Agritech Agritech Agritech Limited Agritech Agritech - - PowerPoint PPT Presentation

Agritech

Agritech Agritech Agritech Limited Limited Limited Limited

Agritech

Agritech Agritech Agritech Limited Limited Limited Limited

Unaudited Financial Results for the Quarter and Nine Months ended 31st December, 2013

This presentation and the accompanying slides (the “Presentation”), which have been prepared by Dhanuka Agritech Limited (the “Company”), have been prepared solely for information 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

• f 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

Safe Harbor

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implied, whatsoever, and no reliance shall be placed on the truth, accuracy, completeness, fairness and reasonableness of the contents of this Presentation. There may be forward looking statements which the Company has made based on available information at present. The Company does not assume responsibility for the same as the conditions may change in the future. 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.

Dhanuka Agritech: An Overview

Dhanuka is the second largest Indian agrochemicals formulation Company in domestic brand sales Three manufacturing facilities located in NCR, J&K and Gujarat Strong product portfolio of over 80 brands with 100% domestic sales

• Strong product portfolio of over 80 brands with 100% domestic sales

Second largest rural distribution networks in India with over 7,500 direct dealers, selling to over 70,000 retailers Products are used by over 10 million farmers across India The legend of Indian cinema, Shri Amitabh Bachchan is Brand Ambassador

• f Dhanuka

Wide Range of Products

• Portfolio of over 80 brands, two third

sales from ‘Specialty molecules’

Key Product Portfolio

• Targa Super,

Barrier, Craze, Qurin, Noweed, Weedmar Super, Ozone, Hook WG, Nabood, D-Era…

• Media, Dunet,

Caldan, Omite, Aaatank, Adfyre, Brigade, Bombard, Dhanpreet, Dhawa Gold, Markar…

Insecticides Herbicides

• Dhanuvit, Wetcit,

Dhanzyme Gold, Dhanzyme Granules…

• Lustre, Sixer,

Vitavax Power, Kasu-B, Hi-Dice, Cursor, Dhanteam, Hexadhan Plus, Sheathmar, Vitavax Ultra…

Plant Growth Nutrients Fungicides

Strategic Partnerships

Nissan Chemical Japan Sumitomo Chemical Japan Hokko Chemical Japan Mitsui Chemicals Inc. Japan

• Chemtura Agro Solutions

USA FMC Corporation USA

• The Company enjoys long lasting relationships with its global partners.

Most of the relationships have been active for more than a decade.

Marketing Network

4,000 > 7,500

Total Distributors Reach – Districts covered through

450 550

FY 2008 FY 2013

• Products are used by over 10 million farmers across India

Reach – Districts covered through distributors

750 1,500

Dhanuka Doctors - Dissemination of information to farmers on “Dhanuka Kheti ki Nayee takneek”

FY 2008 FY 2013 FY 2008 FY 2013

Key Growth Drivers (1/2)

• Government

guaranteed minimum prices for the majority of crops have increased by 30-110% in the past four years giving thrust to rural incomes Manifold increase in rural income

Minimum Support Prices, India FY Crop Marketing Season (Price in INR/quintal) Commodity 2008 2009 2010 2011 2012 2013 2014 Price Increase % (08-14) Paddy 645 850 950 1,000 1,080 1,250 1,310 103.10 Red Gram 1,550 2,000 2,300 3,000 3,200 3,850 4,300 177.42 Green Gram 1,700 2,520 2,760 3,170 3,500 4,400 4,500 164.71 Black Gram 1,700 2,520 2,520 2,900 3,300 4,300 4,300 152.94 Groundnut 1,550 2,100 2,100 2,300 2,700 3,700 4,000 158.06 Soyabean 1,050 1,390 1,390 1,440 1,690

• 2,560

143.81 Cotton 1,800 2,500 2,500 2,500 2,800 3,600 3,700 105.56

• One of the lowest

consumption levels in the world, at ~0.5 kg per hectare Low level of consumptio n of plant- protection chemicals in India

Source: Reply to unstarred question no.3732 by the Union Minister in Loksabha, 10 Sept, 2007 and the report of Joint Parliamentary Committee, 14-2-2004

2 4 6 8 10 12 Consumption of Agrochemicals (Kg / Hectare)

Wheat 750 1,000 1,080 1,100 1,120 1,285 1,350 80.00

Key Growth Drivers (2/2)

• Insects, fungus and

weeds destroy crops worth billions

• f

dollars annually

• Despite large area

under cultivation of paddy and wheat, we lag behind in total production Prevention

