Dhanuka Agritech Limited Dhanuka Agritech Limited Unaudited - - PowerPoint PPT Presentation

Dhanuka Agritech Limited Dhanuka Agritech Limited

Unaudited Financial Results for the Half-Year and Quarter ended 30th September, 2014

6th November, 2014

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

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Strong product portfolio of over 80 brands with 100% domestic sales Second largest rural distribution networks in India with over 8,000 direct dealers, selling to over 75,000 retailers Products are used by over 10 million farmers across India The legend of Indian cinema, Mr.Amitabh Bachchan is Brand Ambassador

• f Dhanuka

New Product Registrations:

9(3)

In-house developed product “MORTAR” (Insecticide) received CIB Registration on 10th June, 2014.

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June, 2014. Same has been launched on 8th August, 2014.

Product Launches: 9(4)

“Pager” launched in July, 2014 “Jackal” expected to be launched in September, 2014

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in September, 2014 “Oxykill” was launched in September, 2014

Wide Range of Products

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Portfolio of over 80 brands, two third sales from ‘Specialty molecules’

Key Product Portfolio

• Targa Super, Barrier Craze,

Qurin, Noweed, Weedmar, Super, Ozone Hook, Nabood, D- Era, Oxykill

• Media, Dunet, Caldan,

Omite, Aaattank, Adfyre, Bombard, Dhanpreet, Markar, Areva, Apple, Mortar, Pager

Insecticides Herbicides

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• Dhanuvit, Wetcit,

Dhanzyme Gold,

• Dhanzyme Granules,

Maxyld

• Lustre, Sixer, Vitavax

Power, KasuB, HiDiceCursor, Dhanteam, HexadhanPlus, Sheathmar, Vitavax Ultra, Protocol

Plant Growth Nutrients Fungicides

Strategic Partnerships

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

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Chemtura Agro Solutions USA FMC Corporation USA

DUPONT USA

The Company enjoys long lasting relationships with its global partners. Most of the relationships have been active for more than a decade.

ORO AGRI USA

Marketing Network

4,000 > 8000

Total Distributors Reach – Districts covered through

450 600

FY 2008 FY 2014

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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 2014 FY 2008 FY 2014

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 Crop Marketing Season (Price in INR/quintal) Commodity 2007- 08 2008- 09 2009- 10 2010- 11 2011- 12 2012- 13 2013- 14 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 Wheat 750 1,000 1,080 1,100 1,120 1,285 1,350 80.00

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• 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 10

• 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 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

Mr.R.G.Agarwal, Chairman; started pesticides business more than 40 years ago; a philanthropist; a man

• f vision with utmost sincerity and

devotion; mentors and provides strategic leadership; also served for two terms as Chairman

• f

“Crop Care Federation of India”. Mr.M.K.Dhanuka, Managing Director; co-founded the Mr.Rahul Dhanuka, 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. Mr.Mridul Dhanuka, Director (Operations); MBA (Operations)

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Director; co-founded the Company; has 40 years

• f

experience; re-elected as President

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HPMA (Haryana Pesticide Manufacturers Association) consecutively for the 5th year;

• versees

the

• verall
• perations of the Company

(Operations); MBA (Operations) from NITIE, Mumbai; oversees the manufacturing and supply chain functions across the Company’s three production facilities; spear- heads expansion projects; brought technological and managerial excellence in 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 (1/2)

• 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, experience of over 20 years with Dhanuka, controls entire financial division and has been one of the key contributors in the success of Dhanuka

• Mr. C S Shukla, V.P., MMSc– Marketing

from Pune University. He has a rich experience of nearly two decades of cross Mr.Y.K.Goel; V.P (Production), B.Tech, experience of 37 years, played a key role in expansion and automation of

• Mr. Vijay Kumar; VP (Quality

Control), M. Tech from IIT Delhi, oversees quality of products

• Mr. Rajesh Sahni; Vice President

(Legal), experience of over 25 years with Dhanuka experience of nearly two decades of cross cultural experience in managing Profit Centre operations, Supply Chain, International marketing and sales. expansion and automation of production capacities at all the locations of the company

Management Team (2/2)

• 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, SGM, MBA, has a long

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

• Dr. P. C. Rai; SGM (Marketing), manages

marketing operations of North Zone &

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marketing operations of North Zone & Madhya Pradesh

Historical Financial Performance

(in Crores Rs.)

