Intimation for investors presentation

Garg Furnace Limited & vaneera industries ltd. Forging the Future of Steel with Innovation and Integration Investor Presentation 2026 Industrial Area C, Dhandari Kalan, Ludhiana, Punjab 141017 www.gargfurnacelimited.com our strategic roadmap to growth Creating a new mid‑market category — between commodity induction‑furnace steel and premium EF steel — and scaling fast within it 35% 2.5x 5.5x 6.5x Improvement in realization Production growth this Growth from today, Growth from today, &profitability — from the year alone. in 2 years in 4 years same production base. And this is just the beginning. Vaneera Phase 2 (204,000 MT) lands December 2027, forward integration into rolling starts next, and we're still early in a multi‑year build‑out. 02 Investor Presentation 2026 we’re creating a new product category Not competing in an existing market — building the one that doesn't exist yet. COMMODITY GFL / VANEERA ALLOY STEEL PREMIUM MILD STEEL EF STEEL THE NEW MIDDLE Basic quality Mid‑to‑high quality Very high quality General applications 5‑10% below EF pricing Auto, defence, aerospace Bulk / price‑driven Few players serve this route today Premium / export pricing people. This isn't a pricing tweak — it's a new category. We're defining the mid‑premium alloy steel process. route between commodity and EF, before larger players formalize it. progress. 03 Investor Presentation 2026 Executive Summary 1 2 3 Established player in Proven expertise in MS & Expanding into high‑value alloy steel the steel manufacturing sector Alloy Steel billets & rounds. and import‑substitution‑based products. Focused on growth, sustainability, 51% Controlling stake in Vaneera Industries Ltd., and shareholder value strengthening value‑added capabilities 04 Investor Presentation 2026 where is this headed This capacity build‑out is phase one. Here's the platform we're building toward. defence‑grade stainless steel‑ Cross‑Border certification second vertical Consolidation platform Expanding beyond alloy steel into Positioning GFL/Vaneera as a Moving beyond general stainless steel production — an consolidator — not just a engineering into certified defence entirely new product line and producer — in the global alloy and aerospace‑grade alloy steel customer base, not just more of steel space, via strategic — a premium, high‑barrier the same. partnerships and acquisitions. segment with far fewer qualified suppliers. 05 Investor Presentation 2026 present operations Ludhiana, Punjab 48,000 MT (FY 26‑27), 100% ulitisation location Installed Capacity (GFL) ₹289 Cr 104,000 MT (FY 26‑27) FY 25–26 commissioned 2026 (2x growth potential) Installed Capacity (VIL) focus on increasing bottom line & new product development 100% recycled scrap action of chemistry led innovation Environmentally responsible of value added round from may 2026 Value Addition at Garg Furnace Unlocking New Market Potential stcudorp eroc Steel billets Steel rounds Chemistry‑Led Innovation Driving Market Expansion At Garg Furnace Limited, we have taken a strategic leap forward by modifying the chemistry of our steel products — tailored to meet specific performance needs of downstream industries. What we’ve done Introduced customized alloying Fine‑tuned carbon, manganese, Optimized rolling practices in our standard product lines. and chromium levels to create for improved grain structure enhanced strength and and dimensional tolerance. machinability profiles. 