Insecticides (india) Limited · NSE:INSECTICID
Insecticides (india) — Investor Presentation (August 2012)
39 slides from Insecticides (india)'s investor presentation, August 2012
Slide 1: Insecticides (India) Limited Corporate Presentation
Insecticides (India) Limited CORPORATE PRESENTATION August 2012
Slide 2: Indian Agrochemical Industry Overview
INDIAN AGROCHEMICAL INDUSTRY OVERVIEW
Slide 3: Industry overview
Industry overview The size of Indian agrochemicals market is expected to be around Rs 15,000 crores by 2015 Structural enablers to catalyse strong growth Arable land stagnation Rise in MSP trajectory going forward 135 3,500 3,200 3,000 ► Current under penetration of agrochemicals Rs / quintal 130 2,
Slide 4: Company Overview
COMPANY OVERVIEW
Slide 5: IIL's goal
IIL’s goal Value For Money Help farmers to reduce input cost and better their yields Help to bring new generation products in reach of all farmers - big, small and marginal Help increase awareness and lead advancement in agricultural practices
Slide 6: Company overview
Company overview ► Incorporated in 1996 and listed in 2007 Outperforming the index 800 700 624 ► Large and diversified product portfolio providing 600 500 complete solution for crop protection 400 300 119 ► Over 160 products, over 100 branded 200 100 formulations and over 750 SKUs 0 Jan-11 May-11 Ja
Slide 7: Company overview (cont.)
Company overview (cont.) Udhampur, J&K ► State-of-the-art manufacturing facilities at Chopanki, Formulations Udhampur, Samba and Dahej ► Established manufacturing infrastructure for Sambha, J&K both technicals and formulations Formulations ► Recently commissioned new units with sufficient Chopanki,
Slide 8: Milestones
Milestones 2012: Launched Nuvan, Hakama and Pulsor in collaboration with AMVAC and Nissan 2011: Bagged NABL accreditation; acquired Monocil, a popular brand ; commissioned manufacturing units at Dahej and Udhampur (J&K) 2010: Began construction for multi product technical plant with 10,000 TPA capac
Slide 9: Management team
Management team H. C. Aggarwal (Chairman) Rajesh Aggarwal (MD) P.C. Pabbi Sandeep Aggarwal Vice President CFO Information Production Purchase Marketing R&D Admin & HR Finance Technology B.P.S. Rana Abhai Shanker Sanjay Vats Venkat Rao Sanjeev Aggarwal Pankaj Gupta DGM GM GM GM GM CS H.C. Sharma M.K.
Slide 10: Business Overview: Product and Brand Portfolio Management
BUSINESS OVERVIEW Product and Brand Portfolio Management
Slide 11: Strong brand portfolio
Strong brand portfolio ► IIL’s portfolio consists of several market leading brands ► Thimet, Monocil, Lethal, Victor, Indan, Sharp, Arrow, Hijack, Care, Bravo and Avone are some of IIL’s key brands ► New products launched in current year include Nuvan, Pulsor and Hakama ► Sales of top 4 brands – Thi
Slide 12: Pan-India presence
Pan-India presence 26 depots across 24 locations Over 230 sales personnel and over 3,100 distributors J&K D: 18 Punjab S: 36 Ludhiana Uttarakhand Bhatinda D: 336 Sriganganagar Karnal Haryana S: 3 Hissar Gadarpur S: 15 D: 47 Ghaziabad D: 189 Siliguri Rajasthan Jaipur Guwahati U.P. Assam S: 8 Hazipur
Slide 13: "Re-launch" expertise
“Re-launch” expertise IIL has a proven record of acquisitions of ‘high recall, but off-shelf’ brands and their successful re-launch into leading brands ► Lethal, acquired from Montari in 2002 is a shining example ► One of the most successful Brands of IIL with several brand extensions introduced ► S
Slide 14: Proven partnership experience
Proven partnership experience IIL has successfully partnered with several global players to market leading brands in India ► American Vanguard Corp (AMVAC) ► Thimet – Technical collaboration initiated in 2006 ► Nuvan – Technical collaboration started in 2012 ► Nissan Chemicals ► Hakama – New marketi
Slide 15: Increasing institutional presence
Increasing institutional presence IIL is increasing its presence in the institutional segment via sales of bulk formulations and technicals ► IIL’s current portfolio includes several technicals ► Thiamethoxam, Thiophanate Methyl, Glyphosate, Metsulfuron Methyl, Butachlor, Acetamaprid, Lamda Cyhaloth
Slide 16: Business Overview: Manufacturing and R&D Excellence
BUSINESS OVERVIEW Manufacturing and R&D Excellence
Slide 17: Manufacturing facilities
Manufacturing facilities ► Chopanki (Rajasthan) ► Formulations and technicals facility ► Samba (J&K) ► Formulations facility ► Income tax exemption (100%) expected from current year upon completion of capacity expansion, for a period of 5 years ► Udhampur (J&K) ► New formulations facility commission
Slide 18: R&D
R&D ► R&D center recognized by Ministry of Science and Technology and Department of Scientific & Industrial Research ► Facilities are NABL accredited Mission of ► New state-of-the-art R&D center in Chopanki (Rajasthan) expected IIL’s R&D to be ready in the current year initiatives ► Successfully reg
Slide 19: Business Overview: Initiatives and CSR activities
BUSINESS OVERVIEW Initiatives and CSR activities
Slide 20: Farmer awareness initiatives
Farmer awareness initiatives IIL actively organizes several farmer awareness initiatives to familiarize them with the latest developments in farming practices and new technology advancements ► Dr. Dada: Novel concept introducing techno-commercial members as the expert for all queries in the field an
