������� Agritech ������� Agritech Agritech Limited Agritech Agritech Agritech Limited Agritech Agritech Limited Limited Limited Limited Limited Limited Unaudited Financial Results for the Quarter and Nine Months ended 31 st December, 2013 ��������������
Safe Harbor 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 of 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 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. 2
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 of Dhanuka �
Wide Range of Products Portfolio of over 80 brands, two third sales from ‘Specialty molecules’ �
Key Product Portfolio • Media, Dunet, • Targa Super, Caldan, Omite, Barrier, Craze, Aaatank, Adfyre, Qurin, Noweed, Brigade, Bombard, Weedmar Super, Dhanpreet, Dhawa Ozone, Hook WG, Gold, Markar… Nabood, D-Era… Insecticides Herbicides Plant Fungicides Growth Nutrients • Lustre, Sixer, • Dhanuvit, Wetcit, Vitavax Power, Dhanzyme Gold, Kasu-B, Hi-Dice, Dhanzyme Cursor, Dhanteam, Granules… Hexadhan Plus, Sheathmar, Vitavax � Ultra…
Strategic Partnerships Nissan Chemical Mitsui Chemicals Inc. Sumitomo Chemical Hokko Chemical Japan Japan Japan Japan Chemtura Agro Solutions ������� FMC Corporation ��� USA 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 > 7,500 4,000 Total Distributors FY 2013 FY 2008 550 450 Reach – Districts covered through Reach – Districts covered through distributors FY 2013 FY 2008 1,500 750 Dhanuka Doctors - Dissemination of information to farmers on “Dhanuka Kheti ki Nayee takneek” FY 2013 FY 2008 Products are used by over 10 million farmers across India �
Key Growth Drivers (1/2) Minimum Support Prices, India FY Crop Marketing Season (Price in INR/quintal) • Government Price guaranteed Manifold Commodity 2008 2009 2010 2011 2012 2013 2014 Increase % minimum prices for (08-14) increase the majority of crops Paddy 645 850 950 1,000 1,080 1,250 1,310 103.10 in rural have increased by Red Gram 1,550 2,000 2,300 3,000 3,200 3,850 4,300 177.42 30-110% in the past Green Gram 1,700 2,520 2,760 3,170 3,500 4,400 4,500 164.71 income four years giving Black Gram 1,700 2,520 2,520 2,900 3,300 4,300 4,300 152.94 thrust to rural Groundnut 1,550 2,100 2,100 2,300 2,700 3,700 4,000 158.06 incomes 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 Wheat 750 1,000 1,080 1,100 1,120 1,285 1,350 80.00 Consumption of Agrochemicals (Kg / Hectare) Low 12 level of 10 • One of the lowest 8 consumptio consumption levels 6 n of plant- 4 in the world, at ~0.5 protection 2 kg per hectare 0 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 �
Key Growth Drivers (2/2) World World • Insects, fungus and Area Ranking Production Ranking weeds destroy crops Category (Mn Ha) In Area (Mn tons) In Production worth billions of Paddy 44 #1 91 #2 dollars annually Wheat 28 #1 74 #2 Prevention Maize 8 #4 14 #6 of large crop • Despite large area Gram 8 #1 6 #1 wastages under cultivation of Red Gram 4 #1 3 #1 paddy and wheat, Soybean 8 #5 9.0 #5 we lag behind in Cotton 9 #1 21 #2 total production Sugarcane 5 #2 323 #2 • Herbicides share in India quite low at Break-up of agrochemical consumption (2009) 20%, versus ~ 48% 70% globally 60% • Rising farm labor 50% prices are lifting Disruptive 40% herbicide demand; growth in 30% replacing manual herbicides 20% weeding 10% • Dhanuka is a 0% beneficiary with Insecticide Fungicides Herbicides Others strong herbicides India 62% 16% 20% 2% portfolio (28% of Global 23% 26% 48% 3% revenue, FY13) Source : Varshney, 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 Director (Marketing); Masters in leadership; also served for two Business Administration from S.P. terms as Chairman of “Crop Care Jain, Mumbai; oversees the entire Federation of India”. marketing function of the Company; leads the large marketing team from the fore-front & maintains cordial relations with Managing Director; co-founded International collaborators. the Company; has 40 years of the Company; has 40 years of experience; re-elected as President of HPMA (Haryana Pesticide Manufacturers Association) consecutively for the Director; Masters in Business 4 th year; oversees the overall Administration (Operations) from operations of the Company. NITIE, Mumbai; oversees the manufacturing and supply chain functions across the Company’s three production facilities; spear- Mr. A.K.Dhanuka, Director heads expansion projects; brought (Works), looks after manufacturing technological and managerial operations at Gurgaon factory. He excellence in the company’s joined the Company after operations completing his graduation and has been looking after production since then. 10
Management Team Dr. O.P. Singh; President (R&D), vast Mr. V. K. Bansal; President & CFO, Chartered Accountant, experience of experience in new product over 20 years with Dhanuka, controls introductions and strategic entire financial division and has been partnerships, liaisons with the one of the key contributors in the agricultural universities success of Dhanuka Dr. P. C. Rai; GM (Marketing), Mr. Vijay Kumar; Senior GM (Quality manages marketing operations of Control), M. Tech from IIT Delhi, North Zone & Madhya Pradesh oversees quality of products Mr. Rajesh Sahni; Senior GM (Legal), Mr. Y. K. Goel; Senior GM experience of over 25 years with (Production), B.Tech, experience of 37 Dhanuka years, played a key role in expansion and automation of production capacities at all the locations of the company Mr. Harsh Dhanuka, SGM (Marketing), Mr. Harish Mehta, MBA, has a long did his Masters in Business experience of 25 years and heads Administration from Monash Graduate marketing of Agro Chemicals at Business School, Monash University. national level . He looks after marketing function.
Historical Financial Performance (in Crores Rs.) Particulars FY 09 FY 10 FY 11 FY 12 FY 13 Revenue 589.25 337.42 408.72 493.59 529.81 EBIDTA 88.84 48.60 58.88 78.52 80.04 PAT 64.44 23.20 36.34 51.11 57.13 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 0 RoCE 25.7% 27.6% 24.2% 32% 30.2% RoE 34.0% 37.4% 30.0% 26.6% 24.5% ��
Historical Financial Performance PAT (Rs. in Crores) Net Sales (Rs. in Crores) 70 600 60 500 50 400 40 300 30 200 20 100 10 0 0 0 0 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 Net Worth (Rs. in Crores) EPS (in Rs.) 300 14 250 12 10 200 8 150 6 100 4 50 2 0 0 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 ��
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