07 Investor Presentation 2026 result ꞉ entry into new customer segment impact on business We now serve to Products are being used in We have become a preferred replacement market critical applications such as vendor for Tier‑2 suppliers Higher realization per ton due to suppliers of OEMs. auto components, catering to large OEMs. performance‑linked pricing. agricultural machinery, and industrial fasteners. Low capital, high margin shift from commodity‑grade to value‑added grades. Improved customer retention through technical support and performance consistency. Year 23‑24 24‑25 25‑26 Revenue(Cr.) 258 262 289 EBITDA(Cr.) 5 8 13 PAT(Cr.) 6 11 11 Vaneera Industries Ltd. commissioned – August 2026 location acquisition strategic fit Ludhiana, Punjab 51% controlling stake High‑grade forgeable alloy steel production for auto, engineering, railways and defence sectors. clearances technologies 204,000 mt alloy steel p.a. environmental clearances obtained Electromagnetic stirrer , ladle total planned capacity refining furnace, Vacuum degassing 09 Investor Presentation 2026 Alloy Steel Unlocking a New Market Segment 10 Investor Presentation 2026 Strategic Positioning꞉ High Quality at Mid‑Range Pricing product highlights Manufacturing Technology Electromagnetic Stirring (EMS) Ladle Refining Furnace (LRF) for precise For uniform grain structure and improved temperature control and impurity removal mechanical properties. Vacuum Degassing (VD) Chemistry and purity For superior cleanliness and lower Closer to that of Electric Furnace (EF) hydrogen/oxygen content. materials price quality positioning As part of our expansion into the alloy steel segment Parameter Mild Steel(MS) GFL/Vaneera Alloy Steel EF Steel through Vaneera Industries Ltd., we are introducing a differentiated product offering. Quality & Strength Basic Mid‑High Very High Application Range General Auto, Engineering Auto, Defense, Our alloy steel serves as a substitute for arc furnace Aerospace steel at a 5–10% lower price, unlocking a new mid‑ Production Process Induction LRF + VD + EMS EF + VD premium market that was previously underserved. Target Customer Base Bulk + VD Tier 1 & 2 OEMs Premium/Export Strategic advantage Taps demand from Tier‑1/2 Ideal for import substitution and automotive, engineering, and large OEM contracts. component manufacturers. Cost‑effective replacement for Total Planned Capacity꞉ customers unwilling to pay EF 204,000 MT alloy steel p.a. premiums but seeking higher & Rolling Mill ‑ Forward strength and consistency. Integration from Billets to Rounds OUR ADDRESSABLE CUSTOMER ecosystem Our alloy steel billets & rounds serve as the critical raw material across high‑value, quality‑sensitive downstream industries 1 2 3 Railways & Railway Components Defence & Aerospace Automobile & Auto Components 4 5 6 Forging Industry Bright Bar Manufacturers Peeled & Ground Bar Manufacturers ADDITIONAL HIGH‑POTENTIAL segments 19 further downstream industries where alloy steel billets & rounds are a core input 1 Engineering & Heavy Engineering 8 Gears & Transmission Manufacturers 15 Shipbuilding & Marine Engineering Shafts, gears, pins, rollers, structural machine components Transmission gears, shafts, differential components Shafts, couplings, pins, marine‑grade components 2 Oil & Gas 9 Industrial Fasteners 16 Machine Tools High‑strength shafts, valves, flanges, fittings, OCTG‑related components High‑tensile bolts, studs, nuts, specialized fasteners Spindles, shafts, precision components, tool‑machine parts 3 Power Generation 10 Hydraulic & Pneumatic Components 17 Industrial Valves & Pumps Turbine, generator and high‑temperature/high‑strengthcomponents Rods, shafts, pins, high‑strength precision components Valve bodies, stems, shafts, pressure‑bearing components 4 Construction & Earthmoving Equipment 11 Industrial Chains 18 Railway Wagon & Coach Components Excavators, loaders, cranes, mining equipment, hydraulic components Roller chains, conveyor chains, heavy‑duty chain components Axles, suspension components, couplers, forged parts 5 Agricultural Machinery 12 Spring Manufacturers 19 Steel Service Centres / Stockists Tractor components, axles, shafts, gears, tillage equipment Automotive and industrial springs requiring spring‑grade alloy steel Alloy steel rounds and billets for downstream processors 6 Mining Equipment 13 Wind Energy Crusher components, shafts, pins, wear‑resistant components Shafts, gears, bearing components, heavy‑duty forged parts 7 Bearings & Bearing Components 14 Defence & Heavy Veh [Showing first 8,000 characters — download PDF for full document]