Slide 21: CSR initiatives
CSR initiatives IIL is involved in a host of CSR initiatives aimed at raising farmer awareness and enable development. Some of the key activities where IIL is involved include ► Encourage the farmers for the inclusion of pulses and/or vegetables in crop rotation to increase farm income ► Promote new
Slide 22: Business Overview: Financial Performance
BUSINESS OVERVIEW Financial Performance
Slide 23: Growth trajectory of IIL
Growth trajectory of IIL IIL has grown at approximately 33% year on year from FY2003-FY2012 900 800 800 700 600 554 478 Rs crore 500 397 400 294 300 221 184 200 133 106 100 75 42 - FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13E We expect revenue growth to be around 45% this year and 35% in
Slide 24: Performance across segments
Performance across segments Revenue split across agrochemical Revenue split across market segments segments (FY12) (FY12) 3.7% Total = Rs 554crores Total = Rs 554crores 6.7% 20.9% 28.0% 61.5% 79.1% Insecticides Herbicides Fungicides PGRs Branded formulations Institutional sales Going forward, we exp
Slide 25: Diversity and focus
Diversity and focus Revenue split across diverse regions Revenue split indicating strong in- (FY12) house manufacturing (FY12) Domestic Branded sales = Rs 434crores 8.1% Total = Rs 554crores 15.7% 31.8% 17.1% 5.8% 10.1% 8.3% 11.2% Punjab A.P. Haryana 91.9% Maharashtra UP Karnataka Others Manufacture
Slide 26: Financials as on 31-3-2012
Financials as on 31-3-2012 Summary Profit Rs Summary Balance Rs & Loss statement crores Sheet crores Gross revenues 554 Net worth 182 Net sales 522 Non current liabilities 44 EBITDA 56 Current liabilities 294 PBT 43 Total equity & liabilities 520 PAT 33 Net fixed assets 143 (including CWIP) Other no
Slide 27: Future Prospects
FUTURE PROSPECTS
Slide 28: Future prospects
Future prospects ► Capitalize on IIL’s strengths and pursue ► Product acquisitions to compliment our product portfolio ► Marketing arrangement with global partners to enhance portfolio ► Further growth of our existing product offerings and lines ► Realize growth through commissioning of new manu
Slide 29: Roadmap for growth
Roadmap for growth Enhanced backward integration with increase in technicals Continued focus on manufacturing establishing strong brands capacity Enter into manufacturing – Increase margins R&D focus including and marketing – Enhance in CRAMS segment arrangements with global institutional sa
Slide 30: Growth through R&D
Growth through R&D ► Focus on developing a strong pipeline of registrations ► IIL has over 20 technical registrations in the pipeline, several of which are in advanced stages of approval ► Increased registrations shall enable the Company to enhance its presence in the institutional business ► IIL ha
Slide 31: Growth through Marketing
Growth through Marketing ► New product introduction through tie-ups ► The Company has already launched 3 new branded formulations in the current year through tie-ups with global partners ► Nuvan: generic insecticide to be manufactured in-house under technical collaboration with AMVAC ► Pulsar: paten
Slide 32: Growth through Manufacturing
Growth through Manufacturing ► Manufacturing capacity expansion plan initiated in FY12 is planned to completed in FY13 ► IIL plans to invest around Rs 50 crores in FY13 for completion of the expansion plan ► The Company shall set up substantial additional capacity across segments ► Key benefits of m
Slide 33: Growth prospects
Growth prospects Year Turnover EBITDA Branded Institutional (FY) (Rs Cr) (Rs Cr) Formulations Sales (Rs Cr) Sales (Rs Cr) 2012 554 56 438 116 2013E 800 95 620 180 2014E 1,080 130 730 350
Slide 34: Growth prospects
Growth prospects ► Revenue growth in FY13 will be fuelled mainly by ► Growth in established market leading brands ► New product introductions ► Enhanced institutional sales business ► The Company expects its EBITDA margin in FY13 to be in the range of 12% - 13% on the back of ► Backward integration
Slide 35: Key Takeaways
(INDIA) LIMITED
Slide 36: IIL: Success factors
IIL: Success factors ► Positive industry dynamics ► Demand drivers, genetic trends, gaps in food production and burgeoning demand ► Participant in diversified markets ► Branded formulations, institutional sales & non-crop applications ► Proven product acquisition model ► Successful repositioni
Slide 37: IIL: Key strengths
IIL: Key strengths ► Growing participant in a healthy industry with significant growth potential ► Successful and adaptable business model ► Strong all India marketing network ► Diversified end-use markets - Branded & Institutional; Crop & Non-Crop ► Experience of handling leading brands in the coun
Slide 38: Disclaimer
Disclaimer Whereas due care and caution is taken in furnishing the information contained herein, this document has not been independently verified and IIL disclaims all responsibility and/or liability directly or indirectly on any cause of action arising out of such information. To the maximum exten
Slide 39: Thanks
(INDIA) LIMITED THANKS ~<* io
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