Particulars FY 10 FY 11 FY 12 FY 13 FY 14

Revenue 408.72 493.59 529.81 589.25 743.20 EBIDTA 58.88 78.52 80.04 88.84 125.34 PAT 36.34 51.11 57.13 64.45 93.14 Revenue Growth (%) 21.1% 20.8% 7.3% 11.2% 26.1%

As % to Sales

EBIDTA 14.4% 15.9% 15.1% 15.1% 16.97% PAT 8.9% 10.4% 10.8% 10.9% 12.61%

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PAT 8.9% 10.4% 10.8% 10.9% 12.61%

Financial Position of the Company

Net Worth 97.12 170.48 214.60 262.77 344.19 Debt 57.70 60.20 39.41 33.01 39.41 Cash & Investment 2.03 4.95 24.01 13.59 2.28

Financial Ratios

Long term Debt- Equity Ratio 0.6 0.3 0.03 RoCE 27.6% 24.2% 32% 30.2% 34.3% RoNW 37.4% 30.0% 26.6% 24.5% 28.01

Historical Financial Performance

200 400 600 800

336.63 407.53 491.00 529.18 582.31 738.41

Net Sales (Rs. in Crores)

0.00 20.00 40.00 60.00 80.00 100.00 08-09 09-10 10-11 11-12 12-13 13-14

23.20 36.34 51.11 57.13 64.45 93.14

PAT (Rs. in Crores)

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0.00 4.00 8.00 12.00 16.00 20.00 08-09 09-10 10-11 11-12 12-13 13-14

5.06 7.92 10.61 11.42 12.88 18.62

EPS (in Rs.)

08-09 09-10 10-11 11-12 12-13 13-14 08-09 09-10 10-11 11-12 12-13 13-14 50 100 150 200 250 300 350 08-09 09-10 10-11 11-12 12-13 13-14

68.26 97.12 170.47 214.6 262.77 344.2

Net Worth (Rs. in Crores)

Operational Highlights - Result Period

(in Crores Rs.)

Particulars Unaudited Audited

Q.E. Sep-14 Q.E. Sep-13 rise / fall HYE Sep-14 HYE Sep- 13 rise / fall FY 13-14 Gross Turnover

305.93 283.55 7.89% 505.17 471.86 7.06% 829.05

Net Turnover

282.90 253.40 11.64% 455.81 419.53 8.65% 738.41

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EBIDTA

55.52 44.80 23.93% 84.03 70.34 19.46% 125.34

PAT

41.73 32.05 30.20% 62.18 49.40 25.87% 93.14

EBIDTA% to Net Sales

19.63% 17.68% 195 bps 18.44% 16.77% 167 bps 16.97%

PAT% to Net Sales

14.75% 12.65% 210 bps 13.64% 11.78% 186 bps 12.61%

EPS (Rs.)

8.34 6.41 30.11% 12.43 9.88 25.81% 18.62

Product Launches in FY 2013-14

Danfuron Defend Maxyld

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Five new products are in pipeline, of which 2 products are expected to be launched every financial year for the first time in India.

Maxyld Media Super Protocol

Rewards & Recognition

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

Rewards & Recognition

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Award for “Best contribution to Academia” by FICCI

• Inc. India’s - “HALL OF FAME

2014”

Rewards & Recognition

“Business Leadership Award 2014- Business Excellence in Crop Protection Chemicals” by Worldwide Achievers in association with Zee Business

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“Business Leadership Award 2014- Business Excellence in Crop Protection Chemicals” by Worldwide Achievers in association with Zee Business

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Thank You!