• f large crop

wastages

Category Area (Mn Ha) World Ranking In Area Production (Mn tons) World Ranking In Production Paddy 44 #1 91 #2 Wheat 28 #1 74 #2 Maize 8 #4 14 #6 Gram 8 #1 6 #1 Red Gram 4 #1 3 #1 Soybean 8 #5 9.0 #5 Cotton 9 #1 21 #2 Sugarcane 5 #2 323 #2

• Herbicides share in

India quite low at 20%, versus ~ 48% globally

• Rising farm labor

prices are lifting herbicide demand; replacing manual weeding

• Dhanuka is a

beneficiary with strong herbicides portfolio (28% of revenue, FY13) Disruptive growth in herbicides

Source: Varshney, 2009

Insecticide Fungicides Herbicides Others India 62% 16% 20% 2% Global 23% 26% 48% 3% 0% 10% 20% 30% 40% 50% 60% 70% Break-up of agrochemical consumption (2009)

Management Team

Chairman; started pesticides business more than 40 years ago; a philanthropist; a man of vision with utmost sincerity and devotion; mentors and provides strategic leadership; also served for two terms as Chairman of “Crop Care Federation of India”. Managing Director; co-founded the Company; has 40 years of Director (Marketing); Masters in Business Administration from S.P. Jain, Mumbai; oversees the entire marketing function

• f

the Company; leads the large marketing team from the fore-front & maintains cordial relations with International collaborators.

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the Company; has 40 years of experience; re-elected as President

• f

HPMA (Haryana Pesticide Manufacturers Association) consecutively for the 4th year;

• versees

the

• verall
• perations of the Company.

Director; Masters in Business Administration (Operations) from NITIE, Mumbai;

• versees

the manufacturing and supply chain functions across the Company’s three production facilities; spear- heads expansion projects; brought technological and managerial excellence in the company’s

• perations

Mr. A.K.Dhanuka, Director (Works), looks after manufacturing

• perations at Gurgaon factory. He

joined the Company after completing his graduation and has been looking after production since then.

Management Team

• Dr. O.P. Singh; President (R&D), vast

experience in new product introductions and strategic partnerships, liaisons with the agricultural universities

• Mr. V. K. Bansal; President & CFO,

Chartered Accountant, experience of

• ver 20 years with Dhanuka, controls

entire financial division and has been

• ne of the key contributors in the

success of Dhanuka

• Mr. Vijay Kumar; Senior GM (Quality

Control), M. Tech from IIT Delhi,

• versees quality of products
• Dr. P. C. Rai; GM (Marketing),

manages marketing operations of North Zone & Madhya Pradesh Mr. Y. K. Goel; Senior GM (Production), B.Tech, experience of 37 years, played a key role in expansion and automation

• f

production capacities at all the locations of the company

• Mr. Rajesh Sahni; Senior GM (Legal),

experience of over 25 years with Dhanuka

• Mr. Harsh Dhanuka, SGM (Marketing),

did his Masters in Business Administration from Monash Graduate Business School, Monash University. He looks after marketing function.

• Mr. Harish Mehta, MBA, has a long

experience of 25 years and heads marketing of Agro Chemicals at national level .

Historical Financial Performance (in Crores Rs.)

Particulars FY 09 FY 10 FY 11 FY 12 FY 13

Revenue 337.42 408.72 493.59 529.81 589.25 EBIDTA 48.60 58.88 78.52 80.04 88.84 PAT 23.20 36.34 51.11 57.13 64.44 Revenue Growth (%) 35.3% 21.1% 20.8% 7.3% 11.2%

As % to Sales

EBIDTA 14.4% 14.4% 15.9% 15.1% 15.1%

• PAT

6.9% 8.9% 10.4% 10.8% 10.9%

Financial Position of the Company

Net Worth 68.28 97.12 170.48 214.60 262.77 Debt 51.54 57.70 60.20 39.41 33.01 Cash & Investment 3.38 2.03 4.95 24.01 13.59

Financial Ratios

LT Debt- Equity Ratio 0.7 0.6 0.3 0.03 RoCE 25.7% 27.6% 24.2% 32% 30.2% RoE 34.0% 37.4% 30.0% 26.6% 24.5%

Historical Financial Performance

100 200 300 400 500 600

Net Sales (Rs. in Crores)

10 20 30 40 50 60 70

PAT (Rs. in Crores)

• 06-07

07-08 08-09 09-10 10-11 11-12 12-13 06-07 07-08 08-09 09-10 10-11 11-12 12-13 50 100 150 200 250 300 06-07 07-08 08-09 09-10 10-11 11-12 12-13

Net Worth (Rs. in Crores)

2 4 6 8 10 12 14 06-07 07-08 08-09 09-10 10-11 11-12 12-13

EPS (in Rs.)

