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

Dhanuka Agritech Limited Dhanuka Agritech Limited

Unaudited Financial Results for the Quarter ended 30th June, 2014

30th July, 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, Shri Amitabh Bachchan is Brand Ambassador

• f Dhanuka

New Product Registrations: 9(3)

SAKURA (Weedicide) approved CIB Registration in May, 2014. MORTAR (Insecticide) received CIB

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MORTAR (Insecticide) received CIB Registration on 10th June, 2014 will be 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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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, Q urin, Noweed, Weedmar Super, Ozone, Hook WG, Nabood, D-Era…

• Media, Dunet, Cald

an, Omite, Aaatank, Adfyre, Brigade, Bo mbard, Dhanpreet, Dhawa Gold, Markar…

Insecticides Herbicides

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• Dhanuvit, Wetcit, Dhanz

yme Gold, Dhanzyme Granules…

• Lustre, Sixer, Vitava

x Power, Kasu-B, Hi- Dice, Cursor, Dhante am, Hexadhan Plus, Sheathmar, Vit avax Ultra…

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.

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

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

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the Company; leads the large marketing team from the fore-front & maintains cordial relations with International collaborators. Director; Masters in Business Administration (Operations) from

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

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

• versees

the

• verall
• perations of the Company

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 (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, Chartered Accountant, experience

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• ver

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. did his MMSc–

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

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• 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 rich experience of nearly two decades of cross cultural experience in managing Profit Centre operations, Supply Chain, International marketing and sales. expansion and automation

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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. Jun-14 Q.E. Jun-13 rise / fall FY 13-14 FY 12-13 rise / fall

Gross Turnover

199.24 188.31 5.80% 829.05 646.40 28.26%

Net Turnover

172.91 166.13 4.08% 738.41 582.31 26.81%

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Net Turnover

172.91 166.13 4.08% 738.41 582.31 26.81%

EBIDTA

28.51 25.54 11.63% 125.34 88.85 41.08%

PAT

20.45 17.35 17.87% 93.14 64.45 44.51%

EBIDTA% to Net Sales

16.49% 15.37% 112 bps 16.97% 15.26% 171 bps

PAT% to Net Sales

11.83% 10.44% 139 bps 12.61% 11.07% 154 bps

EPS (Rs.)

4.09 3.47 17.87% 18.62 12.88 44.57%

Product Launches in FY 2013-14

Danfuron Defend Maxyld

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Four 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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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

Rewards & Recognition

Company has bagged a coveted place in prestigious “Inc. India 500- India’s Company has bagged a coveted place in prestigious “Inc. India 500- India’s

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“Inc. India 500- India’s Fastest Growing Mid- Sized Companies” list for 2013 for the third time in succession. “Inc. India 500- India’s Fastest Growing Mid- Sized Companies” list for 2013 for the third time in succession.

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Thank You!