmarketsintheshortterm,andperhapsincompletelynewmarketsinthemediumterm

GenII&IIIDeriva.ves-WhereCantheyReach?

$1billion

?

?

2016

2020

2025

Wheretheycanreachdependspartlyonexternaldrivers,butalsopartlyonhowtheindustry

stakeholdersmove

REACHINGNEWHEIGHTS

Drivers• Corporateaspira)onsforalowercarbonfootprint

• Market&regulatorymovestowardssaferproductsforplas.cs&packaging

• Momentuminspecificindustriessuchasautomobiles&tex)lestowardsenvironmentfriendlyop.onsfortheirproducts

• Thesustainabilitymovementamongendusers

Challenges&Constraints For New Market Crea7on for Deriva7ves

• GlobalrelianceonIndiaforCastorOilsupplies• Lowandfluctua)ngpricesofcrudeoil• Proprietarytechnologiesforderiva)vesproduc)on• TheChinaFactor• Lowmarketawarenessofthepossiblenewusesofcastoroil

• Insufficientendusermarketintelligenceforcompaniestomakedecisionsonnewproductdevelopment

• Large,andsome.mesrisky,R&Dinvestmentsrequiredforderiva)ves

LeveragingDrivers&OvercomingChallenges

Forallglobalstakeholders• Promotegreaterdiversityinthecul.va.onofcastorcrop,bothacrosstheworld,andwithinIndia.

•  Focusonproductsforwhichthedriverisnotpricebutsomeu)litythatcannotbeprovidedbycrudeorsynthe)calterna)ves(health,safety,CO2abatement…)

•  Focusonspecificemergingsegmentsthatshowsustainedgrowth,basedonstrategicmarketresearch.

• Creategreaterawarenessamongtargetenduseapplica)oncompaniesaboutthebenefitsofusingcastoroilfortheiringredients.

SWOTAnalysisforIndianCastorSector

•  Access to supply of castor oil •  Economical labour availability

•  Well established trading network

•  Availability of skilled human resources •  Concentrated cluster of oil mills •  Growing domestic market for select

derivatives

•  Focussed only on commodity oil production

•  Poor knowledge of end user markets •  Low investments in R&D

•  Emergence of alternative chemicals to castor oil derivatives

•  Production of derivatives from other

countries - China, EU countries etc.

Thanks!

NarasimhanSanthanamCastorOil.in

www.castoroil.in,narsi@eai.inm:+91-98413-48117