Operational Highlights - Result Period (in Crores Rs.)

Particulars Unaudited Quarter Unaudited 9ME Audited FY Dec-13 Dec-12 rise / fall Dec-13 Dec-12 rise / fall 12-13

Gross Turnover 185.81 150.41 23.54% 657.67 499.29 31.72% 646.40

• Net Turnover

167.00 139.56 19.66% 586.53 451.13 30.01% 582.31 EBIDTA 26.90 16.33 64.73% 97.24 63.65 52.77% 88.85 PBT 23.91 14.04 70.30% 90.49 57.64 56.99% 80.78 Tax Liability 2.64 2.36 11.86% 19.82 11.06 79.20% 16.33 PAT 21.27 11.68 82.11% 70.67 46.58 51.72% 64.45

Operational Highlights - Result Period (in Crores Rs.)

Particulars Unaudited Quarter Unaudited 9ME Audited FY Dec-13 Dec-12 rise / fall Dec-13 Dec-12 rise / fall 12-13

EBIDTA% to Net Sales 16.11% 11.70% 441 bps 16.58% 14.11% 247 bps 15.26%

• PBT% to Net

Sales 14.32% 10.06% 426 bps 15.43% 12.78% 265 bps 13.87% PAT% to Net Sales 12.74% 8.37% 437 bps 12.05% 10.33% 172 bps 11.07% Tax% to PBT 11.04% 16.81%

• 576 bps

21.90% 19.19% 272 bps 20.22% EPS (Rs.) 4.25 2.33 82.40% 14.13 9.31 51.77% 12.88

Category wise %Sales

Particulars

Unaudited Quarter Unaudited 9ME Audited FY Dec-13 Dec-12 rise / fall Dec-13 Dec-12 rise / fall 12-13 Insecticides 45.01% 53.92% -891 bps 42.06% 50.56% -850 bps 49.31%

• Fungicides

20.37% 17.56% 281 bps 13.94% 12.50% 144 bps 13.15% Herbicides 24.17% 16.64% 753 bps 34.09% 26.72% 737 bps 28.01% Others 10.45% 11.88% -143 bps 9.92% 10.22%

• 30 bps

9.53%

Region wise % Sales

Zone

Unaudited Quarter Unaudited 9ME Audited FY Dec-13 Dec-12 rise / fall Dec-13 Dec-12 rise / fall 12-13

North Zone 18.78% 14.64% 414 25.02% 26.28%

• 126

26.55%

• East Zone

11.92% 15.26%

• 334 bps

11.36% 13.92%

• 256 bps

14.40% West Zone 22.47% 21.47% 100 bps 33.18% 27.30% 588 bps 27.67% South Zone 46.83% 48.63%

• 180 bps

30.44% 32.50%

• 206 bps

31.38%

Dhanuka’s Top Products

Products Category

Targa Super Herbicide Caldan Insecticide Dhanzyme Granule PGR Markar Insecticide Dhanzyme Gold PGR

New Product Launches

FY 12-13 FY 13-14 Fluid Danfuron Fuzi Super Defend Lustre Maxyld

• Lustre

Maxyld Dhanzyme Gold granules Media Super One- Star Protocol Six new products are in pipeline, of which 2 are expected to be launched every fiscal for the first time in India.

Brand Sales

Particulars Share 9ME Dec-13 40.24%

• 9ME Dec-12

40.36% HYE Sep-13 43.03% HYE Sep-12 42.55%

% Sales with Foreign/MNC tie ups

Particulars Share

QE Dec-13 37.00% QE Dec-12 33.33% Rise/(Fall) 367 bps NME Dec-13 47.44% NME Dec-12 42.56% Rise/(Fall) 488 bps

Rewards & Recognition

• Dhanuka has bagged a coveted place in ‘Forbes Asia’ list in three
• ut of last four years

Rewards & Recognition

• Dhanuka has been honoured

with the coveted Brand Excellence Award in Agrochemicals by ABP News during 22nd World Brand Congress

• Mr. M. K. Dhanuka, Managing

Director, Dhanuka Agritech Limited, receiving INC. INDIA Innovative 100 Award: 2013 for its smart, innovative product - LUSTRE

Key Players in Indian Agro-Chemical Market

Technicals Formulations Balanced Portfolio Meghmani Organics Insecticides India Rallis India Sabero Organics Dhanuka Agritech Bayer India

• Sabero Organics

Dhanuka Agritech Bayer India Punjab Chemicals PI Industries BASF UPL Syngenta Gharda Chemicals

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Thank You!