Insecticides (India) Limited · NSE:INSECTICID
Insecticides (India) — Investor Presentation (January 2018)
37 slides from Insecticides (India)'s investor presentation, January 2018
Slide 1: Insecticides (India) Ltd. Investor Presentation - January 2018
Insecticides (India) Ltd. Investor Presentation - JANUARY 2018
Slide 2: This is Insecticides (India)
This is Insecticides (India) In line with the Focused on Indian PM focus of enhancing doubling farm farmer incomes incomes by 2022 2
Slide 3: Background, product mix, distribution and manufacturing
Insecticides (India) Ltd. 1 Background 2 Product mix 3 Distribution and marketing 4 Where we make Commenced operations in Insecticides, herbicides, Pan-India distribution: Rajasthan, Gujarat, 2001-02 (headquarters fungicides and plant Jammu & Kashmir and New Delhi); growth regulators Uttar Pradesh B
Slide 4: Vision & Mission
Vision & Mission Provide the highest quality product and services to the farmers within their reach, so that we feel ourself privileged to be able to contribute our efforts in the interest of the farmers of the nation. Committed to give our best in whatever we do, so as we are able to make a differe
Slide 5: Business model
Business model Diversified revenues (Active Ingredients, Presence across Globally competitive: Bulk & branded value chain: Strong Any market viability Formulations): De- margins risking Investments in product Establishing footprint development, 100 global export Pipeline: 500+ export in MEA and Asia
Slide 6: Our Presence
Our Presence Corporate Office Branch / Depot 6
Slide 7: Milestones - 1
Milestones - 1 2001 2002 2003 2004 Chopanki (Rajasthan) Acquired 21 brands of Samba (J&K) plant Commenced Operation formulations plant Montari Industries commissioned commenced 2005 2006 2007 2008 Technical collaboration Listed on NSE and BSE; Chopanki plank got ISO with AMVAC, USA, to Chopanki Tech
Slide 8: Milestones - 2
Milestones - 2 2011 2012 2016 Acquired MONOCIL from Launched NUVAN with Tie-up with MOMENTIVE NOCIL; commissioned two AMVAC; launched (USA) for AGRO SPRED* plants (Dahej and HAKAMA and PULSOR with MAX; tie-up with NIHON Udhampur) NISSAN (Japan) NOHYAKU (Japan) for SUZUKA and HAKKO; launched GREEN LA
Slide 9: Manufacturing plants and R&D centre locations
Insecticides (India) Ltd. “Ultra-modern Manufacturing plants R&D centre and and locations locations automated Formulation plant, Product invention R&D manufacturing facilities Chopanki, Rajasthan Centre in JV with OAT backed by process AGRIO, Chopanki, Technical Plant, Rajasthan that are empow
Slide 10: Aggregate installed capacity
Aggregate installed capacity 17,450 KLPA 75,600 MTPA 16,980 MTPA 13,800 MTPA Liquid Granules Powder Active Ingredient & Bulk 10
Slide 11: Facilities
Facilities Technical synthesis facilities Two technical Variety of 11 streams of synthesis plants technicals technical synthesis 1 2 3 Formulation facilities 5 formulation One of the Capabilities for Automatic Capacities for plants largest the new packing lines toll formulation formulations with var
Slide 12: Unmatched R&D
Unmatched R&D Product Discovery Developed 4 Process 50+ new Patents processes received Market Reverse Development Engineering More than 18 Development patents and launch of pending soil transformatio n formula Biological New Production Formulations 12
Slide 13: In-house R&D Centre
In-house R&D Centre State of the Art In House facility established in 2005 Approved by DSIR, Ministry of Science and Technology Signed an agreement with DSIR for commercialization of MNIO, an import substitute Working on new formulations & new combination products as per trend Synthesis of new molec
Slide 14: Product Invention R&D Centre
Product Invention R&D Centre A unique initiative of product discovery in India by forming a JV with Japanese co., OAT Agrio Co. Ltd. Pioneer step to establish such facility in the field of agro chemicals Spread in 25000 Sq feet of working area Team of over 40 Scientists Equipped with the latest mach
Slide 15: Formulations R&D Centre
Formulations R&D Centre Development of new generation formulations Focus on cost reduction, customer friendly and environment safe products 15
Slide 16: In house R&D Centre
In house R&D Centre Equipped with bio assay and product development facilities such as Isolation, detection and multiplication of biological microorganisms Made a break through by developing and commercializing VAM (Vaslcular Arbuscular Mycorrhiaze) Looking forward to development of 3-4 new biologic
Slide 17: Our differentiated business structure
Our differentiated business structure 1 Marketing 2 Manufacturing 3 R&D 4 Development & Training Sales & Market 5 Formulation Plants NABL QC Labs Emphasis on field development activities 2 Technical Synthesis IN-house R&D Centre Branding Plants Farmer Awareness JV with OAT Agrio Co
Slide 18: Biological Products – Game-changer
Biological Products – Game-changer First-mover advantage due to less number of players Co-existence of agro-chemicals and biological inputs to enhance synergic farmer benefits Dedicated R&D centre with latest infrastructure and researchers Developed & commercialized Vaslcular Arbuscular Mycorrhizae
Slide 19: Strength to strength
Strength to strength Capitalizing Improved Increasing on tech operating capital transfer from margins expenditure Japan Strong Launching Increased proprietary new and farmer R&D to improved coverage develop new products molecules 19
Slide 20: Business strengths
Business strengths State-of-the-art manufacturing Company with Low attrition Strong marketing facilities (with indigenous among employees team; wide and capacity technical license and distribution deep distribution fungibility); largest to manufacture partners network formulations technicals facilit
Slide 21: Targets
Targets Medium-term: To Short-term: Launch launch products Long-term: Launch new generics and through partners; proprietary products going off- launch new discovery products patent mixture products and formulations 21
Slide 22: Forward-looking strategy
Forward-looking strategy From a generic agrochemicals player, the company has developed a three-pronged growth strategy, which focuses on R&D, Manufacturing and Marketing. Strong product pipeline Likely to launch ~10 new products in FY19, mostly in the 9(3) category, which will drive margin improvem
Slide 23: Certification and Quality
Certification and Quality ISO 9001:2008 Occupational System Health and Safety Compliance Assessment Certification System (OHSAS) 18001:2007 1 2 Environmental NABL Accredited Management Q.C. Labs System (EMS) ISO 14001:2004 3 4 GLP Certified Lab (In Process) 5 23
Slide 24: Brand
Brand Brand principle Signature umbrella brand (Tractor) To bring synergic benefits to farmers through comprehensive Trusted across decades range of agro chemical product mix. End-to-end solutions Maximise farmer benefit Preferred farmer choice Innovative measures Eco-friendly manufact
Slide 25: Leading brands
Leading brands MONOCIL: Systemic insecticide-cum-acaricide; controls broad pest spectrum across crops HAKAMA: Post-emergence selective herbicide; controls narrow leaf weeds across leaf crops PULSOR: Systemic fungicide with preventive and curative action; controls Rice Sheath Blight NUVAN: One of the
Slide 26: Global Partners
Global Partners Technical Marketing tie- Tie-up for Tie-up with Tie-up with JV for collaboration up for SUZUKA MOMENTIVE OAT Agrio to dedicated for specialty (Flubendiamid Performance bring R&D Centre to manufacture products e) and HAKKO Material Inc., specialized discover new and PULSOR (Buprofezin
Slide 27: Performance highlights
2013-14 86453 2014-15 96464 2015-16 98814 (Rs. Lacs) +12.06% Revenue 2016-17 110738 2013-14 3994 2014-15 5484 2015-16 3928 +47% (Rs. Lacs) 2016-17 5813 Profit after tax 2013-14 8222 2014-15 11150 Performance highlights 2015-16 9169 EBITDA (Rs. Lacs) +24.86% 2016-17 11449 2013-14 31 2014-15 43 EPS (R
Slide 28: Sequential Quarterly Performance
Sequential Quarterly Performance Profit and Loss Particulars (INR MN) FY18 Q2 FY 17 Q2 FY 18 H1 FY 17 H1 FY 17 12M FY 16 12M Revenue from Operations 4165.12 4135.82 7283.84 6874.99 11073.84 9881.45 Other Income 24.08 11.35 30.19 13.54 5.50 5.56 Total Revenue 4189.20 4147.17 7314.03 6888.53 11079.34
Slide 29: Financials FY16-17
Financials FY16-17 Standalone Profit and Loss Statement Particulars (INR MN) FY14 FY15 FY16 FY17 Revenue from Operations 8640.81 9641.91 9881.45 11073.84 Other Income 4.53 4.35 5.56 5.50 Total Revenue 8645.34 9646.26 9887.01 11079.34 Cost of Materials Consumed 5502.88 6796.36 5976.72 6289.06 Purchas
Slide 30: Financials FY16-17: Standalone Balance sheet
Financials FY16-17 Standalone Balance sheet Liabilities (INR MN) FY14 FY15 FY16 FY17 Shareholders Fund Share Capital 126.83 126.83 206.67 206.67 Reserve and Surplus 2338.72 2787.28 3882.29 4463.58 Total Shareholders Fund 2465.55 2914.11 4088.96 4670.25 Non-Current Liabilities Long term Borrowing 302
Slide 31: Financials FY16-17: Balance sheet contd
Financials FY16-17 Standalone Balance sheet Contd… Assets (INR MN) FY14 FY15 FY16 FY17 Fixed Assets 2242.74 2423.55 2451.71 2430.67 Non Current Investment 110.85 110.85 110.85 110.85 Long Term Loans ad Advances 47.44 59.24 26.95 21.20 Other Non-Currents Assets 62.72 21.85 59.44 47.06 Total Non Curre
Slide 32: Financial Profile
Financial Profile Insecticides India reported a 6% growth yoy to Rs. 7,314 million in H1 FY18 Gross margin improved by 330bps to 25.5% led by a better product mix EBITDA increased by 30% yoy to Rs1,092 mn as EBITDA margin expanded by 300bps yoy to 15% The company is likely to launch ~10 new products
Slide 33: Financial outlook
Financial outlook IIL’s earnings to witness a CAGR of 10-12% plus over FY17-20E. IIL has a strong edge here considering its future product pipeline and strong research skills via its JVs with MNC players and hence we believe that the future big picture over the next 2-3 years for IIL looks very stro
Slide 34: CSR initiatives
CSR initiatives Children education programs in Adoption of Punjab, village schools Rajasthan, Bihar and Odisha Distribution of books, study materials and stationeries to children Kisan Jagrukta Abhiyan Educates farmers in crop protection and agrochemical use Promotes cultivation of third crops f
Slide 35: Management Team
Management Team Shifting towards Safe and Clean Food is not just an Passion to work for the farmers & make sure they get act; it is a shift of consciousness. We are continuously best of the technology within their reach. evolving ourselves towards it through new age green chemistry. Mr. Rajesh Aggar
Slide 36: Disclaimer
DISCLAIMER CERTAIN STATEMENTS IN THIS DOCUMENT MAY BE FORWARD LOOKING STATEMENTS. SUCH FORWARD-LOOKING STATEMENTS ARE SUBJECT TO CERTAIN RISKS AND UNCERTAINTIES LIKE GOVERNMENT ACTIONS, LOCAL POLITICAL OR ECONOMIC DEVELOPMENTS, TECHNOLOGICAL RISKS, AND MANY OTHER FACTORS THAT COULD CAUSE OUR ACTUAL
Slide 37: Thank you
Thank you For more information, please contact: Company: Mr. Sandeep Agarwal - CFO Insecticides (India) Ltd. Contact: +91 11 2767 9700 E-mail: [email protected] Investor Relations Advisor: Mr. Vinayak Shirodkar / Mr. Krunal Shah KDA Strategic Advisors LLP Email: [email protected]/[email protected]
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